ONEBGG
21 years ago
U.S. Plastic Lumber Announces Sale of Slip Sheet Business
January 05, 2004
Transaction Strengthens Balance and Improves Focus on Core Business
BOCA RATON, FL, December 18, 2003 - U.S. Plastic Lumber Corp. (OTCBB:USPL), announced today that it has completed the sale of its slipsheet business to Illinois Tool Works Inc. (“ITW”) for a net purchase price of $8.4 million. Proceeds will be used for debt reduction and working capital.
Mark Alsentzer, CEO of USPL stated, “We are pleased that we have been able to close the sale of our slipsheet business to ITW. Although we had developed a strong slipsheet business, the company determined that the business was not an integral part of the future growth plans of USPL. As a result of the transaction, the company plans to reduce debt, and further strengthening our balance sheet. In addition, the sale provides the Company with working capital to allow USPL to continue to focus on what it believes offers the greatest growth opportunity for the foreseeable future.” Mr. Alsentzer also stated that ITW previously purchased the cornerboard business of USPL in May, 2003, which like slipsheet, was a part of the packaging division of USPL.
****
Certain statements and information included in this press release constitute “forward looking statements” contained within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “projected”, “intends to” or similar expressions are intended to identify “forward-looking statements”. Such statements are subject to certain risks and uncertainties, including but not limited to risks associated with our credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, the affects of rapid growth upon the Company and the ability of management to effectively respond to such growth, demand for products and services of the Company, newly developing technologies, the Company’s ability to compete, regulatory matters, protection of the Company’s proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussions of such factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations are contained in the Company’s SEC filings.
CONTACT:
U.S. Plastic Lumber Corp.
Mark S. Alsentzer, CEO
561-394-3511
KCSA Worldwide
Evan Smith, CFA or Erica Pettit
212-896-1251 or 212-896-1248
http://www.usplasticlumber.com/news/index.phpfuseAction=item&archives=0&ngID=6&nsID=125
jmhollen
21 years ago
US Plastic Lumber Corp. Joins with Solutia, Inc. in ``Partners for Renewal'' Program
BOCA RATON, Fla., Nov 19, 2003 (BUSINESS WIRE) -- US Plastic Lumber Corp. (OTCBB:USPL) today announced that it has joined up with the contract carpet market, Solutia Inc. (NYSE:SOI) in Solutia's "Partners for Renewal" program.
US Plastic Lumber has signed a letter of intent to test and incorporate post consumer carpet as a key ingredient for use in its DuraTie(R) composite railroad crossties, Trimax(R) dimensional lumber, and marine timbers. "We are very excited to work with Solutia on this new initiative. Their unique partnering approach to solve landfill diversion challenges is a winning business model and just makes good sense from an environmental perspective. In addition, our results show the use of post consumer carpet feedstock will provide a major advantage in terms of product performance and costs," said Mark Alsentzer, Chairman, CEO and President of US Plastic Lumber.
Partners for Renewal is a unique initiative designed to facilitate the recovery and reuse the valuable natural resources embodied in post consumer carpet. "Our strategy is to promote collaboration and encourage an entrepreneurial spirit in order to accomplish our key objectives," stated Dr. Robert Peoples, Ph.D, Director of Carpet Sustainability & Business Development, Solutia, Inc. "Our primary objective is to find new ways to divert carpet from the landfill via new process and product technology. These waste streams are becoming valuable raw materials. It's a way of reusing the oil originally consumed to create these products. Now we can close the loop. We are able to facilitate the efforts of entrepreneurs committed to the sustainability by lending the credibility and resources of Solutia. The use of post consumer carpet in composite crossties will be a win-win for the railroads, US Plastic Lumber, the carpet industry, and the environment. -- a grand slam if you will."
Mr. Alsentzer concluded, "US Plastic Lumber is excited to be working with Solutia. Solutia's objective is to deliver real solutions to the challenge of carpet landfill diversion. US Plastic Lumber's objective is to continue to improve the environment in which we live while providing durable products for the marketplace at competitive prices."
About US Plastic Lumber Corp.
US Plastic Lumber Corp., http://www.usplasticlumber.com, is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. US Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), Recycle Design(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R) and DuraTie(R). USPL currently operates three plastic manufacturing centers.
