<PAGE> 1
================================================================================
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 29, 1997
OR
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 1-9118
----------------
PRINTPACK, INC.
(Exact name of registrant as specified in its charter)
Georgia 58-0673779
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4335 Wendell Drive, S.W., Atlanta, Georgia 30336
(Address of principal executive offices) (Zip Code)
(404) 691-5830
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date.
Total number of shares of outstanding stock (net of shares held in treasury) as
of March 29, 1997:
Common stock.................................4,218,560
================================================================================
<PAGE> 2
PRINTPACK, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets at
March 29, 1997 and June 29, 1996
Statements of Operations
for the 39 weeks ended
March 29, 1997 and March 23, 1996
Statements of Operations
for the 13 weeks ended
March 29, 1997 and March 23, 1996
Statements of Cash Flows
for the 39 weeks ended
March 29, 1997 and March 23, 1996
Statement of Changes in Shareholders' Equity
For the 39 weeks ended March 29, 1997
Notes to Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations
Part II. OTHER INFORMATION:
Item 6. Exhibit
Signatures
Exhibit 27 Financial Data Schedule
<PAGE> 3
PRINTPACK, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 29, MARCH 29,
1996 1997
-------------------------------
(IN THOUSANDS)
ASSETS
<S> <C> <C>
Current assets
Cash and cash equivalents $ 242 $ 351
Trade accounts receivable, less allowance for doubtful accounts of $286 and $713 35,742 71,720
Inventories 34,831 96,778
Prepaid expenses and other current assets 10,348 26,776
Net assets held for sale ---- 15,000
Deferred income taxes 1,844 2,141
-------------- --------------
Total current assets 83,007 212,766
Property, plant and equipment, net 137,628 374,729
Intangibles, less accumulated amortization of $1,301 and $3,541 617 53,850
Other assets 9,270 31,979
Deferred income taxes 747 ----
-------------- --------------
$ 231,269 $ 673,324
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 26,539 $ 50,490
Accrued severance and restructuring costs 5,986 21,053
Accrued salaries, wages, benefits and bonuses 6,967 13,417
Current maturities of long-term debt 30,625 20,387
Short-term borrowings under lines of credit 5,504 ----
-------------- --------------
Total current liabilities 75,621 105,347
Long-term debt 110,625 331,000
Subordinated long-term debt 10,384 210,344
Other long-term liabilities 21,179 25,109
Deferred income taxes ---- 3,873
-------------- --------------
Total liabilities 217,809 675,673
-------------- --------------
Shareholders' equity
Common stock, no par value, 5,000,000 shares authorized, 4,218,560
shares issued and outstanding 1,011 1,011
Additional paid-in capital 413 4,904
Retained earnings (accumulated deficit) 12,036 (8,264)
-------------- --------------
Total shareholders' equity (deficiency) 13,460 (2,349)
-------------- --------------
Commitments and contingencies ---- ----
-------------- --------------
$ 231,269 $ 673,324
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 4
<TABLE>
<CAPTION>
39 WEEKS 39 WEEKS
ENDED ENDED
MARCH 23, MARCH 29,
1996 1997
-------------------------------
(IN THOUSANDS EXCEPT SHARE DATA)
<S> <C> <C>
Net sales $ 313,821 $ 561,004
Cost of goods sold 261,930 489,584
Amortization of purchase price allocated to inventory --- 7,296
Acquired parts inventory write-off --- 6,670
-------------- --------------
Gross margin 51,891 57,454
Selling, administrative and research and development expenses 34,285 47,391
Restructuring charges 48 ---
Severance expense 6,355 ---
Amortization of intangible assets 127 2,240
-------------- --------------
Income from operations 11,076 7,823
Other (income) expense
Interest expense 7,727 32,850
Undistributed loss from equity investment 846 627
Other, net (26) 230
-------------- --------------
Income (loss) before provision for income taxes 2,529 (25,886)
Provision (benefit) for income taxes 478 (5,810)
-------------- --------------
Income (loss) before extraordinary item 2,051 (20,076)
Extraordinary item --- Loss on early extinguishment of debt (net
of income tax benefit of $999) --- 1,631
-------------- --------------
Net income (loss) $ 2,051 $ (21,707)
