Exhibit 99.1
COMPANY CONTACTS:
Bradley B. Buechler David B. Mueller Randy
C. Martin
Chairman, President and Executive Vice President and Vice
President-Finance and
Chief Executive Officer Chief Operating Officer Chief
Financial Officer
(314) 721-4242 (314) 721-4242 (314) 721-
4242
FOR IMMEDIATE RELEASE
TUESDAY, DECEMBER 7, 1999
SPARTECH CORPORATION ANNOUNCES RECORD FISCAL 1999 RESULTS
AND INCREASES QUARTERLY DIVIDEND
_________________________________________
Fiscal Year Highlights:
Net Sales increased 17% to $767.9 million
Operating Margin improved to $87.7 million or 11.4% of sales
Net Earnings increased 28% to $43.1 million
Eighth consecutive year of record sales and earnings
Financial Summary
(Dollars in thousands, except per share data)
Three Months Ended Fiscal Year Ended
(Unaudited) % (Audited) %
10/30/99 10/31/98 Change 10/30/99 10/31/98 Change
OPERATING RESULTS
Net Sales $201,333 $ 177,365 14% $767,873 $653,855 17%
Operating Earnings $ 22,913 $ 18,967 21% $ 87,707 $ 69,728 26%
Net Earnings $ 11,394 $ 8,816 29% $ 43,071 $ 33,720 28%
EPS-Diluted $ .39 $ .31 26% $ 1.48 $ 1.18 25%
PERFORMANCE RATIOS
Gross Margin 18.1% 17.3% 17.8% 17.0%
Operating Return on Sales 11.4% 10.7% 11.4% 10.7%
Debt to Total Capitalization 49.0% 62.3% 49.0% 62.3%
Return on Average Equity 24.5% 23.2% 25.1% 23.9%
"Spartech's record sales and earnings performance in 1999 was fueled by a
combination of recent strategic acquisitions, more than 30 new product
transformations, and ongoing production efficiency improvement efforts."
--Bradley B. Buechler, Chairman, President and Chief Executive
Officer--
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SPARTECH CORPORATION
FISCAL 1999 RESULTS
ADD 1
SPARTECH CORPORATION ANNOUNCES RECORD FISCAL 1999 RESULTS
AND INCREASES QUARTERLY DIVIDEND
St. Louis, Missouri, December 7, 1999 -- Spartech Corporation (NYSE:SEH)
announced today record sales and earnings for its fiscal year ended October 30,
1999, citing recent acquisitions, new product transformations, and ongoing
production efficiency improvement efforts.
Sales for fiscal 1999 were $767.9 million, up 17% from the $653.9 million
recorded in fiscal 1998, and operating earnings were $87.7 million for 1999, an
increase of approximately 26% from the $69.7 million reported for fiscal 1998.
These increases resulted in record net earnings of $43.1 million, or $1.48 per
diluted share for fiscal 1999, compared to the $33.7 million, or $1.18 per
diluted share, reported last year.
Commenting on the improved results, Spartech's Chairman, President and CEO,
Bradley B. Buechler stated, "Fiscal 1999 was another excellent year for our
Company, as we generated record financial results and strengthened our balance
sheet with a focused inventory reduction program. In addition, building on our
Four Cornerstones for Volume Growth and our Pyramids of Performance for earnings
enhancement strategies, we completed five acquisitions, introduced five new
Alloy Plastics, participated in more than thirty successful product
transformations, and produced a solid reduction in our conversion costs during
the year. The benefits realized from recent strategic acquisitions--principally
Polycom (March '98), Lustro Plastics (January '99) & Alltrista Plastic Packaging
(May '99)--coupled with successful new product transformation and production
efficiency improvement efforts, were the primary reasons for the Company's solid
1999 earnings performance--up 28% for the year."
Mr. Buechler added, "This performance generated record cash flow from
operations of more than $76 million and in connection therewith Spartech's Board
of Directors declared a fourth quarter cash dividend of
8 1/2 cents per share, payable on January 19, 2000, to holders of record on
January 5, 2000. This represents an increase of 21% over the Company's previous
quarterly dividend rate of 7 cents per share and our 5th consecutive year of
increased dividends."
