EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 - Q3-04 EARNINGS RELEASE Exhibit 99.1 - Q3-04 Earnings Release
Exhibit 99.1

 
Corporate Headquarters
5333 Westheimer, Suite 600
Houston, Texas 77056
 
NEWS RELEASE
 
Contact:
Jon C. Biro
 
Phone:
713-351-4100
 
Fax:
713-335-2222
 
Website:
www.icopolymers.com
 
Pages:
10

ICO, Inc. Announces Fiscal Year 2004
Third Quarter Results

 

  • Year-over-year improvement continues
  • Quarterly volumes up 15% and quarterly revenues increase 23% year-over-year
  • Third quarter operating income $1.3 million, an increase of $4.9 million

 
Unaudited Summary Financial Information
($ in millions except percentages, metric tons and per share data)
 
  
 
 
 
 
  
Quarter Ended
Quarter Ended    
 
 
    
June 30, 2004
    
June 30, 2003
    
Change (2)  
 
   
 
 
 
Volumes (1)
    
78,300
    
68,300 
    
10,000 
  
 
    
 
    
 
    
 
  
Revenues
  
$
66.8
  
$
54.4
 
$
12.4
 
Gross profit
  
$
12.0
  
$
8.4
 
$
3.6
 
   Gross margin
    
17.9
%
  
15.5
%
  
2.4
%
Operating income (loss)
  
$
1.3
  
$
(3.6
)
$
4.9
 
Income (loss) from continuing operations
  
$
.4
  
$
(4.0
)
$
4.4
 
Loss from discontinued operations
  
$
(3.4
)
$
(.4
)
$
(3.0
)
Net loss
  
$
(3.0
)
$
(4.3
)
$
1.4
 
Earnings (loss) per share from continuing operations:
    
 
    
 
    
 
  
   Basic
  
$
.01
  
$
(.16
)
$
.17
  
   Diluted
  
$
.01
  
$
(.16
)
$
.17
  
 
    
 
    
 
    
 
  
(1) “Volumes” refers to total metric tons sold either by selling proprietary products or toll processing services.
(2) Change amounts are calculated using detailed figures, therefore, the change amount calculated using rounded figures may differ.
 

HOUSTON, TEXAS, August 10, 2004 – ICO, Inc. (NASDAQ: ICOC) announced today its third quarter fiscal year 2004 financial results. For the quarter ending June 30, 2004, ICO reported revenues of $66.8M, operating income of $1.3M and net income from continuing operations of $.4M or $.01 per common share. Including discontinued operations, net loss was $(3.0M) for the quarter or a loss of $(.12) per common share, which loss includes a $5.0M pretax, non-cash charge related to the Company’s sale of its Oilfield Services business (see “Discontinued Operations” below). EBITDA (defined as earnings before interest expense, taxes, depreciation and amortization) from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle (including non-cash stock option expenses of $.2M and impairment, restructuring and other charges of $.2M - see Reconciliation of Selected Financial Data) for the third quarter of fiscal 2004 was $3.2M.

W. Robert Parkey, Jr., President and Chief Executive Officer, commented, “Our Company’s financial turnaround continued during our third fiscal quarter, and we have also made significant strides in positioning the business for profitable growth going forward.” Mr. Parkey stated, “We have reorganized the management structure of the business into four business segments – ICO Americas, Bayshore Industrial, ICO Europe, and ICO Australasia - and expect this new structure to enhance accountability and drive improved performance. We also have recently recruited two experienced executives, Paul J. Giddens, serving as our Chief Administrative Officer, and David J. Phillips, our President of ICO Americas. We believe these changes and additions to management will further enhance our ability to maintain and grow profitability.”

Year-over-year quarter comparison

Revenues increased $12.4M or 23% to $66.8M compared to the same quarter last year. An increase in volumes of 15%, due to increases in market share and customer demand, increased revenues by $11.9M. The translation effect of foreign currency exchange rates further increased revenues by $5.0M. The year-over-year quarterly revenue increase was, however, offset by a change in product mix which had the effect of reducing revenues by approximately $4.5M.