============== ==============
Net loss per common share $ (5.15)
Weighted average number of shares outstanding used in
calculation of net income per common share 4,218,560
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 5
PRINTPACK, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
13 WEEKS 13 WEEKS
ENDED ENDED
MARCH 23, MARCH 29,
1996 1997
-------------------------------
(IN THOUSANDS EXCEPT SHARE DATA)
<S> <C> <C>
Net sales $ 101,173 $ 209,394
Cost of goods sold 84,233 179,078
-------------- --------------
Gross margin 16,940 30,316
Selling, administrative and research and development expenses 10,424 16,672
Severance expense 6,355 ---
Amortization of intangible assets 42 1,002
-------------- --------------
Income from operations 119 12,642
Other expense
Interest expense 2,595 13,336
Undistributed loss from equity investment 275 84
Other, net 424 675
-------------- --------------
Loss before provision for income taxes (3,175) (1,453)
Provision (benefit) for income taxes (178) 455
-------------- --------------
Net Loss $ (2,997) $ (1,908)
============== ==============
Net loss per common share $ (0.45)
Weighted average number of shares outstanding used in
calculation of net income per common share 4,218,560
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 6
PRINTPACK, INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
39 WEEKS 39 WEEKS
ENDED ENDED
MARCH 23, MARCH 29,
1996 1997
-------------- --------------
(IN THOUSANDS) (IN THOUSANDS)
<S> <C> <C>
Operating activities
Net income (loss) $ 2,051 $ (21,707)
Depreciation and amortization 18,080 37,808
Amortization of purchase price allocated to inventory --- 7,296
Acquired parts inventory write-off --- 6,670
Other (3,607) (19,179)
-------------- --------------
Net cash provided by operating activities 16,524 10,888
-------------- --------------
Investing activities
Purchases of property, plant and equipment (19,935) (17,519)
Proceeds from sale of property, plant and equipment 23 1,897
Payment for purchase of JR Flexible --- (369,775)
-------------- --------------
Net cash used in investing activities (19,912) (385,397)
-------------- --------------
Financing activities
Principal payments on long-term debt (5,975) (158,013)
Proceeds from issuance of long-term debt --- 470,000
Proceeds from borrowings under revolving credit facility 30,000 35,000
Proceeds from borrowing under receivable securization
facility --- 46,000
Net repayments on lines of credit --- (1,117)
Debt prepayment premiums and debt issuance costs --- (17,252)
Dividends paid (22,923) ---
-------------- --------------
Net cash provided by financing activities 1,102 374,618
-------------- --------------
(Decrease) increase in cash and cash equivalents (2,286) 109
Cash and cash equivalents, beginning of period 3,748 242
-------------- --------------
Cash and cash equivalents, end of period $ 1,462 $ 351
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 7
PRINTPACK, INC.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE 39 WEEKS ENDED MARCH 29, 1997
<TABLE>
<CAPTION>
RETAINED
ADDITIONAL EARNINGS
COMMON PAID-IN (ACCUMULATED TOTAL
STOCK CAPITAL DEFICIT) EQUITY DEFICIENCY
--------------------------------------------------------------------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Balance as of June 29, 1996 $ 1,011 $ 413 $ 12,036 $ 13,460
Net loss (21,707) (21,707)
Adjustment to reflect prior year tax benefit
from losses of United Kingdom affiliate 1,407 1,407
Shareholder contributions 4,491 4,491
------------ ------------ ------------ ------------
Balance as of March 29, 1997 $ 1,011 $ 4,904 ($ 8,264) ($ 2,349)
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 8
PRINTPACK, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
MARCH 29, 1997
1. BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Printpack,
Inc. ("Printpack" or "Company") have been prepared by Company management and are
presented on a basis in accordance with the accounting policies stated in the
June 24, 1995 and June 29, 1996 financial statements and should be read in
conjunction with the Notes to Financial Statements appearing therein. As
described in the above noted financial statements, effective July 1996, a legal
reorganization was consummated which involved the Company. As such, the
Company's shareholders' equity has been presented to reflect the reorganization.
