Ivex Packaging Corporation Reports Earnings for the First Quarter of 2001

Apr 25, 2001, 01:00 ET from Ivex Packaging Corporation

    LINCOLNSHIRE, Ill., April 25 /PRNewswire/ -- Ivex Packaging Corporation
 (NYSE:   IXX) ("Ivex") reported results of operations for the first quarter
 ended March 31, 2001.
     Net sales for the first quarter of 2001 were $159.5 million, compared to
 $181.5 million reported for the same period in 2000.  Adjusted for the
 divestiture of the Specialty Coating business, net sales increased 1.8% in the
 first quarter compared the first quarter of 2000.  Net income for the first
 quarter of 2001 was $4.2 million, or $.21 per share, compared to $4.2 million
 or $.21 per share, reported for the first quarter of 2000.
     George V. Bayly, Chairman and Chief Executive Officer, commented,
 "Management is pleased with the first quarter financial performance given the
 difficult economic and business environment.  Momentum started building as we
 entered the second quarter and we remain confident that we can profitably grow
 our business in 2001 and beyond.  The Company continues to target earnings per
 share growth of 15% in 2001."
     The Company will hold a conference call on April 26, 2001 at 9:00 a.m.
 (ET) to discuss the news release.  For listen-only access to the conference
 call, please dial 888-273-9891 by 8:45 a.m. (ET).  The access code is "Ivex
 Packaging".  A replay of the conference call will be available from 3:00 p.m.
 (ET) on April 26, 2001 to 11:00 p.m. (ET) on May 1, 2001.  In addition, the
 conference call will be broadcast over the Internet and can be accessed from a
 link on the Company's home page at http://www.ivexpackaging.com .  Listeners
 should go to the web site prior to the call to register and to download any
 necessary audio software.
     Ivex is a vertically integrated specialty packaging company engaged in the
 manufacturing and marketing of a broad range of plastic and paper products to
 the consumer, medical, electronics, computer and technical markets.
 
     The statements contained in this press release are forward-looking and are
 identified by the use of forward looking words and phrases, such as
 "estimates," "plans," "expects," "to continue," "subject to," "target" and
 such other similar phrases.  These forward looking statements are based on the
 current expectations of the Company.  Because forward looking statements
 involve risks and uncertainties, the Company's plans, actions and actual
 results could differ materially.  Among the factors that could cause plans,
 actions and results to differ materially from current expectations are: (i)
 changes in consumer demand and prices resulting in a negative impact on
 revenues and margins; (ii) raw material substitutions and increases in the
 costs of raw materials, utilities, labor and other supplies; (iii) increased
 competition in the Company's product lines; (iv) changes in capital
 availability or costs; (v) workforce factors such as strikes or labor
 interruptions; (vi) the ability of the Company and its subsidiaries to develop
 new products, identify and execute capital programs and efficiently integrate
 acquired businesses; (vii) the cost of compliance with applicable governmental
 regulations and changes in such regulations, including environmental
 regulations; (viii) the general political, economic and competitive conditions
 in markets and countries where the Company and its subsidiaries operate,
 including currency fluctuations and other risks associated with operating in
 foreign countries; and (ix) the timing and occurrence (or non-occurrence) of
 transactions and events which may be subject to circumstances beyond the
 control of the Company and its subsidiaries.
 
     Following are more detailed financial results for the quarter and the year
 ended March 31, 2001.
 
