FORM 8-K |
FiberMark,
Inc.
|
Delaware
|
001-12865
|
82-0429330
|
(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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FiberMark
|
||
Date:
August 12, 2005
|
By:
|
/s/
John E. Hanley
|
John
E. Hanley
|
||
Vice
President and Chief Financial Officer
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Exhibit
No.
|
|
Description
|
|
||
Exhibit
99.1
|
|
Press
release dated August 12, 2005
|
FOR IMMEDIATE RELEASE |
Contact:
|
Janice C. Warren |
Director, Investor Relations and Corporate Communications | ||
802 257 5981 |
FIBERMARK,
INC.
Condensed
Consolidated Statements of Operations
Three
Months Ended June 30, 2005 and 2004
(In
thousands, except per share amounts)
Unaudited
|
|||||||
2005
|
|
|
2004
|
||||
Net
sales
|
$
|
115,561
|
$
|
111,011
|
|||
Cost
of sales
|
100,543
|
92,790
|
|||||
Gross
profit
|
15,018
|
18,221
|
|||||
Selling,
general and administrative expenses
|
11,013
|
11,858
|
|||||
Restructuring
and facility closure expense
|
94
|
-
|
|||||
Gain
on disposal of assets
|
(1,905
|
)
|
-
|
||||
Income
from operations
|
5,816
|
6,363
|
|||||
Foreign
exchange transaction gain
|
(114
|
)
|
(44
|
)
|
|||
Other
expense, net
|
265
|
198
|
|||||
Interest
expense, net (excluding post-petition contractual interest of $8,525
in
both
2005 and 2004)
|
523
|
662
|
|||||
Reorganization
expense
|
3,133
|
1,957
|
|||||
Income
before income taxes
|
2,009
|
3,590
|
|||||
Income
tax expense
|
3,388
|
3,000
|
|||||
Net
income (loss)
|
$
|
(1,379
|
)
|
$
|
590
|
||
Basic
earnings (loss) per share
|
$
|
(0.20
|
)
|
$
|
0.08
|
||
Diluted
earnings (loss) per share
|
$
|
(0.20
|
)
|
$
|
0.08
|
||
Weighted
average basic shares outstanding
|
7,066
|
7,066
|
|||||
Weighted
average diluted shares outstanding
|
7,066
|
7,066
|
FIBERMARK,
INC.
Condensed
Consolidated Statements of Operations
Six
Months Ended June 30, 2005 and 2004
(In
thousands, except per share amounts)
Unaudited
|
|||||||
2005
|
|
|
2004
|
||||
Net
sales
|
$
|
230,358
|
$
|
223,439
|
|||
Cost
of sales
|
195,532
|
183,974
|
|||||
Gross
profit
|
34,826
|
39,465
|
|||||
Selling,
general and administrative expenses
|
22,334
|
23,946
|
|||||
Restructuring
and facility closure expense
|
94
|
-
|
|||||
Gain
on disposal of assets
|
(1,905
|
)
|
-
|
||||
Income
from operations
|
14,303
|
15,519
|
|||||
Foreign
exchange transaction (gain) loss
|
148
|
(271
|
)
|
||||
Other
expense, net
|
585
|
934
|
|||||
Interest
expense, net (excluding post-petition contractual interest of $17,050
and
$8,617
in 2005 and 2004, respectively)
|
1,108
|
9,610
|
|||||
Reorganization
expense
|
8,635
|
13,942
|
|||||
Income
(loss) before income taxes
|
3,827
|
(8,696
|
)
|
||||
Income
tax expense
|
7,532
|
7,564
|
|||||
Net
loss
|
$
|
(3,705
|
)
|
$
|
(16,260
|
)
|
|
Basic
loss per share
|
$
|
(0.52
|
)
|
$
|
(2.30
|
)
|
|
Diluted
loss per share
|
$
|
(0.52
|
)
|
$
|
(2.30
|
)
|
|
Weighted
average basic shares outstanding
|
7,066
|
7,066
|
|||||
Weighted
average diluted shares outstanding
|
7,066
|
7,066
|
FIBERMARK,
INC.
