Atlantis Plastics: Earnings News Release FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION: A. Richard Hurwitz Vice President, Corporate Communications (305) 858-2200 ATLANTIS PLASTICS ANNOUNCES 1996 OPERATING RESULTS ATLANTA, GA - (February 12, 1997) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the fiscal year ended December 31, 1996. In 1996, net sales were $267.1 million, compared to $281.1 million in 1995. Net income in 1996 was $8.1 million, or $1.06 per share, compared to a net loss in 1995 of $13.1 million, or $1.83 per share. Both gross margin and operating income improved significantly compared to the previous year. Gross margin in 1996 was 17.1% of sales, compared to 14.6% in 1995. Operating income was 6.9% of net sales in 1996 versus an operating loss in 1995. Improved margins are the result of lower overhead expense, better production efficiency and reduced overtime, closure of the Tulsa custom film facility, efficiencies related to capital expenditures, and greater sales volume in each of the Company's businesses. Total net debt declined by $23.2 million to $92.0 million at 1996 year-end, compared to $115.2 million a year earlier. The Company repurchased $5.7 million of its 11% Senior Notes in 1996, contributing to the reduction in the amount of Senior Notes outstanding in the last 15 months from $100.0 million to $89.5 million. As a result, net interest expense decreased from $14.2 million in 1995 to $12.6 million in 1996. Year-end 1995 results included impairment and restructuring charges totaling $11.0 million, net of taxes, or $1.53 per share. Loss from continuing operations in 1995, including the above charges, was $13.6 million, or $1.90 per share. The decline in net sales for fiscal 1996, compared to the prior year, was due to lower average sales prices for the Company's film products, resulting from lower resin prices in the early part of this period. Net sales increased slightly from $64.0 million in the fourth quarter of 1995 to $64.1 million in the fourth quarter of 1996 on higher sales volume offset by lower sales prices. Net income in the fourth quarter of 1996 was $5.1 million, or $0.65 per share, compared to a net loss of $11.2 million, or $1.59 per share in the fourth quarter of 1995, which included the above-mentioned impairment and restructuring charges. The 1996 fourth quarter results included the previously-announced sales of the following non-strategic businesses and assets: Plastic Containers, Inc., its blow molding subsidiary; common stock in WinsLoew Furniture, Inc., which was held for investment; and the Tulsa, Oklahoma custom film plant, which was a redundant manufacturing facility. In November 1996, the Board of Directors authorized the repurchase of up to 1,000,000 shares of Atlantis' Class A common stock, or 14% of the 7.1 million Class A and Class B common stock outstanding. To date, the Company has repurchased 94,000 shares and options for 55,000 shares, and will continue to buy its shares in the open market, or in privately negotiated transactions, at times and prices deemed advantageous. In addition, in January 1997 the Company issued a mandatory conversion notice to the holder of the 20,000 outstanding shares of the Company's Series A preferred stock. The Series A preferred stock was convertible into 210,244 shares of Class A common stock. After issuing the mandatory conversion notice, the Company reached an agreement with the holder of the Series A preferred stock to repurchase all of the shares subject to the conversion notice. The repurchase, which is subject to the approval of the United States Bankruptcy Court, should be completed in early March. Anthony F. Bova, President and Chief Executive Officer, commented, "We are pleased to report that as a result of the strategic initiatives implemented in the past 18 months, the Company's earnings performance is substantially better than the prior year and that all of our businesses experienced volume growth during this period. To date, our overall cost structure has been reduced by over $7.0 million compared to early 1995 levels, and our net debt has been lowered by $50.0 million from a May 1995 high of $142.0 million to $92.0 million at year-end 1996. The reduction in net debt included cash proceeds of approximately $28 million generated from the sales of non-strategic assets and businesses. As a result of these initiatives, four of the Company's five businesses have improved gross margins compared to the prior year, and have demonstrated significant improvement in operating results. "However, our stretch film unit, which represents approximately 40% of sales, is still being impacted by strong price competition. In an effort to improve its performance and to grow its business, we have initiated a new marketing program to introduce three uniquely-engineered