<PAGE>
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 for the quarterly period ended
March 27, 1998
[_] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the
transition period from _______ to _______
Commission file number: 333-19495
RADNOR HOLDINGS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 23-2674715
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Three Radnor Corporate Center, Suite 300
100 Matsonford Road, Radnor, Pennsylvania 19087
(address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 610-341-9600
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [_]
The number of shares outstanding of the Registrant's common stock as of
May 8, 1998:
<TABLE>
<CAPTION>
Number
Class of Shares
----- ---------
<S> <C>
Voting Common Stock; $.10 par value 600
Nonvoting Common Stock; $.10 par value 245
Class B Nonvoting Common Stock; $.01 par value 5,400
</TABLE>
================================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
<TABLE>
<CAPTION>
March 27, December 26,
1998 1997
----------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
------
CURRENT ASSETS
Cash $ 3,377 $ 8,810
Accounts receivable, net 31,803 28,589
Inventories, net 34,272 28,451
Prepaid expenses and other 4,771 3,520
Deferred tax asset 1,715 1,708
-------- --------
Total current assets 75,938 71,078
-------- --------
PROPERTY, PLANT AND EQUIPMENT 180,931 176,981
LESS - ACCUMULATED DEPRECIATION (14,281) (11,868)
-------- --------
NET PROPERTY, PLANT AND EQUIPMENT 166,650 165,113
-------- --------
OTHER ASSETS 14,481 13,627
-------- --------
Total assets $257,069 $249,818
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $ 27,297 $ 28,565
Accrued liabilities 21,136 18,151
Current portion of long-term debt 172 226
-------- --------
Total current liabilities 48,605 46,942
-------- --------
LONG-TERM DEBT, net of current portion 185,043 178,947
-------- --------
DEFERRED TAX LIABILITY 8,856 8,543
-------- --------
OTHER NONCURRENT LIABILITIES 411 411
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Voting and nonvoting common stock, 22,700 shares authorized,
6,245 shares issued and outstanding 1 1
Additional paid-in capital 19,387 19,387
Accumulated deficit (2,157) (2,809)
Cumulative translation adjustment (3,077) (1,604)
-------- --------
Total stockholders' equity 14,154 14,975
-------- --------
Total liabilities and stockholders' equity $257,069 $249,818
======== ========
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
2
<PAGE>
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
For the three months ended
-----------------------------------
March 27, March 28,
1998 1997
-------------- --------------
<S> <C> <C>
Net sales $ 71,814 $ 54,028
Cost of goods sold 52,785 40,654
------------- -------------
Gross profit 19,029 13,374
Operating expenses:
Distribution 5,173 3,988
Selling, general and administrative 8,526 5,489
------------- -------------
Income from operations 5,330 3,897
Other (income) expense:
Interest 4,559 2,824
Other, net (281) (67)
------------- -------------
Income from operations before
income taxes 1,052 1,140
Provision for income taxes
Current 78 -
Deferred 322 75
------------- -------------
400 75
------------- -------------
Net income $ 652 $ 1,065
============= =============
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE>
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
For the three months ended
----------------------------------
March 27, March 28,
1998 1997
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 652 $ 1,065
Adjustments to reconcile net income to cash provided by
(used in) operating activities-
Depreciation 2,441 1,592
Amortization 511 428
Deferred income taxes 322 -
Changes in operating assets and liabilities
Accounts receivable, net (3,562) 3,436
Inventories (6,359) (4,011)
Prepaid expenses and other (1,280) 246
Accounts payable (944) (3,105)
Accrued liabilities 3,160 1,250
------------- -------------
Net cash provided by (used in) operating activities (5,059) 901
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (4,763) (2,842)
Increase in other assets (1,436) (922)
------------- -------------
Net cash used in investing activities (6,199) (3,764)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on bank financed debt and
unsecured notes payable 6,105 5,028
Cash dividends - (2,402)
------------- -------------
Net cash provided by financing activities 6,105 2,626
------------- -------------
EFFECTS OF EXCHANGE RATE CHANGES ON CASH (280) -
------------- -------------
NET DECREASE IN CASH (5,433) (237)
CASH, beginning of period 8,810 855
------------- -------------
CASH, end of period $ 3,377 $ 618
============= =============
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest paid $ 238 $ 83
============= =============
Income taxes paid $ - $ 111
============= =============
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE>
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) BASIS OF PRESENTATION
The condensed consolidated financial statements included herein have been
prepared by Radnor Holdings Corporation and subsidiaries (collectively,
"Radnor" or the "Company") pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in consolidated financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion
of the Company, the statements include all adjustments (which include only
normal recurring adjustments) required for a fair statement of financial
position, results of operations and cash flows for such periods. The
results of operations for the interim periods are not necessarily
indicative of the results for a full year.