Income (loss) from continuing operations increased $4.4M to income of $.4M, or $.01 per share, as compared with the third quarter of fiscal year 2003. This improvement was driven by an increase in gross profit of $3.6M or 42%, due to the growth in revenues and improvement in gross margins. Gross margins improved from 15.5%, during the third quarter of fiscal year 2003, to 17.9% during the third quarter of fiscal year 2004. This improvement was due to the increased operating leverage that resulted from the 15% increase in volumes, to cost reductions initiated in late fiscal year 2003 in ICO Polymers North America and ICO Europe, and to the improved performance of two plants in those segments that had previously dramatically underperformed.

Loss from discontinued operations increased, compared with the third quarter of fiscal year 2003, from an after-tax loss of $.4M to a loss of $3.4M. The increase in the loss was due to the $5.0M pre-tax, non-cash charge that was taken during the third quarter to establish an allowance against a receivable relating to the 2002 sale of our former Oilfield Services business (see “Discontinued Operations” below).

Sequential quarter comparison

In the third quarter of fiscal year 2004, compared with the second quarter of fiscal year 2004, revenues decreased from $67.5M to $66.8M, a decline of $.7M or 1%. This decline was caused by a change in the mix of finished products sold reducing revenues by $1.4M, primarily by the Bayshore Industrial and ICO Polymers North America segments. Offsetting this decline was a $.7M increase in revenues due to a modest increase in product sales volumes.

In the third quarter of fiscal year 2004, income from continuing operations declined to $.01 per share, from $.06 per share in the second quarter. Overall gross margins declined from 20.0%, during the second quarter, to 17.9% during the third quarter. The decline in gross margins was primarily the result of higher resin costs, combined with an inability to adequately increase selling prices, particularly in ICO Australasia and ICO Europe.    
 
     
 

Segment Highlights

During the third quarter of fiscal year 2004, the Company reorganized its management structure into four geographical areas defined as ICO Americas (consisting of ICO Polymers North America and ICO Brazil), Bayshore Industrial, ICO Europe and ICO Australasia.  This reorganization modified the way information is reviewed and decisions are made by executive management.  The Company’s reportable segments now include: ICO Polymers North America, ICO Brazil, Bayshore Industrial, ICO Europe, and ICO Australasia.

ICO Polymers North America, ICO Brazil, ICO Europe and ICO Australasia primarily produce polymer powders for the rotational molding industry as well as other specialty markets for powdered polymers. The specialty markets that these four segments serve include masterbatch and concentrate producers, users of polymer-based metal coatings, and non-woven textile markets. Additionally, these four segments provide specialty size reduction services on a tolling basis (“tolling” refers to processing customer-owned material for a service fee). The Bayshore Industrial segment designs and produces proprietary concentrates, masterbatches and specialty compounds, primarily for the plastic film industry, in North America and in selected export markets. The Company’s ICO Europe segment includes operations in France, Holland, Italy, Sweden and the United Kingdom.  The Company’s ICO Australasia segment includes operations in Australia, Malaysia and New Zealand. 

ICO Europe

ICO Europe’s operating income (loss) in the third quarter increased $2.6M to $.7M due to improved gross margins, lower impairment, restructuring and other costs and lower selling, general and administrative (“SG&A”) expenses. Cost reductions implemented in late fiscal year 2003 at one of the European subsidiaries contributed to the increase in profitability.

On a sequential quarter basis, operating income declined $.8M due to higher raw material costs, which drove down gross margins. Additionally, operating income declined during the third quarter due to an increase in impairment, restructuring and other costs due to a gain on a settlement with a former employee recorded in the second quarter.

Over the next two quarters, the Company’s ICO Europe segment expects to incur a charge between $.3M and $.5M, related to the closure of its Swedish production facility. This facility is being consolidated into the remaining facilities throughout Europe. This closure is expected to save the Company approximately $.8M per year.

Bayshore Industrial

Bayshore Industrial has experienced an improvement in operating income of $.7M to $1.3M during the third quarter of fiscal year 2004, compared to the same quarter of last year, due to higher volumes resulting from increases in customer demand and market share. Sequential operating income softened by $.3M due to a decline in volumes in the third quarter as the result of a normal seasonal slowdown.

ICO Polymers North America

ICO Polymers North America experienced an increase in year-over-year quarterly operating income of $1.8M to $.7M primarily due to an increase in product sales volumes and improved pricing relative to raw material costs. Additionally, improved performance of one of the segment’s operating facilities following the implementation of a cost reduction program in late fiscal year 2003 factored into the profit improvement.

