Moll Industries, Inc., Reports Strong Q2 1998 Results
24 August 1998
Moll Industries, Inc., Reports Strong Second Quarter 1998 Results
KNOXVILLE, TN--August 24, 1998--Moll Industries, Inc., a full service provider of custom injection molded and assembled plastic components today announced strong second quarter results. The Company is a wholly owned subsidiary of Anchor Holdings, Inc., and was formed on June 26, 1998, through the merger of Moll PlastiCrafters L.P. and Anchor Advanced Products, Inc., and the acquisition of Gemini Plastic Services, Inc., a specialty medical and telecommunications product plastic molding company. Pursuant to the merger, Moll Industries, Inc., issued $130 million of 10 1/2% Senior Subordinated Notes due 2008. The issue was completed under Rule 144A of the Securities Act of 1933 and the Company has filed to exchange these securities as prescribed by the terms of the Offering.Pro forma consolidated results for the Company give effect to the merger of Moll PlastiCrafters and Anchor Advanced Products, the acquisition of Gemini Plastic, and the distribution of Moll's investment in Reliance Products, L.P., to certain of Moll's limited partners.
Pro forma consolidated results for the quarter ended July 4, 1998, were in line with management expectations. Pro forma net sales decreased $2.3 million, or 2.3%, in the 1998 second quarter to $98.4 million, from $100.7 million in the first quarter of 1998. The net sales decrease was expected and resulted primarily from lower toothbrush sales to Colgate-Palmolive. This decrease was partially offset by increased sales of mascara and lipstick packaging to L'Oreal, appliance components to Whirlpool and business equipment components to Xerox. Pro forma earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased by $0.7 million, or 5.0%, to $12.6 million, for the second quarter of 1998 from $13.3 million for the first quarter of 1998, due to lower toothbrush sales to Colgate-Palmolive and inefficiencies associated with the discontinuation of Compaq business in the Round Rock, Texas plant. This decrease was partially offset by increased sales to L'Oreal, Whirlpool and Xerox, strong performance of the Company's French operations, efficiency improvements and the conversion to profitability in the Company's German operations, as well as better utilization of plant capacities.
George Votis, Chairman and Chief Executive Officer of Moll Industries remarked, "Moll's second quarter and six months earnings reflect our ability to successfully implement our strategy of becoming a full service plastics company with an international platform." Mr. Votis added, "We are pleased with our growth and overall progress in consolidating our recently announced acquisitions, including the former Anchor, Moll, and Gemini companies, into one company. This will enable us to become one of the leading plastics suppliers, globally."
For accounting purposes, Moll PlastiCrafters was considered the acquirer of Anchor Advanced Products as a result of the merger; accordingly, second quarter results as reported by Moll Industries' parent, Anchor Holdings, Inc., reflect historical financial statements for Moll PlastiCrafters.
For the quarter ended July 4, 1998, net sales increased $35.0 million, or 124.3%, to $63.1 million from $28.1 million for the quarter ended June 30, 1997. For the six months ended July 4, 1998, net sales increased $69.4 million, or 129.1%, to $123.2 million from $53.8 million for the six months ended June 30, 1997. The increase in net sales for both the quarter and the six month period were driven primarily by the acquisitions of Hanning and Somomeca, which contributed net sales of $34.9 million in the second quarter and $67.2 million in the year to date period.
For the quarter ended July 4, 1998, EBITDA increased $4.0 million, or 86.2%, to $8.7 million from $4.7 million for the quarter ended June 30, 1997. For the six months ended July 4, 1998, EBITDA increased $5.9 million, or 67.1%, to $14.6 million from $8.7 million for the six months ended June 30, 1997. The increase in EBITDA for both the quarter and the six month period were driven by the acquisitions of Hanning and Somomeca.
Moll Industries, Inc., is a leading full service manufacturer and designer of custom molded and assembled plastic components for a broad array of customers and end markets throughout North America and Europe. Products using the Company's plastic components are sold in a wide range of end markets, including end markets for consumer products, telecommunications/business equipment, household appliances, automobiles and medical devices.
Statements made in this press release that state the Company's or management intentions, beliefs, expectations or predictions for the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to general economic and business conditions, industry trends, the loss of major customers or suppliers, the timing of orders received from customers, cost and availability of raw materials, changes in business strategy or development plans, availability and quality of management, and availability, terms and deployment of capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC. The Company disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.
