Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

March 10, 2008 19:16 ET

Polyair Inter Pack Inc. Announces 2008 First Quarter Results

TORONTO, ONTARIO--(Marketwire - March 10, 2008) - Polyair Inter Pack Inc. (TSX:PPK) announced a loss from continuing operations of $0.5 million in the first quarter of 2008 compared to a loss of $1.3 million for the same period last year.

While 2008 sales were comparable to those of 2007, gross margin was lower by $0.5 million in 2008 primarily as a result of a 22% rise in the price of polyethylene, the Company's primary raw material, and higher facility rent as a result of the sale and lease backs of two of the company's factories, which were concluded in 2007. The Company was successful in mitigating part of the impact of these increases by increasing prices and by lowering operating costs. Interest costs in the quarter were significantly lower as the Company's average debt reduced from $24.9 million during the first quarter of 2007 to $17.0 million in the current quarter.

3 Months Ended
In 000s USD, except for per share amounts. 26-Jan 27-Jan
2008 2007
Sales from continuing operations $ 27,223 $ 27,402
Earnings from continuing operations
before interest, taxes,
depreciation and amortization (EBITDA)(i) $ 911 $ 1,213

(Loss) from continuing operations ($ 523) ($ 1,250)

Income / (loss) from discontinued operations ($ 143) $ 4,709

Net income / (loss) ($ 666) $ 3,459

Net (loss) per share from continuing operations
- Basic ($0.08) ($0.18)
-Diluted ($0.08) ($0.18)

Net income / (loss) per share
- Basic ($0.10) $0.51
-Diluted ($0.10) $0.51


Prior period amounts have been reclassified from statements previously presented to conform to the presentation of the 2008 Consolidated Interim Financial Statements.

(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 continuing operations before interest, other income and expenses, depreciation and amortization, and income taxes. Full 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.

In announcing the Company's results, Victor D'Souza, CEO stated: "In a difficult economic environment we are pleased to report that the loss from continuing operations was less than half that of the prior year. We expect volatile raw material costs and weak economic activity to continue in the coming quarters; however we are confident that the Company's focus on improving its efficiency will continue to yield benefits."

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 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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