Sequential operating income decreased $.2M due to severance paid to a former employee, as well as reduced gross margins, offset by lower SG&A expense. Gross margins declined due to higher resin costs and a less favorable product sales mix.

ICO Australasia

Strong profitability continued in ICO Australasia during the third quarter of fiscal year 2004; however, rising resin costs and an inability to fully pass on these cost increases in the form of higher selling prices squeezed margins, yielding a decrease in operating income of $.5M to $.7M for the quarter ended June 30, 2004 compared to the quarter ended March 31, 2004 and a decrease in operating income of $.2M compared to the same quarter of last year.

ICO Brazil

The Company entered the Brazilian market in late 2002 and has continued to gain market share since that time. ICO Brazil’s quarterly operating income improved sequentially by $.1M to $.1M and improved year-over-year by $.3M.

Discontinued Operations

The Company sold substantially all of its Oilfield Services business to Varco International, Inc. (“Varco”) during the fourth quarter of fiscal 2002, at which time a $5.0M receivable was recognized in connection with $5.0M in cash that the Company placed in escrow and was withheld from the proceeds of the sale. The escrow has not yet been released to the Company due to pending contractual indemnity claims asserted against the Company by Varco. During the third quarter of fiscal 2004, due to the continued inability of the parties to come to an agreement regarding the size of Varco’s indemnifiable loss more than nine months to a year after most of the claims were made, the Company deemed the $5.0M receivable to be a doubtful collection and a $5.0M reserve was placed against the $5.0M receivable. The $5.0M reserve net of income taxes was recorded in the statement of operations as a component of loss from discontinued operations ($3.3M net of income taxes). The $5.0M will remain in escrow until the parties agree to release the funds or the matter is resolved by litigation. The Company’s periodic reports on Forms 10-Q and 10-K contain more information regarding this dispute.

Liquidity

During the quarter ended June 30, 2004, working capital declined $5.7M to $30.3M, primarily due to the $5.0M charge to discontinued operations. The $5.0M charge had the effect of reducing current assets during the quarter by $3.3M. In addition, during the third quarter, inventory declined $2.9M or 10% due to a decline in inventory quantities on hand.

   Available borrowing capacity under the Company’s existing credit arrangements increased $.5M during the third quarter, to $19.5M as of June 30, 2004 due to debt repayments.


Conference Call on the Web

A live Internet broadcast of ICO, Inc.’s conference call regarding fiscal 2004 third quarter earnings can be accessed at 9:00 a.m. Central time on Tuesday, August 10, 2004 at www.firstcallevents.com, where the webcast replay will be archived.
 
     
 

Resignation of William C. Willoughby from the Company’s Board of Directors

Effective August 9, 2004, William C. Willoughby resigned as a director of the Company to spend more time operating his own business. Mr. Willoughby's resignation was not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices.

W. Robert Parkey, Jr., the Company’s President and CEO, stated, “Bill Willoughby and his family have been a very important and integral part of the ICO family and business history for several decades. Prior to Bill’s service, his late father, William E. (“Web”) Willoughby, the founder and President of WEDCO, was a long standing member of ICO’s board of directors. I want to recognize the many important contributions that Bill and his family have made to ICO, and express my sincere appreciation and gratitude to Bill on behalf of the Company for his service over the years. We will miss Bill, and wish him well in his future endeavors.”

Mr. Willoughby stated, “I’ve enjoyed my years serving on the board of ICO. Although I’ve chosen to leave the board to pursue my own interests, I remain a stakeholder in ICO and will continue to follow the Company’s fortunes closely. I have confidence that the current leadership will move the Company in the right direction.”

Mr. Parkey added, “As Bill and his family remain significant shareholders, the Company looks forward to continuing to seek their guidance.”

Company Information

With 19 locations in 10 countries, ICO Polymers produces custom polymer powders for rotational molding and other polymers segments, including textiles, metal coatings and masterbatch. ICO remains an industry leader in size reduction, compounding and other tolling services for plastic and non-plastic materials. ICO’s Bayshore Industrial subsidiary produces specialty compounds, concentrates and additives primarily for the film industry.
 