Spartech's Executive Vice President and Chief Operating Officer, David B.
Mueller, further discussed the Company's fourth quarter results by business
segment:
Extruded Sheet & Rollstock
Sales increased 13% (including 6% base volume growth) to $130.4 million for
the fourth quarter of 1999, as compared to the same three month period in
1998, with a solid 17% gain being recorded in operating earnings. Growth
in the sale of recreation & leisure and specialty packaging products,
increased production efficiencies, and contributions realized from our
acquisitions of Lustro and Alltrista Plastic Packaging were the principal
reasons for the unit's excellent operating earnings--$15.6 million in
fiscal 1999.
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SPARTECH CORPORATION
FISCAL 1999 RESULTS
ADD 2
Color & Specialty Compounds
Sales for the Color & Specialty Compounds group grew 5% to $55.4 million in
the fourth quarter of 1999, with a 7% increase in operating earnings for
this group being realized as well. Volume increases at most of our Color &
Specialty Compounds units, coupled with strong production efficiency
efforts within this group, helped generate operating earnings of $7.4
million for the segment in 1999.
Molded & Profile Products
Sales increased 61% (including 29% base volume growth) to $15.5 million in
the fourth quarter of 1999, with a 42% gain being recorded in operating
earnings. A somewhat flat quarter for the molded products operations
within this group was offset by solid internal growth at our profile
products facilities and the October 1998 acquisition of Anjac-
Doron.operating earnings totaled $2.1 million for this segment in the
fourth quarter of fiscal 1999.
Finally, Mr. Buechler stated, "Most economists are currently forecasting
growth in the 3% range for calendar 2000. However, we are cautiously optimistic
as we look ahead to the next 12 months and expect Spartech's recent year-to-year
favorable comparisons to continue throughout fiscal 2000. Increased penetration
into certain Alloy Plastics/Product Transformation markets--transportation,
flooring and food packaging, in particular--along with several equipment
installations recently made or scheduled to be made in early fiscal 2000 at our
Extruded Sheet & Rollstock and Color & Specialty Compound facilities, should
translate into further production efficiencies and improved overall margins next
year."
Spartech is a leading producer of engineered thermoplastic materials,
polymeric compounds, and molded & profile products which has annual production
capacity of more than 1.5 billion pounds from its 43 facilities located
throughout North America and Europe.
Safe Harbor For Forward-Looking Statements
Statements contained herein which are not historical facts are forward-
looking statements within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934 which are intended to be covered by the safe
harbors created thereby. For a summary of important facts which could cause the
Company's actual results to differ materially from those included in, or
inferred by, the forward-looking statements, refer to the Company's Form 10-K
for the fiscal year ended October 31, 1998, which is on file with the Securities
and Exchange Commission.
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SPARTECH CORPORATION
FISCAL 1999 RESULTS
ADD 3
SPARTECH CORPORATION
(In Thousands, Except Per Share Data)
Three Months Ended (Unaudited) Fiscal Year Ended (Audited)
Oct. 30, Oct. 31, Percent Oct. 30, Oct. 31,
Percent
1999 1998 Change 1999 1998 Change
Net Sales $201,333 $177,365 14% $767,873
$653,855 17%
Operating Earnings $ 22,913 $ 18,967 21% $ 87,707 $
69,728 26%
Interest Expense &
Preferred Stock
Distributions $ 4,206 $ 4,154 1% $ 16,198 $ 13,602
19%
Income Tax Provision $ 7,313 $ 5,997 22% $ 28,438 $
22,406 27%
Net Earnings $ 11,394 $ 8,816 29% $ 43,071 $ 33,720
28%
Earnings Per Common
Share - Diluted $ .39 $ .31 26% $ 1.48 $ 1.18
25%
Weighted Average
Common Shares
Outstanding-Diluted 30,774 28,503 29,982 28,609
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