Condensed
Consolidated Balance Sheets
(In
thousands, except share and per share amounts)
Unaudited
|
|||||||
|
|
|
June
30,
2005 |
December
31,
2004
|
|||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
-
|
$
|
1,194
|
|||
Accounts
receivable, net of allowances
|
69,270
|
61,116
|
|||||
Inventories
|
67,902
|
73,650
|
|||||
Prepaid
expenses
|
3,937
|
4,339
|
|||||
Total
current assets
|
141,109
|
140,299
|
|||||
Property,
plant and equipment, net
|
231,569
|
248,853
|
|||||
Goodwill
|
8,303
|
9,167
|
|||||
Other
intangible assets, net
|
2,029
|
2,629
|
|||||
Other
long-term assets
|
4,661
|
4,858
|
|||||
Total
assets
|
$
|
387,671
|
$
|
405,806
|
|||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|||||||
Current
liabilities:
|
|||||||
Revolving
credit line
|
$
|
4,666
|
$
|
2,628
|
|||
Accounts
payable
|
20,029
|
24,063
|
|||||
Accrued
liabilities
|
23,359
|
21,269
|
|||||
Accrued
income taxes payable
|
18,013
|
15,458
|
|||||
Deferred
income taxes
|
248
|
279
|
|||||
Total
current liabilities not subject to compromise
|
66,315
|
63,697
|
|||||
Long-term
liabilities:
|
|||||||
Deferred
income taxes
|
18,080
|
28,497
|
|||||
Other
long-term liabilities
|
46,838
|
48,788
|
|||||
Total
long-term liabilities not subject to compromise
|
64,918
|
77,285
|
|||||
Liabilities
subject to compromise
|
365,329
|
366,700
|
|||||
Total
liabilities
|
496,562
|
507,682
|
|||||
Stockholders’
deficit:
|
|||||||
Preferred
stock, par value $.001 per share;
|
|||||||
2,000,000 shares authorized, and none issued
|
-
|
-
|
|||||
Series
A Junior participatory preferred stock, par value $.001;
|
|||||||
7,066 shares authorized, and none issued
|
-
|
-
|
|||||
Common
stock, par value $.001 per share; 20,000,000 shares
authorized
|
|||||||
7,070,026 shares issued and 7,066,226 shares outstanding in 2005
and
2004
|
7
|
7
|
|||||
Additional
paid-in capital
|
65,496
|
65,496
|
|||||
Accumulated
deficit
|
(178,413
|
)
|
(174,708
|
)
|
|||
Accumulated
other comprehensive income
|
4,054
|
7,364
|
|||||
Less
treasury stock, 3,800 shares at cost in 2005 and 2004
|
(35
|
)
|
(35
|
)
|
|||
Total
stockholders’ deficit
|
(108,891
|
)
|
(101,876
|
)
|
|||
Total
liabilities and stockholders’ deficit
|
$
|
387,671
|
$
|
405,806
|
FiberMark,
Inc.
|
|||||||||||||
Supplemental
Financial Information
|
|||||||||||||
Reconciliation
of Net Income/(Loss) to EBITDAR
|
|||||||||||||
EBITDAR,
a non-GAAP measure, is defined as earnings before interest, taxes,
depreciation, amortization and reorganization expenses. This financial
metric reflects liquidity and operating profitability commonly
used by the
investment community and internally for evaluation purposes. Such
measures
should be considered in addition to, but not in lieu of, financial
measures reported under GAAP.
|
|||||||||||||
|
Three
Months Ended June 30,
|
Variance
|
|||||||||||
2005
|
2004
|
$
|
|
%
|
|
||||||||
Net
income/(loss)
|
$
|
(1,379
|
)
|
$
|
590
|
(1,969
|
)
|
-334
|
%
|
||||
Adjustments
to reconcile to EBITDAR:
|
|||||||||||||
Income
tax
|
3,388
|
3,000
|
(388
|
)
|
|||||||||
Net
interest
|
523
|
662
|
139
|
||||||||||
Depreciation
and amortization
|
5,587
|
4,215
|
(1,372
|
)
|
|||||||||
Chapter
11 reorganization expense
|
3,133
|
1,957
|
(1,176
|
)
|
|||||||||
12,631
|
9,834
|
(2,797
|
)
|
-28
|
%
|
||||||||
EBITDAR1
|
11,252
|
10,424
|
828
|
8
|
%
|
||||||||
1Includes:
|
|||||||||||||
Foreign
exchange transaction (gain)
|
(114
|
)
|
(44
|
)
|
70
|
||||||||
Gain
on disposal of asset
|
(1,905
|
)
|
-
|
1,905
|
|
Six
Months Ended June 30,
|
Variance
|
|||||||||||
2005
|
2004
|
$
|
%
|
|
|||||||||
Net
loss
|
$
|
(3,705
|
)
|
$
|
(16,260
|
)
|
12,555
|
77
|
%
|
||||
Adjustments
to reconcile to EBITDAR:
|
|||||||||||||
Income
tax
|
7,532
|
7,564
|
32
|
||||||||||
Net
interest
|
1,108
|
9,610
|
8,502
|
||||||||||
Depreciation
and amortization
|
10,266
|
8,878
|
(1,388
|
)
|
|||||||||
Chapter
11 reorganization expense
|
8,635
|
13,942
|
5,307
|
||||||||||
27,541
|
39,994
|
12,453
|
31
|
%
|
|||||||||
EBITDAR1
|
23,836
|
23,734
|
102
|
0.4
|
%
|
||||||||
1Includes:
|
|||||||||||||
Foreign
exchange transaction (gain)/loss
|
148
|
(271
|
)
|
(419
|
)
|
||||||||
Gain
on disposal of asset
|
(1,905
|
)
|
-
|
1,905
|