<PAGE>
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 33-45897
PLASTIC CONTAINERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3632393
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
301 Merritt 7 Corporate Park
Norwalk, Connecticut 06856
(Address of principal executive offices)
Telephone number (203) 750-5900
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 twelve months, and (2) has been subject to such filing
requirements for the past 90 days:
Yes (X) No ( )
As of November 10, 1997, there were 100 shares of the registrant's common stock
outstanding.
<PAGE>
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PLASTIC CONTAINERS, INC.
Condensed Consolidated Balance Sheets as of September 30, 1997 and December 31,
1996
Condensed Consolidated Statements of Operations - three months ended September
30, 1997 and 1996
Condensed Consolidated Statements of Operations - nine months ended September
30, 1997 and 1996
Condensed Consolidated Statements of Cash Flows - nine months ended September
30, 1997 and 1996
Notes to Condensed Consolidated Financial Statements
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
Condensed Balance Sheets as of September 30, 1997 and December 31, 1996
Condensed Statements of Operations - three months ended September 30, 1997 and
1996
Condensed Statements of Operations - nine months ended September 30, 1997 and
1996
Condensed Statements of Cash Flows - nine months ended September 30, 1997 and
1996
Notes to Condensed Financial Statements
2
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<PAGE>
PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---- ----
<S> <C> <C>
Assets
------
Current assets:
Cash and cash equivalents $ 2,395 12,178
Investment securities 27,779 1,210
Accounts receivable, net 25,292 27,702
Inventories (note 2) 20,235 19,402
Other current assets 4,075 4,061
-------- --------
Total current assets 79,776 64,553
Property, plant and equipment, net 97,804 102,245
Intangible assets, net 26,054 27,078
Other assets 11,772 11,774
-------- --------
$ 215,406 205,650
======== ========
Liabilities & Stockholders' Equity
----------------------------------
Current liabilities:
Notes payable to bank $ -- --
Accounts payable - trade 24,577 19,267
Current portion of long-term obligations 980 980
Other current liabilities 21,107 19,004
-------- --------
Total current liabilities 46,664 39,251
Long-term obligations 128,383 129,002
Other liabilities 21,577 23,183
Stockholders' equity:
Common stock, $1 par value. Authorized 1,000
shares; 100 shares issued and outstanding -- --
Additional paid-in capital 79,296 77,722
Deficit (28,866) (33,434)
-------- --------
50,430 44,288
Less note receivable from stockholder 31,648 30,074
-------- --------
Total stockholders' equity 18,782 14,214
-------- --------
$ 215,406 205,650
======== ========
</TABLE>
3
<PAGE>
<PAGE>
PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Net sales $ 74,180 69,214
Cost of goods sold 62,415 57,592
------- -------
Gross profit 11,765 11,622
Selling, general and administrative expense 6,924 6,929
Plant rationalization and realignment -- 400
------- -------
Operating income 4,841 4,293
Other income (expense):
Interest income 386 20
Interest expense (3,376) (3,155)
Loss on disposal of assets (23) (126)
------- -------
Total other income (expense) (3,013) (3,261)
------- -------
Income before income taxes 1,828 1,032
Income tax expense (benefit) 9 (625)
------- -------
Net income $ 1,819 1,657
======= =======
</TABLE>
4
<PAGE>
<PAGE>
PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Net sales $ 210,941 196,232
Cost of goods sold 177,016 165,777
-------- --------
Gross profit 33,925 30,455
Selling, general and administrative expense 20,162 21,670
Plant rationalization and realignment -- 1,500
-------- --------
Operating income 13,763 7,285
Other income (expense):
Interest income 1,033 74
Interest expense (10,116) (9,618)
Gain (loss) on disposal of assets (79) (125)
-------- --------
Total other income (expense) (9,162) (9,669)
-------- --------
Income (loss) before income taxes 4,601 (2,384)
Income tax expense (benefit) 33 (1,891)
-------- --------
Net income (loss) $ 4,568 (493)
======== ========
</TABLE>
5
<PAGE>
<PAGE>
PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 4,568 (493)
Adjustments:
Depreciation and amortization 10,301 17,878
Loss on disposal of assets 79 125
Changes in assets and liabilities 8,989 2,986
-------- --------
Net cash provided by operating activities 23,937 20,496
-------- --------
Cash flows from investing activities:
Change in investment securities, net (26,569) 71
Proceeds from disposal of assets 580 146
Purchases of property, plant and equipment (7,112) (18,442)
-------- --------
Net cash used in investing activities (33,101) (18,225)
-------- --------
Cash flows from financing activities:
Net repayments on notes payable to bank -- (7,198)
Additions to long-term obligations -- 5,100
Repayments of long-term obligations (619) (423)
-------- --------
Net cash used in financing activities (619) (2,521)
-------- --------
Net decrease in cash and cash equivalents (9,783) (250)
Cash and cash equivalents - beginning 12,178 1,428
-------- --------
Cash and cash equivalents - ending $ 2,395 1,178
======== ========
Supplemental disclosure of cash flow information:
Interest paid $ 6,978 6,620
Income taxes paid 423 8
======== ========
</TABLE>
6
<PAGE>
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PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(all dollars in thousands)
(1) BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements include
Plastic Containers, Inc. and its wholly-owned subsidiaries, Continental
Plastic Containers, Inc. ("CPC") and Continental Caribbean Containers,
Inc. ("Caribbean") (collectively, "PCI" or "the Company"). All significant
intercompany transactions have been eliminated in the consolidated
financial statements.