 
                           IVEX PACKAGING CORPORATION
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (dollars in thousands, except per share data)
 
                                                     Quarter ended March 31,
 
                                                         2001       2000 (A)
     Net sales                                      $ 159,487      $ 181,512
     Cost of goods sold                               128,309        144,162
     Gross profit                                      31,178         37,350
     Operating expenses:
       Selling                                          7,226          9,319
       Administrative                                  10,172         11,459
       Amortization of intangibles                        871            851
         Total operating expenses                      18,269         21,629
     Income from operations                            12,909         15,721
     Other income (expense):
       Interest expense                                (6,495)        (9,073)
       Other                                               38             78
     Income before income taxes                         6,452          6,726
     Income tax provision                               2,258          2,489
     Net income                                        $4,194         $4,237
 
     Earnings per share:
       Diluted:
         Net income                                    $ 0.21          $0.21
         Weighted average shares outstanding       20,395,225     20,498,354
 
     (A) The Company has reclassified shipping costs for the prior period from
         the Company's net sales to cost of goods sold in accordance with the
         Emerging Issues Task Force ("EITF") consensus opinion, EITF No. 00-10.
         Among other things, this opinion requires changes to the company's
         prior practice of deducting shipping costs from gross sales in
         arriving at net sales.  Certain other amounts in the consolidated
         financial statements for 2000 have been reclassified to the 2001
         presentation.
 
     Consolidated balance sheet data:                March 31,    December 31,
                                                       2001           2000
      Working capital                                 $83,160        $59,361
      Total assets                                    592,273        592,763
      Long-term debt                                  355,912        336,087
      Stockholder's equity                             76,736         79,597
 
                           Ivex Packaging Corporation
                   Summary of Net Sales and EBITDA by Segment
               For the Three Months Ended March 31, 2001 and 2000
 
     Net Sales
                                      For the Three Months Ended
                                March 31, 2001             March 31, 2000
 
     Consumer Packaging    $129,771         81.4%     $126,196         69.5%
     Protective Packaging    29,716         18.6%       55,316         30.5%
 
     Consolidated          $159,487        100.0%     $181,512        100.0%
 
 
     EBITDA
                                      For the Three Months Ended
                                 March 31, 2001             March 31, 2000
 
     Consumer Packaging     $18,949         14.6%      $19,525         15.5%
     Protective Packaging     5,191         17.5%        8,726         15.8%
     Corporate Expenses      (1,780)            -       (1,772)            -
 
     Consolidated           $22,360         14.0%      $26,479         14.6%
 
 
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SOURCE Ivex Packaging Corporation
    LINCOLNSHIRE, Ill., April 25 /PRNewswire/ -- Ivex Packaging Corporation
 (NYSE:   IXX) ("Ivex") reported results of operations for the first quarter
 ended March 31, 2001.
     Net sales for the first quarter of 2001 were $159.5 million, compared to
 $181.5 million reported for the same period in 2000.  Adjusted for the
 divestiture of the Specialty Coating business, net sales increased 1.8% in the
 first quarter compared the first quarter of 2000.  Net income for the first
 quarter of 2001 was $4.2 million, or $.21 per share, compared to $4.2 million
 or $.21 per share, reported for the first quarter of 2000.
     George V. Bayly, Chairman and Chief Executive Officer, commented,
 "Management is pleased with the first quarter financial performance given the
 difficult economic and business environment.  Momentum started building as we
 entered the second quarter and we remain confident that we can profitably grow
 our business in 2001 and beyond.  The Company continues to target earnings per
 share growth of 15% in 2001."
     The Company will hold a conference call on April 26, 2001 at 9:00 a.m.
 (ET) to discuss the news release.  For listen-only access to the conference
 call, please dial 888-273-9891 by 8:45 a.m. (ET).  The access code is "Ivex
 Packaging".  A replay of the conference call will be available from 3:00 p.m.
 (ET) on April 26, 2001 to 11:00 p.m. (ET) on May 1, 2001.  In addition, the
 conference call will be broadcast over the Internet and can be accessed from a
 link on the Company's home page at http://www.ivexpackaging.com .  Listeners
 should go to the web site prior to the call to register and to download any
 necessary audio software.
     Ivex is a vertically integrated specialty packaging company engaged in the
 manufacturing and marketing of a broad range of plastic and paper products to
 the consumer, medical, electronics, computer and technical markets.
 