About Solutia Inc.
Solutia Inc., http://www.solutia.com, uses world-class skills in applied chemistry to create value-added solutions for customers, whose products improve the lives of consumers every day. Solutia is a world leader in performance films for laminated safety glass and after-market applications; process development and scale-up services for pharmaceutical fine chemicals; specialties such as water treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an integrated family of nylon products including high-performance polymers and fibers.
Solutia .... Solutions For A Better Life.
Certain statements and information included in this press release constitute ``forward-looking statements'' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to risks associated with the Company's credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.
SOURCE: US Plastic Lumber Corp.
US Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561/394-3511
or
KCSA Worldwide, New York
Evan Smith or Erica Pettit
212/896-1251 or 212/896-1248
jmhollen
21 years ago
U.S. Plastic Lumber Corp. Announces Third Quarter and First Nine Months 2003 Operating Results
Ocala Plant Re-Opens On a Limited Basis With Full Production Anticipated By First Q
BOCA RATON, Fla., Nov 14, 2003 (BUSINESS WIRE) -- U.S. Plastic Lumber Corp. (OTCBB:USPL) today announced its operating results for the three and nine months ended September 30, 2003.
In addition, the Company today announced that it has recently re-opened the Ocala facility on a limited production basis; which the company announced in August was temporarily shut down due to an explosion outside the plant. The Company anticipates the facility to be at full production by the end of January 2004.
Revenues for the third quarter of 2003 were $8.0 million compared with $10.6 million for the same quarter in 2002, a decrease of 25%. The decrease was mainly due to lower sales of the Company's building products and the sale of the Cornerboard packaging division in May of 2003. Net loss for the quarter was $4.4 million, or $0.07 per basic and diluted share, as compared to a net loss in the third quarter of 2002 of $2.9 million, or $0.06 per basic and diluted share. The 2002 results reflect income from discontinued operations of $4.6 million, as the Company completed the sale of its environmental recycling and remediation business on September 9, 2002. Net loss in 2003 includes $353,000 of income related to the discontinued operation. Loss from continuing operations for the three months ending September 30, 2003 was $4.7 million, or $0.07 per basic and diluted share, as compared to loss from continuing operations of $7.5 million, or $0.15 per basic and diluted share, for the comparable period of a year ago. The 2003 results from continuing operations reflect lower interest and selling, general and administrative (SG&A) expenses, partially offset by higher warranty claims of approximately $1.8 million and no restructuring charges.
Revenues for the first nine months of 2003 were $28.9 million compared with $39.8 million for the same period in 2002, a decrease of 27%. The Company attributed part of this decrease to not having sufficient inventory to meet the demand for its building products during the first nine months of 2003, mainly due to cash constraints and slower production rates of some of its newly formulated decking products. Revenues were also negatively impacted by the sale of the Cornerboard packaging division in May of 2003. Loss from continuing operations was $5.1 million, or $0.08 per basic and diluted share, as compared to loss from continuing operations of $14.9 million, or $0.34 per basic and diluted share, for the first nine months of 2002. In the second quarter of 2003, the Company recorded a gain on the sale of the Cornerboard division of $4.3 million. USPL continued to benefit from substantially lower interest expense in 2003 as a result of the restructuring of the balance sheet in the second half of 2002, which resulted in lower debt levels and the elimination of certain non-cash interest charges; which had materially impacted the Company's earnings in 2002. In addition, SG&A decreased by approximately $3.0 million for the first nine months of 2003 as compared to 2002, due to cost reduction initiatives that began in late 2002 and have continued into 2003. These savings have been largely offset by increases to the Company's accrual for warranty claims related to our previously announced product recall in the nine-month period in 2003 of approximately $2.2 million, which are reflected in Cost of Goods Sold. Net loss for the first nine months of 2003 was $4.4 million, or $0.07 per basic and diluted share, as compared to $9.4 million, or $0.21 per basic and diluted share, for the first nine months of 2002. USPL recorded $703,000 of income from discontinued operations for the first nine months of 2003, compared with income from discontinued operations of $5,460,000 during the comparable period of 2002.