(2) INVENTORIES
The components of inventories were as follows (in thousands):
<TABLE>
<CAPTION>
March 27, December 26,
1998 1997
---------- ------------
<S> <C> <C>
Raw Materials $10,117 $ 9,612
Work in Process 1,620 1,303
Finished Goods 22,535 17,536
------- -------
$34,272 $28,451
======= =======
</TABLE>
(3) INTEREST EXPENSE
Included in interest expense is $277,000 and $140,000 of amortization of
deferred financing costs for the three months ended March 27, 1998 and
March 28, 1997, respectively. In addition, included in interest expense is
debt premium amortization of $70,000 for the three months ended March 27,
1998.
(4) COMPREHENSIVE INCOME
In 1998, the Company adopted Statement of Financial Accounting Standard No.
130, Reporting Comprehensive Income, which establishes standards for the
reporting and display of comprehensive income and its components.
Comprehensive income is the total of net income and non-owner changes in
equity. For the three months ended March 27, 1998 and March 28, 1997 the
Company had comprehensive income (loss) as follows:
<TABLE>
<CAPTION>
March 27, March 28,
1998 1997
----------- ----------
<S> <C> <C>
Net Income $ 652 $ 1,065
Foreign Currency Translation Adjustment (1,473) (28)
-------- --------
Comprehensive Income (Loss) $ (821) $ 1,037
======== ========
</TABLE>
5
<PAGE>
(5) SUPPLEMENTAL FINANCIAL INFORMATION
Radnor Holdings Corporation is a holding company which has no operations or
assets separate from its investments in subsidiaries. Radnor's $100 million
10% Senior Notes due 2003 are guaranteed by all direct and indirect wholly
owned subsidiaries on a full, unconditional, joint and several basis other
then certain non-guarantor subsidiaries that individually and in the
aggregate are inconsequential. The financial information of the non-
guarantor subsidiaries is inconsequential. Separate financial statements of
the guarantors are not presented because management has determined that
they would not be material to investors.
The Company's $60 million 10% Series B Senior Notes due 2003 are guaranteed
by substantially all of the Company's domestic subsidiaries. The following
represents summarized combining financial information of the holding
company, combined guarantor subsidiaries and the combined non-guarantor
subsidiaries as of and for the three months ended March 27, 1998 (in
thousands):
<TABLE>
<CAPTION>
Holding Guarantor Non-Guarantor
Company Subsidiaries Subsidiaries Eliminations Consolidated
------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Sales $ - $ 49,432 $ 23,054 $ (672) $ 71,814
Gross Profit - 12,804 6,225 - 19,029
Income from Operations - 3,520 1,810 - 5,330
Net Income - 1,081 777 (1,206) 652
Current Assets 1,364 48,507 31,961 (5,894) 75,938
Non-Current Assets 151,065 179,519 46,693 (196,146) 181,131
Current Liabilities 5,134 28,864 16,843 (2,236) 48,605
Non-Current Liabilities 162,089 67,953 56,542 (92,274) 194,310
</TABLE>
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
Radnor Holdings Corporation and its subsidiaries manufacture and distribute
worldwide a variety of specialty chemical and packaging products. The
Company's products range from value added specialty chemicals, such as
expandable polystyrene resins, to disposable packaging sold to the
foodservice industry. Radnor manufactures, markets and sells its products
through five operating units comprised of twenty-two manufacturing
locations in the U.S., Canada and Europe. The Company, through its
predecessors, has been manufacturing foam packaging since 1961.
