Pioneer Announces Net Loss for 2000

Apr 12, 2001, 01:00 ET from Pioneer Companies, Inc.

    HOUSTON, April 12 /PRNewswire/ -- Pioneer Companies, Inc.
 (OTC Bulletin Board:   PIONA) today reported that its net loss for the year 2000
 was $105.6 million or $9.15 per share, compared to a net loss in 1999 of
 $50.4 million or $4.38 per share.  The net loss for 2000 included a tax
 provision of $41.0 million, primarily attributable to a valuation allowance
 for its net operating loss carryforward.
     Pioneer had previously disclosed selected financial data for 2000,
 including its pre-tax results, but finalizing the complete financial
 statements was delayed to determine the possible effect of its announced
 financial restructuring efforts on its deferred tax asset.  That asset
 primarily relates to the estimated use of net operating loss carryforwards to
 offset future taxable income.  Based on the uncertainties regarding the
 outcome of those efforts and the possible effect of that outcome on projected
 taxable income and the availability and use of the net operating loss
 carryforwards, the Company estimated that it was not likely to realize the
 full benefit of the deferred tax assets.  Accordingly, the Company has
 recorded a valuation allowance of $67.8 million, resulting in a tax provision
 of $41.0 million for the year ended December 31, 2000.
     Pioneer, based in Houston, Texas, manufactures chlorine, caustic soda,
 hydrochloric acid and related products used in a variety of applications,
 including water treatment, plastics, pulp and paper, detergents, agricultural
 chemicals, pharmaceuticals and medical disinfectants.  The Company owns and
 operates five chlor-alkali plants and several downstream manufacturing
 facilities in North America.  Current financial information and press releases
 of Pioneer Companies, Inc. can be obtained from its Internet web site at
 www.piona.com.
     Certain statements in this news release are "forward-looking statements"
 within the meaning of the Securities Litigation Reform Act.  Forward-looking
 statements relate to matters that are not historical facts.  Such statements
 involve risks and uncertainties, including, but not limited to, the Company's
 high financial leverage and the Company's efforts to restructure its debt,
 global economic conditions, Company and industry production volumes,
 competitive prices, the cyclical nature of the markets for many of the
 Company's products and raw materials, and other risks and uncertainties
 described in the Company's filings with the Securities and Exchange
 Commission.  Actual outcomes may vary materially from those indicated by the
 forward-looking statements.
     Financial statements for the three months and twelve months ended
 December 31, 2000 follow.
 
 
                            PIONEER COMPANIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Unaudited, in thousands, except per share data)
 
                                Three Months Ended           Year Ended
                                    December 31,             December 31,
                                 2000         1999         2000        1999
 
     Revenues                $   80,657   $   81,791   $  341,481  $  296,642
     Cost of sales               75,667       83,195      309,570     285,909
     Gross profit (loss)          4,990       (1,404)      31,911      10,733
     Selling, general and
      administrative expenses    10,260       14,990       43,424      49,580
     Operating loss              (5,270)     (16,394)     (11,513)    (38,847)
     Interest expense, net      (14,603)     (13,737)     (56,328)    (51,927)
     Other income (expense), net   (593)      12,534        3,309      14,176
     Loss before taxes       $  (20,466)  $  (17,597)  $  (64,532) $  (76,598)
     Income tax provision
      (benefit)                  56,278       (6,161)      41,031     (26,214)
     Net loss                $  (76,744)  $  (11,436)  $ (105,563) $  (50,384)
 
     Per Share Information:
       Basic and diluted
        loss                 $    (6.65)  $    (0.99)  $    (9.15) $    (4.38)
 
     Weighted average number of
      common shares outstanding:
       Basic and diluted         11,538       11,515       11,535      11,515
 
 
                            PIONEER COMPANIES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                           (Unaudited, in thousands)
 
                                                  December 31,  December 31,
                                                      2000         1999
 
     Assets
       Current assets                             $   84,673   $   86,293
       Property, plant and equipment, net            300,384      325,541
       Other assets, net of accumulated
        amortization                                  25,420       76,308
       Excess cost over the fair value of
        net assets acquired, net of
        accumulated amortization                     179,560      192,464
       Total assets                               $  590,037   $  680,606
 
     Liabilities and Stockholders' Equity (Deficit)
       Current liabilities                        $  685,535   $   75,586
       Long-term debt, less current maturities         4,086      594,723
       Other liabilities                              27,240       31,499
       Redeemable preferred stock                      5,500        5,500
       Stockholders' deficit                        (132,324)     (26,702)
       Total liabilities and stockholders'
        equity (deficit)                          $  590,037   $  680,606
 
 
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited, in thousands)
 
                                                 Twelve Months Ended
                                                      December 31,
                                                  2000          1999
 
     Cash flows from operations               $   13,137    $  (52,349)
     Cash flows from investing activities        (15,819)      (15,159)
     Cash flows from financing activities          4,486        17,658
     Effect of exchange rate on cash              (1,379)        1,538
 
     Net change in cash                       $      425    $  (48,312)
 
     Additional information:
     EBITDA                                   $   42,571    $   31,583
 