Mark Alsentzer, Chairman, CEO and President of USPL said, "We are pleased to see the improvements as a result of the cost reduction initiatives that we implemented at the end of last year. Although we have made significant progress year-to-date in reducing our SG&A expenses and our interest expense, our near-term results have been impacted by the Company's working capital constraints. The company is aggressively pursuing opportunities to further improve its balance sheet and its access to capital to enable it to meet the growing product demand and improve its overall operating performance. In addition, the Company is working diligently with its insurance carrier to return the Ocala plant to full operations in the first quarter of 2004. We believe that the demand for alternative wood products has never been stronger and reductions in costs position the Company well to re-gain profitability with increasing sales."
As previously announced, USPL received an amendment to its credit facility with its senior lender, Guaranty Business Credit Corporation ("GBCC"), to extend the maturity date of the facility to November 30, 2003. GBCC is continuing to work with the Company as it explores various strategic alternatives to restructure its debt with GBCC.
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U.S. Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R). USPL currently operates three plastic manufacturing centers.
TABLE FOLLOWS
U.S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended September 30, 2003 and 2002
(Dollars in thousands except share and per share amounts)
-----------------------
2003 2002
----------- -----------
Revenues, net $7,981 $10,646
Cost of goods sold 9,887 11,028
----------- -----------
Gross Loss (1,906) (382)
Selling, General and Administrative 1,924 2,614
Restructuring and asset impairment charges - 453
----------- -----------
Operating Loss (3,830) (3,449)
Other income 8 53
Loss on sale of assets (56) (7)
Interest expense 852 4,093
----------- -----------
Loss from continuing operations (4,730) (7,496)
Discontinued operations:
Income from operations discontinued
environmental recycling segment - 2,920
Gain on disposal of discontinued
environmental recycling segment net of
taxes 353 1,637
----------- -----------
Income from discontinued operations 353 4,557
----------- -----------
Net Loss $(4,377) $(2,939)
=========== ===========
Net loss per common share - Basic:
Loss from continuing operations $(0.07) $(0.15)
Income from discontinued operations - 0.09
----------- -----------
Net loss per common share $(0.07) $(0.06)
=========== ===========
Net loss per common share - Diluted:
Loss from continuing operations $(0.07) $(0.15)
Income from discontinued operations - 0.09
----------- -----------
Net loss per common share $(0.07) $(0.06)
=========== ===========
Weighted average common shares outstanding -
Basic 64,479,216 48,725,448
Weighted average common shares outstanding -
Diluted 64,479,216 48,725,448
U.S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Nine Months Ended September 30, 2003 and 2002
(Dollars in thousands except share and per share amounts)
-----------------------
2003 2002
----------- -----------
Revenues, net $28,905 $39,773
Cost of goods sold 29,751 34,111
----------- -----------
Gross Profit (Loss) (846) 5,662
Selling, General and Administrative 6,679 9,657
Restructuring and asset impairment charges - 453
----------- -----------
Operating Loss (7,525) (4,448)
Other income (6) 233
Gain (loss) on sale of assets 4,354 (10)
Interest expense 1,969 10,659
Provision for income taxes - -
----------- -----------
Loss from continuing operations (5,146) (14,884)
Discontinued operations:
Income from operations discontinued
environmental recycling segment - 3,823
Gain on disposal of discontinued
environmental recycling segment net of
taxes 703 1,637
----------- -----------
Income from discontinued operations 703 5,460
Net loss (4,443) (9,424)
Preferred dividends - (177)
----------- -----------
Net loss attributable to common stockholders $(4,443) $(9,601)
=========== ===========
Net Loss per common share - Basic and diluted:
Loss from continuing operations $(0.08) $(0.34)
Income from discontinued operations 0.01 0.13
----------- -----------
Net loss per common share $(0.07) $(0.21)
=========== ===========
Weighted average common shares outstanding -
basic and diluted 64,479,216 44,720,499
=========== ===========
SOURCE: U.S. Plastic Lumber Corp.
