Triple S Plastics, Inc. Reports First Quarter Results
22 July 1999
Triple S Plastics, Inc. Reports First Quarter Results
VICKSBURG, Mich.--July 22, 1999--Triple S Plastics, Inc. reported today that its net sales were $19,246,000 for the first quarter ended June 30, 1999, representing a 23% increase from sales of $15,641,000 for the first quarter last year.After charging the previously-announced $840,000 (net after tax) provision for closing its Tucson, Arizona plant and former Victor Plastics facility, the Company reported a net loss of ($621,000), or ($.17) per share, compared to net income of $360,000 or $.10 per share last year.
The increase in net sales for the first quarter reflects continued strength in the Company's shipments to the Telecommunications market. Sales to customers in the Medical, Information Technologies, and Consumer Products markets showed a combined decrease, principally due to the loss of the McCulloch account in late December, 1998. Sales to the Automotive market were up slightly when compared to the prior year.
Sales to customers in the Telecommunications market comprised 51% of net sales for the quarter, with sales to the Consumer Products market at 17%, and the balance (32%) to the Medical, Automotive, and Information Technologies markets.
Recent executive management changes have enabled the Company to increase its focus on sales and marketing activities and recent order trends show encouraging results.
During the quarter, the Company announced that it was closing its Tucson, Arizona facility and relocating equipment to other Company locations. Additionally, on July 9, 1999, the Company announced that it had settled the patent infringement action brought by Capitol Vial, Inc. at no cost for settlement.
In commenting on the first quarter results, Mr. A. Christian Schauer, Chief Executive Officer, said "we have addressed two issues which have weighed on earnings-the Tucson, Arizona facility and the patent litigation. We are now getting our focus aimed squarely on profitability, sales, and factory utilization. Our sales leaders have several ambitious plans in development and our management team is focusing all efforts on restoring profitability ... that is our first and foremost priority." Schauer added, "Our employees have been most supportive and helpful during this time of re-positioning and we want to express our utmost appreciation for their dedication and loyalty."
Continuing the expanded alliance with it's telecommunications customers, the Company announced in late May the opening of a 60,000 square foot facility in Fort Worth, Texas. The project is on schedule and production is expected to start in August and steadily increase during the second and third quarters.
Certain matters discussed in this release constitute forward-looking statements which are necessarily subject to certain risks and uncertainties, and they may change in a material way based upon various market, industry and other important factors. From time to time, the Company identifies factors in its Form 10-K filed with the Securities and Exchange Commission and its other interim reports that may influence future results, and the Company recommends that investors consult those reports. The Company cautions investors that actual results may differ materially from the forward-looking statements contained in this release.
Triple S Plastics, Inc. is a full-service custom injection molder, providing rapid prototyping and design models, mold design and engineering services, mold manufacturing, injection molding, and post-molding assembly and finishing operations to a diverse base of customers. The Company has five production facilities in Michigan, Texas, and New York.