-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bqte1+x68rcrKU6u5rwBgRInBQL2d6ZcJUe+kgzKH2V7Rf6gAC9PQsZm4pN4zCBw GshWdt2OmubC4k1tU5RiZw== 0001013816-04-000320.txt : 20040506 0001013816-04-000320.hdr.sgml : 20040506 20040505185613 ACCESSION NUMBER: 0001013816-04-000320 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040505 ITEM INFORMATION: ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLIANT CORP CENTRAL INDEX KEY: 0001049442 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, FOIL & COATED PAPER BAGS [2673] IRS NUMBER: 870496065 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-40067 FILM NUMBER: 04782946 BUSINESS ADDRESS: STREET 1: 1475 WOODFIELD ROAD CITY: SCHAUMBURG STATE: IL ZIP: 60173 BUSINESS PHONE: 8479693300 MAIL ADDRESS: STREET 1: 1475 WOODFIELD ROAD CITY: SCHAUMBURG STATE: IL ZIP: 60173 FORMER COMPANY: FORMER CONFORMED NAME: HUNTSMAN PACKAGING CORP DATE OF NAME CHANGE: 19971110 8-K 1 form8k_5504.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 5, 2004 PLIANT CORPORATION ------------------ (Exact name of company as specified in its charter) UTAH 333-40067 87-0496065 - ---------------------------- ------------------------ ---------------------- (State or other jurisdiction (Commission file number) (IRS Employer of incorporation) Identification Number) 1475 Woodfield Road, Suite 700 Schaumburg, IL 60173 (Address of principal executive offices) (Zip Code) (847) 969-3300 ------------------------------------------------ Company's telephone number, including area code: N.A. (Former name or former address if changed since last report) ITEM 9 AND 12. REGULATION FD DISCLOSURE AND RESULTS OF OPERATIONS AND FINANCIAL CONDITION As previously announced, we will hold a conference call to discuss our operating results for the quarter ended March 31, 2004 and to answer questions about the business. The call will take place at 2:00 p.m. Eastern Standard Time on Thursday, May 6, 2004. Our press release containing information on how to access the conference call is attached hereto as Exhibit 99.1. Our earnings release discussing our first quarter earnings is furnished herewith as Exhibit 99.2. In addition to the financial results in our earnings release, our management will discuss certain financial information relating to the first quarter of 2004, including certain quarterly EBITDA amounts. The information required by Regulation G under the Securities Exchange Act of 1934 with respect to these amounts is included in our earnings release. The information in this Current Report on Form 8-K, including the exhibits, shall not be deemed "filed" for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934, and shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PLIANT CORPORATION Date: May 5, 2004 By: /s/ Brian E. Johnson -------------------------------- Brian E. Johnson Executive Vice President and Chief Financial Officer INDEX TO EXHIBITS EXHIBITS 99.1 Press Release dated April 2, 2004 99.2 Earnings release dated May 5, 2004 EX-99 2 form8k_5504exh991.txt EXH. 99.1 PRESS RELEASE DATED APRIL 2, 2004 EXHIBIT 99.1 April 2, 2004 PLIANT CORPORATION TO HOLD CONFERENCE CALL FIRST QUARTER 2004 FINANCIAL RESULTS SCHAUMBURG, IL - - Pliant Corporation announced today that Brian Johnson, Executive Vice President and Chief Financial Officer, will host a conference call to discuss the Company's First Quarter 2004 operating results and to answer questions about the business. The call will take place at 2:00 P.M. EASTERN STANDARD TIME on THURSDAY, MAY 6, 2004. Participants in the United States can access the conference call by calling 800-857-0373, using the access code PLIANT, or internationally by calling 773-756-4600 and using the same access code (Pliant). Participants are encouraged to dial-in at least ten minutes prior to the start of the teleconference. Following the call's completion, the replay will be available through 5:00 p.m. Eastern Standard Time on Wednesday, May 12, 2004. Telephone numbers to access the replay are as follows: United States 888-566-0514, International 402-998-0672. No access code required for the replay. Pliant Corporation is a leading producer of value-added film and flexible packaging products for personal care, medical, food, industrial and agricultural markets. The Company operates 25 manufacturing and research and development facilities around the world, and employs approximately 3,250 people. # # # CONTACTS: John C. McCurdy Brian E. Johnson Director of Corporate Communications EVP and Chief Financial Officer John.mccurdy@pliantcorp.com brian.johnson@pliantcorp.com Phone: 330.896.6732 Phone: 847.969.3319 Company Web Site: www.pliantcorp.com EX-99 3 form8k_5504exh992.txt EXH. 99.2 EARNINGS RELEASE DATED MAY 5, 2004 EXHIBIT 99.2 FOR IMMEDIATE RELEASE PLIANT CORPORATION- FIRST QUARTER 2004 EARNINGS REPORT Schaumburg, IL.