American Biltrite, Inc. (ABLT) research, news, and more from GeoInvesting

Company description

Wed, 05 Mar 2008 05:00:00 GMT

AMERICAN BILTRITE INC. operates domestically through two businesses, the Tape Division and K&M Associates L.P.

The Tape Division produces adhesive-coated, pressure-sensitive papers and films used to protect material during handling or storage or to serve as a carrier for transferring decals or die-cut lettering. The Tape Division also produces pressure sensitive tapes and adhesive products used for applications in the heating, ventilating and air conditioning (HVAC), footwear, automotive, electrical and electronic industries.

In 1995, ABI acquired a controlling interest in K&M, a designer, supplier and distributor of a wide variety of adult, children’s and specialty items of fashion jewelry and related accessories throughout the U.S. and Canada. In August 2010, ABI, through wholly-owned subsidiaries, acquired the remaining 5.5% limited partner interest, and consequently, owns 100% of K&M as of August 23, 2010. K&M wholesales its products to mass merchandisers, specialty stores and department stores.

GeoSpecial Notes

Wed, 25 May 2011 04:00:00 GMT

Removing ABL from the GeoSpecial List @ $8.54.

Added to the GeoSpecial list @ $6.88 on January 8th, 2011

Catalyst: Repricing of risk premium due to devesture of business that was enthralled in legal issues.

Peak Performance: $11.45 on April 4.

Current road block: EPS comps will be tough going forward. Margins under pressure.

Current Price: $8.54

Comments & Business Outlook

Wed, 11 May 2011 04:00:00 GMT

First Quarter Results:

WELLESLEY HILLS, Mass American Biltrite Inc. reported its results for the first quarter of 2010 today.

Net sales for the three months ended March 31, 2010 were $80.7 million, compared with $70.1 million in the first quarter of 2009.
The net loss attributable to American Biltrite for the three months ended March 31, 2010 was $726 thousand or $0.21 per share (basic and diluted) compared with a net loss attributable to American Biltrite of $5.5 million or $1.60 per share (basic and diluted) in the first quarter of 2009.

American Biltrite’s consolidated results include the results of its 55% owned subsidiary Congoleum Corporation, which is in Chapter 11 bankruptcy reorganization proceedings. American Biltrite anticipates its ownership interest in Congoleum will be eliminated upon the conclusion of such proceedings. Accordingly, American Biltrite believes its financial results excluding Congoleum to be a more meaningful presentation to investors. Excluding the results of Congoleum, American Biltrite’s net sales for the three months ended March 31, 2010 were $46.6 million, up 16.7% from $40.0 million for the three months ended March 31, 2009, and its net loss attributable to American Biltrite for the three months ended March 31, 2010 was $469 thousand compared with a net loss attributable to American Biltrite of $3.3 million for the three months ended March 31, 2009. Congoleum comprises the flooring products segment in American Biltrite’s reported results.

Roger S. Marcus, Chairman of the Board, commented "We saw some modestly encouraging signs of improvement in several of our markets during the first quarter as evidenced by the overall sales growth over year ago levels. The increase in sales combined with the cost reductions we initiated in 2009 resulted in significantly better results for the quarter, with all operations showing improvement over this period last year."

Comments & Business Outlook

Thu, 17 Mar 2011 04:00:00 GMT

Fourth Quarter Results:

Net sales of the continuing operations for the three months ended December 31, 2010 were $51.1 million, up 14.6% from $44.6 million in the fourth quarter of 2009.
Net income from continuing operations of the controlling interest was $2.2 million, or $0.65 per share (basic and diluted), compared to net income from continuing operations of the controlling interest of $629 thousand, or $0.18 per share (basic and diluted) for the fourth quarter of 2009

Roger S. Marcus, Chairman of the Board, commented, "Each of our three divisions was profitable in the second half of 2010 and produced significantly better operating results in 2010 than 2009, as a result of an improving economy and the cost reduction steps we took during the downturn. Our tape business achieved sales growth of 29%, thanks to higher demand from domestic and Asian markets. Unfortunately we also experienced significant inflation on raw materials that we were unable to recover through pricing and which negatively affected our margins. Sales and income at our Canadian division increased from 2009 to 2010, with increased sales of performance sheet rubber products accounting for most of the improvement. While sales decreased modestly at our jewelry business, income improved from 2009 to 2010 as a result of cost reductions, improved sell-through, and a more profitable product mix."