The condensed consolidated financial statements are unaudited and reflect
all adjustments which are, in the opinion of management, necessary for a
fair presentation of the financial position and operating results for the
interim periods. The condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and notes
thereto contained in the Company's Form 10-K for the year ended December
31, 1996.
CPC and Caribbean constitute all of PCI's direct and indirect subsidiaries
and have fully and unconditionally guaranteed PCI's 10% Senior Secured
Notes due 2006 (the "10% Notes") on a joint and several basis.
Additionally, the stock of CPC and Caribbean is pledged as security for
the 10% Notes. PCI is a holding company with no assets or operations other
than its investments in CPC and Caribbean. Separate financial statements
of CPC accompany these financial statements pursuant to Rule 3-10 of
Regulation S-X. Separate financial statements and other disclosures
concerning Caribbean are not presented because management has determined
that such information is not material to investors.
The Company develops, manufactures and markets a wide range of custom
extrusion blow-molded plastic containers for food and juice, household
chemicals, automotive products and motor oil, industrial and agricultural
chemicals, and hair care products.
PCI is a subsidiary of Continental Can Company, Inc.
(2) INVENTORIES
Major classes of inventories at September 30, 1997 and December 31, 1996
consist of the following:
Sept. 30, Dec. 31,
1997 1996
---- ----
Raw materials $ 9,920 10,774
Finished goods 12,971 11,539
------ ------
22,891 22,313
LIFO reserve (4,247) (4,247)
------ ------
18,644 18,066
Repair parts and supplies 1,591 1,336
------ ------
$ 20,235 19,402
====== ======
7
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PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(3) PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost. Depreciation is computed
principally on a straight-line basis over the estimated useful lives of
the assets which range from three to thirty-five years. Plant and
equipment held under capital leases and leasehold improvements are
amortized straight-line over the shorter of the lease term or estimated
useful life of the asset.
Effective January 1, 1997, the Company revised its estimates of the useful
lives of certain machinery and equipment. These changes were made to
better reflect the estimated periods during which these assets will remain
in service. For the three months and nine months ended September 30, 1997,
the change had the effect of decreasing depreciation expense by $424 and
$1,272, respectively, and after adjusting for an assumed tax rate of 35%,
increasing net income by $276 and $827, respectively.
(4) LEASES
PCI leases certain facilities and equipment used in connection with its
operations. Rental expense under these operating leases was $3,412 and
$10,320 for the three months and nine months ended September 30, 1997,
respectively, and $2,004 and $5,797 for the three months and nine months
ended September 30, 1996, respectively. The increase in rent expense in
1997 is primarily attributed to a sale-leaseback transaction completed in
December 1996. The sale-leaseback transaction also resulted in a
corresponding reduction in depreciation expense.