--May 5, 2004-- Pliant Corporation is announcing EBITDA of $25.2 million dollars for the first quarter of 2004, which is above our guidance, and is an increase of 80% over the fourth quarter of 2003. In addition, we are pleased to announce that our core business remains strong, and the restructuring of our Mexican and Solutions businesses are on plan. Below is a summary for first quarter results. Net sales increased by $3.7 million, or 1.5%, to $244.2 million for the first quarter of 2004 from $240.5 million for the first quarter of 2003. The increase was primarily due to a 3.9% increase in our average selling price resulting primarily from the pass through of increases in our raw material costs partially offset by a 2.2% decrease in sales volume. Consolidated segment profits decreased by $ 6.9 million or 21.5% to $ 25.2 million for the first quarter of 2004 from $ 32.1 million for the first quarter of 2003. Segment profit reflects income before interest expense, income taxes, depreciation, amortization, restructuring charges other non-cash charges and net adjustments for certain unusual items. The primary reasons for the decrease in segment profits are discussed below by segment. A reconciliation of segment profits to net loss is as follows (in millions of dollars): THREE MONTHS THREE MONTHS ENDED MARCH ENDED MARCH 31,2004 31,2003 ------------ ------------ Total segment profit.................... $ 25.2 $ 32.1 Depreciation and amortization........... (11.4) (11.2) Restructuring and other costs........... - (6.1) Interest expense........................ (42.9) (19.8) Income tax expense...................... 1.7 2.0 Other expenses and adjustments for non-cash charges and certain adjustments defined by our credit agreement............................. - (0.3) --------- --------- Net loss $ (30.8) $ (7.3) ========= ========= The following discussion and analysis of unaudited segment results does not contain all of the information that will be presented in Item 2 of our quarterly report on Form 10-Q for the quarter ended March 31, 2004. Summary of segment information is as follows (in millions of dollars):
PLIANT UNALLOCATED PLIANT FLEXIBLE PLIANT PLIANT CORPORATE U.S. PACKAGING INTERNATIONAL SOLUTIONS EXPENSES Total ------ --------- ------------- --------- ----------- ----- QUARTER ENDED MARCH 31, 2004 Net sales $ 154.1 $ 56.4 $ 26.4 $ 7.3 $ - $ 244.2 Segment profit (loss) $ 23.0 $ 8.6 $ 1.1 $(2.3) $ (5.2) $ 25.2 QUARTER ENDED MARCH 31, 2003 Net sales $ 151.9 $ 51.8 $ 28.0 $ 8.8 $ - $ 240.5 Segment profit (loss) $ 26.8 $ 7.7 $ 2.9 $(0.9) $ (4.4) $ 32.1
PLIANT U.S. NET SALES. The net sales of our Pliant U.S. segment increased $2.2 million, or 1.4%, to $154.1 million for the first quarter of 2004 from $151.9 million for the first quarter of 2003. This increase was primarily due to an increase in our average selling prices of 3.3 cents per pound or 3.6% partially offset by a 2.1% decrease in sales volumes. The decrease in sales volumes is discussed for each Pliant U.S. division below. The increase in our average selling prices was principally due to the increase in raw material prices that were partially passed on to our customers. Net sales in our Industrial Films division increased $0.8 million, or 1.6%, to $48.2 million for the first quarter of 2004 from $47.4 million for the first quarter of 2003. This increase was principally due to an increase in our average selling prices of 6.6 cents per pound or 8.5% partially offset by a decrease in sales volumes of 3.9 million pounds, or 6.4%. The decrease in sales volume was primarily the result of the effects of down-gauging resulting from the introduction of new generation products, some customer rationalization and the timing of large shipments. Net sales in our Specialty Films division increased $0.8 million, or 1.8%, to $48.9 million for the first quarter of 2004 from $48.1 million for the first quarter of 2003. This increase was principally due to an increase in our sales volume of 1.1 million pounds, partially offset by a decrease in our average selling prices of 0.7 cents per pound, or 0.7%. The increase in sales volume was primarily the result of higher sales from our personal care business. Net sales in our Converter Films division increased $0.6 million, or 1.0%, to $57.0 million for the first