COMPARABILITY OF PERIODS
Financial results for the three months ended March 27, 1998 are not fully
comparable with the three months ended March 28, 1997 because of the
October 1997 acquisition of the polystyrene production operations of Neste
Oy ("StyroChem Europe").
THREE MONTHS ENDED MARCH 27, 1998 COMPARED TO THREE MONTHS ENDED MARCH 28, 1997
Net sales increased to $71.8 million for the three months ended March 27,
1998 from $54.0 million for the same period in 1997, an increase of $17.8
million or 33.0%. The increase was due to the acquisition of StyroChem
Europe on October 15, 1997.
Cost of goods sold as a percentage of net sales decreased to 73.5% for the
three months ended March 27, 1998, from 75.2% for the same period in 1997.
This decrease was primarily due to a decline in raw material prices
resulting from improved market conditions.
Gross profit increased to $19.0 million or 26.5% of net sales for the three
months ended March 27, 1998, from $13.4 million or 24.8% of net sales for
the same period in 1997.
Distribution expense as a percentage of net sales decreased to 7.2% for the
three months ended March 27, 1998, from 7.4% of net sales for the same
period in 1997. This decrease was primarily due to increased efficiencies
in the North American operations resulting from the realignment of shipping
points and an increase in the percentage of full truckload shipments.
Selling, general and administrative expenses as a percentage of net sales
increased to 11.9% for the three months ended March 27, 1998, from 10.2% of
net sales for the same period in 1997. This increase was due to higher
selling and marketing expenses as well as additional administrative costs
associated with StyroChem Europe.
Income from operations increased to $5.3 million or 7.4% of net sales for
the three months ended March 27, 1998, from $3.9 million or 7.2% of net
sales for the same period in 1997.
Interest increased to $4.6 million for the three months ended March 27,
1998, from $2.8 million for the same period in 1997. This increase was
primarily due to an increase in borrowings related to the acquisition of
StyroChem Europe in October 1997.
Income taxes were $0.4 million for the three months ended March 27, 1998,
compared to $0.1 million for the same period in 1997. This increase relates
to the elimination, in the prior year, of an income tax valuation allowance
that was recorded against the Company's loss carryforward tax benefits.
7
<PAGE>
Net income decreased to $0.7 million or 1.0% of net sales for the three
months ended March 27, 1998, from $1.1 million or 2.0% of net sales for the
same period in 1997 due to the reasons described above.
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended March 27, 1998 and March 28, 1997, the
Company's principal source of funds consisted of cash from financing
sources. During the 1998 period, after tax cash flow of $4.0 million,
borrowings under the Company's credit facilities of $6.1 million and a
decrease in cash of $5.4 million were primarily used to fund capital
expenditures of $4.8 million and a $9.0 million increase in working
capital.
As of March 27, 1998, the Company had $23.0 million outstanding and $12.4
million of availability under its revolving credit agreements. The
Company's principal uses of cash for the next several years will be working
capital requirements and capital expenditures.
As a holding company, Radnor Holdings Corporation is dependent upon
dividends and other payments from its subsidiaries to generate the funds
necessary to meet its obligations. Subject to certain limitations under
applicable state law and the Company's credit agreements, Radnor Holdings
Corporation is, and will continue to be, able to control its receipt of
dividends and other payments from its subsidiaries. Management believes
that cash generated from operations, together with available borrowings
under the revolving credit facilities, will be sufficient to meet the
Company's expected operating needs, planned capital expenditures and debt
service requirements.