This press release contains forward-looking statements, which are not statements of historical facts and involve certain risks, uncertainties and assumptions. These include, but are not limited to, demand for the Company's services and products, business cycles and other industry conditions, prices of commodities, international risks, operational risks, strategic alternatives available to the Company, and other factors detailed in the Company's form 10-K for the fiscal year ended September 30, 2003 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.


     
 

ICO, Inc.
Consolidated Statement of Operations
(Unaudited and in thousands, except per share data and percentages)
 
    
 
    
 
    
 
    
 
    
 
  
 
    
 
    
 
    
 
    
 
    
 
  
 
Three Months Ended 
Nine Months Ended
 
June 30,       
  
March 31,
  
June 30,
 
    
2004

 

 
2003

 

 
2004

 

 
2004

 

 
2003

 

   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Product Sales
 
$
57,799
 
$
46,104
 
$
58,490
 
$
164,503
 
$
128,617
 
Toll Services
   
8,980
   
8,312
   
9,011
   
26,624
   
24,551
 
   
 
 
 
 
 
Total Revenues
   
66,779
   
54,416
   
67,501
   
191,127
   
153,168
 
Cost of sales and services
   
54,800
   
45,988
   
54,017
   
154,925
   
127,463
 
   
 
 
 
 
 
Gross Profit
   
11,979
   
8,428
   
13,484
   
36,202
   
25,705
 
   Selling, general and administrative expense
    
8,311
   
8,858
   
8,660
   
24,572
   
25,907
 
   Stock option compensation expense
    
192
   
14
   
231
   
434
   
106
 
   Depreciation and amortization
   
1,969
   
2,373
   
1,934
   
5,955
   
6,880
 
   Impairment, restructuring and other costs (income)
   
180
   
806
   
(116
)
  
168
   
806
 
   
 
 
 
 
 
Operating income (loss)
   
1,327
   
(3,623
)
  
2,775
   
5,073
   
(7,994
)
Other income (expense):
   
 
    
 
    
 
    
 
    
 
  
   Interest expense, net
   
(684
)
  
(663
)
  
(663
)
  
(1,979
)
  
(2,841
)
   Other income (expense)
   
(94
)
  
(28
)
  
59
   
177
   
492
 
   
 
 
 
 
 
Income (loss) from continuing operations before income taxes and cumulative
 
    
 
    
 
    
 
    
 
  
   effect of change in accounting principle
   
549
   
(4,314
)
  
2,171
   
3,271
   
(10,343
)
Provision (benefit) for income taxes
   
152
   
(360
)
  
740
   
1,238
   
(1,872
)
   
 
 
 
 
 
Income (loss) from continuing operations before cumulative effect of change in
   
 
    
 
    
 
    
 
    
 
  
   accounting principle
   
397
   
(3,954
)
  
1,431
   
2,033
   
(8,471
)
Income (loss) from discontinued operations, net of provision (benefit) for
   
 
    
 
    
 
    
 
    
 
  
   income taxes of $(1,803), $459, $0, $(1,854) and $749, respectively
   
(3,350
)
  
(388
)
  
3
   
(3,442
)
  
160
 
   
 
 
 
 
 
Income (loss) before cumulative effect of change in accounting principle
    
(2,953
)
  
(4,342
)
  
1,434
   
(1,409
)
  
(8,311
)
Cumulative effect of change in accounting principle, net of benefit for income
   
 
    
 
    
 
    
 
    
 
  
   taxes of $0, $0, $0, $0 and $(580), respectively
   
-
   
-
   
-
   
-
   
(28,863
)
   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Net income (loss)
 
$
(2,953
)
$
(4,342
)
$
1,434
 
$
(1,409
)
$
(37,174
)
 
    
 
    
 
    
 
    
 
    
 
  
Preferred dividends
   
-
   
-
   
-
   
-
   
(544
)
   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Net income (loss) applicable to common stock
 
$
(2,953
)
$
(4,342
)
$
1,434
 
$
(1,409
)
$
(37,718
)
 
  
 
    
 
    
 
    
 
    
 
  
   
 
 
 
 
 
Basic income (loss) from continuing operations before cumulative effect of
   
 
    
 
    
 
    
 
    
