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Clopay Plastic Products is a leader in its markets by bringing together customer focused product innovation with world- class manufacturing and commercial execution on a global scale. Our mission is to go beyond conventional thinking
to find innovative polymer film and
film-based composite solutions for our customers.
In today’s market for consumer personal care disposables, product life cycles are becoming shorter and shorter. The consumer demands improved performance and aesthetics. In this environment Clopay Plastic Products excels. At our new Product Development Center, our seasoned staff of scientists and process engineers work side by side with our customers. Unique materials and process conditions are conceived and tested in real time on our state-of-the art development/ pilot production line, to produce creative, timely solutions. And, just as important, a transition from pilot line to production in our 5 global manufacturing centers is accomplished quickly and cost effectively.
This capability and commitment to excellence in product innovation and commercial execution has resulted in outstanding operational performance and will fuel our success in the future. In 2004, we will continue to invest in our global operations to expand capacity and capability to meet the growing demand for our products.
We are pleased to report that the company began fiscal 2004 with the most profitable first quarter
in its history. For the third consecutive year our first quarter was a record quarter. All our business segments achieved increased sales and profitability.
Net sales for the quarter increased to $338,502,000, up from $302,154,000 for the first quarter of fiscal 2003. Income before income taxes grew to $25,658,000 from $21,081,000. Net income was $13,115,000 in the current quarter compared to $10,920,000 last year. Basic earnings per share for the quarter was $.44 compared to $.33 last year and diluted earnings per share was $.41 compared to $.32 in 2003.
Sales and earnings growth in the first quarter reflects continued strong operating performance by each of the company’s segments. Specialty plastic films had another solid quarter with improved product mix, higher unit volume and increased manufacturing efficiencies driving profitability gains in spite of higher raw material costs. The effect of a weaker U.S. dollar on foreign operations also contributed to the sales and earnings gains. In the building products operations, strong demand buoyed sales at both the garage doors and the installation services segments. Garage doors enjoyed higher unit sales during the quarter and also benefited from a favorable product mix, resulting in operating profit and margin increases. Installation services’ profitability and operating margins improved on higher sales attributable to positive market conditions and the elimination last year of an underperforming location. The electronic information and communication systems segment, Telephonics, continued to build momentum in the first quarter, reporting higher sales and operating profit due to recently awarded contracts and good performance in military production programs. Higher consolidated earnings in the quarter also absorbed increased interest expense associated with the company’s convertible subordinated notes, which were sold in the latter part of fiscal 2003.
Strong cash flow from operations generated $25,000,000 for the quarter which was used for capital expenditures of $14,000,000, principally for the specialty plastic films segment capital expansion programs, and $6,000,000 to acquire 300,000 shares of the company’s common stock under its buyback program. Since the end of the first quarter the company has purchased an additional 200,000
shares of its Common Stock for $4,000,000 and announced that
it has increased its stock buyback program by 1,000,000 shares. This brings the current authorization to 1,900,000 shares. Additional purchases will be made from time to time, depending on market conditions, at prices deemed appropriate by management.
We look forward to reporting continued success throughout fiscal 2004.
Harvey R. Blau
Chairman of the Board
Robert Balemian
President |