CONTACT: U.S. Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561/394-3511
or
KCSA Worldwide
Evan Smith, or Erica Pettit, 212/896-1251 or 212/896-1248
jmhollen
21 years ago
U.S. Plastic Lumber Corp. Announces Amendment to Its Senior Lending Credit Facility
BOCA RATON, Fla., Nov 3, 2003 (BUSINESS WIRE) -- U.S. Plastic Lumber Corp. (OTCBB:USPL) today announced that it has entered into a Third Amendment of the Loan and Security Agreement it entered into with Guaranty Business Credit Corporation ("GBCC") on December 19, 2002 (the "Third Amendment").
The Third Amendment provides, among other things, that:
U.S. Plastic Lumber Corp. Announces Amendment to Its Senior Lending Credit Facility
BOCA RATON, Fla., Nov 3, 2003 (BUSINESS WIRE) -- U.S. Plastic Lumber Corp. (OTCBB:USPL) today announced that it has entered into a Third Amendment of the Loan and Security Agreement it entered into with Guaranty Business Credit Corporation ("GBCC") on December 19, 2002 (the "Third Amendment").
The Third Amendment provides, among other things, that:
(i) GBCC agrees to extend the deadline for the Closing Date (as
such term is defined in the Second Amendment) for the Sale
from October 31, 2003 to November 30, 2003; if the Obligations
are not paid in full on or before November 30, 2003, then an
Event of Default shall have occurred entitling GBCC to
exercise all of its default rights and remedies under the GBCC
Credit Facility, and
(ii) GBCC agrees to increase the Special Advance Subline from
$1,750,000 to $2,000,000.
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U.S. Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R). USPL currently operates three plastic manufacturing centers.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to risks associated with the Company's credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.
SOURCE: U.S. Plastic Lumber Corp.
U.S. Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561-394-3511
or
KCSA Worldwide
Evan Smith, CFA or Erica Pettit
212-896-1251 or 212-896-1248
(i) GBCC agrees to extend the deadline for the Closing Date (as
such term is defined in the Second Amendment) for the Sale
from October 31, 2003 to November 30, 2003; if the Obligations
are not paid in full on or before November 30, 2003, then an
Event of Default shall have occurred entitling GBCC to
exercise all of its default rights and remedies under the GBCC
Credit Facility, and
(ii) GBCC agrees to increase the Special Advance Subline from
$1,750,000 to $2,000,000.
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U.S. Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R). USPL currently operates three plastic manufacturing centers.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to risks associated with the Company's credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.
SOURCE: U.S. Plastic Lumber Corp.
U.S. Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561-394-3511
or
KCSA Worldwide
Evan Smith, CFA or Erica Pettit
212-896-1251 or 212-896-1248
ONEBGG
21 years ago
NEWS: U.S. Plastic Lumber Corp. Announces Temporary Plant Closing Due to Explosion at Its Ocala Facility
BOCA RATON, Fla., Aug 19, 2003 (BUSINESS WIRE) -- U.S. Plastic Lumber Corp.
(OTCBB: USPL) today announced its Ocala Plant has been shut down temporarily due
to an explosion yesterday that resulted in one fatal accident. All employees
were immediately evacuated from the facility and were notified not to report to
work during the emergency closing. The accident occurred in an outdoor recycled
wood drying area. As a result of the accident, an employee was fatally injured
while working near the outdoor wood dryer system, where an apparent gas
explosion took place during the start-up of the unit.
Recycled wood is used solely in the Company's composite decking products, which
was the area effected by the incident. All other product lines manufactured at
the Ocala plant sustained no damage.
Mark Alsentzer, Chairman, CEO and President of USPL stated, "We are deeply
saddened by the fatality caused by this accident. The safety of our employees is
of the utmost importance to both the company and myself. We are actively
investigating the cause of the accident and will take the necessary steps to
ensure the safety of our employees."
The Ocala plant manufactures composite decking products made from recycled wood
and recycled plastic resin. The Company anticipates the plant will be closed for
a short period, approximately one to two weeks, while it completes an
investigation into the accident and its causes and commences repairs in order to
resume production.
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber,
returnable packaging and other value added products from recycled plastic. U.S.
Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic
lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated,
nationwide processor of a wide range of products made from recycled plastic
feedstocks. USPL creates high quality, competitive building materials,
furnishings, and industrial supplies by processing plastic waste streams into
purified, consistent products. USPL's products are environmentally responsible
and are both aesthetically pleasing and maintenance friendly. They include such
brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth
Care(TM), and OEM products including Cyclewood(R). USPL currently operates three
plastic manufacturing centers.
