Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

March 13, 2009 17:03 ET

Polyair Inter Pack Inc. Announces 2009 First Quarter Results

TORONTO, ONTARIO--(Marketwire - March 13, 2009) - Polyair Inter Pack Inc. ("PPK" or the "Company") (TSX:PPK), a North American producer of protective packaging products, announced an operating loss of $0.1 million for its first fiscal quarter ended January 31, 2009, compared to an operating loss of $0.2 million for 2008. The 2009 results were favorable compared with 2008 despite a 16% decline in sales and reflected lower raw material costs and reduced manufacturing overhead costs. Gross margins were also improved due to average selling prices that were higher in the first 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.

The Company continued to incur severance and other restructuring charges as it aligned the size of its infrastructure with its reduced sales base. 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
In 000s USD, except for per share amounts. 31-Jan 26-Jan
2009 2008

Sales $ 22,794 $ 27,223

Earnings before interest, taxes, depreciation and
amortization (EBITDA)(i) $ 607 $ 708

Operating (loss) ($ 74) ($ 237)

Restructuring charges $ 607 -
Interest and other expenses $ 350 $ 587

Net (loss) ($ 1,116) ($ 666)

Net (loss) per share
- Basic ($0.16) ($0.10)
- Diluted ($0.16) ($0.10)

Weighted average number of shares outstanding
(in millions)
- Basic 7.0 7.0
- Diluted 7.0 7.0

(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 improved first quarter performance and the progress we have made in reducing costs, maintaining a reasonable revenue base throughout fiscal 2009 will remain a significant challenge given the general economic conditions in North America".

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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