Aug 10, 2005. /Lesprom Network/. Appleton reported on Tuesday net sales for the second quarter ended July 3, 2005, were $262.0 million, a 12% increase compared to the same quarter of 2004. All of the company's business segments reported increased revenue in the second quarter of 2005 compared to the second quarter of 2004.

The company reported a net loss of $1.0 million for the second quarter of 2005 compared to a net loss of $35.9 million for the same quarter of 2004. Appleton completed a voluntary refinancing of the company's debt in June 2004. As part of the refinancing, Appleton incurred $30.8 million in debt extinguishment expenses during the second quarter of 2004.

Prior to the end of the second quarter of 2005, Appleton repaid the outstanding balance on its revolving line of credit and also made a voluntary principal repayment of $8.5 million on its senior term loan.

In the second quarter 2005, sales revenue for carbonless products, which account for the majority of the company's coated solutions segment, increased 3% compared to the same quarter in 2004. The increase in revenue resulted from increased shipments and increased prices for both its international and domestic roll and sheet products. Carbonless shipments increased 1% for the second quarter of 2005 compared to the same quarter for 2004 as a result of stronger than expected North American volume and growth in international markets.

Revenue from thermal and advanced technical products increased 20% during the second quarter 2005 compared to the same quarter of 2004. Stronger pricing for the company's point-of-sale, label, tag and ticket products during the second quarter 2005 contributed to the revenue gain. Shipments for the quarter were higher compared to the second quarter of 2004.

Revenue from U.S.-based security products rose 28% during the second quarter of 2005 compared to the same quarter of 2004. Revenue from the company's Bemrose Booth operations in the United Kingdom increased by 9% for the second quarter of 2005 compared to the same quarter of 2004 due to increased sales to several key accounts.

Revenue from Appleton's performance packaging companies grew 95% in the second quarter of 2005 compared to the second quarter of 2004, due primarily to the January 2005 acquisition of New England Extrusion, Inc. Net sales for the second quarter of 2005 excluding the New England Extrusion acquisition were slightly below the same quarter in 2004 due to a softness in portions of the converter marketplace. 

 

In thousands dollars

 

2Q 2005

2Q 2004

Net sales                                 

262,002

233,590

Gross profit                                 

65,331

57,587

Operating income                            

11,285

7,412

Net loss                                     

995

35,873

Operating income                           

11,285

7,412

Appleton uses ideas that make a difference to create product solutions through its development and use of coating formulations and applications, encapsulation technology, and specialized and secure print services. The company produces carbonless, thermal, security and performance packaging products. Appleton is headquartered in Appleton, Wisconsin, and has manufacturing operations in Wisconsin, Ohio, Pennsylvania, Massachusetts and the United Kingdom, employs approximately 3,400 people, and is 100% employee owned.