quarter of 2004 from $56.4 million for the first quarter of 2003. This increase was principally due to an increase in our average selling prices of 2.0 cents per pound or 2.0% partially offset by the effect of lower sales volumes which decreased 1.0%. SEGMENT PROFIT. The Pliant U.S. segment profit decreased $ 3.8 million to $23.0 million for the first quarter of 2004 as compared to $26.8 million for the first quarter of 2003 principally due to the decreases in sales volumes discussed above and lower gross margins. The decrease in gross margins was principally due to the fact that the higher selling prices discussed above were not sufficient to offset the increase in raw material prices, principally in the specialty and converter divisions. PLIANT FLEXIBLE PACKAGING NET SALES. The net sales of our Pliant Flexible Packaging segment increased $4.6 million, or 8.9%, to $56.4 million for the first quarter of 2004 from $51.8 million for the first quarter of 2003. This increase was principally due to an increase in our sales volumes of 2.0 million pounds, or 5.6%, and an increase in our average selling prices of 4.7 cents per pound, or 3.2%. The sales volume increased principally due to additional sales to existing customers and sales from our new ten color press in Langley. SEGMENT PROFIT. The Pliant Flexible Packaging segment profit increased $0.9 million to $8.6 million for the first quarter of 2004 from $7.7 million for the first quarter of 2003. This increase in segment profit was primarily due to an increase in gross margins and the effect of higher sales volumes discussed above partially offset by the effect of higher conversion costs. The increase in gross margins was principally due to the fact that selling prices in this segment increased at a rate higher than the increase in raw material prices in this segment in the first quarter of 2004. In addition, there is a delay in implementing price increases and decreases in this segment due to contracts with certain customers. Therefore, the margins for this quarter benefited from substantial increases in raw material prices in prior quarters. PLIANT INTERNATIONAL NET SALES. The net sales of our Pliant International segment decreased $1.6 million, or 5.7%, to $26.4 million for the first quarter of 2004 from $28.0 million for the first quarter of 2003. This decrease was principally due to an 11.5% decrease in our sales volume, partially offset by an increase in our average selling prices of 6.2 cents per pound, or 6.5%. Among other factors, our sales volumes were adversely affected by a reduction in sales at our plant in Mexico due to the loss of certain customers and products as a result of operating issues discussed below. SEGMENT PROFIT. The Pliant International segment profit decreased $1.8 million to $1.1 million for the first quarter of 2004 from $2.9 million for the first quarter of 2003. The decrease was due principally to the operating losses in our plant in Mexico. Our plant in Mexico was affected by operating issues and the resulting loss of customers and products. Management changes have been made at this location and increases in sales volume and improved operating results are expected. PLIANT SOLUTIONS NET SALES. The net sales of our Pliant Solutions segment decreased $1.5 million, or 17.0%, to $7.3 million for the first quarter of 2004 from $8.8 million for the first quarter of 2003. This decrease was principally due to an 11.9% decrease in our sales volume and a decrease in our average selling prices of 15.4 cents per pound, or 6.2%. The decrease in sales volume was primarily due to several promotional programs in the first quarter of 2003 that were not repeated by our customers in the first quarter of 2004 and a reduction in sales to a major customer due to the closing of several stores. Average selling prices decreased due to a change in the sales mix. SEGMENT PROFIT. The Pliant Solutions segment profit decreased $1.4 million, to a loss of $(2.3) million for the first quarter of 2004 from a loss of $(0.9) million for the first quarter of 2003. The decrease was due principally to the decrease in sales volumes and a decrease in gross margins due to a change in the sales mix. UNALLOCATED CORPORATE EXPENSES Unallocated corporate expenses increased $0.8 million to $5.2 million for the first quarter of 2004 as compared to $4.4 million for the first quarter of 2003. The increase was principally due to an adjustment of $0.4 million related to employee benefits for an acquisition made in prior years, increase in legal fees and increases in labor