Exhibit 99.1
Georgia Gulf Reports First Quarter Net Income of $.57 Per Diluted Share
ATLANTA, April 29 /PRNewswire-FirstCall/ -- Georgia Gulf Corporation
(NYSE: GGC) reported net income of $18.7 million or $.57 per diluted share on
record quarterly sales of $496.7 million for the first quarter of 2004. This
net income compares favorably to the net loss of $1.7 million or $.05 per
diluted share on sales of $364.0 million for the first quarter of 2003. This
improvement was the result of an overall increase in sales prices and sales
volumes, specifically in vinyl resins where the Company set a record for
quarterly sales volume. These increases outpaced higher raw materials costs.
The first quarter net income increased $20.7 million from the fourth
quarter of 2003 net loss of $2.0 million or $.06 per diluted share, which
included an after tax charge of $8.6 million or $.26 per diluted share related
to the early retirement of debt, on sales of $372.5 million. The favorable
net income was the result of overall increased sales prices and sales volumes,
primarily in vinyl resins, which more than offset higher raw materials and
natural gas costs.
Chlorovinyls
Chlorovinyls operating income of $38.3 million for the first quarter of
2004 increased by $23.9 million compared to operating income of $14.5 million
for the first quarter of 2003. Higher sales prices for vinyl resins and vinyl
chloride monomer, along with record quarterly sales volumes for vinyl resins
and very strong vinyl compounds sales volumes, outpaced higher ethylene costs.
Comparing sequential quarters, operating income increased from $25.1
million in the fourth quarter of 2003 to $38.3 million in the first quarter
2004 as a result of higher vinyl resins and vinyl chloride monomer sales
volumes and prices, which more than offset higher ethylene and natural gas
costs.
Aromatics
Aromatics operating income increased by $5.6 million to $3.8 million in
the first quarter of 2004 from a loss of $1.8 million in the first quarter of
2003. The increase was due to significantly higher cumene sales volume and
higher sales prices for all products, which more than offset significantly
higher benzene and propylene costs and the costs associated with a scheduled
14-day phenol and acetone plant turnaround in the first quarter of 2004.
First quarter 2004 aromatics operating income of $3.8 million increased
from the fourth quarter of 2003 operating loss of $0.1 million. This was
primarily due to higher cumene sales prices and volumes, which more than
offset significantly higher raw materials costs and lower phenol and acetone
sales volumes that resulted from the scheduled phenol and acetone plant
turnaround in the first quarter of 2004.
Commentary
Commenting on the results, Edward A. Schmitt, chairman, president and CEO,
said, "First quarter earnings were clearly a result of strong demand and our
ability to increase prices for all of our vinyl resins and aromatics products.
In fact, this quarter was our best quarter since the second quarter of 2000.
As a result of the increased demand for our products, we operated at an
overall operating rate of 96 percent.
"As we enter the second quarter, which is traditionally one of our
stronger quarters, we expect to see continued improved demand, which should
allow us to exceed our first quarter results."
Conference Call
Georgia Gulf will host a conference call to discuss first quarter results
in more detail at 9:00 AM EDT on Friday, April 30, 2004. To access the
teleconference, please dial 888-552-7928 (domestic) or 706-679-3718
(international). To access the teleconference via Webcast, log on
to http://www.firstcallevents.com/service/ajwz404406336gf12.html . Playbacks
will be available from noon EDT Friday, April 30, to midnight EDT Friday, May
7. Playback numbers are 800-642-1687 (domestic) or 706-645-9291
(international). The conference call ID number is 6796601.
Other
Georgia Gulf, headquartered in Atlanta, is a major manufacturer and
marketer of two integrated product lines, chlorovinyls and aromatics. Georgia
Gulf's chlorovinyls products include chlorine, caustic soda, vinyl chloride
monomer and vinyl resins and compounds. Georgia Gulf's primary aromatic
products include cumene, phenol and acetone.