MOLL INDUSTRIES, INC.
July 4, 1998
(in thousands)
Summary Unaudited Pro Forma Consolidated Financial Data:
(a) See Footnote A.
1st 2nd YTD
Qtr 98 Qtr 98 1998
Net Sales $100,739 $98,446 $199,185
Gross Profit 16,410 15,002 31,412
Selling, general and administrative 7,766 7,398 15,164
Operating income 8,644 7,604 16,248
Interest expense, net 6,895 7,114 14,009
Income (loss) before taxes and
extraordinary items 1,571 (77) 1,494
Income (loss) before extraordinary item 524 97 621
Other Data:
Pro forma EBITDA $13,315 $12,643 $25,958
Depreciation and Amortization 4,849 5,606 10,455
Capital Expenditures 3,827 3,778 7,605
Footnote A.
Summary Unaudited Pro Forma Consolidated Financial Data includes
financial information for Moll PlastiCrafters, Anchor Advanced
Products, and Gemini Plastic, which were combined pursuant to the
merger of June 26, 1998, and excludes financial information for
Reliance Products, which was divested by the Company at the time of
the merger.
MOLL INDUSTRIES INC.
July 4, 1998
(in thousands)
Anchor Holdings, Inc., and It's Subsidiary, Moll Industries, Inc.
Summary Income Statement Data:
(2) See Footnote B.
1st 2nd YTD 1st 2nd YTD
Qtr 97 Qtr 97 1997 Qtr 98 Qtr 98 1998
Net Sales $25,633 $28,122 $53,755 $60,106 $63,063 $123,169
Gross Profit 5,557 6,331 11,888 9,368 11,705 21,073
Selling, General &
Administrative 2,101 2,076 4,177 4,428 5,159 9,587
Operating Income 3,053 3,816 6,869 4,169 6,119 10,288
Interest Expense 675 748 1,423 2,336 2,643 4,979
Income before taxes &
extra ord. Items 2,169 2,787 4,956 1,450 3,082 4,532
Income before extra
ordinary item 2,169 2,787 4,956 1,357 2,431 3,788
Other Data:
EBITDA $4,078 $4,658 8,736 $5,925 $8,671 $14,596
Depreciation and
Amortization 1,234 1,123 2,357 2,139 2,946 5,085
July 4, Dec. 31,
Summary Balance Sheet Data: 1998 1997
Cash 29,668 1,729
Current Assets 167,515 47,479
Total Assets 339,455 86,925
Current Liabilities 77,785 34,708
Notes Payable 230,000 42,873
Total Liabilities 337,523 80,961
Stockholders Equity 1,932 5,964
Anchor Advanced Products, Inc.
Summary Income Statement Data:
1st 2nd YTD 1st 2nd YTD
Qtr 97 Qtr 97 1997 Qtr 98 Qtr 98 1998
Net Sales $41,546 $43,199 $84,745 $39,303 $36,507 $75,810
Gross Profit 6,893 6,531 13,424 6,608 4,533 11,141
Selling, General &
Administrative 2,615 3,197 5,812 3,014 3,661 6,675
Operating Income 3,935 3,334 7,269 3,168 1,298 4,466
Interest Expense 2,072 2,910 4,982 2,967 3,059 6,026
Income before taxes &
extra ord. Items 1,837 363 2,200 159 (1,821) (1,662)
Income before extra
ordinary item 1,058 342 1,400 81 (1,269) (1,188)
Other Data:
EBITDA $6,238 $5,800 $12,038 $5,784 $3,831 $9,615
Depreciation and
Amortization 2,329 2,405 4,734 2,658 2,593 5,251
Footnote B
Summary Income Statement Data for Anchor Holdings/Moll Industries
consists of historical information for the company formerly doing
business as Moll PlastiCrafters, which includes results for the
Hanning companies for the period since they were acquired in August
1997: Somomeca Industries for the period since it was acquired in
January 1998; and Reliance Products for the period before it was
divested in June 1998, and excludes results for Anchor Advanced
Products for the period before the merger in June 1998 and Gemini
Plastic for the period before its acquisition in June 1998.