costs. LIQUIDITY The following discussion on liquidity does not contain all of the information that will be presented in Item 2 of our quarterly report on Form 10-Q for the quarter ended March 31, 2004. On February 17, 2004, we entered into a new revolving credit facility providing up to $100.0 million (subject to a borrowing base). The new revolving credit facility includes a $15.0 million letter of credit sub-facility, with letters of credit reducing availability under the revolving credit facility. In addition, on February 17, 2004 we completed the sale of $306.0 million ($225.3 million of proceeds) principal amount at maturity of 11 1/8% Senior Secured Discount Notes due 2009. The proceeds of this offering and borrowings under the new revolving credit facility were used to repay and terminate the credit facilities that existed at December 31, 2003. As of March 31, 2004, we had approximately $77.4 million of working capital. We were unable to borrow more than $45.0 million under our new revolving credit facility as of March 31, 2004 until we put in place certain deposit control agreements. These deposit control agreements were put in place in April 2004. If these deposit control agreements had been in place as of March 31, 2004, subject to the next sentence, we would have had on a pro forma basis approximately $80.3 million available for borrowings under our new $100.0 million revolving credit facility, with outstanding borrowings of approximately $ 8.3 million and approximately $6.1 million of letters of credit issued under our revolving credit facility. The borrowings under the new revolving credit facility may be limited at any given time to 75% of the lesser of the total commitment at such time and the borrowing base in effect at such time if the fixed coverage ratio defined in the new revolving credit facility is less than or equal to 1.10 to 1.00. Our outstanding borrowings under our revolving credit facility fluctuate significantly during each quarter as a result of the timing of payments for raw materials, capital and interest, as well as the timing of customer collections. The unaudited balance sheets as of March 31, 2004 and December 31, 2003 and unaudited statements of operations and statements of cash flows for the three months ended March 31, 2004 and 2003 are attached. PLIANT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2004 AND DECEMBER 31, 2003 (DOLLARS IN THOUSANDS) (UNAUDITED) - --------------------------------------------------------------------------------
March 31, 2004 December 31, 2003 -------------- ----------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,346 $ 3,308 Receivables, net of allowances of $5,530 and $5,776 respectively 123,209 111,942 Inventories 90,568 95,219 Prepaid expenses and other 3,076 3,809 Income taxes receivable, net 794 1,436 Deferred income taxes 9,362 9,417 -------------- ----------------- Total current assets 230,355 225,131 PLANT AND EQUIPMENT, net 311,394 319,569 GOODWILL 182,158 182,162 INTANGIBLE ASSETS, net 19,227 19,752 OTHER ASSETS 40,283 40,172 -------------- ----------------- TOTAL ASSETS $ 783,417 $ 786,786 ============== ================= LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Trade accounts payable $ 88,031 $ 89,800 Accrued liabilities: Interest payable 18,624 19,775 Customer rebates 5,698 7,924 Other 40,207 35,947 Current portion of long-term debt 412 1,033 -------------- ----------------- Total current liabilities 152,972 154,479 LONG-TERM DEBT, net of current portion 799,905 782,624 OTHER LIABILITIES 28,497 27,493 DEFERRED INCOME TAXES 28,645 27,792 SHARES SUBJECT TO MANDATORY REDEMPTION(NOTE 1) 202,953 - -------------- ----------------- Total Liabilities 1,212,972 992,388 -------------- ----------------- Minority Interest 232 291 -------------- ----------------- REDEEMABLE PREFERRED STOCK - 200,000 shares authorized, designated as Series A, no par value, with a redemption and liquidation value of $1,000 per share; 140,973 shares outstanding at December 31, 2003 - 188,223 -------------- ----------------- REDEEMABLE COMMON STOCK - no par value; 60,000 shares authorized; 10,873 shares outstanding as of March 31, 2004 and 29,073 shares outstanding as of December 31, 2003, net of related stockholders' notes receivable of $1,827 at March 31, 2004 and $4,258 at December 31, 2003 6,645 13,008 -------------- ----------------- STOCKHOLDERS' DEFICIT: Common stock - no par value; 10,000,000 shares authorized, 542,638 shares outstanding at March 31, 2004 and December 31, 2003 103,376 103,376 Warrants to purchase common stock 39,133 39,133 Accumulated deficit (567,811) (537,052) Stockholders' notes receivable (660) (660) Accumulated other comprehensive income (loss) (10,470) (11,921) -------------- ----------------- Total stockholders' deficit (436,432) (407,124) -------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 783,417 $ 786,786 ============== =================
