GreenStone profit drops start-up costs are cited

March 10, 1995|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

GreenStone Industries Inc. said yesterday that its fourth-quarter revenue increased 102 percent but its net income dropped by 16.9 percent, partly as the result of plant start-up costs and the rising cost of newspaper.

The suburban Washington company, which makes cellulose insulation and other specialty fibers from recycled paper, had a public stock offering in July that raised $8.5 million. This allowed it to buy two small cellulose insulation companies with factories in Oregon, Arizona and Nebraska. The company has since bought three other companies.

Sales from the two acquisitions in the later part of the year helped boost fourth-quarter revenues to $9.3 million compared with $4.6 million for the same period a year ago. Comparison figures from 1993 did not include results for those two companies. The results also were increased by a new Portland, Ore., factory, that started production in April, according to John R. Bernardi, GreenStone's chief financial officer.

However, net income went down to $428,000 from $515,000 because of the costs incurred with the public stock offering, start-up costs for the Portland plant and a sharp increase in the cost of recycled paper, he said.

These factors also affected 12-month results, during which revenue increased by 58 percent, to $23.2 million from $14.7 million, while earnings dropped 7.7 percent, to $1.2 million from $1.3 million.

"Having completed three acquisitions since October 1994, we are pleased with our progress in acquiring cellulose manufacturers and assimilating these operations under the GreenStone umbrella," said Eric M. Oganesoff, chairman and chief executive officer of the company.

GreenStone

Industries Inc.

Cabin John .. .. .. .. .. .. Ticker .. .... .. .. Yesterday's

.. .. .. . .. .. .. .. .. .. Symbol .. .... .. .. Cls. . Chg.

.. .. .. .. .. .. .. .. .. .. STON .. .. .. .. .. 4 3/8 .. .. + 1/4

Period ended

12/31 .. .. .. .. .. .. .. .. 4th qtr. .. .. .. ..Year ago .. .. .. Chg.

Revenue .. .. .. .. .. .. .. $9,300 .. .. .. .. .. $4,600 .. .. .. +102.2%

Net Income .. .. .. .. .. .. ..$428 .. .. .. .. .. $515 .. .. .. .. -16.9%

Primary EPS .. .. .. .. .. .. $0.08 .. .. .. .. .. $0.16 .. .. .. ..-50%

.. .. .. .. .. .. .. .. .. ..12 mos. .. .. .. .. Year ago .. .. .. .. Chg. Revenue .. .. .. .. .. .. .$23,200 .. .. .. .. ..$14,700 .. .. .. .. +57.8%

Net Income .. .. .. .. .. .. $1,200 .. .. .. .. ..$1,300 .. .. .. .. .-7.7%

Primary EPS .. .. .. .. .. .. $0.30 .. .. .. .. .. $0.41 .. .. .. .. .-26.8%

Figures in thousands (except per share data.)

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