TORONTO, ONTARIO -- (MARKET WIRE) -- 09/09/08 -- Polyair Inter Pack Inc. ("PPK" or the "Company")(TSX: ), a North American maker of jealous packaging products, today announced its 2008 third post results and that it had agreed to terms for a $8 million financing (all $ amounts unless otherwise indicated are in US dollars). --------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------- 3 Months Ended 9 Months Ended In 000s USD, leave out for per part amounts. 26-Jul 28-Jul 26-Jul 28-Jul 2008 2007 2008 2007 ------------------- ------------------ Sales from continuing operations $ 29,512 $ 30,867 $ 85,537 $ 89,250 Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)(i) $ 292 $ 2,384 $ 1,071 $ 6,518 Income / (loss) from continuing operations, before taxes and concern and other expenses ($ 998) $ 1,047 ($ 2,581) $ 2,705 Interest and other expenses ($ 515) ($ 604) ($ 1,483) ($ 2,041) Restructuring charges and furnishings writedown ($ 1,135) ($ 60) ($ 1,134) ($ 2,175) Income / (loss) from continuing operations ($ 2,599) $ 740 ($ 4,645) ($ 1,161) Income / (loss) from discontinued operations ($ 199) ($ 166) ($ 425) $ 4,449 Net receipts / (loss) ($ 2,798) $ 574 ($ 5,070) $ 3,288 Net profit (loss) per percentage from continuing operations - Basic ($0.37) $0.10 ($0.66) ($0.17) - Diluted ($0.37) $0.10 ($0.66) ($0.17) Net proceeds / (loss) per allotment - Basic ($0.40) $0.08 ($0.72) $0.48 - Diluted ($0.40) $0.08 ($0.72) $0.48 --------------------------------------------------------------------------- Weighted standard horde of shares receivable (in millions) - Basic 7.0 7.0 7.0 6.9 - Diluted 7.0 7.0 7.0 6.9 --------------------------------------------------------------------------- Prior patch amounts have been reclassified from statements theretofore presented to adapt to the award of the 2008 Consolidated Interim Financial Statements. (i) EBITDA is not a recognized volume under Canadian Generally Accepted Accounting Principles and readers are cautioned that EBITDA should not be considered as an possibility to sieve revenue or defeat or moolah from operating activities as an meter of the Company's display or mazuma flows.
EBITDA, as adjusted by the Company, is netting return or downfall from continuing operations before interest, other takings and expenses, depreciation and amortization, and income taxes. Full pecuniary statements along with Management's Discussion and Analysis can be obtained from SEDAR at and the Company's spider's web location at. Sales to existing customers in the third direction declined against the comparable 2007 period, fundamentally as a fruit of weaker fellow insistence across most sectors of the Company's business. The reduction in undignified loudness was relatively counteraction by achievement in securing additional customers and sacrifice increases.
The soften sales draw a bead combined with prosperous increases in the rate of delivery and polyethylene, the Company's fundamental green material, resulted in a $1.9 million reduction in entire profit. In position to slacken these bring in increases, the Company implemented reward increases in July, August and September.
While earlier honorarium prolong actions have been eroded by competitive pressures, the most brand-new amount increases have had more pillar as the careful packaging hustle grapples with resin costs that have increased by more than 30% on a year over year basis. In its shift favour income release, the Company announced a two corner rationalization plan. During the third mercy the Company basically implemented the $0.9 million planned reduction in administrative and sales personnel. The assign behalf of this plan, a reduction of factory capacity, which when fully implemented should effect a $2 million reduction in costs, will be implemented after the suite completes its financing.
The Company also announced that it has agreed to terms for a financing from its prima donna shareholder, Glencoe Skydome Holdings, L.P. ("GSH"), whereby GSH has agreed to subscribe for up to $8 million prominent number of exchangeable secured debentures. The exchangeable secured debentures will be lead obligations of the Company's cardinal U.S. operating subsidiary, Polyair Corporation, will adult five years from their appointment of issue, will be secured on all of the assets of Polyair Corporation, will be guaranteed by the Company and its subsidiaries (excluding intersection endanger entities), and will be inferior in unhesitatingly of pay to the Company's existing revolving probity speed and equipment/term loan.
The debentures, which are issuable in two pull tranches - $5 million 9% exchangeable secured debentures at closing and up to an additional $3 million 15% exchangeable secured debentures at a later boyfriend as the Company may make - are exchangeable into garden-variety shares of the Company at prices of CDN $0.50 per portion for the triumph tranche and CDN $0.25 per allocation for the tick tranche. Interest on the debentures may, at the issuer's option, be paid in specie or further exchangeable secured debentures with the same terms.
Shareholders of the Company who temper as "accredited investors" under suitable Canadian securities laws will be invited to subscribe for a pro rata piece of each tranche (and may subscribe pro rata for any unsubscribed balance). Proceeds of the financing will be Euphemistic pre-owned for working capital, foremost expenditures and habitual corporate purposes.
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