-----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, CQ7GYXfAu8KOj3cXQp1MFFgJuJs17CH+qnnQ8Ax0LSR8sFzGMZEjeClthF50U2qo zS1SRrNHc7t1Pr4kbOsTyw== 0000077597-04-000025.txt : 20040603 0000077597-04-000025.hdr.sgml : 20040603 20040603094349 ACCESSION NUMBER: 0000077597-04-000025 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040501 ITEM INFORMATION: FILED AS OF DATE: 20040603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPARTECH CORP CENTRAL INDEX KEY: 0000077597 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS PLASTIC PRODUCTS [3080] IRS NUMBER: 430761773 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05911 FILM NUMBER: 04845893 BUSINESS ADDRESS: STREET 1: 120 S CENTRAL AVE STREET 2: STE 1700 CITY: CLAYTON STATE: MO ZIP: 63105 BUSINESS PHONE: 3147214242 MAIL ADDRESS: STREET 1: 120 S CENTRAL AVE STREET 2: STE 1700 CITY: CLAYTON STATE: MO ZIP: 63105 FORMER COMPANY: FORMER CONFORMED NAME: SPARTAN MANUFACTURING CORP DATE OF NAME CHANGE: 19830621 FORMER COMPANY: FORMER CONFORMED NAME: PERMANEER CORP DATE OF NAME CHANGE: 19781019 8-K 1 eightk_06032004.txt FORM 8-K 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) : June 3, 2004 SPARTECH CORPORATION (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of incorporation) 1-5911 43-0761773 (Commission File Number) (IRS Employer Identification No.) 120 South Central Avenue, Suite 1700, Clayton, Missouri 63105 (Address of principal executive offices) (Zip Code) (314) 721-4242 (Registrant's Telephone Number, Including Area Code) SPARTECH CORPORATION FORM 8-K Item 12. Results of Operations and Financial Condition On June 3, 2004 a press release was issued regarding earnings results of Spartech Corporation for the quarter ended May 1, 2004. A copy of this press release is furnished with this Current Report on Form 8-K as Exhibit 99.1. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SPARTECH CORPORATION Date June 3, 2004 By /s/ Randy C. Martin Randy C. Martin Executive Vice President - Corporate Development and Chief Financial Officer 3 EXHIBIT INDEX Exhibit Number Description 99.1 Press release of Spartech Corporation dated June 3, 2004. 4 EX-99.1 2 eightk_06032004-ex99.txt EXHIBIT 99.1 Company Contacts: Bradley B. Buechler Randy C. Martin Chairman, President and Executive Vice President and Chief Executive Officer Chief Financial Officer (314) 721-4242 (314) 721-4242 For Immediate Release Thursday, June 3, 2004 SPARTECH CORPORATION ANNOUNCES SECOND QUARTER FISCAL 2004 RESULTS AND DECLARES QUARTERLY DIVIDEND Second Quarter Highlights: *Net Sales increased by 15% to $287.6 million *Operating Earnings rose by 25% to $28.1 million *Interest Expense declined by 1% to $6.2 million *Net Earnings increased by 28% to $13.5 million *Earnings Per Diluted Share was $.41 vs. $.36 per share last year Financial Summary (Unaudited) (Dollars in thousands, except per share data) Quarter Ended % 05/01/04 05/03/03 Change OPERATING RESULTS Net Sales $287,591 $250,488 15% Operating Earnings $ 28,050 $ 22,456 25% Net Earnings $ 13,519 $ 10,541 28% Earnings Per Share: Basic $ 0.42 $ 0.36 17% Diluted $ 0.41 $ 0.36 14% PERFORMANCE RATIOS Operating Earnings Per Pound Sold $ 0.075 $ 0.068 Operating Return on Net Sales 9.8% 9.0% Total Debt to Total Debt & Equity 47.2% 58.4% Return on Average Equity 13.7% 14.1% "We are pleased to report that our second quarter produced record sales in both pounds and dollars, with renewed strength in practically every market we serve. Our backlogs are solid as we move into our fiscal third quarter, and this bodes well for a continuation of the excellent volumes we experienced over the last three months." -Bradley B. Buechler, Chairman, President & Chief Executive Officer- -more- SPARTECH CORPORATION SECOND QUARTER FISCAL 2004 RESULTS & QUARTERLY DIVIDEND ADD 1 SPARTECH CORPORATION ANNOUNCES SECOND QUARTER FISCAL 2004 RESULTS AND DECLARES QUARTERLY DIVIDEND ST. LOUIS, June 3, 2004 - Spartech Corporation (NYSE:SEH) announced today increases in both sales and earnings for its second quarter ended May 1, 2004. Spartech's Chairman, President and CEO, Bradley B. Buechler, reported that sales for the second quarter of fiscal 2004 were $287.6 million, an increase of 