This news release contains forward-looking statements subject to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management's assumptions
regarding business conditions, and actual results may be materially different.
Risks and uncertainties inherent in these assumptions include, but are not
limited to, future global economic conditions, economic conditions in the
industries to which the company sells, industry production capacity, raw
material and energy costs and other factors discussed in the Securities and
Exchange Commission filings of Georgia Gulf Corporation, including our annual
report on Form 10-K for the year ended December 31, 2003.
Contact: Angie Tickle
Investor Relations Associate
770-395-4520
GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
2004 2003
ASSETS
Cash and cash equivalents $8,835 $1,965
Receivables 146,737 86,914
Inventories 128,914 124,616
Prepaid expenses 6,520 7,043
Deferred income taxes 8,369 8,368
Total current assets 299,375 228,906
Property, plant and equipment, net 452,094 460,808
Goodwill 77,720 77,720
Other assets 89,801 89,351
Total assets $918,990 $856,785
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current portion of long-term debt $800 $1,000
Accounts payable 169,535 135,680
Interest payable 5,564 1,812
Accrued income tax 11,123 -
Accrued compensation 8,806 15,058
Accrued liabilities 9,439 9,614
Total current liabilities 205,267 163,164
Long-term debt, less
current portion 426,672 426,872
Deferred income taxes 122,495 122,617
Other non-current liabilities 10,116 7,693
Stockholders' equity 154,440 136,439
Total liabilities and
stockholders' equity $918,990 $856,785
Common shares outstanding 32,893 32,736
GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2004 2003
Net Sales $496,687 $364,010
Operating costs and expenses
Costs of sales 445,787 342,826
Selling and administrative 14,771 13,907
Total operating costs
and expenses 460,558 356,733
Operating income 36,129 7,277
Interest expense, net 6,268 9,892
Income (loss) before income taxes 29,861 (2,615)
Provision (benefit) for (from)
income taxes 11,123 (941)
Net income (loss) $18,738 $(1,674)
Earnings (loss) per share
Basic $0.57 $(0.05)
Diluted $0.57 $(0.05)
Weighted average common shares
Basic 32,609 32,210
Diluted 32,926 32,210
GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2004 2003
Cash Flows from operating activities:
Net income (loss) $18,738 $(1,674)
Adjustments to reconcile net
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization 15,772 16,193
Benefit for deferred income taxes (122) (857)
Tax benefit related to stock plans - 179
Stock based compensation 1,296 300
Change in operating assets,
liabilities and other (21,105) (37,279)
Net cash provided by (used in)
operating activities 14,579 (23,138)
Cash flows used in investing activities:
Capital expenditures (5,480) (5,122)
Cash flows from financing activities:
Net change in revolving line of credit - 26,850
Payments of long-term debt (400) (150)
Proceeds from issuance of common stock 1,206 8
Purchase and retirement of common stock (406) (96)
Common stock dividends paid (2,629) (2,594)
Net cash (used in) provided by
financing activities (2,229) 24,018
Net change in cash and cash equivalents 6,870 (4,242)
Cash and cash equivalents at
beginning of period 1,965 8,019
Cash and cash equivalents at end of period $8,835 $3,777
GEORGIA GULF CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2004 2003
Segment net sales:
Chlorovinyls $350,670 $304,422
Aromatics 146,017 59,588
Net sales $496,687 $364,010
Segment operating income (loss):
Chlorovinyls $38,320 $14,457
Aromatics 3,806 (1,770)
Corporate and general plant services (5,997) (5,410)
Total operating income $36,129 $7,277
SOURCE Georgia Gulf Corporation
-0- 04/29/2004
/CONTACT: Angie Tickle, Investor Relations Associate of Georgia Gulf
Corporation, +1-770-395-4520/
(GGC)
CO: Georgia Gulf Corporation
ST: Georgia
IN: CHM
SU: CCA ERN MAV