YEAR 2000 COMPLIANCE
The Company is currently in the process of evaluating its information
technology infrastructure for Year 2000 compliance. The Company does not
expect that the cost to modify its information technology infrastructure to
be Year 2000 compliant will be material to its financial condition or
results of operations. The Company does not anticipate any material
disruptions in its operations as a result of any failure by the Company to
be in compliance. The Company does not currently have any information
concerning the Year 2000 compliance status of its suppliers and customers.
In the event that any of the Company's significant suppliers or customers
does not successfully and timely achieve Year 2000 compliance, the
Company's business operations could be adversely affected.
FORWARD LOOKING STATEMENTS
All statements contained herein that are not historical facts are based on
current expectations. These statements are forward looking in nature and
involve a number of risks and uncertainties. Such risks and uncertainties
are described in detail in the Company's Report on Form 10-K for the year
ended December 26, 1997, Commission File No. 333-19495, to which reference
is hereby made.
8
<PAGE>
PART II OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company is involved in various legal actions arising in the normal
course of business. After taking into consideration legal counsel's
evaluation of such actions, management believes that these actions
will not have a material effect on the Company's financial position or
results of operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
10.1 Second Amendment to Operating Lease dated as of February 20,
1998 between R/K Ventures Unit I Limited Partnership and
WinCup Holdings, Inc.
27.0 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports filed on Form 8-K during the three month
period ended March 27, 1998.
9
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, its duly authorized officer and chief financial officer.
RADNOR HOLDINGS CORPORATION
(registrant)
/s/ Michael V. Valenza
-----------------------------------
Date: May 8, 1998 By:
Michael V. Valenza
Senior Vice President-Finance and Chief
Financial Officer
10
<PAGE>
EXHIBIT 10.1
SECOND AMENDMENT TO OPERATING LEASE
THIS SECOND AMENDMENT TO OPERATING LEASE is entered into as of the 20th day
of February, 1998 between R/K VENTURES UNIT I LIMITED PARTNERSHIP, an Arizona
limited partnership ("Landlord"), and WINCUP HOLDINGS, INC., a Delaware
corporation ("WINCUP"), a wholly owned subsidiary of RADNOR HOLDINGS
CORPORATION, a Delaware corporation ("Tenant").
RECITALS
--------
A. Landlord and WMF CONTAINER CORPORATION ("WMF") entered into an
Operating Lease dated as of August 20, 1987 (the "Original Lease") relating to
the lease by Landlord to Tenant of certain premises located in Maricopa Count,
Arizona, more particularly described therein.
B. On October 27, 1988, SCOTT PAPER COMPANY, a Pennsylvania corporation,
acquired all the outstanding capital stock of WMF, and thereafter the name of
WMF was changed to SCOTT CONTAINER PRODUCTS GROUP, INC. ("SCPG").
C. Landlord and SCPG amended the Operating Lease by executing that
certain FIRST AMENDMENT TO OPERATING LEASE dated 30 November, 1990 (the "First
Amendment") (the original Lease as amended by the First Amendment is referred to
as the "Lease").
D. On Feb. 28, 1992, Tenant acquired all the outstanding capital stock of
SCPG and thereafter the name of the tenant under the lease was changed to WINCUP
HOLDINGS, INC.
E. On Jan. 20, 1996, Tenant and JAMES RIVER PAPER COMPANY, INC., formed a
limited partnership known as WINCUP HOLDINGS, L.P. (the "Partnership"), and
assigned the Lease to the Partnership.
F. On July 7, 1997, the Partnership dissolved and assigned the Lease to
Tenant.
