AEP Industries Inc. Reports Fiscal 2010 Q3 Results

AEP Industries Inc. AEPI today reported financial results for its third quarter ended July 31, 2010. Net sales for the third quarter of fiscal 2010 increased $15.2 million, or 8%, to $204.9 million from $189.7 million for the third quarter of fiscal 2009. Net sales for the nine months ended July 31, 2010 increased $25.2 million, or 5%, to $577.7 million from $552.5 million in the same period of the prior fiscal year. Gross profit for the third quarter of fiscal 2010 decreased $3.9 million to $33.6 million from $37.5 million in the same quarter of the prior fiscal year. Expansion in material margin (net sales less raw material costs) was offset by lower volumes sold and lower plant utilization during the period. Gross profit for the first nine months of fiscal 2010 decreased $49.7 million to $77.5 million from $127.2 million in the same period of the prior fiscal year. The Company experienced a $6.2 million increase in its LIFO reserve during the first nine months of fiscal 2010 versus a $21.3 million decrease in the LIFO reserve during the first nine months of fiscal 2009, for an aggregate increase of $27.5 million year-over-year. Operating expenses for the third quarter of fiscal 2010 decreased $2.5 million, or 9.6%, to $23.7 million, and decreased $3.2 million, or 4.4%, to $70.6 million for the first nine months of fiscal 2010, as compared to the same periods of the prior fiscal year. Net income (loss) for the three and nine months ended July 31, 2010 was income of $3.7 million or $0.55 per diluted share and a loss of $2.7 million or $(0.39) per diluted share, respectively. Net income for the three and nine months ended July 31, 2009 was $5.4 million or $0.79 per diluted share and $29.1 million or $4.28 per diluted share, respectively. Adjusted EBITDA was $4.6 million in the current quarter as compared to $23.0 million for the three months ended July 31, 2009. Adjusted EBITDA for the nine months ended July 31, 2010 was $30.6 million, as compared to $49.3 million for the nine months ended July 31, 2009.