In the opinion of Printpack management, all adjustments (consisting only of
normal recurring adjustments) necessary for a fair presentation of such
financial statements have been included in the accompanying interim financial
statements. The results of operations for the13 week and 39 week periods ended
March 29, 1997 are not necessarily indicative of the results to be expected for
the full fiscal year. Certain amounts in the June 29, 1996 financial
statements have been reclassified to conform to the current year presentation.
2. ACQUISITION
The accompanying unaudited interim financial statements include certain
assets and liabilities and operating results of certain operations acquired from
James River Corporation of Virginia's ("James River") Flexible Packaging
Business ("JR Flexible") as of August 22, 1996. The acquisition was accounted
for using the purchase method of accounting. Accordingly, the purchase price of
approximately $376 million includes approximately $10 million of severance and
other exit costs primarily associated with the announced closing of the San
Leandro and Dayton plants, and approximately $1 million in other acquisition
costs, and has been allocated on the basis of the estimated fair value of the
assets acquired and liabilities assumed. The purchase price was allocated as
follows:
Working capital, other than cash ............ $ 74,129
Property, plant, and equipment .............. 257,137
Goodwill .................................... 28,586
Other intangibles ........................... 26,500
Other liabilities assumed ................... (10,123)
---------
Purchase price net of cash received ......... $ 376,229
=========
This allocation has resulted in goodwill of approximately $28.6 million
and other intangibles of approximately $26.5 million, which are being amortized
on a straight-line basis over 15 years.
Accruals related to the announced closure of the two plants represent
Company management's best estimate of the anticipated costs to be incurred.
Additional costs, if any, associated with the closure of these plants will be
allocated to the purchase price. The net assets of these facilities are recorded
as Net Assets Held for Sale in the Company's balance sheet.
The operating results of the facilities being closed are included in
the statement of operations and statement of cash flows presented for the 39
weeks ended March 29, 1997 from the date of acquisition and were not material to
the Company's financial results for the period.
<PAGE> 9
PRINTPACK, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS -- (CONTINUED)
Pro forma results, as if the acquisition transaction occurred on July
1, 1995, are as follows:
<TABLE>
<CAPTION>
39 Weeks 39 Weeks
Ended Ended
March 23, March 29,
1996 1997
(in thousands) (in thousands)
<S> <C> <C>
Net Sales .............................. $ 682,466 $ 623,945
Loss before extraordinary item ......... (7,494) (13,146)
Net Income (loss) ...................... (7,494) (14,777)
</TABLE>
The pro forma presentation is not necessarily indicative of either the
results of operations that would have occurred had the acquisition taken place
at the beginning of the period or of future results of the Company.
3. INCOME TAXES
Printpack's effective income tax rate exclusive of the one time charge
described below was approximately 38% and 19%, respectively, for the 39 weeks
ended March 29, 1997 and March 23, 1996. The increase in the effective tax rate
for the period was primarily due to the change in tax status for the operations
formerly conducted by Printpack Enterprises, Inc., which, effective June 30,
1996, elected to change its Subchapter S tax election to be taxed as a
Subchapter C corporation. The charge as a result of the change in tax status was
approximately $4.0 million and was reflected in the results of operations for
the 13 weeks ended September 28, 1996.
The Company paid no income taxes during the 39 weeks ended March 29,
1997 due to the expected loss, and paid approximately $2.6 million of income
taxes during the 39 weeks ended March 23, 1996.
4. INVENTORIES
Inventories are stated at the lower of cost or current market value.
Cost is determined using the last-in, first-out (LIFO) method.
Inventories are summarized as follows:
<TABLE>
<CAPTION>
June 29, March 29,
1996 1997
(in thousands) (in thousands)
<S> <C> <C>
Raw materials ........................................................ $ 16,883 $ 39,929
Work-in-process ...................................................... 6,769 12,019
Finished goods ....................................................... 27,220 61,976
----------- -----------
50,872 113,924
Reduction to state inventories at last-in, first-out cost (LIFO) ..... (16,041) (17,146)
----------- -----------
Total inventories ................................................ $ 34,831 $ 96,778
=========== ===========
</TABLE>
<PAGE> 10
PRINTPACK, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS -- (CONTINUED)
The purchase price allocation discussed in Note 2 resulted in finished
goods inventory of $7.3 million. As this inventory was sold in the ten weeks
subsequent to the acquisition, it was completely amortized.