     The statements contained in this press release are forward-looking and are
 identified by the use of forward looking words and phrases, such as
 "estimates," "plans," "expects," "to continue," "subject to," "target" and
 such other similar phrases.  These forward looking statements are based on the
 current expectations of the Company.  Because forward looking statements
 involve risks and uncertainties, the Company's plans, actions and actual
 results could differ materially.  Among the factors that could cause plans,
 actions and results to differ materially from current expectations are: (i)
 changes in consumer demand and prices resulting in a negative impact on
 revenues and margins; (ii) raw material substitutions and increases in the
 costs of raw materials, utilities, labor and other supplies; (iii) increased
 competition in the Company's product lines; (iv) changes in capital
 availability or costs; (v) workforce factors such as strikes or labor
 interruptions; (vi) the ability of the Company and its subsidiaries to develop
 new products, identify and execute capital programs and efficiently integrate
 acquired businesses; (vii) the cost of compliance with applicable governmental
 regulations and changes in such regulations, including environmental
 regulations; (viii) the general political, economic and competitive conditions
 in markets and countries where the Company and its subsidiaries operate,
 including currency fluctuations and other risks associated with operating in
 foreign countries; and (ix) the timing and occurrence (or non-occurrence) of
 transactions and events which may be subject to circumstances beyond the
 control of the Company and its subsidiaries.
 
     Following are more detailed financial results for the quarter and the year
 ended March 31, 2001.
 
 
                           IVEX PACKAGING CORPORATION
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (dollars in thousands, except per share data)
 
                                                     Quarter ended March 31,
 
                                                         2001       2000 (A)
     Net sales                                      $ 159,487      $ 181,512
     Cost of goods sold                               128,309        144,162
     Gross profit                                      31,178         37,350
     Operating expenses:
       Selling                                          7,226          9,319
       Administrative                                  10,172         11,459
       Amortization of intangibles                        871            851
         Total operating expenses                      18,269         21,629
     Income from operations                            12,909         15,721
     Other income (expense):
       Interest expense                                (6,495)        (9,073)
       Other                                               38             78
     Income before income taxes                         6,452          6,726
     Income tax provision                               2,258          2,489
     Net income                                        $4,194         $4,237
 
     Earnings per share:
       Diluted:
         Net income                                    $ 0.21          $0.21
         Weighted average shares outstanding       20,395,225     20,498,354
 
     (A) The Company has reclassified shipping costs for the prior period from
         the Company's net sales to cost of goods sold in accordance with the
         Emerging Issues Task Force ("EITF") consensus opinion, EITF No. 00-10.
         Among other things, this opinion requires changes to the company's
         prior practice of deducting shipping costs from gross sales in
         arriving at net sales.  Certain other amounts in the consolidated
         financial statements for 2000 have been reclassified to the 2001
         presentation.
 
     Consolidated balance sheet data:                March 31,    December 31,
                                                       2001           2000
      Working capital                                 $83,160        $59,361
      Total assets                                    592,273        592,763
      Long-term debt                                  355,912        336,087
      Stockholder's equity                             76,736         79,597
 
                           Ivex Packaging Corporation
                   Summary of Net Sales and EBITDA by Segment
               For the Three Months Ended March 31, 2001 and 2000
 
     Net Sales
                                      For the Three Months Ended
                                March 31, 2001             March 31, 2000
 
     Consumer Packaging    $129,771         81.4%     $126,196         69.5%
     Protective Packaging    29,716         18.6%       55,316         30.5%
 
     Consolidated          $159,487        100.0%     $181,512        100.0%
 
 
     EBITDA
                                      For the Three Months Ended
                                 March 31, 2001             March 31, 2000
 
     Consumer Packaging     $18,949         14.6%      $19,525         15.5%
     Protective Packaging     5,191         17.5%        8,726         15.8%
     Corporate Expenses      (1,780)            -       (1,772)            -
 
     Consolidated           $22,360         14.0%      $26,479         14.6%
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97717559
 
 SOURCE  Ivex Packaging Corporation