Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

March 15, 2005 09:35 ET

Polyair Inter Pack Inc. 2005 First Quarter Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: POLYAIR INTER PACK INC.

AMEX, TSX SYMBOL: PPK

MARCH 15, 2005 - 09:35 ET

Polyair Inter Pack Inc. 2005 First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - March 15, 2005) - Polyair Inter Pack
Inc. (TSX:PPK)(AMEX:PPK) reported net loss of ($2.8) million or ($0.44)
per diluted share on sales of $42.0 million for quarter ended January
29, 2005, compared with net loss of ($1.1) million or ($0.19) per
diluted share on sales of $35.1 million for the first quarter of 2004.
These results incorporate for the first time, comparable first quarter
results of the Atlantic/Jacuzzi operation, acquired on May 8th, 2003.



All amounts are expressed in thousands of U.S. dollars, except for
number of shares outstanding and per share amounts.

3 Months Ended
January 29 January 31 %
2005 2004 Change
Sales
Packaging Products $29,336 $23,375 26%
Pool Products 12,696 11,714 8%
Total Sales 42,032 35,089 20%

(Loss) earnings before Interest, (1,813) 107
Taxes, Depreciation and
Amortization (EBITDA)(i)

Net (loss) ($2,812) ($1,113)

Weighted average number of
shares outstanding
(in millions) - Basic 6.4 6.1
- Diluted 7.2 7.2

Net (loss) per share
- Basic ($0.44) ($0.19)
- Diluted ($0.44) ($0.19)



(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
before extraordinary items, net interest expenses and other,
depreciation and amortization, and income taxes. Full interim financial
statements along with Management's Discussion and Analysis can be
obtained from SEDAR (www.sedar.com) and the Company's web site at
www.polyair.com

Commenting on the Company's results, Henry Schnurbach, President and
Chief Executive Officer stated: "The Packaging Group continues to
experience growth across all product sectors. The Pool Division has not
met volume expectations due to the competitive environment. Our
profitability continues to be impacted by increases in raw material
costs in excess of corresponding price increases and the effect of the
continuing strength of the Canadian dollar. While we have initiated
price increases in both the Packaging and Pool Divisions, these price
increases were not fully realized in the quarter and in any event will
be insufficient to maintain historical margins without some reduction in
raw material costs.

Mr. Schnurbach continued, "Management will continue to reduce or
eliminate lower margin product lines and work to lower the operating
cost base. The combination of a restructured cost base, improved product
mix and the anticipated stabilization in commodity prices should result
in improved performance."

Conference Call

The Company will host a conference call on Wednesday, March 16, 2005 at
4:00 pm (Eastern Daylight Time) to review the operating results. Polyair
invites all those interested in hearing management's discussion of the
results to join the call by dialing 1-800-238-9007 in the U.S. and
Canada. International participants may access the call by dialing
1-719-457-2622. A replay will be available for one week following the
call by dialing 1-888-203-1112 (U.S. and Canada) or 1-719-457-0820
(International) and entering access code 9648595 when prompted.

Polyair Inter Pack Inc. (www.Polyair.com) in its Polyair Packaging and
Cantar Pool Products divisions manufactures and distributes a wide range
of protective packaging products and swimming pool products. These
products are sold to distributors and retailers across North America.
The company operates eleven manufacturing facilities, seven of which are
in the US where it generates the majority of its sales. The shares are
listed on both the Toronto Stock Exchange and the American Stock
Exchange under the symbol "PPK".

Certain information included in this news release contains statements
that are forward-looking, such as statements relating to anticipated
future revenues of the company and the success of current product
offerings. 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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Polyair Inter Pack Inc.
    Wendy Smith
    Shareholder Administrator
    (416) 679-6591
    wsmith@polyair.com