Register
Forgot your password?
Skip Navigation Links
ABOUT US
REQUEST RESIN
RESEARCH
SUPPORT CENTER
CONTACT US
AEP Industries Posts Fiscal 2012 2nd Quarter and Year-to-date Results
Jun 14, 2012 (Close-Up Media via COMTEX) -- Copyright Close-Up Media, Inc. 2012. All Rights reserved

AEP Industries Inc. reported financial results for its second quarter ended April 30.

In a release on June 11, the Company reported that net sales for the second quarter of fiscal 2012 increased $48.2 million, or 19 percent, to $296.7 million from $248.5 million for the second quarter of fiscal 2011. Net sales for the six months ended April 30, increased $98.0 million, or 21 percent, to $564.3 million from $466.3 million in the same period of the prior fiscal year. Excluding the impact of the Company's October 14, 2011 acquisition of Webster Industries ("Webster"), the increases were the result of an increase in average selling prices primarily attributable to the pass-through of higher resin costs to customers during the comparable periods, combined with a 2 percent and 4 percent increase in sales volume for the three and six months ended April 30, respectively. The acquisition of Webster added $29.4 million and $59.2 million in net sales during the three and six months ended April 30, respectively.

Gross profit for the second quarter of fiscal 2012 was $43.1 million, an increase of $13.3 million, or 44 percent, compared to the comparable period in the prior fiscal year. Excluding the impact of the LIFO reserve change during the periods and $3.3 million in gross profit contributed from Webster, gross profit increased $6.3 million primarily due to increased sales volumes and improved material margins and plant utilization.

Gross profit for the first six months of fiscal 2012 was $77.8 million, an increase of $18.4 million, or 31 percent, compared to the comparable period in the prior fiscal year. Excluding the impact of the LIFO reserve change during the periods and $5.7 million in gross profit contributed from Webster, gross profit increased $8.2 million primarily due to increased sales volumes and improved material margins and plant utilization.

Operating expenses for the second quarter of fiscal 2012 were $30.4 million, an increase of $4.9 million, or 19 percent, compared to the comparable period in the prior fiscal year and for the first six months of fiscal 2012 were $59.7 million, an increase of $9.7 million, or 19 percent, compared to the comparable period in the prior fiscal year. Webster incurred $3.9 million and $7.5 million in operating expenses for the three and six months ended April 30, respectively. Without the Webster impact, operating expenses increased $1.0 million and $2.2 million for the three and six months ended April 30, respectively, primarily due to an increase in selling and delivery costs as a result of more volumes sold, increased fuel costs, and an increase in share-based compensation costs associated with the Company's stock options and performance units.

"We are very pleased to deliver sales growth in our traditional businesses particularly with such a high degree of economic pessimism in our markets," said Brendan Barba, Chairman, President and Chief Executive Officer of the Company. "Despite fluctuating resin costs, we have improved margins through a combination of cost controls and increased volumes. We are excited by the improvement in the results of our 2011 Webster acquisition. We expect Webster's operating income will steadily increase as we continue to implement synergies and to improve efficiencies."

Interest expense for the three months ended April 30, decreased $0.8 million as compared to the prior year period and for the six months ended April 30, increased $0.2 million as compared to the prior year period. Included in the prior year periods are the write-off of unamortized issuance costs related to the 2013 senior notes, the early tender fee paid to the holders of 2013 senior notes and fees related to the partial repurchase of the 2012 senior notes. Without these items, interest expense increased $0.8 million and $1.8 million for the three and six months ended April 30, respectively, resulting primarily from higher borrowings and interest rates payable under the Company's senior notes due 2019.

AEP Industries Inc. manufactures, markets, and distributes a range of plastic packaging products for the consumer, industrial and agricultural markets.

((Comments on this story may be sent to newsdesk@closeupmedia.com))


News Provided by COMTEX
Privacy Statement | Copyright © 2013 The Plastics Exchange. LLC. | Patent Protected | All Rights Reserved.