stretch film products which target all machine wrap applications and market segments. These films are designed to offer high performance characteristics, while utilizing more cost effective materials and manufacturing processes. In addition, we have begun the implementation of new initiatives to reduce the unit's overhead and production expense by an additional $1.0 million in the next year. The combination of these efforts supports our confidence in our ongoing drive to improve the Company's profits on a going forward basis." Atlantis Plastics, Inc. is a leading U.S. manufacturer of polyethylene stretch and custom films and molded plastic products. Stretch films are used principally to stretchwrap pallets of materials for shipping or storage, and custom film products, which include high-grade laminating films, embossed films, and specialty film products, are used in the industrial and agricultural packaging markets. Atlantis' molded plastic products are used primarily by original equipment manufacturers in the appliance, automotive, agricultural, and recreational vehicle industries. Additional information on Atlantis Plastics, Inc. is available on the Internet World Wide Web at this address: http://www.cfonews.com/agh; or interested parties may dial direct by modem to (718) 279-3590; or may send E-mail to cfo@panix.com, with the subject agh. ### ATLANTIS PLASTICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands) December 31, December 31, 1996 1995 ASSETS Cash and equivalents $15,905 $1,255 Accounts receivable, net 28,364 28,250 Inventories 16,984 18,544 Other current assets 4,825 7,044 Current assets 66,078 55,093 Property and equipment, net 58,523 64,333 Investment in WinsLoew Furniture, Inc. stock - 4,798 Goodwill, net of amortization 50,532 52,680 Other assets 2,768 3,557 $177,901 $180,461 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses $27,131 $28,725 Current portion of long-term debt 2,517 3,168 Current liabilities 29,648 31,893 Long-term debt, net of current portion 105,365 113,294 Deferred income taxes 6,886 6,610 Other liabilities 1,093 1,372 Total liabilities 142,992 153,169 Commitments and contingencies Shareholders'equity: Series A convertible preferred stock, $1.00 par value, 20,000 shares authorized, issued and outstanding in 1996 and 1995 2,000 2,000 Class A common stock, $.10 par value, 20,000,000 shares authorized, 4,225,823 and 4,192,823 shares issued and outstanding in 1996 and 1995 423 419 Class B common stock, $.10 par value, 7,000,000 shares authorized, 2,899,977 and 2,899,977 shares issued and outstanding in 1996 and 1995 290 290 Additional paid-in capital 6,968 6,828 Unrealized holding gains, net of tax 0 287 Retained earnings 25,228 17,468 Total shareholders' equity 34,909 27,292 $177,901 $180,461 ATLANTIS PLASTICS, INC. CONSOLIDATED INCOME STATEMENTS (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 1996 1995 1996 1995 Net sales................... $64,059 $63,952 $267,119 $281,064 Cost of sales....... 54,276 54,794 221,377 239,969 Gross Profit.... .................. 9,783 9,158 45,742 41,095 Selling, general and administrative expenses........................... 6,704 7,030 27,352 29,357 Impairment and restructuring charges........ ........ - 11,468 - 12,453 Operating income (loss).. 3,079 (9,340) 18,390 (715) Net interest expense.................. (2,931) (3,294) (12,638)(14,179) Other income (expense).... 6,718 (50) 6,718 (338) Income (loss) from continuing operations before income taxes. 6,866 (12,684) 12,470 (15,232) Income tax (provision)benefit..........(1,793) 1,186 (4,396) 1,674 Income (loss) from continuing operations..................... 5,073 (11,498) 8,074 (13,558) Income (loss) from discontinued operation, net....................... - - 96 (251) Gain on disposition of discontinued operation, net...................... - - - 483 Extraordinary gain (loss) on early extinguishment of debt,net.......... - 254 (73) 254 Net income (loss) 5,073 (11,244) 8,097 (13,072) Preferred stock dividends............. (6) (35) (115) (144) Income (loss) applicable to common shares and equivalents........... $ 5,067 $ (11,279) $ 7,982 $(13,216) INCOME (LOSS) PER COMMON SHARE (PRIMARY ONLY): Continuing operations.............. $0.65 ($1.63) $1.06 ($1.90) Discontinued operations.......... _ _ 0.01 (0.04) Gain on disposition of discontinued operation....................... - - - 0.07 Extraordinary item, net.......... - 0.04 (0.01) 0.04 Net income (loss).. $0.65 ($1.59) $1.06 $(1.83) Weighted average shares outstanding 7,774,267 7,092,800 7,524,292 7,208,173 DIVIDENDS DECLARED PER COMMON SHARE - - - $0.08 NOTE: In 1995, loss from continuing operations per common share included amounts relating to impairment and restructuring charges totaling $1.47 and $1.53 per share for the fourth quarter and year-to-date periods, repectively. Ends.