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Exhibit 99.1
CONTACT: MARK S. ALSENTZER, CEO
JOHN W. POLING, CFO
561-394-3511
MEDIA RELEASE
U. S. PLASTIC LUMBER CORP.
ANNOUNCES SECOND QUARTER OPERATING RESULTS
FOR IMMEDIATE RELEASE:
BOCA RATON, FL, August 14, 2000 - U.S. Plastic Lumber Corp. (NASDAQ: "USPL"),
announced today operating results for the second quarter ended June 30, 2000.
Total Revenues for the second quarter of 2000 were $44.3 million compared with
$36.9 million for the second quarter in 1999, an increase of 20%. Revenues from
USPL's Plastic Lumber Division for the second quarter of 2000 were $23.1 million
compared with $14.9 million for the second quarter in 1999, an increase of 55%.
Revenues from USPL's Environmental Recycling Division for the second quarter of
2000 were $21.1 million compared with $22.0 million for the second quarter in
1999, a decrease of 4%.
Operating Income from USPL's Plastic Lumber Division for the second quarter of
2000 was $1.7 million, or 7.4% of revenues, compared with an Operating Income of
$2.4 million, or 16.1% of revenues, for the same quarter in 1999. USPL's
Environmental Recycling Division had operating income of $2.9 million in the
second quarter of 2000, or 13.7% of revenues, compared with an Operating Income
of $3.5 million, or 15.9% of revenues, for the same quarter in 1999. Total
Operating Income for the second quarter of 2000 was $3.9 million, or 8.8% of
revenues, compared with $5.4 million, or 14.6% of revenues, for the second
quarter in 1999. EBITDA from USPL's Plastic Lumber Division for the second
quarter of 2000 was $2.5 million, or 10.8% of revenues, compared with an EBITDA
of $3.1 million, or 20.8% of revenues, for the same quarter in 1999. USPL's
Environmental Recycling Division reported EBITDA for the second quarter of 2000
of $3.7 million, or 17.5% of revenues, compared with an EBITDA of $4.0 million,
or 18.2% of revenues, for the same quarter in 1999. Total EBITDA for the second
quarter of 2000 was $5.7 million, or 12.9% of revenues, compared with $6.7
million, or 18.2% of revenues, for the second quarter in 1999. The second
quarter 1999 operating results exclude $595,000 of merger charges.
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Excluding an extraordinary loss on the early retirement of debt, net income for
the second quarter of 2000 was $1.7 million or $.05 per diluted share compared
with a net income of $3.3 million, or $.11 per diluted share in the same quarter
of 1999. Interest expense for the second quarter and the same period last year
was $ 1.3 million. Including the extraordinary loss, net income was $796,000 or
$.02 per share.
Revenues for the six months ending June 30, 2000 were $74.7 million compared to
$61.8 million for the comparable period in 1999, an increase of 21%. Operating
income for the six- month period was $4.1 million, or 5.5% of revenues, compared
to $7.5 million, or 12.1% of revenues, in 1999. EBITDA for the first six months
of 2000 was $7.4 million, or 9.9% of revenues, compared to $10.0 million, or
16.2% of revenues, in 1999. Net income excluding the extraordinary item for the
first six months of 2000 was $1.1 million, or $.03 per diluted share, compared
to a net loss of $2.1 million, or $.09 per share, in 1999. Interest expense for
the six-month period was $2.5 million compared to $3.0 million for the same
period last year. For the six-month period of 2000 interest expense includes a
$358,000 charge for the beneficial conversion feature and accretion of discounts
associated with the issuance of the $7.5 million convertible debentures during
the first quarter. Including the extraordinary loss on early retirement of debt
incurred in the second quarter, net income for the first six months of 2000 was
$126,000. The first quarter results have been restated to reflect the effects of
the beneficial conversion feature and discount accretion associated with the
aforementioned $7.5 million convertible debentures, which resulted in a $306,000
increase to interest expense or $.01 per share. The comparable period of 1999
was negatively impacted by $6.3 million of pre-tax restructuring, inventory
revaluation and merger related expenses.
