Propex Reports 1Q Results
Chattanooga, TN, May 16, 2006--Propex Fabrics Inc., today announced 2006 first quarter financial results.
On January 31, 2006, the company acquired all the outstanding capital stock of SI Concrete Systems Corporation and SI Geosolutions Corporation, collectively known as SI, for approximately $232.5 million including certain purchase price adjustments and direct acquisition costs. The company's results include SI's results of operations from January 31, 2006.
In the first quarter the company reported a loss before income taxes of $21.6 million, compared with earnings of $5.3 million in the same period of 205
2006 results include several non-recurring acquisition and restructuring related charges, including the $7.7 million amortization of the inventory fair value adjustment related to acquisition purchase accounting, the $3.7 million of in-process research and development charges, the Seneca, South Carolina facility restructuring's $5.5 million non-cash impairment related to equipment which will not be relocated to another plant, and the $3.0 million acquisition integration-related severance costs.
Due to the SI acquisition, the company has reevaluated and created two new North America reporting segments -- Geosynthetics and Concrete Fiber. The Geosynthetics segment, previously included with the North America Industrial Fabrics segment, includes the manufacture and sale of woven and non-woven fabrics into various geosynthetic end-uses. The Concrete Fiber segment includes the manufacture and outsourced supply and sale of fibers for use as a crack-reduction reinforcing material in concrete applications. The prior period has been restated to reflect the revised segments.
The following table compares revenue performance for the quarter ended March 31, 2006 with the prior year:
The company reported total net revenue in the first quarter that increased 18.4% to $ 191.2 million. In the company’s North American region, sales in the quarter rose 2.6% in the furnishings sector to $98.1 million, 48.3% in the Geosynthetics sector to $25.5 million, 64% in the Industrial Products sector to $24.5 and were $10.3 million in the Concrete fiber unit.
Sales in Europe were off 2.4% to $24.4 million and declined 3.4% to $8.9 million the company’s Brazilian region.
Total net revenue increased $29.7 million or 18.4% to $191.2 million in the quarter ended March 31, 2006 from $161.5 million in the quarter ended March 31, 2005.
The increase in North America furnishings net revenue was due to the successful pass-through of higher raw material costs and the inclusion of SI's furnishing activity for February and March, partially offset by volume decreases resulting from Shaw Industries' back integration into carpet backing in October 2005.
The increase in North America geosynthetics net revenue was due to the inclusion of SI's geosynthetics revenues for February and March 2006 and the successful pass-through of higher raw material costs, partially offset by volume decreases due to two large customers being acquired and subsequently realigning their suppliers.
The increase in North America industrial products net revenue was due to the inclusion of SI's industrial products revenues for February and March 2006 and the partial pass-through of higher raw material costs, partially offset by a volume decrease in certain packaging products, especially our cotton bale products due to transition issues associated with changing the company's channels to market.
The increase in concrete fiber revenues was due to the inclusion of SI's concrete fiber revenues for February and March 2006. The decrease in Europe's revenues was related to lower carpet industry volumes due to general weakness in the European economy and cautious consumer spending, partially offset by higher pricing due to the pass-through of higher raw material costs.
The decrease in Brazil's revenues was due to the negative impact
Related Topics:Shaw Industries Group, Inc., RD Weis