15% from the $250.5 million reported in 2003. The Company's fiscal 2004 second quarter operating earnings were $28.1 million or 25% greater than the $22.5 million reported for the same quarter last year. Second quarter 2004 net earnings were $13.5 million, or $0.41 per diluted share, compared to the $10.5 million, or $0.36 per diluted share, reported in 2003. Commenting on the results, Mr. Buechler stated, "We are pleased to report that our second quarter produced record sales, in both pounds (375 million) and dollars ($287.6 million), with the economy continuing to improve as the quarter progressed. We saw a strengthening in practically every market served by us during the quarter.especially strong were the building & construction and transportation markets. And net earnings, though not a record at $13.5 million, represented our 50th consecutive profitable quarter dating back to the first quarter of fiscal 1992. Our overall capacity utilization rate was in the upper 80% range during the quarter, and our backlogs are solid as we move into the third quarter. This bodes well for a continuation of the excellent volumes we experienced during the last three months." SEGMENT RESULTS Custom Sheet & Rollstock - Our Custom Sheet & Rollstock segment saw sales grow by nearly 16% during the quarter, with the increase being generated roughly one-third from acquisitions and two-thirds from internal growth & price/product mix changes. Continued strength in the building & construction and sign & advertising markets we serve, combined with new volume from our 2003 acquisitions of PEP and TriEnda, were the principal reasons for the unit's sales increase to 184 million pounds for the quarter. The segment's operating margin--both on a per pound and percentage basis--saw continued increases during the quarter as well, with our conversion cost reduction initiatives beginning to pay off. (In Millions) Second Quarter First Six Months 2004 2003 2004 2003 -------- ---------- --------- --------- Net Sales $188.8 $163.3 $349.0 $303.0 ======== ========== ========= ========= Operating Earnings $ 21.9 $ 18.0 $ 37.0 $ 30.6 ======== ========== ========= ========= -more- SPARTECH CORPORATION SECOND QUARTER FISCAL 2004 RESULTS & QUARTERLY DIVIDEND ADD 2 Color & Specialty Compounds - Sales for the Company's Color & Specialty Compounds group also rose by double-digits (14%) during the second quarter. Slightly more than three-fourths of this volume (in pounds) increase to 178 million came from internal growth as the segment picked up several new customers which more than offset a decline in the group's tolling business. Operating margin at 8.7% of sales, for this our second largest segment, reflected a modest improvement over the prior year's 7.6% margin (In Millions) Second Quarter First Six Months 2004 2003 2004 2003 -------- ---------- --------- ---------- Net Sales $ 77.8 $ 68.0 $144.3 $127.9 ======== ========== ========= ========== Operating $ 6.7 $ 5.2 $ 12.3 $ 10.5 Earnings ======== ========== ========= ========== Molded & Profile Products -The Company's Molded & Profile Products group produced another solid performance during the second quarter, with sales increasing by 9%, but more importantly operating earnings rising by approximately 35%. Strong performances by the group's custom engineered wheels and acrylic rods & tubes product lines led the way for this segment during the second quarter. (In Millions) Second Quarter First Six Months 2004 2003 2004 2003 -------- ---------- --------- ---------- Net Sales $ 21.0 $ 19.2 $ 35.8 $ 33.3 ======== ========== ========= ========== Operating Earnings $ 2.6 $ 1.9 $ 3.8 $ 2.5 ======== ========== ========= ========== Mr. Buechler added, "We continue to be encouraged by the overall economic improvement, but remain cautiously optimistic due to fluctuating resin prices and occasional supply concerns related to crude oil. However, on a more positive note, we are also seeing an increase in potential acquisition candidates coming to market. Based upon these factors and our solid backlog at the end of the second quarter, we continue to believe that Spartech should generate year-over-year improved earnings results in each of the final