Atlantis Plastics: 1st Quarter Earnings News FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION: Patricia C. Johnson Specialist, Corporate Communications (305) 858-2200 ATLANTIS PLASTICS ANNOUNCES 25% INCREASE IN FIRST QUARTER NET INCOME ATLANTA, GA - (May 4, 1999) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the first quarter ended March 31, 1999. Net income for the first quarter was $2.1 million, or $0.27 per diluted share compared to net income of $1.7 million, or $0.22 per diluted share in the first quarter 1998, reflecting an increase of 25% , or 23% per diluted share. Net sales in the first quarter 1999 were $59.0 million, compared to $64.4 million in the first quarter 1998. In the first quarter 1999, net sales in Atlantis' films segment were 10% below last year's first quarter net sales primarily due to lower average selling prices resulting from substantial declines in resin prices throughout 1998. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $8.4 million compared to $7.7 million for the first quarter 1998, an increase of 9%. Atlantis's gross margin for the first quarter 1999 was 21% compared to 18% in the comparable period of 1998. Operating margins for the first quarter 1999 were 10% compared with 8% a year earlier. Gross margins were 22% in plastic film and 18% in molded products compared to 19% and 15% respectively for the year earlier period. Operating margins were 12% in plastic film and 7% in molded products in 1999 compared to 9% and 6% respectively for the first quarter 1998. Improvements in profitability in the Company's plastic film segment were a result of increased volume, continued cost reduction measures, and a more favorable pricing environment. Within the molded products segment, the improvement reflects a continuation of operating efficiencies initiated in the fourth quarter of 1998. The Company's first quarter selling, general and administrative ("SG&A") expense increased to $6.5 million in 1999 from $6.0 million in 1998 due primarily to nonrecurring savings incurred in the first quarter of 1998. Interest expense declined to $2.3 million compared to $2.7 million in the first quarter 1998 as a result of reduced debt levels and the third quarter 1998 repurchase of $14.7 million of the Company's Senior Notes. Net debt (total debt less cash) continued to decline and totaled $81.1 million as of March 31, 1999, reflecting a decline of $12.2 million over the previous twelve months and $3.1 million during the first quarter 1998. Anthony F. Bova, President and Chief Executive Officer, said, "These results continue the progress we have made since mid-1997. Our plastic film segment continued to grow while improving gross margins and operating margins. In particular, our stretch film volume increased 7% over first quarter 1998, thereby reaffirming our previously announced plans for a West Coast facility and new extrusion capacity. Our injection molding business continued to improve as a result of increased volume in our Warren, OH facility as well as improved scrap rates and throughput in our plants, validating the turnaround which commenced late last year." In November 1996, the Board of Directors authorized the repurchase of up to one million shares of Class A common stock, or 14% of the 7.1 million Class A and Class B common shares then outstanding. Through December 31, 1998 and March 31, 1999, the Company repurchased 542,544 shares, as well as options for 55,125 shares. Atlantis Plastics, Inc. is a leading U. S. manufacturer of polyethylene stretch and custom films and molded plastic products. Stretch films are used to wrap pallets of materials for shipping or storage, and custom films, which are made-to-order specialty film products, are used in the industrial and packaging markets. Atlantis' molded plastic products are used primarily in the appliance, automotive, agricultural, building supply, and recreational vehicle industries. Forward-looking statements may include, but are not limited to, projections of revenues, income or losses, capital expenditures, plans for future operations, financing needs of plans, compliance with financial covenants in loan agreements, plans for liquidation or sale of assets or businesses, plans relating to products or services of the Company, assessments of materiality, predictions of future events, the ability to obtain additional financing, the Company's ability to meet obligations as they become due, the impact of pending and possible litigation, as well as assumptions relating to the foregoing. In addition, when used in this discussion, the words "anticipates," "believes," "estimates," "expects," "intends," "plans" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, including, but not limited to, the impact of leverage, dependence on major customers, fluctuating demand for the Company's products, risks in product and technology development, fluctuating resin prices, competition, litigation, labor disputes, capital requirements, and other risk factors detailed in the Company's Securities and Exchange Commission filings, some of which cannot be predicted or quantified based on current expectations. Additional information is available on the Internet at http://www.cfonews.com/agh. ### ATLANTIS PLASTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited - In thousands, except per share data) Three Months Ended March 31, 1999 1998 Net sales........................... $58,973 $64,427 Cost of sales....................... 46,559 53,138 Gross profit..... 12,414 11,289 Selling, general and administrative expenses............................ 6,500 5,973 Operating income. 5,914 5,316 Net interest (expense)........................... (2,315) (2,748) Income before income taxes 3,599 2,568 Income tax(provision)............... (1,493) (881) Netincome........ $2,106 $1,687 Net Income per Common Share Basic $0.28 $0.23 Weighted-average number of shares (in thousands) 7,486 7,347 Diluted $0.27 $0.22 Weighted-average number of shares (in thousands) 7,743 7,617 ATLANTIS PLASTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands) March 31, December 31, 1999 1998 ASSETS Cash and cash equivalents.......................... $5,418 $2,879 Accounts receivable,net.............. 26,127 25,801 Inventories.......................... 15,264 14,918 Other current assets................. 7,499 8,376 Current assets....................... 54,308 51,974 Property and equipment,net........... 59,209 58,403 Goodwill, net of accumulated amortization......................... 46,997 47,390 Other assets......................... 1,338 1,465 Total assets..................... $161,852 $159,232 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses............................ $24,015 $22,677 Current portion of long-term debt... 2,540 2,538 Currentliabilities.............. 26,555 25,215 Long-term debt, less current portion 84,015 84,620 Deferred income taxes............... 9,690 10,149 Otherliabilities.................... 371 544 Totalliabilities................ 120,631 120,528 Commitments and contingencies - - Shareholders' equity: Class A Common Stock, $.10 par value, 20,000,000 shares authorized, 4,781,278 and 4,538,054 shares issued and outstanding in 1999 and 1998............................. 478 454 Class B Common Stock, $.10 par value, 7,000,000 shares authorized, 2,803,444 and 2,918,043 shares issued and outstanding in 1999 and 1998 280 292 Additional paid-in capital........ 10,197 9,436 Notes receivable from sale of Common Stock (1,322) (960) Retained earnings................. 31,588 29,482 Total shareholders'equity....... 41,221 38,704 Total liabilities and shareholders'equity $161,852 $159,232 ATLANTIS PLASTICS, INC. AND SUBSIDIARIES SEGMENT/TREND INFORMATION ($ In millions) 1999 1998 Q1 Q4 Q3 Q2 Q1 NET SALES Plastic Films $40.7 $42.7 $44.3 $44.4 $44.9 Molded Plastics 18.3 16.7 18.7 19.7 19.5 Total $59.0 $59.4 $63.0 $64.1 $64.4 EBITDA** $8.4 $8.6 $7.3 $7.2 $7.7 GROSS PROFIT Plastic Films 22% 22% 20% 20% 19% Molded Plastics 18% 17% 11% 12% 15% Total 21% 21% 18% 17% 18% OPERATING INCOME Plastic Films 12% 12% 11% 9% 9% Molded Plastics 7% 7% 1% 4% 6% Total 10% 10% 8% 8% 8% NET INTEREST EXPENSE $2.3 $2.4 $2.6 $2.7 $2.7 **Earnings before interest, taxes,depreciation, and amortization Ends.