G. Landlord and Tenant desire to amend the Lease as follows:
(i) To confirm the Tenant's exercise of the first extension option;
(ii) to convert the rent to a fixed RENT as set forth within Par. 4
Refinancing of the First Amendment; (iii) to delete the rent
-----------
calculations as set forth by the formula under Pars. 3(b) and 3(d) of
the First Amendment, beginning as of Sept. 01, 1998, and; (iv) to
remove the provisions within the Lease for: the Expansion Land
Parcels; and for improvements to and expansion of the building
facilities.
NOW THEREFORE for and in consideration of the mutual covenants
hereinafter set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant agree as
follows:
AGREEMENT
---------
1. Definitions. All capitalized terms used herein and not defined herein
-----------
have the meanings set forth in the Lease.
<PAGE>
2. Commencement Date. Landlord and Tenant agree that the Commencement
-----------------
Date was June 1, 1988 and that the original term of the Lease shall expire on
August 31, 1998. Landlord and Tenant agree that Tenant has exercised its first
extension option, that the first extension period shall begin on Sept. 01, 1998,
and that the first extension period term shall expire on August 31, 2008.
3. Rent. Landlord and Tenant reaffirm that Paragraph 4(a) of the
----
Original Lease is and has been inapplicable, as previously deleted. The Rent
provisions and calculations as set forth within the First Amendment shall remain
in effect through the end of the initial term, except upon the Allstate Life
Insurance Company Loan No. 121597 permanent loan financing (the "Allstate
Financing") being closed, the Rent shall be readjusted based on the interest
rate of the Allstate Financing.
4. Rent in Option Periods
----------------------
(a) Upon the Allstate Financing occurring, the Rent during the first
option period shall be modified as follows, in lieu of the Rent described in
Section 18(a) (i), and (iii) of the Original Lease; and par. 3(d)(i) of the
First Amendment.
(i) Rent during the first option period (commencing Sept. 01,
1998):
(A) For the one hundred twenty-fourth through one
hundred fifty-ninth month following the Commencement Date,
Tenant's Rent shall be: $68,316.00/Mo.-NNN.
(B) For the one hundred sixtieth through one hundred
eighty-third months following the Commencement Date, Tenant's
Rent shall be: $71,736.00/Mo.-NNN.
(C) For the one hundred eighty-fourth through two
hundred nineteenth months following the Commencement Date,
Tenant's Rent shall be: $75,557.00/Mo.-NNN.
(D) For the two hundred twentieth through two hundred
forty-third months following the Commencement Date, Tenant's Rent
shall be: $76,824.00/Mo.-NNN.
(b) If Tenant exercises the second option to extend the term of the
Lease for a second 120 month period, as provided in Section 18(a) of the
Original Lease, the Rent during the second option period shall be as follows in
lieu of the Rent described in Section 18(a)(ii), and (iii) of the Original
Lease, and Par. 3(d) of the First Amendment.
(i) Rent during the second option period (commencing Sept. 01,
2008):
(A) For the two hundred forty-fourth through two hundred
seventy-ninth months following the Commencement Date, Tenant's
Rent shall be: $79,351.00/Mo.-NNN.
(B) For the two hundred eightieth through three hundred
third months following the Commencement Date, Tenant's Rent shall
be: $80,773.00/Mo.-NNN.
2
<PAGE>
(C) For the three hundred fourth through three hundred
thirty-ninth months following the Commencement Date, Tenant's
Rent shall be: $80,733.00/Mo.-NNN.
(D) For the three hundred fortieth through three hundred
sixty-third months following the Commencement Date, Tenant's Rent
shall be: $80,733.00/Mo.-NNN.
(c) Paragraph 21. Tenant's Default; Remedies. (c) Rental Late Charges
-------------------------- -------------------
and Interest.
------------
(i) Revise second sentence to: - Accordingly, if any
installment of Rent due from Tenant shall not be received by
Landlord within five (5) days after such amount shall be due,
Tenant shall pay Landlord a late charge equal to three percent
(3%) of such overdue amount.