The purchase price allocation also resulted in maintenance materials
and machine spare parts inventories of about $6.7 million. The Company, in
accordance with its accounting policies, expenses these items when purchased
and, consequently, has completely written-off this amount.
5. CONTINGENCIES
Printpack is subject to legal proceedings and other claims which arise
in the ordinary course of business. In the opinion of management, the outcome of
these actions will not materially affect the financial position, results of
operations or cash flows of the Company.
6. DEBT AND EXTRAORDINARY ITEM
During the first quarter of fiscal 1997, the Company completed a
refinancing arrangement contemporaneously with the acquisition of certain
manufacturing facilities from James River. This refinancing provided for the
issuance of approximately $200 million senior subordinated notes bearing
interest at 10 5/8% due 2006 and the issuance of approximately $100 million of
senior notes bearing interest at 9 7/8% due 2004. In addition, the Company also
received approximately $170 million from the proceeds of a term loan and
established a revolving credit facility of approximately $105 million with a
bank syndicate. To complete the financing of the transaction, the Company also
entered into an asset-backed accounts receivable securitization arrangement and
received approximately $23 million of proceeds from the initial borrowing under
the arrangement. Under this arrangement, the Company received additional
proceeds of $18 million during the quarter ended December 28, 1996 and of $5
million during the quarter ended March 29, 1997.
As a result of this debt restructuring, the Company incurred prepayment
fees and recognized an extraordinary loss of approximately $1,631,000, net of
applicable income tax benefit of $999,490, in the Company's results of
operations for the 39 weeks ended March 29, 1997.
<PAGE> 11
PRINTPACK, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the results of operations of
Printpack for the 39 weeks and for the thirteen weeks ended March 29, 1997 is
compared to the same time periods in fiscal 1996. The discussion and analysis of
Printpack's financial condition compares its condition at March 29, 1997 to June
29, 1996. The periods prior to the acquisition of JR Flexible do not reflect the
significant effects of either the acquisition or the financing activities
necessary to consummate the acquisition.
RESULTS OF OPERATIONS
Thirty-nine weeks ended March 29, 1997 compared to March 23, 1996
Net Sales. Net sales increased $247.2 million or 78.8% to $561.0
million in the fiscal 1997 period from $313.8 million in the corresponding
period of fiscal 1996 due primarily to sales to both new and existing customers
resulting from the acquisition completed on August 22, 1996. Sales volume
growth, other than from the acquisition, was customary. Price changes to
customers during the period were insignificant.
Gross Margin. Cost of goods sold increased $227.7 million or 86.9% to
$489.6 million in fiscal 1997 from $261.9 million in fiscal 1996. Cost of goods
sold increased to 87.3% of net sales in fiscal 1997 from 83.5% in fiscal 1996,
primarily due to higher manufacturing costs in the plants acquired from JR
Flexible. Additionally, portions of the acquisition purchase price were
allocated to finished goods and to maintenance materials and machine spare parts
inventory. As the acquired finished goods were sold over approximately ten weeks
subsequent to the acquisition, the allocation in excess of its cost was
amortized and recorded separately in the income statement. Such costs will not
continue in subsequent periods. Printpack's historical accounting policy is to
expense maintenance materials and machine spare parts when they are purchased
and, consequently, this inventory was written-off in the twenty-six week period
ended December 28, 1996. There will be no future charges related to this
inventory. Gross margin increased $5.6 million or 10.7% to $57.5 million in
fiscal 1997 from $51.9 million in fiscal 1996 as a result of the increases in
net sales and cost of goods sold.
Operating Expenses. Selling, administrative and research and
development expenses increased $13.1 million or 38.2% to $47.4 million in fiscal
1997 from $34.3 million in fiscal 1996, primarily due to additional personnel
and related costs resulting from the acquisition. Selling, administrative and
research and development expenses as a percentage of net sales declined to 8.5%
in fiscal 1997 from 10.9% in fiscal 1996 as a result of additional sales from
the acquisition.
