Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

June 17, 2009 09:50 ET

Polyair Inter Pack Inc. Announces 2009 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - June 17, 2009) - Polyair Inter Pack Inc. (the "Company") (NEX BOARD:PPK.H), a North American producer of protective packaging products, announced an operating profit of $0.6 million for its second quarter ended May 2, 2009, compared to an operating loss of $1.3 million for 2008. The 2009 results compared favorably with the 2008 results despite a 26% decline in sales, and reflected lower raw material costs and reduced operating expenses. Gross margins also improved due to average selling prices that were higher in the second quarter of 2009 than they were in the comparable period of 2008. These higher selling prices were a result of price increases secured in the last half of fiscal 2008.

Sales declined across all lines of business as a result of a significant drop in market demand caused by the deteriorating economy. While sales to most of the Company's customers have decreased, the Company continues to be successful in securing business with new customers.

Selling and general and administrative expenses have declined by 18% since the second quarter of 2008 as a result of reductions in the size of the Company's administrative infrastructure and a favourable US / Canadian dollar exchange rate, which has lowered the reported costs of administrative expenses incurred in Canada. Interest charges have decreased from those incurred in the first quarter of 2008 as a result of reduced debt levels and lower interest rates.

3 Months Ended 6 Months Ended

In 000s USD, except for per 2-May 26-Apr 2-May 26-Apr
share amounts. 2009 2008 2009 2008
--------------------- ----------------------
Sales $ 21,279 $ 28,802 $ 44,073 $ 56,025

Earnings before interest,
taxes, depreciation and
amortization (EBITDA)(i) $ 1,213 ($ 383) $ 1,820 $ 325

Operating income (loss) $ 578 ($ 1,345) $ 505 ($ 1,583)

Restructuring charges - - $ 607 -
Interest and other expenses $ 384 $ 606 $ 735 $ 1,192

Net income (loss) $ 149 ($ 1,605) ($ 967) ($ 2,272)

Net income (loss) per share
- Basic $0.00 ($0.23) ($0.02) ($0.32)
- Diluted $0.00 ($0.23) ($0.02) ($0.32)
Weighted average number of
shares outstanding
(in millions)
- Basic 101.3 7.0 53.6 7.0
- Diluted 169.4 7.0 53.6 7.0

Prior period amounts have been reclassified from statements previously
presented to conform to the presentation of the 2009 Consolidated Financial

(i) EBITDA is not a recognized measure under Canadian Generally Accepted
Accounting Principles and readers are cautioned that EBITDA should not
be considered as an alternative to net income or loss or cash from
operating activities as an indicator of the Company's performance or
cash flows. EBITDA, as calculated by the Company, is net income or loss
from operations before interest and other expenses, depreciation and
amortization, and income taxes. Full financial statements along with
Management's Discussion and Analysis can be obtained from SEDAR at
www.sedar.com and the Company's web site at www.polyair.com

In announcing the Company's results, Gary Tessitore, the Company's CEO, stated: "While we are pleased with the second quarter performance, our focus over the remainder of the year will be to find ways to grow our sales in this difficult market environment and to continue to reduce costs."

Polyair Inter Pack Inc. (www.polyair.com) manufactures and distributes a wide range of protective packaging products and swimming pool solar covers in North America. The Company operates eight manufacturing facilities, seven of which are in the USA where it generates the majority of its sales. All figures reported above are in US dollars, unless otherwise noted.

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues and profitability of the Company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Polyair Inter Pack Inc. In addition, Polyair Inter Pack Inc. expressly disclaims any obligation to publicly update or alter its previously issued forward-looking statements.

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