Austell, GA, May 17--Propex Fabrics that total revenue increased by 14.9% in the first quarter of 2005 to $161.5 million.
The increase in North American furnishings revenue in the first quarter of 2005 was primarily due to higher U.S. selling prices in both the carpet backing and furniture and bedding product lines. The company experienced significantly higher volumes across industrial fabrics products, particularly in its packaging product line.
The Europe geographic region experienced revenue growth in the first quarter of 2005 as a result of higher prices offset by lower carpet industry volumes. Brazilian net revenue increased primarily as a result of increased selling prices and strengthening of the Brazilian real versus the U.S. dollar.
Prior to December 1, 2004, Propex was owned by BP p.l.c. and operated under the name of Amoco Fabrics and Fibers Company in the U.S. and other names in international locations. The company was acquired by an investor group that includes investment entities affiliated with The Sterling Group, L.P., Genstar Capital, L.P., and Laminar Direct Capital, L.P., BNP Paribas Private Capital Group, through Paribas North America Inc., certain members of senior management and certain other investors on December 1, 2004, and became a stand-alone company operating under the name Propex Fabrics Inc.
2005 results include certain stand-alone and other costs not included in the 2004 results, as elaborated in the below discussion. The 2005 interest expense relates to our new $150 million 10% Senior Notes due 2012, the $110 million Senior Secured Term Loan due 2011 and amounts drawn under the Revolving Credit Facility due 2009.