Certain statements and information included in this press release constitute
``forward-looking statements' within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. When used in this press release, the
words or phrases "will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "projected", "intends to" or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks, known and unknown, and uncertainties, including but not limited
to risks associated with the Company's credit facilities and liquidity, the
ability to obtain adequate financing on commercially acceptable terms, economic
conditions, demand for products and services of the Company, newly developing
technologies, the Company's ability to compete, regulatory matters, protection
of the Company's proprietary technology, the effects of competition from
entities with greater financial resources than that possessed by the Company and
shareholder dilution. Such factors could materially adversely affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
within this press release. Additional discussion of such factors that could
cause actual results to differ materially from management's projections,
forecasts, estimates and expectations is contained in the Company's SEC filings.
SOURCE: U.S. Plastic Lumber Corp.
CONTACT: U.S. Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561/394-3511
or
KCSA Worldwide, New York
Evan Smith or Erica Pettit
212/896-1251 or 212/896-1248
http://quotes.freerealtime.com/rt/frt/N?symbol=USPL&art=C2003081900231b7723&SA=Latest%20News
Get Ready To Buy!!!
ONEBGG
21 years ago
U. S. PLASTIC LUMBER CORP. ANNOUNCES SECOND QUARTER AND FIRST SIX MONTHS 2003 OPERATING RESULTS
Contact:
Mark S. Alsentzer, CEO
Michael D. Schmidt, Chief Financial Officer
561-394-3511
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 14, 2003--U.S. Plastic Lumber Corp. (OTCBB:USPL.OB) today announced its operating results for the three and six months ended June 30, 2003. The results and discussion that follow pertain solely to the Company's continuing Plastic Lumber operations, as USPL completed the previously announced sale of its environmental recycling and remediation business, Clean Earth, Inc., ("CEI") on September 9, 2002.
Revenues for the second quarter of 2003 were $9.7 million compared with $14.9 million for the same quarter in 2002, a decrease of 35%. The decrease was mainly due to lower sales of the Company's building products and the sale of the Cornerboard operations in May of 2003. Income from continuing operations was $1.9 million, or $0.03 per basic and diluted share, as compared to loss from continuing operations of $4.1 million, or $0.09 per basic and diluted share, in the second quarter of 2002. In the second quarter of 2003, the Company recorded a gain on the sale of the cornerboard operation of $4.3 million. Excluding this one-time item, loss from continuing operations would have been approximately $2.4 million, or $0.04 per basic and diluted share, as reduction in gross margins in 2003 were more than offset by significantly lower interest expense and selling, general and administrative ("SG&A") expenses. Net income for the second quarter of 2003 was $2.2 million, or $0.03 per basic and diluted share, compared to a net loss of $3.7 million, or $0.08 per basic and diluted share, for the second quarter of 2002. In the second quarter of 2003, USPL recorded $350,000 of income from discontinued operations as a result of the settlement of litigation with the purchaser of CEI. Income from discontinued operations was $419,000 in the second quarter of 2002.
Revenues for the first six months of 2003 were $20.9 million compared with $29.1 million for the same period in 2002, a decrease of 28%. The Company attributed part of this decrease to not having sufficient inventory to meet the demand for its building products during the first six months of 2003, mainly due to cash constraints and slower production rates of some of its newly formulated decking products. Revenues were also negatively impacted by the sale of the Cornerboard operations in May of 2003. Loss from continuing operations was $0.4 million, or $0.01 per basic and diluted share, as compared to loss from continuing operations of $7.4 million, or $0.18 per basic and diluted share, for the first six months of 2002. Excluding the gain on the sale of the cornerboard division, loss from continuing operations would have been approximately $4.7 million, or $0.07 per basic and diluted share. USPL continued to benefit from substantially lower interest expense in 2003 as a result of the restructuring of the balance sheet in the second half of 2002, which resulted in lower debt levels and the elimination of certain non-cash interest charges; which had materially impacted the Company's earnings in 2002. In addition, SG&A decreased by approximately $1.8 million for the first six months of 2003 as compared to 2002, due to cost reduction initiatives that began in late 2002 and have continued into 2003. Net loss for the first six months of 2003 was $66,000, or $0.00 per basic and diluted share, compared to $6.5 million, or $0.16 per basic and diluted share, for the first six months of 2002, as USPL recorded $350,000 of income from discontinued operations for the first six months of 2003, compared with income from discontinued operations was $903,000 during the comparable period of 2002.