Certain Charges. The interim financial results include certain assets
and liabilities and thirty-one weeks of operating results of JR Flexible, which
was acquired on August 22, 1996. The acquisition was accounted for using the
purchase method of accounting. Accordingly, the purchase price of approximately
$376 million includes approximately $10.0 million of severance and other exit
costs primarily associated with the announced closing of the San Leandro and
Dayton plants, and approximately $1.0 million in other acquisition costs, and
has been allocated on the basis of the estimated fair value of the assets
acquired and liabilities assumed. This allocation has resulted in goodwill of
approximately $28.6 million and other intangibles of approximately $26.5 million
which are being amortized on a straight-line basis over 15 years.
Accruals related to the announced closure of the two plants represent
management's best estimate of the anticipated costs to be incurred. Additional
costs, if any, associated with the closure of these plants will be allocated to
the purchase price for JR Flexible.
The operating results of the JR Flexible facilities being closed are
included in the statement of
<PAGE> 12
operations and statement of cash flows presented for the 39 weeks ended March
29, 1997 from the date of acquisition and were not material to the Company's
financial results for the period.
Operating Income. Income from operations of $7.8 million was realized
in the fiscal 1997 period compared to $11.1 million in the corresponding period
of fiscal 1996. The decrease was due to higher cost of goods sold, higher
selling, administrative and research and development expenses and other
acquisition related costs and charges, partially offset by higher net sales.
Other Income and Expense. Interest expense increased $25.1 million
or325.1% to $32.9 million in fiscal 1997 from $7.7 million in fiscal 1996 due to
increased borrowings incurred in connection with the acquisition on August 22,
1996.
An income tax benefit of $5.8 million was realized in fiscal 1997
compared to an expense of $.5 million in fiscal 1996. The effective income tax
rate exclusive of the one time charge described below was 38% in fiscal 1997
compared to 19% in fiscal 1996. The increase in the effective tax rate was
primarily due to the change in tax status for the operations formerly conducted
by Printpack Enterprises, Inc., which, effective June 30, 1996, elected to
change its Subchapter S tax election to be taxed as a Subchapter C corporation.
The charge as a result of the change in tax status was approximately $4.0
million and was reflected in the results of operations for the 39 weeks ended
March 29, 1997.
In fiscal 1997 the Company incurred debt prepayment fees of $1.6
million, net of the applicable tax benefit, on its indebtedness refinanced in
conjunction with the acquisition.
Thirteen weeks ended March 29, 1997 compared to March 23, 1996
Net Sales. Net sales increased $108.2 million or 107.0% to $209.4
million in the fiscal 1997 period from $101.2 million in the fiscal 1996 period
due primarily to sales to both new and existing customers resulting from the
acquisition completed on August 22, 1996. Sales volume growth, other than from
the acquisition, was customary. Price changes to customers during the period
were insignificant.
Gross Margin. Cost of goods sold increased $94.9 million or 112.6% to
$179.1 million in fiscal 1997 from $84.2 million in fiscal 1996. Cost of goods
sold increased to 85.5% of net sales in fiscal 1997 from 83.3% in fiscal 1996,
primarily due to higher manufacturing costs in the plants acquired from JR
Flexible. Gross margin, consequently, increased $13.4 million or 80.0% to $30.3
million in fiscal 1997 from $16.9 million in fiscal 1996.
Operating Expenses. Selling, administrative and research and
development expenses increased $6.3 million or 59.9% to $16.7 million in fiscal
1997 from $10.4 million in fiscal 1996, primarily due to additional personnel
and related costs resulting from the acquisition. Selling, administrative and
research and development expenses as a percentage of net sales declined to 8.0%
in fiscal 1997 from 10.3% in fiscal 1996 as a result of additional sales from
the acquisition.
Operating Income. Income from operations of $12.6 million was realized
in fiscal 1997 compared to $.1 million in fiscal 1996. The increase was due to
higher sales volume partially offset by higher cost of goods sold, by higher
selling, administrative and research and development expenses and by other
acquisition related costs and charges, as described above.