Mark S. Alsentzer, Chairman, CEO and President of USPL, said, "While we are very
pleased with our revenue growth in the 2nd quarter, we are not pleased with our
overall operating margins for the quarter. During the past quarter we have made
significant progress in rolling out the last phases of our first major plastic
lumber expansion program. We completed the final build out of our Ocala, FL.
plant and implemented a number of modifications to the initial plant design to
improve line speeds, reduce scrap rates and lower our manufacturing costs. These
changes have proved to be beneficial and the line speeds and scrap rates have
steadily improved, however, our manufacturing labor costs and materials costs
remained higher than anticipated for the quarter." Alsentzer added, "We expect
to apply these same improvements to our Fontana, CA Plant as we bring this
facility on line. We currently have 8 lines operating in Ocala and expect to
have 5 lines running in Fontana by the end of the year."
Commenting on the Environmental Services Division, Alsentzer added, "Our
Environmental Services Division received new orders and change orders totaling
approximately $40 million during the second quarter. Their backlog is
approximately $125 million and we began work on
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two dredging contracts in early July that did not contribute to the second
quarter operating results. We expect the second half of 2000 will be
significantly better than the first half.
U.S. Plastic Lumber Corporation develops beneficial re-use options and
end-product solutions for distinct types of waste streams. The company has two
main business lines: the manufacture of plastic lumber, packaging and other
value added products from recycled plastic, and the operation of interrelated
environmental recycling services. U. S. Plastic Lumber is the nation's largest
producer of recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL
is a highly integrated, nationwide processor of a wide range of products made
from recycled plastic feedstocks. USPL creates high quality, competitive
building materials, furnishings, and industrial supplies by processing plastic
waste streams into purified, consistent products. USPL's products are
environmentally responsible and are both aesthetically pleasing and maintenance
friendly. They include such brand names as Carefree(R), SmartDeck(R),
RecycleDesign(TM), TriMax(R), Earth Care(TM), and OEM products including
Cyclewood(TM). USPL currently operates eight plastic manufacturing centers.
Certain statements and information included in this press release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. When used in this press release, the
words or phrases "will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "projected", "intends to" or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks, known and unknown, and uncertainties, including but not limited
to economic conditions, dependence on management, dilution to shareholders, lack
of capital, changes in laws or regulations, the affects of rapid growth upon the
Company and the ability of management to effectively respond to the growth,
demand for products and services of the Company, newly developing technologies,
its ability to compete, conflicts of interest in related party transactions,
regulatory matters, protection of technology, lack of industry standards, the
effects of competition, and the ability of the Company to obtain additional
financing. Such factors could materially adversely affect the Company's
financial performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements expressed within
this press release. Additional discussion of such factors that could cause
actual results to differ materially from management's projections, forecasts,
estimates and expectations is contained in the Company's SEC filings.
TABLES FOLLOW
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U. S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2000 AND 1999
(in thousands except share and per share data)
<TABLE>
<CAPTION>
1999
2000 Restated *
------------ ------------
<S> <C> <C>
Revenues, Net
Plastic Lumber Division $ 23,130 $ 14,880
Environmental Recycling Division 21,130 21,978
------------ ------------
Total Revenues 44,260 36,858
Cost of Sales and Services Performed
Plastic Lumber Division 17,742 9,292
Environmental Recycling Division 15,728 15,834
------------ ------------
Total cost of sales and services performed 33,470 25,126
Depreciation and Amortization
Plastic Lumber Division 760 747
Environmental Recycling Division 798 514
Corporate 110 41
------------ ------------
Total depreciation and amortization 1,668 1,302
Selling, General and Administrative
Plastic Lumber Division 2,919 2,479
Environmental Recycling Division 1,693 2,131
Corporate 598 423