(ii) Revise fourth sentence to: - In the event any installment
of Rent due from Tenant shall be received within ten (10) days
following the above referenced five (5) day period, interest on
such overdue amount, and on any late charges or such overdue
amount, shall begin to accrue at a rate equal to two (2)
percentage points added to the prime lending rate of Wells Fargo
Bank, as published from time to time, and shall be due and
payable when such overdue amount is paid.
5. Refinancing. As requested by Tenant, the Landlord shall cooperate
-----------
with Tenant to obtain beneficial long term underlying loan and rate of interest.
The Tenant shall pay all costs incurred by landlord in connection with the
Allstate Financing. The costs of the Allstate Financing shall be added to the
Rent as additional Rent and shall be amortized beginning the month after closing
of the Allstate Financing, through the end of the First Extension period.
6. Parcel 2 and Parcel 3. Paragraphs 19 and 20 of the Lease are hereby
---------------------
deleted in their entirety. From and after the date hereof, the Premises shall
not include Parcel 2 and Parcel 3, and all references in the Lease to the
Premises are hereby amended to refer only to Parcel 1, the Parcel 1 Improvements
and the Appurtenances.
7. Notices. The addresses for notices contained in Section 25 of the
-------
Original Lease shall be changed to the following addresses, subject to the right
of either party to modify its address in the manner specified in Section 25.
If from Tenant to Landlord:
R/K Ventures Unit I Limited Partnership
c/o RGR Development Corp.
4515 South McClintock Drive
Suite 220
Tempe, Arizona 85282
Attention: Ronald G. Roth - General Partner
3
<PAGE>
If from Landlord to Tenant:
WINCUP HOLDINGS, INC.
7980 West Buckeye Road
Phoenix, Arizona 85043
Attention: Donald Rogalski, Sr. Vice President
with a copy to the Controller at the above address
8. Confirmation. The parties hereto hereby confirm that the foregoing
------------
constitutes an amendment to the Original Lease and the First Amendment and that
the Original Lease, as so amended, shall remain in full force and effect and is
not otherwise amended.
IN WITNESS WHEREOF, the parties hereto have executed this SECOND
AMENDMENT TO OPERATING LEASE as of the day and year first above written.
"LANDLORD"
R/K VENTURES UNIT LIMITED PARTNERSHIP,
an Arizona limited partnership
By: K-F-T LIMITED PARTNERSHIP, an Arizona
limited partnership. Its General Partner
By: Kite Family Companies, Inc. an Arizona
corporation. Its General Partner
By: /s/ Robert H. Kite
--------------------------------------------
Robert H. Kite
President
/s/ Ronald G. Roth
-----------------------------------------------
RONALD G. ROTH, General Partner
/s/ Roy A. Kite, Jr.
-----------------------------------------------
ROY A. KITE, JR., General Partner
"TENANT"
WINCUP HOLDINGS, INC.
By: /s/ Donald Rogalski
-----------------------------------------
Its: Sr VP Admin
----------------------------------------
4
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF RADNOR HOLDINGS CORPORATION AND ITS
SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-25-1998
<PERIOD-START> DEC-27-1998
<PERIOD-END> MAR-27-1998
<CASH> 3,377
<SECURITIES> 0
<RECEIVABLES> 32,603
<ALLOWANCES> 800
<INVENTORY> 34,272
<CURRENT-ASSETS> 75,938
<PP&E> 180,931
<DEPRECIATION> 14,281
<TOTAL-ASSETS> 257,069
<CURRENT-LIABILITIES> 48,605
<BONDS> 185,043
0
0
<COMMON> 1
<OTHER-SE> 14,153
<TOTAL-LIABILITY-AND-EQUITY> 257,069
<SALES> 71,814
<TOTAL-REVENUES> 71,814
<CGS> 52,785
<TOTAL-COSTS> 52,785
<OTHER-EXPENSES> 13,699
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,559
<INCOME-PRETAX> 1,052
<INCOME-TAX> 400
<INCOME-CONTINUING> 652
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 652
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