8
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<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
CONDENSED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---- ----
Assets
------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,006 10,522
Investment securities 27,605 1,000
Accounts receivable, net 24,363 27,029
Inventories (note 2) 19,641 18,727
Other current assets 4,146 4,147
--------- -------
Total current assets 77,761 61,425
Property, plant and equipment, net 93,788 98,778
Intangible assets, net 26,054 27,078
Other assets 11,764 11,774
--------- --------
$ 209,367 199,055
========= ========
Liabilities & Stockholder's Equity
----------------------------------
Current liabilities:
Notes payable to bank $ -- --
Accounts payable - trade 24,160 19,045
Current portion of long-term obligations 980 980
Other current liabilities 20,833 18,813
--------- --------
Total current liabilities 45,973 38,838
Long-term obligations 128,383 129,002
Other liabilities 21,554 23,155
Stockholder's equity:
Common stock, $1 par value. Authorized 25,000
shares; 10,000 shares issued and outstanding 10 10
Additional paid-in capital 72,688 71,114
Deficit (27,593) (32,990)
--------- --------
45,105 38,134
Less note receivable from stockholder of parent 31,648 30,074
--------- --------
Total stockholder's equity 13,457 8,060
--------- --------
$ 209,367 199,055
========= ========
</TABLE>
9
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<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Net sales $ 72,255 67,738
Cost of goods sold 60,584 56,100
------- -------
Gross profit 11,671 11,638
Selling, general and administrative expense 6,915 6,923
Plant rationalization and realignment -- 400
------- -------
Operating income 4,756 4,315
Other income (expense):
Interest income 381 2
Interest expense (3,376) (3,155)
Loss on disposal of assets (332) (126)
------- -------
Total other income (expense) (3,327) (3,279)
------- -------
Income before income taxes 1,429 1,036
Income tax benefit -- 630
------- -------
Net income loss $ 1,429 1,666
======= =======
</TABLE>
10
<PAGE>
<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Net sales $ 206,353 192,277
Cost of goods sold 172,540 161,754
------- -------
Gross profit 33,813 30,523
Selling, general and administrative expense 20,134 21,649
Plant rationalization and realignment -- 1,500
------- -------
Operating income 13,679 7,374
Other income (expense):
Interest income 988 11
Interest expense (10,115) (9,618)
Loss on disposal of assets (388) (125)
------- -------
Total other income (expense) (9,515) (9,732)
------- -------
Income (loss) before income taxes 4,164 (2,358)
Income tax benefit -- 1,896
------- -------
Net income (loss) $ 4,164 (462)
======= =======
</TABLE>
11
<PAGE>
<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 4,164 (462)
Adjustments:
Depreciation and amortization 9,987 17,603
Loss on disposal of assets 388 125
Changes in assets and liabilities 9,581 3,364
-------- --------
Net cash provided by operating activities 24,120 20,630
-------- --------
Cash flows from investing activities:
Change in investment securities, net (26,605) --
Proceeds from disposal of assets 844 146
Purchases of property, plant and equipment (6,256) (18,255)
-------- --------
Net cash used in investing activities (32,017) (18,109)
-------- --------
Cash flows from financing activities:
Net repayments on notes payable to bank -- (7,198)
Additions to long-term obligations -- 5,100
Repayments of long-term obligations (619) (423)
-------- --------
Net cash used in financing activities (619) (2,521)
-------- --------
Net decrease in cash and cash equivalents (8,516) --
Cash and cash equivalents - beginning 10,522 --
-------- --------
Cash and cash equivalents - ending $ 2,006 --
======== ========
Supplemental disclosure of cash flow information:
Interest paid $ 6,977 6,620
Income taxes paid 390 --
======== ========
</TABLE>
12
<PAGE>
<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
(A WHOLLY-OWNED SUBSIDIARY OF PLASTIC CONTAINERS, INC.)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)
(all dollars in thousands)
(1) BASIS OF PRESENTATION
Continental Plastic Containers, Inc. ("CPC") develops, manufactures and
markets a wide range of custom extrusion blow-molded plastic containers
for food and juice, household chemicals, automotive products and motor
oil, industrial and agricultural chemicals, and hair care products.
CPC is a wholly-owned subsidiary of Plastic Containers, Inc. ("PCI"). PCI
was organized in October 1991 for the purpose of acquiring CPC and
Continental Caribbean Containers, Inc. ("Caribbean"). PCI is a holding
company with no assets or operations separate from its investment in CPC
and Caribbean and is dependent upon funding provided by CPC to service its
debt. Accordingly, the accompanying financial statements of CPC reflect
various "push down" accounting adjustments to reflect debt and other
purchase adjustments recorded by PCI in connection with the acquisition.
The condensed financial statements are unaudited and reflect all
adjustments which are, in the opinion of management, necessary for a fair
presentation of the financial position and operating results for the
interim periods. The condensed financial statements should be read in
conjunction with the financial statements and notes thereto contained in
PCI's Form 10-K for the year ended December 31, 1996.
