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NEWS RELEASE
FOR IMMEDIATE RELEASE:
CONTACT: John L. Workman
Executive Vice President and
Chief Financial Officer
U.S. Can Corporation
630) 571-2531
U.S. CAN REPORTS THIRD QUARTER FINANCIAL RESULTS
OAK BROOK, IL, OCTOBER 26, 2000 -- U.S. Can Corporation reported net sales of
$194.7 million for the third quarter of 2000, an increase of 9.3% over the
$178.1 million reported in the corresponding period of 1999. May Verpackungen,
which was acquired in late 1999 accounted for $28.8 million of sales in the
third quarter. The Company also reported nine-month sales of $607.0 million, an
increase of 10.4% from the $549.8 million reported in 1999.
Domestic aerosol sales, which are down slightly year-to-date, were essentially
flat in the third quarter, while currency translation continues to negatively
impact European aerosol sales. Paint, oblong, and plastic sales were in-line
with expectations for the quarter and sales of custom and specialty products are
down, primarily due to the sale of the Wheeling closure business, which occurred
in March of this year.
Gross margin of 15.3% in the third quarter compares favorably to the 14.2%
reported in the third quarter of 1999. Improved performance in the Weirton
facility, purchasing initiatives and European synergies contributed to this
performance. Year-to-date gross margin of 14.7% also compares favorably to the
14.5% recorded last year. The 2000 results include May Verpackungen which has
significant operations in the food can business where margins are generally
lower on a percentage basis than the margins for U.S. Can's historical mix of
business.
Operating margins in the third quarter of 2000 include a $3.4 million pre-tax
provision for a workforce reduction. Operating margins excluding this provision
were 10.1% and 9.4% for the third quarter and nine-month period of 2000 compared
to 9.7% and 9.9% for the corresponding periods of 1999. Increased interest
expense reflects borrowings made in connection with the acquisition of May
Verpackungen.
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-2-
EBITDA in the third quarter of 2000, before restructuring, was $27.4 million
compared to $24.6 million in the third quarter of 1999. 1999 results include the
sold Wheeling closure business but exclude the May Verpackungen business
acquired at the end of 1999. Adjusting for these two items, EBITDA increased by
1% over 1999 levels. Year-to-date EBITDA before restructuring was $81.0 million
in 2000 compared to $77.8 million in 1999.
Net income of $4.4 million for the third quarter of 2000 and $16.1 million
year-to-date compares to $5.5 million and $17.4 million for the corresponding
periods of 1999. Net income this year includes a $2.1 million (after-tax)
provision for restructuring, while last year's net income included a $1.3
million charge for early debt extinguishment.
U.S. Can Corporation is a leading manufacturer of steel containers for personal
care, household, automotive, paint and industrial products in the United States
and Europe, as well as plastic containers in the United States and food cans in
Europe.
The Company will hold a conference call Friday, October 27, 2000 at 11:00 a.m.
CDT to discuss this news release. The dial-in number for the conference call is
(800) 640-5128 and the access password is "U.S. Can -- Third Quarter Release." A
replay of the conference call will be available through the end of Tuesday,
October 31. The telephone number for the replay is (888) 843-8996 and the access
code is 304-9815.
Certain statements in this release constitute "forward-looking statements"
within the meaning of the Federal securities laws. Such statements involve known
and unknown risks and uncertainties which may cause the Company's actual
results, performance or achievements to be materially different than future
results, performance or achievements expressed or implied in this release. By
way of example and not limitation and in no particular order, known risks and
uncertainties include the timing of, and net proceeds realized from,
divestitures; the timing and cost of plant closures; the level of cost reduction
achieved through restructuring; the success of new technology; the timing of,
and synergies achieved through, integration of acquisitions; changes in market
conditions or product demand; loss of important customers; changes in raw
material costs; and currency fluctuations. In light of these and other risks and
uncertainties, the inclusion of a forward-looking statement in this release
should not be regarded as a representation by the Company that any future
results, performance or achievements will be attained.
###
http://www.uscanco.com
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U.S. CAN CORPORATION
BALANCE SHEET
AS OF OCTOBER 1, 2000 AND DECEMBER 31, 1999
(Dollars in Thousands)
October 1, December 31,
2000 1999
--------- -----------
ASSETS
Current Assets $264,748 $ 259,331
Property, Plant and Equipment 271,704 332,504
Noncurrent Assets 89,573 71,735
-------- ----------
TOTAL ASSETS $626,025 $ 663,570
======== ==========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities $193,667 $ 221,597
Long-Term Debt 307,868 320,493
Long-Term Liabilities 55,959 52,924
Stockholder's Equity 68,531 68,556
-------- ----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $626,025 $ 663,570
======== ==========
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U.S. CAN CORPORATION
STATEMENT OF OPERATIONS
THIRD QUARTER RESULTS
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
October 1, October 3, October 1, October 3,
2000 1999 2000 1999
----------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 194,655 $ 178,123 $ 607,000 $ 549,812
Cost of Goods Sold 164,933 152,742 517,562 470,116
--------- --------- --------- ---------
Gross Margin 29,722 25,381 89,438 79,696
Selling, General and Administrative Expenses 10,079 8,133 32,457 25,001
Special Charge 3,413 - 3,413 -
--------- --------- --------- ---------
Operating Income 16,230 17,248 53,568 54,695
Other Expense 1,005 710 3,071 2,194
Interest Expense 8,184 6,841 24,556 21,758
--------- --------- --------- ---------
Income From Operations Before Income Taxes 7,041 9,697 25,941 30,743
Income Taxes 2,665 3,691 9,807 12,048
--------- --------- --------- ---------
Income From Operations Before Extraordinary Item 4,376 6,006 16,134 18,695
Net Loss From Early Extinguishment of Debt - (488) - (1,296)
--------- --------- --------- ---------
Net Income $ 4,376 $ 5,518 $ 16,134 $ 17,399
========= ========= ========= =========
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BASIC PER SHARE DATA:
Net Income from Operations $ 0.32 $ 0.45 $ 1.19 $ 1.40
Net Loss from Early Extinguishment of Debt - (0.04) - (0.10)
--------- --------- --------- ---------
Net Income $ 0.32 $ 0.41 $ 1.19 $ 1.30
Weighted Average Shares Outstanding 13,553 13,477 13,539 13,396
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DILUTED PER SHARE DATA:
Net Income from Operations $ 0.32 $ 0.44 $ 1.17 $ 1.38
Net Loss from Early Extinguishment of Debt - (0.04) - (0.10)
--------- --------- --------- ---------
Net Income $ 0.32 $ 0.40 $ 1.17 $ 1.28
Weighted Average Shares and Equivalent
Shares Outstanding 13,772 13,739 13,828 13,555
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</TABLE>
