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Archive for June, 2000

AEP INDUSTRIES REPORTS FISCAL 2000 SECOND QUARTER AND SIX-MONTH RESULTS

Monday, June 12th, 2000

CONTACT: Paul Feeney
Executive Vice President and
Chief Financial Officer
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

South Hackensack, NJ, June 12, 2000 -AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for the fiscal 2000 second quarter and six months ended April 30, 2000.

Net sales for the fiscal 2000 second quarter increased 11.1 percent to $184,139,000 from $165,754,000 in the prior-year same quarter. For the six months ended April 30, 2000, net sales were $347,985,000, a 9.5 percent increase over the $317,652,000 recorded during the same period last year. An 8.4 percent volume increase in the North American operations is primarily responsible for the growth in net sales. Total volume increased 5.87 percent for the quarter and 3.33 percent for the six-month period. The Company had year to date volume increases in all of its geographical regions.

“Unfavorable market conditions throughout the world continue to negatively affect AEP’s operating results, especially with regards to the volatility of resin prices and the competitive landscape,” said Brendan Barba, Chairman and Chief Executive Officer of AEP.

The Company reported a loss from continuing operations for the quarter of $449,000, or $0.06 per share (diluted), compared with income from continuing operations of $2,071,000, or $0.28 per share (diluted), in last year’s quarter. In April 2000, the Company amended its senior credit facility, which resulted in a $787,000 non-cash charge to interest expense in the fiscal 2000 second quarter for the write-off of unamortized prior amendment costs. For the first six months of fiscal 2000, AEP reported a loss from continuing operations of $1,602,000, or $0.21 per share (diluted), including the aforementioned write off, as well as a charge of $566,000 related to employee severance, compared with income from continuing operations of $3,906,000, or $0.54 per share (diluted), in the prior-year period.

The second quarter net loss was $449,000, or $0.06 per share (diluted), compared with net income of $1,278,000, or $0.17 per share (diluted), in the same period last year. The six-month net loss was $1,602,000, or $0.21 per share (diluted), compared with a net loss of $14,488,000, or $1.99 per share (diluted), for the first six months of fiscal 1999. The 1999 second quarter and six-month results included a loss from discontinued operations of $793,000, or $0.11 per share (diluted), and $18,394,000, or $2.53 per share (diluted), respectively. These losses reflect the discontinuance and the sale of the Company’s Oriented Polypropylene (OPP) business.

“While we are not happy with the year to date decline in net income, we continue to believe the downward pressures on our gross profit margins are temporary and we expect to see improving margins in the near future,” commented Barba. “Concurrently, we are targeting areas for cost and quality improvements and are returning to our core strengths and competencies. We remain confident we have built the foundation for solid growth in the future,” Barba concluded.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 11 countries throughout North America, Europe and Asia/Pacific.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained from the Company.