Other Income and Expense. Interest expense increased $10.7 million or
413.9% to $13.3 million in fiscal 1997 from $2.6 million in fiscal 1996 due to
increased borrowings incurred in connection with the acquisition on August 22,
1996.
<PAGE> 13
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities totaled $10.9 million in the
first 39 weeks of fiscal 1997 compared to $16.5 million in the corresponding
period of fiscal 1996. The net loss in the first 39 weeks of fiscal 1997, after
adding back depreciation and amortization of $37.8 million, inventory
amortization of $7.3 million and inventory write-offs of $6.7 million, provided
$30.1 million in cash compared to $20.1 million in the corresponding period of
fiscal 1996. An additional $19.2 million in the fiscal 1997 period, primarily
from working capital increases, was used compared to $3.6 million in the
corresponding period of fiscal 1996. Depreciation and amortization for the
thirteen weeks ended March 29, 1997 were $14.0 million.
Capital expenditures were $17.5 million in the first 39 weeks of fiscal
1997 compared to $19.9 million in the corresponding period of fiscal 1996,
excluding the acquisition of JR Flexible, for which the finalized payment was
$369.8 million. Management estimates its maintenance capital expenditures for
fiscal 1997 will be approximately $15 million and total capital expenditures
will approximate $42 million.
Financing activities in fiscal 1996 were negligible but were
substantial in the first 39 weeks of fiscal 1997 in connection with the
acquisition. In the fiscal 1997 period, $158.0 million of principal was repaid,
along with $17.3 million in prepayment premiums and issuance costs, from the
proceeds of $470 million of senior and senior subordinated notes, $35 million in
a revolving credit facility and $46 million in a receivable securitization
facility. Total outstanding debt at March 29, 1997 of approximately $561.7
million included $251.4 million of floating rate and $310.3 million of fixed
rate obligations. At March 29, 1997 the Company had approximately $74 million
available for borrowings under its credit agreements.
The Company's primary liquidity needs are for capital expenditures,
debt service and working capital and its primary sources of liquidity are cash
flows from operations and borrowings under its existing bank credit facilities.
The Company uses borrowings under its bank credit facilities to meet seasonal
fluctuations in working capital requirements, which generally peak during
January through March when sales volumes generally are lowest. The Company
believes that its sources of liquidity will be adequate to meet its anticipated
requirements for liquidity for at least the next twelve months.
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule (Filed Electronically)
(b) Reports on Form 8-K
No reports on Form 8-K were filed.
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the undersigned has duly caused this report to be filed on its behalf by the
undersigned hereto duly authorized.
PRINTPACK, INC.
Dated: May 13, 1997 By: /s/ R. Michael Hembree
-----------------------------------
R. Michael Hembree
Vice President of Finance
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FINANCIAL STATEMENTS OF PRINTPACK, INC. FOR THE NINE MONTHS ENDED MARCH 29,
1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-28-1997
<PERIOD-START> JUN-29-1996
<PERIOD-END> MAR-29-1997
<CASH> 351,000
<SECURITIES> 0
<RECEIVABLES> 72,433,000
<ALLOWANCES> 713,000
<INVENTORY> 96,778,000
<CURRENT-ASSETS> 212,766,000
<PP&E> 569,799,000
<DEPRECIATION> 195,070,000
<TOTAL-ASSETS> 673,324,000
<CURRENT-LIABILITIES> 105,348,000
<BONDS> 495,344,000
0
0
<COMMON> 1,011,000
<OTHER-SE> (3,360,000)
<TOTAL-LIABILITY-AND-EQUITY> 673,324,000
<SALES> 561,004,000
<TOTAL-REVENUES> 561,004,000
<CGS> 489,584,000
<TOTAL-COSTS> 503,550,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 136,000
<INTEREST-EXPENSE> 32,850,000
<INCOME-PRETAX> (25,886,000)
<INCOME-TAX> 5,810,000
<INCOME-CONTINUING> (20,076,000)
<DISCONTINUED> 1,631,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (21,707,000)
<EPS-PRIMARY> (5.15)
<EPS-DILUTED> (5.15)
</TABLE>