Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

September 10, 2007 10:48 ET

Polyair Inter Pack Inc. Announces 2007 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2007) - Polyair Inter Pack Inc. ("PPK" or the "Company") (TSX:PPK) announced a net profit from continuing operations of $0.7 million on sales of $30.9 million for its 2007 third quarter. For the same quarter in 2006, the Company reported a net loss from continuing operations of $0.2 million on sales of $32.6 million. The Company has reported results from its Pool, PXL and PSC divisions as discontinued operations to reflect the sale of these businesses.

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

3 Months Ended 9 Months Ended
28-Jul 29-Jul 28-Jul 29-Jul
2007 2006 2007 2006
------------------ ------------------

Sales from continuing
operations $30,867 $32,571 $89,250 $94,068

Earnings from continuing
operations before Interest,
Taxes, Depreciation 2,227 2,243 6,034 3,513
and Amortization (EBITDA)(ii)

Income / (loss) from
continuing operations, before
capital equipment impairment
charge 658 (176) 710 (2,141)

Income / (loss) from
continuing operations 658 (176) (1,404) (2,141)
Income / (loss) from
discontinued operations (84) (7,375) 4,692 (13,007)
Net income / (loss) $574 ($7,551) $3,288 ($15,148)

Net income / (loss) per
share from continuing
- Basic $0.09 ($0.03) ($0.20) ($0.31)
- Diluted $0.09 ($0.03) ($0.20) ($0.31)

Net income / (loss) per
share from discontinued
- Basic ($0.01) ($1.08) $0.68 ($1.91)
- Diluted ($0.01) ($1.08) $0.68 ($1.91)

Net income / (loss) per
- Basic $0.08 ($1.11) $0.48 ($2.23)
- Diluted $0.08 ($1.11) $0.48 ($2.23)


Weighted average number
of shares outstanding
(in millions) - Basic 7.0 6.8 6.9 6.8
- Diluted 7.6 7.4 7.5 6.8

Prior period amounts have been reclassifed from statements previously
presented to conform to the presentation of the 2007 third quarter Interim
Consolidated Financial Statements.

(ii) 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 continuing
operations 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.


Sales in the quarter were below expectation in large part due to lower sales of inflatable systems and solar pool covers. Due to capital constraints, the Company has had to slow the deployment of new inflatable machines, which has adversely impacted sales; however it expects that as its capital resources continue to improve that it will be able to increase its deployment rate. Despite the lower sales, gross margin was essentially unchanged from the same period last year in large part due to lower material and operating costs. General and administrative costs were lower in 2007 as a result of personnel reductions effected over the last twelve months. Profitability was also improved by lower interest costs resulting from the reduction of bank borrowings.

The Company completed a sale and leaseback of two US facilities in the quarter and has used these funds to pay down debt and increase working capital in the business. During the quarter, the Company was also able to reach agreement with its principal operating lender to extend its facility to October 2008.

"I am pleased to report the stabilization of the Company's finances and that we are continuing to make improvements in its relative operating costs. These improvements are particularly important given that resin prices appear to be once again rising. While we intend to continue to focus on operating efficiencies, our challenge in the coming quarters will be to increase our revenues," stated Victor D'Souza, CEO in announcing the Company's results.

Polyair Inter Pack Inc. (www.Polyair.com) manufactures and distributes a wide range of protective packaging products and swimming pool 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.

Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company, financing and the sale of non-packaging assets. 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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