PCI is a subsidiary of Continental Can Company, Inc.
(2) INVENTORIES
Major classes of inventories at September 30, 1997 and December 31, 1996
consist of the following:
Sept. 30, Dec. 31,
1997 1996
---- ----
Raw materials $ 9,514 10,307
Finished goods 12,783 11,331
------- -------
22,297 21,638
LIFO reserve (4,247) (4,247)
------- -------
18,050 17,391
Repair parts and supplies 1,591 1,336
-------- -------
$ 19,641 18,727
======= =======
13
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<PAGE>
CONTINENTAL PLASTIC CONTAINERS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(3) PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost. Depreciation is computed
principally on a straight-line basis over the estimated useful lives of
the assets which range from three to thirty-five years. Plant and
equipment held under capital leases and leasehold improvements are
amortized straight-line over the shorter of the lease term or estimated
useful life of the asset.
Effective January 1, 1997, the CPC revised its estimates of the useful
lives of certain machinery and equipment. These changes were made to
better reflect the estimated periods during which these assets will remain
in service. For the three months and nine months ended September 30, 1997,
the change had the effect of decreasing depreciation expense by $424 and
$1,272, respectively, and after adjusting for an assumed tax rate of 35%,
increasing net income by $276 and $827, respectively.
(4) LEASES
CPC leases certain facilities and equipment used in connection with its
operations. Rental expense under these operating leases was $3,412 and
$10,320 for the three months and nine months ended September 30, 1997,
respectively, and $2,004 and $5,797 for the three months and nine months
ended September 30, 1996, respectively. The increase in rent expense in
1997 is primarily attributed to a sale-leaseback transaction completed in
December 1996. The sale-leaseback transaction also resulted in a
corresponding reduction in depreciation expense.
14
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<PAGE>
PLASTIC CONTAINERS, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(All Dollars in Thousands)
RESULTS OF OPERATIONS
Net Sales. Net sales for the third quarter and first nine months of 1997
increased $4,966 (7.2%) and $14,709 (7.5%), respectively, compared to the third
quarter and first nine months of 1996. The increase in sales resulted from
higher resin prices that were passed-through to customers and from an increase
in unit volume. Higher resin prices accounted for increased sales of
approximately $3,600 and $15,200 in the third quarter and first nine months of
1997, respectively. Total unit volume for the third quarter and first nine
months of 1997 increased 6.1% and 3.6%, respectively, compared to the same
periods in 1996. The product mix in 1997 is comprised of a larger percentage of
lighter-weight, lower-priced containers, however, compared to the prior year.
Gross Profit. Gross profit for the third quarter and first nine months
of 1997 was $11,765 and $33,925, respectively, which represents increases of
$143 (1.2%) and $3,470 (11.4%), respectively, over the third quarter and first
nine months of 1996. The change in gross profit was influenced by a number of
factors. Gross profit was positively impacted by the net cost savings realized
through the consolidation of production facilities whereby one facility was
closed in October 1996 and another facility was closed in March 1997. Such
savings amounted to approximately $1,100 for the third quarter and approximately
$3,100 for the first nine months of 1997. In addition, a revision in the
estimated useful lives of certain machinery and equipment resulted in a
reduction in depreciation expense of $424 and $1,272, respectively for the third
quarter and first nine months of 1997. These savings were partially offset by
additional costs related to a new production facility which began full
production in the fourth quarter of 1996. Additional costs were also incurred in
the third quarter of 1997 primarily related to overtime and outside warehousing
required to fulfill an increase in customer demand.
Gross profit percentage for the third quarter and first nine months of
1997 was 15.9% and 16.1%, respectively, compared to 16.8% and 15.5% for the
corresponding periods of 1996. The gross profit percentages in 1997 reflect the
increase in gross profit dollars discussed above net of the impact of higher
resin prices on sales. As discussed above, the increase in sales attributed to
resin prices are a direct pass-through of raw material cost increases and do not
result in a corresponding increase in gross profit dollars. Excluding the impact
on sales of higher resin prices, gross profit percentage for the third quarter
and first nine months of 1997 would have been 16.7% and 17.3%, respectively.
