EX-99.1 2 a04-5354_2ex99d1.htm EX-99.1

Exhibit 99.1

 

For further information, contact:

J. David Smith or R. Scott Vansant

770-449-7066

 

EURAMAX INTERNATIONAL, INC. REPORTS
FIRST QUARTER 2004 OPERATING RESULTS

 

Norcross, Georgia (May 7, 2004) – Euramax International, Inc. today reported operating earnings and net sales for the quarter ended March 26, 2004 of $13.5 million and $195.4 million, respectively.  Operating earnings increased 46.1% on a net sales increase of 33.7% compared to the first quarter of 2003.

 

The net sales increase was broadly distributed across each of Euramax’s reportable segments and included increases of over 30% in both the U.S. and Europe.  Continuing strong demand in the U.S. for residential and commercial building materials, together with the addition of net sales attributable to Berger Holdings, acquired at the end of last year, increased U.S. net sales 32.4%.  Berger Holdings’ net sales in the first quarter of 2003, prior to being acquired by Euramax in November, were $8.8 million.

 

In Europe, net sales increased 35.0% in the Company’s European Roll Coating segment and 36.2% in the European Fabrication segment.  Combined, net sales in Europe increased $21.4 million on higher sales of painted aluminum coil to OEM’s including European recreational vehicle manufacturers.  Increases were also attributed to higher sales volumes of fabricated products to automotive and RV customers.  Strengthening of the British Pound and Euro against the U.S. Dollar accounted for $11.1 million of the net sales increase in Europe.

 

Earnings from operations increased $4.3 million or 46.1% on slightly higher gross margins driven by higher sales volume.  Gross margin improvement attributed to sales volume was partially offset by lower material margins on sales of aluminum products caused by rapidly escalating aluminum prices despite higher aluminum selling prices.  Depreciation and amortization increased $1.4 million compared to the first quarter of 2003 resulting from the Berger Holdings acquisition, a stronger Euro and Pound and additional expense associated with the step-up in basis of assets in connection with the 2003 Stock Transaction wherein Citicorp Venture Capital acquired approximately 55% of the stock in Euramax.

 



 

Commenting on results, Chairman and CEO J. David Smith said, “Broad economic improvement and continuing strength in our core markets enabled us to achieve record sales and earnings for a first quarter. The quarter was not without significant challenges related to unprecedented increases in aluminum, steel and copper costs.  We attained our goals for maintaining margins where possible and recognize that this challenge will continue for the foreseeable future.”

 

Long-term debt at March 26, 2004 was $250.1 million and the Company had cash and equivalents of $30.6 million.  Also at quarter end, the Company had $98.7 million available and undrawn on its revolving credit facility.  Subsequent to March 26, 2004, Euramax repurchased outstanding common stock held by Court Square Capital Limited for approximately $67.8 million.  Such repurchases were funded with borrowings under the Company’s revolving credit facility.

 

Euramax is a leading international producer of aluminum, steel, vinyl and fiberglass products for original equipment manufacturers, distributors, contractors and home centers in North America and Western Europe.

 

Note regarding forward looking statements:  Statements made by Euramax which are not historical facts are forward looking statements that involve risks and uncertainties.  Statements including the words “anticipate,” “expect,” “foresee,” “believe,” “feel,”  “intend” and similar words also indicate forward looking statements that involve risks and uncertainties.  Actual results could differ materially from those expressed or implied in forward looking statements.  Important factors that could cause financial performance to differ materially from past results and from those expresses or implied in this press release include, without limitation, the risks of doing business in multiple jurisdictions, the Company’s ability to service its substantial debt and to comply with the restrictive covenants contained in the agreements governing that debt, the impact of foreign currency exchange rates, particularly the Pound Sterling and the Euro, impact of environmental regulations, dependence on key personnel, risks of business acquisitions, availability and cost of raw materials, particularly steel and aluminum, and a variety of other factors.  For further information on these and other risks, see the “Risk Factors” section of the Company’s Report on Form 10-K for the year ended December 26, 2003.

 



 

Euramax International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

 

 

 

Successor

 

Predecessor

 

Thousands of U.S. Dollars

 

For the
quarter ended
March 26, 2004

 

For the
quarter ended
March 28, 2003

 

Net Sales

 

$

195,403

 

$

146,158

 

 

 

 

 

 

 

Cost and expenses:

 

 

 

 

 

Cost of goods sold

 

156,883

 

117,566

 

Selling and general

 

19,876

 

15,590

 

Depreciation and amortization

 

5,115

 

3,745

 

 

 

181,874

 

136,901

 

 

 

 

 

 

 

Earnings from operations

 

13,529

 

9,257

 

 

 

 

 

 

 

Interest expense, net

 

(5,757

)

(5,448

)

Other income (expense), net

 

771

 

214

 

 

 

 

 

 

 

Earnings before income taxes

 

8,543

 

4,023

 

 

 

 

 

 

 

Provision for income taxes

 

2,944

 

1,581

 

 

 

 

 

 

 

Net earnings

 

$

5,599

 

$

2,442

 

 

 

 

 

 

 

Earnings from operations before depreciation and amortization

 

$

18,644

 

$

13,002

 

 



 

Euramax International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

 

 

 

Successor

 

Successor

 

Thousands of U.S. Dollars

 

March 26, 2004

 

December 26, 2003

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and equivalents

 

$

30,582

 

$

48,227

 

Accounts receivable, net

 

137,651

 

121,689

 

Inventories

 

104,104

 

89,543

 

Other current assets

 

10,640

 

8,188

 

Total current assets

 

282,977

 

267,647

 

Property, plant and equipment, net

 

137,685

 

141,437

 

Goodwill, net

 

175,723

 

176,394

 

Deferred income taxes

 

4,460

 

3,595

 

Other assets

 

19,603

 

19,756

 

 

 

$

620,448

 

$

608,829

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Cash overdrafts

 

$

499

 

$

436

 

Accounts payable

 

95,014

 

91,689

 

Accrued expenses and other current liabilities

 

45,940

 

51,239

 

Current maturities of long-term debt

 

8,183

 

7,487

 

Total current liabilities

 

149,636

 

150,851

 

Long-term debt, less current maturities

 

241,914

 

231,807

 

Deferred income taxes

 

28,875

 

29,282

 

Other liabilities

 

27,681

 

26,939

 

Total liabilities

 

448,106

 

438,879

 

Shareholders’ equity:

 

 

 

 

 

Common stock

 

500

 

500

 

Additional paid-in-capital

 

155,495

 

155,495

 

Treasury stock

 

(1,964

)

(1,964

)

Restricted stock grant

 

(3,190

)

(3,381

)

Retained earnings

 

20,355

 

14,756

 

Accumulated other comprehensive loss

 

1,146

 

4,544

 

Total shareholders’ equity

 

172,342

 

169,950

 

 

 

$

620,448

 

$

608,829