PLIANT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003 (IN THOUSANDS) (UNAUDITED) - --------------------------------------------------------------------------------
2004 2003 ------------ ------------ NET SALES $ 244,167 $ 240,511 COST OF SALES 207,375 197,714 ------------ ------------ Gross profit 36,792 42,797 ------------ ------------ OPERATING EXPENSES: Sales, General and Administrative 20,983 21,316 Research and Development 1,832 1,377 Restructuring and Other Costs - 6,064 ------------ ------------ Total operating expenses 22,815 28,757 ------------ ------------ OPERATING INCOME 13,977 14,040 INTEREST EXPENSE-Current and Long-term debt (NOTE 2) (34,599) (19,856) INTEREST EXPENSE-Dividends and accretion on Redeemable Preferred Stock (8,367) - OTHER INCOME(EXPENSE) - Net (118) 496 ------------ ------------ (29,107) (5,320) INCOME(LOSS) BEFORE INCOME TAXES INCOME TAX EXPENSE 1,652 2,023 NET LOSS $ (30,759) $ (7,343) ============ ============
PLIANT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003 (IN THOUSANDS) (UNAUDITED) - --------------------------------------------------------------------------------
2004 2003 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (30,759) $ (7,343) Adjustments to reconcile net income (loss) to net cash (used in)/ provided by operating activities: Depreciation and amortization 11,362 11,156 Amortization of deferred financing costs and accretion of debt discount 12,227 1,408 Deferred dividends on preferred shares 8,367 - Deferred income taxes 715 (657) Provision for losses on accounts receivable (246) (479) Non-cash plant closing costs - 3,260 Gain or loss on disposal of assets 48 96 Changes in assets and liabilities: Receivables (11,132) (15,417) Inventories 4,950 (5,744) Prepaid expenses and other 738 (654) Income taxes payable/receivable 767 1,141 Other assets (532) (259) Trade accounts payable (1,812) 4,807 Accrued liabilities 3,157 5,982 Other liabilities 1,005 1,329 Other (59) (146) ------------ ------------ Net cash (used in) / provided by operating activities (1,204) (1,520) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures for plant and equipment (3,114) (3,622) ------------ ------------ Net cash used in investing activities (3,114) (3,622) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from issuance of preferred stock - 9,988 Net proceeds from issuance of senior secured discount notes 225,299 - Payment of financing fees (8,664) (2,200) Repayments/Payments of term debt and revolver (219,575) (10,000) Repayment of Capital Leases and other, net (470) (1,783) Proceeds from revolving debt - net 8,300 11,700 ------------ ------------ Net cash provided by (used in) financing activities 4,890 7,705 ------------ ------------ EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (534) 281 ------------ ------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 38 2,844 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 3,308 1,635 ------------ ------------ CASH AND CASH EQUIVALENTS, END OF THE PERIOD $3,346 $ 4,479 ============ ============ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid (received) during the period for: Interest $ 20,854 $ 6,401 Income taxes 819 1,802 Other non-cash disclosure: Preferred Stock dividends accrued but not paid $ 7,922 $ 6,321
PLIANT CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. 1. SHARES SUBJECT TO MANDATORY REDEMPTION The Company adopted Statement of Financial Accounting Standard No. 150 ("SFAS 150"), Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, effective January 1, 2004. As a result, the Redeemable Preferred Stock of the Company that contains an unconditional mandatory redemption feature was recorded as a liability on the date of adoption at fair market value. Fair market value was determined using the value of the securities on the date of issuance plus accretion of discount from the date of issuance through December 31, 2003 and the unpaid dividends at the end of each quarter from the date of issuance through December 31, 2003. In addition, effective January 1, 2004 the dividends and accretion on the preferred shares are included as a part of interest expense in the statement of operations. In addition, as a result of adopting SFAS 150, the Company's redeemable common shares that have been put for redemption by the shareholder were recorded as a liability at fair value. The fair value was computed using the agreed upon price of the redemption times the number of shares put by the shareholder. As required by SFAS 150 prior periods were not restated. 