SG&A. Selling, general and administrative (SG&A) expense for the third
quarter and first nine months of 1997 was $6,924 and $20,162, respectively,
compared to $6,929 and $21,670 for the corresponding periods of 1996. SG&A
expense in 1997 has been favorably impacted by a reduction in amortization
expense related to noncompete agreements which became fully amortized in the
fourth quarter of 1996. This reduction was offset in the third quarter of 1997
by additional travel and project-related costs associated with an increase in
business development activity. SG&A expense as a percentage of net sales for the
third quarter and first nine months of 1997 was 9.3% and 9.6%, respectively,
compared to 10.0% and 11.0% for the corresponding periods of 1996. The decrease
in the percentage was the result of the reduction in expense and the impact on
sales of the higher resin prices. Excluding the resin impact on sales, SG&A as a
percentage of net sales for the third quarter and first nine months of 1997
would have been 9.8% and 10.3%, respectively.
15
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<PAGE>
Plant rationalization and realignment. Charges of $400 and $1,500 were
recognized in the third quarter and first nine months of 1996, respectively, in
connection with a plan to consolidate certain manufacturing operations.
Other Expense. Other expense for the third quarter and first nine months
of 1997 decreased $248 and $507, respectively, compared to the corresponding
periods of 1996. This decrease results primarily from a decrease in net interest
expense in 1997.
Income Taxes. Income taxes on 1997 earnings are offset by a benefit from
previously unrecognized tax net operating loss carryforwards. An income tax
benefit for the third quarter and first nine months of 1996 of $625 and $1,891,
respectively, resulted primarily from a decrease in the valuation reserve for
deferred tax assets.
Net Earnings. Net earnings for the third quarter and first nine months
of 1997 were $1,819 and $4,568, respectively, compared to net earnings of $1,657
and a net loss of $493 for the corresponding periods of 1996. The increase in
1997 earnings is the result of the improvement in gross profit dollars and the
decrease in SG&A expense, offset by the decrease in income tax benefit.
CAPITAL REQUIREMENTS
PCI acquired $7,112 in capital assets in the first nine months of 1997,
compared to $18,442 in the first nine months of 1996. Substantially all of the
assets acquired were packaging equipment for the manufacture of plastic
containers or related support equipment. Capital expenditure levels in 1996 were
higher primarily due to the addition of a new production facility. The capital
requirements in the first nine months of 1997 were met with cash generated by
operations and from existing funds.
LIQUIDITY
The Company's primary sources of liquidity are provided through a
revolving credit facility of $50,000 and cash flows from operations. At
September 30, 1997, the Company had no borrowings outstanding under the
revolving credit facility and had invested cash and cash equivalents of
approximately $30,200.
The revolving credit facility has a term of seven years expiring October
31, 2002. Interest is based on the bank's prime rate or LIBOR, at the Company's
option. At September 30, 1997, the Company had undrawn availability under the
revolving credit facility of approximately $29,600.
Working capital was $33,112 at September 30, 1997, an increase of
$7,810, from $25,302 at December 31, 1996. The current ratio is 1.71 at
September 30, 1997 compared to 1.64 at December 31, 1997. The increase in
working capital is the result of improved cash flows from operations and a
reduction in capital spending levels.
Management believes that existing funds and the funds expected to be
generated from operations and provided by existing credit facilities will be
sufficient to meet working capital and capital investment needs for the
foreseeable future.
16
<PAGE>
<PAGE>
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
September 30, 1997.
SIGNATURE
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 thereunto authorized.
PLASTIC CONTAINERS, INC.
By: /s/ Abdo Yazgi
-------------------------------------
Abdo Yazgi
Principal Financial and
Accounting Officer on behalf
of the registrant
Dated this 10th day of November, 1997.
17
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,395
<SECURITIES> 27,779
<RECEIVABLES> 26,700
<ALLOWANCES> 1,408
<INVENTORY> 20,235
<CURRENT-ASSETS> 79,776
<PP&E> 170,083
<DEPRECIATION> 72,279
<TOTAL-ASSETS> 215,407
<CURRENT-LIABILITIES> 46,664
<BONDS> 128,383
<COMMON> 0
0
0
<OTHER-SE> 18,782
<TOTAL-LIABILITY-AND-EQUITY> 215,406
<SALES> 210,941
<TOTAL-REVENUES> 210,941
<CGS> 177,016
<TOTAL-COSTS> 197,178
<OTHER-EXPENSES> 9,162
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,116
<INCOME-PRETAX> 4,601
<INCOME-TAX> 33
<INCOME-CONTINUING> 4,568
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,568
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