 

SOURCE Pioneer Companies, Inc.
    HOUSTON, April 12 /PRNewswire/ -- Pioneer Companies, Inc.
 (OTC Bulletin Board:   PIONA) today reported that its net loss for the year 2000
 was $105.6 million or $9.15 per share, compared to a net loss in 1999 of
 $50.4 million or $4.38 per share.  The net loss for 2000 included a tax
 provision of $41.0 million, primarily attributable to a valuation allowance
 for its net operating loss carryforward.
     Pioneer had previously disclosed selected financial data for 2000,
 including its pre-tax results, but finalizing the complete financial
 statements was delayed to determine the possible effect of its announced
 financial restructuring efforts on its deferred tax asset.  That asset
 primarily relates to the estimated use of net operating loss carryforwards to
 offset future taxable income.  Based on the uncertainties regarding the
 outcome of those efforts and the possible effect of that outcome on projected
 taxable income and the availability and use of the net operating loss
 carryforwards, the Company estimated that it was not likely to realize the
 full benefit of the deferred tax assets.  Accordingly, the Company has
 recorded a valuation allowance of $67.8 million, resulting in a tax provision
 of $41.0 million for the year ended December 31, 2000.
     Pioneer, based in Houston, Texas, manufactures chlorine, caustic soda,
 hydrochloric acid and related products used in a variety of applications,
 including water treatment, plastics, pulp and paper, detergents, agricultural
 chemicals, pharmaceuticals and medical disinfectants.  The Company owns and
 operates five chlor-alkali plants and several downstream manufacturing
 facilities in North America.  Current financial information and press releases
 of Pioneer Companies, Inc. can be obtained from its Internet web site at
 www.piona.com.
     Certain statements in this news release are "forward-looking statements"
 within the meaning of the Securities Litigation Reform Act.  Forward-looking
 statements relate to matters that are not historical facts.  Such statements
 involve risks and uncertainties, including, but not limited to, the Company's
 high financial leverage and the Company's efforts to restructure its debt,
 global economic conditions, Company and industry production volumes,
 competitive prices, the cyclical nature of the markets for many of the
 Company's products and raw materials, and other risks and uncertainties
 described in the Company's filings with the Securities and Exchange
 Commission.  Actual outcomes may vary materially from those indicated by the
 forward-looking statements.
     Financial statements for the three months and twelve months ended
 December 31, 2000 follow.
 
 
                            PIONEER COMPANIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Unaudited, in thousands, except per share data)
 
                                Three Months Ended           Year Ended
                                    December 31,             December 31,
                                 2000         1999         2000        1999
 
     Revenues                $   80,657   $   81,791   $  341,481  $  296,642
     Cost of sales               75,667       83,195      309,570     285,909
     Gross profit (loss)          4,990       (1,404)      31,911      10,733
     Selling, general and
      administrative expenses    10,260       14,990       43,424      49,580
     Operating loss              (5,270)     (16,394)     (11,513)    (38,847)
     Interest expense, net      (14,603)     (13,737)     (56,328)    (51,927)
     Other income (expense), net   (593)      12,534        3,309      14,176
     Loss before taxes       $  (20,466)  $  (17,597)  $  (64,532) $  (76,598)
     Income tax provision
      (benefit)                  56,278       (6,161)      41,031     (26,214)
     Net loss                $  (76,744)  $  (11,436)  $ (105,563) $  (50,384)
 
     Per Share Information:
       Basic and diluted
        loss                 $    (6.65)  $    (0.99)  $    (9.15) $    (4.38)
 
     Weighted average number of
      common shares outstanding:
       Basic and diluted         11,538       11,515       11,535      11,515
 
 
                            PIONEER COMPANIES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                           (Unaudited, in thousands)
 
                                                  December 31,  December 31,
                                                      2000         1999
 
     Assets
       Current assets                             $   84,673   $   86,293
       Property, plant and equipment, net            300,384      325,541
       Other assets, net of accumulated
        amortization                                  25,420       76,308
       Excess cost over the fair value of
        net assets acquired, net of
        accumulated amortization                     179,560      192,464
       Total assets                               $  590,037   $  680,606
 
     Liabilities and Stockholders' Equity (Deficit)
       Current liabilities                        $  685,535   $   75,586
       Long-term debt, less current maturities         4,086      594,723
       Other liabilities                              27,240       31,499
       Redeemable preferred stock                      5,500        5,500
       Stockholders' deficit                        (132,324)     (26,702)
       Total liabilities and stockholders'
        equity (deficit)                          $  590,037   $  680,606
 
 
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited, in thousands)
 
                                                 Twelve Months Ended
                                                      December 31,
                                                  2000          1999
 
     Cash flows from operations               $   13,137    $  (52,349)
     Cash flows from investing activities        (15,819)      (15,159)
     Cash flows from financing activities          4,486        17,658
     Effect of exchange rate on cash              (1,379)        1,538
 
     Net change in cash                       $      425    $  (48,312)
 
     Additional information:
     EBITDA                                   $   42,571    $   31,583
 
 SOURCE  Pioneer Companies, Inc.