EX-99.1 2 ex99-1.txt EARNINGS RELEASE Exhibit 99.1 For Further Information: Howard N. Feist Chief Financial Officer (781) 237-6655 AMERICAN BILTRITE REPORTS SECOND QUARTER RESULTS WELLESLEY HILLS, MA, AUGUST 10, 2007 - American Biltrite Inc. (AMEX:ABL) reported its results for the second quarter of 2007 today. Net sales for the three months ended June 30, 2007 were $115.6 million, down 1.6% from $117.5 million in the second quarter of 2006. Net income for the three months ended June 30, 2007 was $1.1 million or $0.33 per share (basic and diluted) compared with net income of $1.0 million or $0.29 per share (basic and diluted) in the second quarter of 2006. For the six months ended June 30, 2007, American Biltrite's net income was $0.4 million, or $0.11 per share (basic and diluted), on net sales of $215.6 million, compared with net income of $1.5 million, or $0.43 per share (basic and diluted), on net sales of $229.2 million for the same period last year. Roger S. Marcus, Chairman of the Board, commented "While our bottom line showed considerable improvement over the first quarter and was modestly better than the second quarter of 2006, we are facing a very difficult economic environment. Congoleum's sales, as well as significant portions of our Canadian and Tape sales, are sensitive to the housing industry, and all three businesses had lower sales this quarter than in the second quarter of 2006. Cost reduction steps we have taken helped mitigate the impact of the lower sales on profitability. With retail conditions better than housing but far from robust, our Jewelry business, K&M Associates LP, grew second quarter net sales 14.9% over 2006 and improved its pre-tax results by $1.1 million compared with the same period last year, which was the primary driver of our improved overall results." In June 2007, American Biltrite's subsidiary Congoleum Corporation received a "comment letter" from the Securities Exchange Commission (SEC) indicating it had reviewed Congoleum's Annual Report on Form 10-K for the year ended December 31, 2006 and requesting supplemental information on Congoleum's accounting policies and disclosures related to asbestos liabilities, insurance settlements, and related costs. Congoleum filed a voluntary petition with the United States Bankruptcy Court in 2003 seeking relief under Chapter 11 of the United States Bankruptcy Code as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago. Congoleum responded to the SEC comment letter on August 1, 2007. The SEC's review has not yet been concluded. American Biltrite's consolidated results contained in this press release include Congoleum's results, which Congoleum prepared in accordance with its existing accounting policies, which are consistent with those applied in the prior periods contained in this press release. American Biltrite cannot determine if it will be required to supplement its disclosures or restate or make other changes to its consolidated financial statements, including the financial statements contained in this press release, as a result of the SEC's review of Congoleum. To assure that its Quarterly Report on Form 10-Q for the period ended June 30, 2007 complies with any requirements arising from the SEC review of Congoleum, American Biltrite intends to delay its filing of that report until the SEC review process is completed and Congoleum has finalized its Quarterly Report on Form 10-Q for the period ended June 30, 2007. As a result, American Biltrite's Quarterly Report on Form 10-Q for the period ended June 30, 2007 may not be filed by the deadline for filing that report, August 14, 2007. AMERICAN BILTRITE INC. RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006 ($000, except per share amounts)
Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 ----------- ----------- ----------- ----------- Net sales $ 115,558 $ 117,465 $ 215,589 $ 229,186 Cost of products sold 86,058 88,279 160,253 171,643 Selling, general & administrative expenses 24,975 25,177 48,229 49,567 ----------- ----------- ----------- ----------- Income from operations 4,525 4,009 7,107 7,976 Other expense, net 3,311 2,800 6,751 5,956 Provision for (benefit from) income taxes 63 232 (59) 479 Noncontrolling interest (20) 3 (25) (13) ----------- ----------- ----------- ----------- Income from continuing operations 1,131 980 390 1,528 Discontinued operation -- 36 -- (26) ----------- ----------- ----------- ----------- Net income $ 1,131 $ 1,016 $ 390 $ 1,502 =========== =========== =========== =========== Basic earnings per share: Income per common share from continuing operations $ 0.33 $ 0.28 $ 0.11 $ 0.44 Discontinued operation -- 0.01 -- (0.01) ----------- ----------- ----------- ----------- Net income per share $ 0.33 $ 0.29 $ 0.11 $ 0.43 =========== =========== =========== =========== Diluted earnings per share: Income per common share from continuing operations $ 0.33 $ 0.28 $ 0.11 $ 0.44 Discontinued operation -- 0.01 -- (0.01) ----------- ----------- ----------- ----------- Net income per share $ 0.33 $ 0.29 $ 0.11 $ 0.43 =========== =========== =========== =========== Weighted average number of common and equivalent shares outstanding Basic 3,441,551 3,441,551 3,441,551 3,441,551 Diluted 3,442,346 3,471,200 3,442,326 3,469,869
AMERICAN BILTRITE INC. RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006 BY SEGMENT ($000)
Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 ---------- ---------- ---------- ---------- Revenues from external customers Flooring products $ 57,541 $ 58,743 $ 106,856 $ 115,980 Tape products 25,804 28,587 49,922 54,710 Jewelry 17,143 14,924 30,733 30,008 Canadian division 15,070 15,211 28,078 28,488 ---------- ---------- ---------- ---------- Total revenues from external customers $ 115,558 $ 117,465 $ 215,589 $ 229,186 ========== ========== ========== ========== Segment profit (loss) before taxes Flooring products $ 842 $ 691 $ 491 $ 953 Tape products (242) 1,116 (663) 1,267 Jewelry 774 (289) 536 (118) Canadian division 295 415 382 675 Corporate expense[, net of intersegment net sales] (455) (724) (390) (757) ---------- ---------- ---------- ---------- Total profit $ 1,214 $ 1,209 $ 356 $ 2,020 ========== ========== ========== ==========