two quarters of fiscal 2004. Our current guidance for the Company's full fiscal 2004 remains $1.38-$1.43 earnings per diluted share. As always, our guidance does not give any positive effect for future acquisitions that could be completed later this year." -more- SPARTECH CORPORATION SECOND QUARTER FISCAL 2004 RESULTS & QUARTERLY DIVIDEND ADD 3 Finally, Mr. Buechler announced that the Company's Board of Directors declared a second quarter cash dividend of 11cents per common share, payable on July 1, 2004, to common shareholders of record on June 17, 2004. Spartech Corporation is a leading producer of engineered thermoplastic materials, polymeric compounds, and molded & profile products, which has 47 facilities located throughout the United States, Canada, Mexico, and Europe, with annual production capacity of more than 1.3 billion pounds and sales of approximately $1 billion, annually. Safe Harbor For Forward-Looking Statements Statements contained herein which are not historical facts are forward- looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 which are intended to be covered by the safe harbors created thereby. For a summary of important facts which could cause the Company's actual results to differ materially from those included in, or inferred by, the forward-looking statements, refer to the Company's Form 10-K for the fiscal year ended November 1, 2003, which is on file with the Securities and Exchange Commission. -TABLE TO FOLLOW- SPARTECH CORPORATION SECOND QUARTER FISCAL 2004 RESULTS & QUARTERLY DIVIDEND ADD 4 SPARTECH CORPORATION (In Thousands, Except Per Share Amounts) Operating Results Three Months Ended (Unaudited) Six Months Ended (Unaudited) May 1, May 3, Percent May 1, May 3, Percent 2004 2003 Change 2004 2003 Change --------- -------- -------- --------- -------- ------- Net Sales $287,591 $250,488 15% $529,054 $464,188 14% ========= ======== ======== ========= ======== ======= Operating Earnings $ 28,050 $ 22,456 25% $ 46,849 $ 38,199 23% ========= ======== ======== ========= ======== ======= Interest $ 6,175 $ 6,265 (1%) $ 12,505 $ 12,371 1% ========= ======== ======== ========= ======== ======= Income Tax $ 8,356 $ 5,650 48% $ 13,119 $ 9,129 44% Provision ========= ======== ======== ========= ======== ======= Net Earnings $ 13,519 $ 10,541 28% $ 21,225 $ 16,699 27% ========= ======== ======== ========= ======== ======= Earnings Per Common Share - Diluted $ .41 $ .36 14% $ .68 $ .57 19% ========= ======== ======== ========= ======== ======= Weighted Average Common Shares Outstanding - Diluted 37,054 31,102 19% 32,768 29,484 11% ========= ======== ======== ========= ======== ======= SPARTECH CORPORATION SECOND QUARTER FISCAL 2004 RESULTS & QUARTERLY DIVIDEND ADD 5 SPARTECH CORPORATION (In Thousands, Unaudited) As Of May 1, Nov. 1 Percent 2004 2003 Change ---------- --------- -------- Select Balance Sheet Data Receivables, net $177,739 $149,546 19% ========= ======== ======== Inventories $117,348 $ 99,671 18% ========= ======== ======== Property, Plant and Equipment, net $281,883 $283,924 - ========= ======== ======== Accounts Payable & Accrued $132,998 $132,764 1% Liabilities ========= ======== ======== Total Debt $356,552 $383,819 (7%) ========= ======== ======== Shareholders' Equity $399,612 $322,358 24% ========= ======== ======== Three Months Ended Six Months Ended May 1, May 3, May 1, May 3, 2004 2003 2004 2003 -------------- ------------ ------------ ------------- Select Cash Flow Information Cash Flow From Operations $ 1,518 $ 7,211 $ (1,750) $ 6,106 ========= ========== ========== ========== Capital Expenditures $ 7,283 $ 7,424 $ 12,514 $ 12,013 ========= ========== ========== ========== Depreciation & Amortization $ 8,634 $ 7,692 $ 16,968 $ 15,406 ========= ========== ========== ========== Borrowings(Payments) of Long- $(47,928) $ 3,733 $(37,684) $ 12,392 Term Debt, Excluding Acquisitions ========= ========== ========== ========== Dividends on Common Stock $ 3,534 $ 2,924 $ 6,763 $ 5,849 ========= ========== ========== ========== Treasury Stock Acquired, (Net of Option Proceeds) $ (161) $ 261 $ (1,907) $ 1,446 ========= ========== ========== ==========
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