Mark Alsentzer, Chairman, CEO and President of USPL said, "While USPL has made substantial progress to improve its balance sheet over the last two quarters, the focus for the remainder of 2003 is to increase sales across all of our product lines, which in turn should improve our gross margins. Over the past two quarters, we have reduced our Selling, General and Administrative Expense and significantly lowered our interest expense as a result of paying down debt. We believe that the strengthening demand for alternative wood products combined with our improved balance sheet and reduced cost structure, position the Company well to improve sales and enable the Company to re-gain profitability."
As previously announced, USPL completed the sale of its cornerboard operation in May of 2003. The net proceeds of approximately $8.2 million were used to pay down debt and for general working capital purposes. Although the Company did receive a default notice on July 10, 2003 from its senior lender, Guaranty Business Credit Corporation ("GBCC"), for failure to meet EBITDA-related financial covenants, GBCC is continuing to work with the Company as it explores various strategic alternatives to restructure its debt with GBCC.
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U.S. Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R). USPL currently operates three plastic manufacturing centers.
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to risks associated with the Company's credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.
U.S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended June 30, 2003 and 2002
(Dollars in thousands except share and per share amounts)
----------- -----------
2003 2002
----------- -----------
Revenues, net: $ 9,708 $ 14,924
Cost of goods sold 8,897 12,036
----------- -----------
Gross Profit 811 2,888
Selling, General and Administrative 2,722 3,840
----------- -----------
Operating Loss (1,911) (952)
Other (expense) income (17) 114
Gain (loss) on sale of assets 4,326 (3)
Interest expense 531 3,253
Provision for income taxes - -
----------- -----------
Income (loss) from continuing
operations 1,867 (4,094)
Discontinued operations:
Income from operations discontinued
environmental recycling segment 350 419
----------- -----------
Income from discontinued operations 350 419
----------- -----------
Net Income (loss) $ 2,217 $ (3,675)
=========== ===========
Income (loss) per common share - Basic:
Loss from continuing operations $ 0.03 $ (0.09)
Income (loss) from discontinued
operations - 0.01
----------- -----------
Net loss per common share $ 0.03 $ (0.08)
=========== ===========
Income (loss) per common share - Diluted:
Loss from continuing operations $ 0.03 $ (0.09)
Income from discontinued operations - 0.01
----------- -----------
Income (loss) per common share $ 0.03 $ (0.08)
=========== ===========
Weighted average common shares outstanding -
Basic 64,451,743 44,322,988
Weighted average common shares outstanding -
Diluted 67,713,264 44,322,988
U.S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Six Months Ended June 30, 2003 and 2002
(Dollars in thousands except share and per share amounts)
----------- -----------
2003 2002
----------- -----------
Revenues, net: $ 20,924 $ 29,128
Cost of goods sold 19,424 23,083
----------- -----------
Gross Profit 1,500 6,045
Selling, General and Administrative 5,195 7,043
----------- -----------
Operating Loss (3,695) (998)
Other income (14) 180
Gain (loss) on sale of assets 4,410 (3)
Interest expense 1,117 6,567
Provision for income taxes - -
----------- -----------
Loss from continuing operations (416) (7,388)
Discontinued operations:
Income (Loss) from operations discontinued
environmental recycling segment 350 903
----------- -----------
Income (loss) from discontinued
operations 350 903
Net loss (66) (6,485)
Preferred dividends - (177)
----------- -----------
Net loss attributable to common stockholders $ (66) $ (6,662)
=========== ===========
Net Loss per common share - Basic and
diluted:
Loss from continuing operations $ (0.01) $ (0.18)
Income from discontinued operations 0.01 0.02
----------- -----------
Net loss per common share $ (0.00) $ (0.16)
=========== ===========
Weighted average common shares outstanding -
basic and diluted 64,440,273 42,684,834
=========== ===========
http://www.usplasticlumber.com/
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