------------ ------------
Total general, administrative and selling 5,210 5,033
Operating income**
Plastic Lumber Division 1,709 2,362
Environmental Recycling Division 2,911 3,500
Corporate (708) (464)
------------ ------------
Total operating income 3,912 5,398
Non-Recurring Merger Expenses -- 595
Other Income 118 69
Interest expense 1,250 1,319
Provision for Income Taxes 1,044 272
------------ ------------
Earnings before extraordinary item 1,736 3,281
Extraordinary loss on early extinguishment of debt, net of taxes 940 --
------------ ------------
Net income attributable to common stockholders $ 796 $ 3,281
============ ============
EBITDA **
Plastic Lumber Division 2,549 3,109
Environmental Recycling Division 3,746 4,014
Corporate (597) (423)
------------ ------------
Total EBITDA 5,698 6,700
============ ============
Net income per share - Basic:
Earnings before extraordinary item $ 0.05 $ 0.12
Loss on early extinguishment of debt 0.03 --
------------ ------------
Net earnings per common share - Basic $ 0.02 $ 0.12
============ ============
Net income per share - Diluted:
Earnings before extraordinary item $ 0.05 $ 0.11
Loss on early extinguishment of debt 0.03 --
------------ ------------
Net earnings per common share - Diluted $ 0.02 $ 0.11
============ ============
Weighted average common shares outstanding:
Basic 34,403,488 26,892,157
============ ============
Diluted 35,095,655 28,983,983
============ ============
</TABLE>
* - Results have been restated for the acquisitions of Ecosource Corporation,
Eurkea Plastics of California and Clean Rock, inc. in 1999
** - Operating income and EBITDA exclude 1999 merger charges
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U. S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(in thousands except share and per share data)
<TABLE>
<CAPTION>
2000 1999
Restated Restated*
------------ ------------
<S> <C> <C>
Revenues, Net
Plastic Lumber Division $ 39,771 $ 24,572
Environmental Recycling Division 34,893 37,257
------------ ------------
Total Revenues 74,664 61,829
Cost of Sales and Services Performed
Plastic Lumber Division 30,055 15,409
Environmental Recycling Division 27,337 26,950
------------ ------------
Total cost of sales and services performed 57,392 42,359
Depreciation and Amortization
Plastic Lumber Division 1,465 1,310
Environmental Recycling Division 1,463 1,026
Corporate 224 89
------------ ------------
Total depreciation and amortization 3,152 2,425
Selling, General and Administrative
Plastic Lumber Division 5,353 4,446
Environmental Recycling Division 3,482 4,220
Corporate 1,169 840
------------ ------------
Total general, administrative and selling 10,004 9,506
Operating income **
Plastic Lumber Division 2,898 3,407
Environmental Recycling Division 2,611 5,061
Corporate (1,393) (929)
------------ ------------
Total operating income (Loss) 4,116 7,539
Non-Recurring Restructuring and Revaluation Charges -- 5,745
Non-Recurring Merger Expenses -- 595
Other Income 122 142
Interest expense 2,539 3,015
Provision for Income Taxes 633 390
------------ ------------
Earnings (Loss) before extraordinary item 1,066 (2,064)
Extraordinary loss on early extinguishment of debt, net of taxes 940 --
------------ ------------
Net Income (Loss) attributable to common stockholders $ 126 $ (2,064)
============ ============
EBITDA **
Plastic Lumber Division 4,444 4,717
Environmental Recycling Division 4,114 6,087
Corporate (1,169) (840)
------------ ------------
Total EBITDA 7,389 9,964
============ ============
Net (Loss) income per share - Basic:
Earnings before extraordinary item $ 0.03 $ (0.09)
Loss on early extinguishment of debt 0.03 --
------------ ------------
Net earnings per common share - Basic $ 0.00 $ (0.09)
============ ============
Net (Loss) income per share - Diluted:
Earnings before extraordinary item $ 0.03 $ (0.09)
Loss on early extinguishment of debt 0.03 --
------------ ------------
Net earnings per common share - Diluted $ 0.00 $ (0.09)
============ ============
Weighted average common shares outstanding:
Basic 33,772,863 25,195,059
============ ============
Diluted 34,992,873 25,195,059
============ ============
</TABLE>
* - 1999 results have been restated for the acquisitions of Ecosource
Corporation, Eureka Plastics of California and Clean Rock, inc.
** - Operating income and EBITDA exclude restructuring, inventory and equipment
revaluation and merger charges
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U. S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
Unaudited Selected Balance Sheet Items
(In thousands)
Restated
June 30, December 31,
2000 1999
-------- ------------
Working Capital $ 14,633 $ 12,189
Property, Plant & Equipment, net 98,141 80,424
Long Term Debt 59,747 48,822
Stockholders equity 92,004 83,010
Total Assets $194,758 $166,311
