Resolution Performance Products LLC
Resolution Performance Products LLC Announces Third Quarter 2004 Results: EBITDA Exceeds Analyst Expectations Driven By Improved Product Pricing
Houston, November 4 (ots/PRNewswire)
Resolution Performance Products LLC, the world's leading manufacturer and developer of epoxy resins, today reported its financial results for the third quarter of 2004. The third quarter results include total revenues of US$245 million, operating income of US$8 million and EBITDA of US$20 million. Total revenues increased US$56 million, operating income increased US$7 million, and EBITDA increased US$7 million as compared to the third quarter of 2003. Compared to second quarter 2004 results, total revenues increased US$5 million, operating income increased US$4 million, and EBITDA increased US$4 million.
"During the third quarter, across the board improvement in product pricing offset a portion of the raw material increases we have experienced over the past several quarters," said Marvin O. Schlanger, Chairman and CEO of Resolution Performance Products. "Nevertheless, EBITDA is still not at a sustainable level and additional price increases are being implemented to improve margins in the face of persistently high feedstock costs," added Mr. Schlanger.
Resolution Performance Products will be hosting an investor conference call on November 9, 2004 at 3:00 p.m. eastern time. The public is cordially invited to listen and participate by dialing the following toll-free number: +1-888-632-5950 or +1-713-481-1320. If you are unable to listen to the call at that time, a replay will be available two hours after the conference call has ended, from 7 a.m. to 9 p.m. Monday through Friday and Saturday from 8 a.m. to 4 p.m. central standard time until November 16, 2004 by dialing +1-877-519-4471 or +1-973-341-3080, use conference #5321419 and asking the operator for the Resolution Performance Playback.
Resolution Performance Products is the leading worldwide manufacturer and developer of epoxy resins and is also the leading global manufacturer of Versatic acids and derivatives. Epoxy resins are chemicals primarily used in the manufacture of coatings, adhesives, printed circuit boards, fiber reinforced plastics and construction materials. The Company, with approximately 900 employees, has operations in the United States, Europe and Asia. Additional information about the Company and its financial results and current report filings are available on its web site at http://www.resins.com under the corporate information heading.
Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. The Company can give no assurance that such expectations will prove to be correct. Factors that could cause the Company's results to differ materially from current expectations include: general economic and business conditions, industry trends, raw material costs and availability, changes in demand for its products, actions of its competitors, substantial indebtedness and the additional factors and risks contained in the Company's Registration Statement on Form S-4 declared effective on February 4, 2004 (File No. 333-112016) and in its periodic reports filed with the SEC.
Resolution Performance Products LLC
Consolidated Statements of Income
(in millions of U.S. dollars)
(Unaudited) (Unaudited)
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
Revenue $244 $188 $706 $585
Other revenues 1 1 2 1
Total 245 189 708 586
Costs and expenses:
Purchase and other
variable costs 176 130 507 412
Operating expenses 30 29 91 83
Selling, general and
administrative 14 13 43 39
Depreciation and
amortization 12 12 35 35
Research and development 5 4 14 12
Total 237 188 690 581
Operating income 8 1 18 5
Income from equity
investment --- --- --- 1
Interest expense, net 20 18 59 57
Loss before taxes (12) (17) (41) (51)
Income tax expense
(benefit) --- (9) 1 (21)
Net loss $(12) $(8) $(42) $(30)
EBITDA (A) $20 $13 $53 $41
(A) EBITDA represents loss before income taxes, interest expense and
depreciation and amortization. EBITDA is presented because it is
used by investors to analyze and compare operating performance,
which includes a company's ability to service and/or incur debt. In
addition, management focuses on EBITDA because it is used as an
internal performance measure. However, EBITDA should not be
considered in isolation or as a substitute for net income, cash
flows or other income or cash flow data prepared in accordance with
United States generally accepted accounting principles or as a
measure of a company's profitability or liquidity. EBITDA is not
calculated under GAAP and therefore is not necessarily comparable to
similarly titled measures of other companies. The following table
reconciles the differences between net loss, as determined under
United States generally accepted accounting principles and EBITDA
(in millions of U.S. dollars):
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
Net loss $(12) $(8) $(42) $(30)
Income tax expense
(benefit) --- (9) 1 (21)
Interest expense, net 20 18 59 57
Depreciation and
amortization 12 12 35 35
EBITDA $20 $13 $53 $41Web site: http://www.resins.com
Contact:
David Graziosi, Chief Financial Officer of Resolution Performance
Products LLC, +1-832-366-2508