2. INTEREST EXPENSE - CURRENT AND LONG-TERM DEBT Interest expense - current and long-term debt in the statement of operations for the quarters ended March 31, 2004 and 2003 are as follows: 2004 2003 -------- -------- Interest expense accrued, net $ 23,333 $ 18,448 Recurring amortization of financing fees 1,148 1,408 Write-off of previously capitalized financing fees and interest rate derivatives costs(a) 10,118 - -------- -------- TOTAL $ 34,599 $ 19,856 ======== ======== (a) This write-off resulted from the repayment of the old credit facilities in February 2004, from the net proceeds from the issuance of the senior secured discount notes and borrowings under the new revolving credit facility. PLIANT CORPORATION NORMALIZED PRO-FORMA EBITDA RECONCILIATION ($ THOUSANDS)
3 MONTHS ENDED 3 MONTHS ENDED 3 MONTHS ENDED MARCH 31,2004 MARCH 31,2003 DECEMBER 31,2003 --------------------------------------------------------- NET LOSS $ (30,759) $ (7,343) $ (67,957) Adjustments: Taxes Provision 1,652 2,023 (1,350) Interest expense accrued and recurring amortization of financing fees 24,481 19,856 25,674 Write-off of previously capitalized financing fees and interest rate derivative costs due to February 2004 refinancing 10,118 - - Dividends on Preferred Stock 8,367 - - Depreciation & Amortization 11,362 11,156 12,029 --------------------------------------------------------- GAAP EBITDA 25,221 25,692 (31,604) Unusual Charges Impairment of Goodwill & Intangibles - - 26,425 Impairment of Fixed Assets - - 4,844 Restructuring Charges - 6,064 1,871 Legal Reserves - - 7,200 Inventory - - 4,171 Other Bank Add-backs - 303 1,132 --------------------------------------------------------- NORMALIZED PRO-FORMA EBITDA $ 25,221 $ 32,059 $ 14,039 ---------------------------------------------------------
PLIANT CORPORATION AND SUBSIDIARIES DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information. When used in this release, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, management's projection of future operating trends, are based upon current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. But, management's expectations, beliefs and projections may not be achieved. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this release are described in our annual report on Form 10-K for the year ended December 31, 2003 and our registration statement on Form S-4 (File No. 333-114608), as amended. Such risks, uncertainties and other important factors include, among others: o general economic and business conditions, particularly an economic downturn; o continuing losses and charges against earnings resulting from restructurings or the impairment of assets; o industry trends; o risks of high leverage and any increases in our leverage; o interest rate increases; o changes in our ownership structure; o raw material costs and availability, particularly resin; o competition; o the loss of any of our major customers; o changes in demand for our products; o new technologies o changes in distribution channels or competitive conditions in the markets or countries where we operate; o costs and/or complications of integrating any future acquisitions; o loss of our intellectual property rights; o foreign currency fluctuations and devaluations and political instability in our foreign markets; o changes in our business strategy or development plans; o availability, terms and deployment of capital; o labor relations and work stoppages; o availability of qualified personnel; and o increases in the cost of compliance with laws and regulations, including environmental laws and regulations There may be other factors that may cause our actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this release and are expressly qualified in their entirety by the cautionary statements included in this release. We undertake no obligations to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. # # # CONTACTS: John C. McCurdy Director of Corporate Communications Voice: 330.896.6732 Fax: 330.896.6733 E-mail: john.mccurdy@pliantcorp.com Brian E. Johnson EVP and Chief Financial Officer Voice: 847.969.3319 E-mail: brian.johnson@pliantcorp.com Company Web Site: www.pliantcorp.com -----END PRIVACY-ENHANCED MESSAGE-----