FOAMEX INTERNATIONAL INC. REPORTS
SECOND QUARTER 2001 RESULTS
_________________________________________________
Net Income Improves to
$10.2 Million or $0.41 Per Share
EBDAIT is $37.0 Million; Debt Reduced to
$686 Million
LINWOOD, PENNSYLVANIA, August
14, 2001 - Foamex International Inc.
(NASDAQ: FMXI), the leading manufacturer of flexible polyurethane and
advanced polymer foam products in North America, today announced financial
results for its second quarter, which ended June 30, 2001.
Net sales for the quarter were $314.3 million, a decrease of 2.6% from
$322.7 million reported in the prior-year period. The net sales decrease
reflects an increase in Automotive Products sales, offset by declines in
Foam Products, Carpet Cushion and Technical Products.
Gross profit for the quarter was $49.5 million, an increase of 3.5% over
$47.8 million in the second quarter of 2000.
SG&A expenses for the quarter were $21.1 million, an increase of 13.0% over
expenses of $18.6 million in the prior-year quarter. The company's ongoing
expense control program was offset by higher bad debt expense, medical costs
and professional fees for the quarter.
Operating income was $28.5 million, a decrease of 2.3% from the $29.1
million reported in the second quarter of last year. Excluding a
restructuring credit of less than $0.1 million in the current year quarter,
operating income decreased 2.5%.
Interest and debt issuance expense for the quarter was $16.2 million, a
13.4% decrease from $18.8 million in the second quarter of last year, due to
a combination of reduced debt levels and lower interest rates.
Provision for income taxes was $1.9 million, compared with $1.9 million in
the second quarter of 2000.
Net income grew to $10.2 million or $0.41 per diluted share, compared with
$8.0 million or $0.32 per diluted share for the second quarter of 2000.
EBDAIT for the quarter was $37.0 million, a decrease of 2.9% from $38.1
million in the second quarter of last year.
John Televantos, President and Chief Executive Officer of Foamex, said, "Our
second quarter results are on target with our expectations, given the soft
economy. We are especially pleased with the performance of our Automotive
Products Group in the face of lower industry sales."
Year-to-date
performance
For the six-months ended June 30, 2001, net sales were $616.2 million, a
5.5% decrease from $651.8 million in the prior-year period.
Gross profit was $91.7 million, or 14.9% of sales, compared with $90.7
million, or 13.9% of sales, in the first half of 2000.
SG&A expenses for the period were $38.0 million, an increase of 2.5% over
$37.1 million in the same period last year.
Operating income was $53.7 million, an increase of 6.5% over the $50.4
million reported for the first six months of 2000. Excluding restructuring
charges in both periods, operating income was essentially equal to the first
half of 2001.
Interest and debt issuance expense for the period declined to $33.9 million
from $37.4 million for the same period last year.
Provision for income taxes was $3.2 million, compared with $2.2 million for
the first six months of 2000.
Net income for the period was $16.6 million or $0.66 per diluted share,
compared with $9.8 million or $0.39 per diluted share for the first half of
2000.
EBDAIT for the first six months of 2000 was $70.8 million, a 0.1% decrease
from $71.7 million for the same period of 2000.
"We have now posted ten consecutive quarters of stable EBDAIT levels,
despite a challenging business environment," Televantos said. "We continue
to pay down debt, with a reduction of $11.5 million in the second quarter,
and a total reduction of $25.7 million for the first half of 2001. We are
maintaining our focus on cost and expense control to maximize our
performance in the current economy. However, absent an economic upturn, it
will be difficult to deliver improved overall performance in the second half
of 2001."
"We are positioning the company for long and short-term growth through new
product development, continued investment in technology and prudent
acquisitions," Televantos emphasized.
Foamex Chairman Marshall S. Cogan noted, "Our growth strategy is primarily
internal. However, we intend to remain flexible to take advantage of
acquisitions that are capital efficient and that have significant synergies
with our existing businesses." In July, Foamex announced the acquisition of
certain assets of General Foam Corporation, a manufacturer of polyurethane
foam products for the automotive, industrial and home furnishings markets.
"It is the combination of internal growth enhanced by acquisitions that will
drive shareholder value in the months and years ahead," Cogan said.
Foamex, headquartered in Linwood, Pennsylvania, is the world's leading
producer of comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The company also manufactures high-performance polymers
for diverse applications in the industrial, aerospace, electronics and
computer industries as well as filtration and acoustical applications for
the home. Revenues for 2000 were $1.3 billion.
For more information visit the Foamex web site at http://www.foamex.com.
This release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The Company believes the assumptions
underlying the forward-looking statements, including those relating to debt
reduction, cost reduction, cash generation, interest rates, foreign taxes,
new products, and the overall economy are reasonable. However, any of the
assumptions could be inaccurate, and therefore there can be no assurance
that the forward-looking statements contained in this release will prove to
be accurate. Additional information that could cause actual results to vary
materially from the results anticipated may be found in the Company's most
recent Form 10-K and other reports filed with the Securities and Exchange
Commission. Furthermore, the Company disclaims any obligation or intent to
update any such factors or forward-looking statements to disclaim future
events and developments.
Financial Tables