 
  
   change in accounting principle
 
$
0.01
 
$
(0.16
)
$
0.06
 
$
0.08
 
$
(0.36
)
   
 
 
 
 
 
Basic net income (loss) per common share
 
$
(0.12
)
$
(0.17
)
$
0.06
 
$
(0.06
)
$
(1.52
)
 
  
 
 
  
 
 
  
  
 
  
 
 
  
 
 
  
             
Diluted income (loss) from continuing operations before cumulative effect of
   
 
    
 
    
 
    
 
    
 
  
   change in accounting principle
 
$
0.01
 
$
(0.16
)
$
0.05
 
$
0.07
 
$
(0.36
)
   
 
 
 
 
 
Diluted net income (loss) per common share
 
$
(0.10
)
$
(0.17
)
$
0.05
 
$
(0.05
)
$
(1.52
)
   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Earnings from continuing operations before interest expense, taxes, depreciation,
   
 
    
 
    
 
    
 
    
 
  
   amortization and cumulative effect of change in accounting principle (a)
  
$
3,202
 
$
(1,278
)
$
4,768
 
$
11,205
 
$
(622
)
   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Gross Margin
   
17.9
%
  
15.5
%
  
20.0
%
  
18.9
%
  
16.8
%
 
    
 
    
 
    
 
    
 
    
 
  
(a) See “Reconciliation of Selected Financial Data”
    
 
    
 
    
 
    
 
    
 
  

     
 

ICO, Inc.
Reconciliation of Selected Financial Data
(Unaudited and in thousands)
 
  
 
 
 
 
 
In this news release, the Company has presented the measurement EBITDA from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle, that is not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), but is derived from relevant items in the Company's GAAP financials. The reasons the Company believes this measurement is important to present and the risks associated with presenting this measurement are as follows:
 
  
 
 
 
 
 
  • The measurement EBITDA from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle, is used by the managers and the Board of Directors of the Company to evaluate the Company's performance including its ability to service debt and is an indication of the Company’s developing liquidity position. Furthermore, the Company’s management uses this measure to make operational decisions in the ordinary course of business.
  • The Company decided to use this measure as the Company believes this measurement is a reasonable indicator of the amount of cash generated by the business available to pay for working capital growth, capital expenditures, interest, debt principal payments and taxes.
  • The material limitation of the Non-GAAP measurement EBITDA from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle, relates to this measure excluding certain items that effect the Company’s net income (loss), as opposed to net income (loss), which includes all such items.
  • The Company mitigates this limitation by the provision of the specific detailed description and computation of the measure and ensuring that this Non-GAAP measure is no more prominent in the Company’s filings compared to GAAP measures of profitability.
  • Investors in the Company’s securities often ask the Company’s management about the Company’s trend of EBITDA from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle.
             
 
    
 
    
 
    
 
    
 
    
 
  
 
  
Three Months Ended 
Nine Months Ended
 
  
June 30,      
  
March 31,
  
June 30,
   

2004

 

2003 

 

2004 

 

2004 

 

2003 

  
   
 
 
 
 
 
 
    
 
    
 
    
 
    
 
    
 
  
Net income (loss)
  
$
(2,953
)
$
(4,342
)
$
1,434
 
$
(1,409
)
$
(37,174
)
Add to/(deduct from) net income (loss):
    
 
    
 
    
 
    
 
    
 
  
Cumulative effect of change in accounting principle
    
-
   
-
   
-
   
-
   
28,863
 
(Income) loss from discontinued operations
    
3,350
   
388
   
(3
)
  
3,442
   
(160
)
Provision (benefit) for income taxes
    
152
   
(360
)
  
740
   
1,238
   
(1,872
)
Interest expense, net
    
684
   
663
   
663
   
1,979
   
2,841
 
Depreciation and amortization
    
1,969
   
2,373
   
1,934
   
5,955
   
6,880
 
   
 
 
 
 
 
EBITDA from continuing operations, as adjusted to exclude cumulative effect of change in accounting principle
    $
3,202
   $
(1,278
 )   $
4,768
   $ 
 11,205
   $
 (622
 )
 
  
  
  
  
 
  
  
  
 
  
 

 

     

 

ICO, Inc.
Consolidated Balance Sheets
(Unaudited and in thousands, except share data and ratios)
 
    
 
    
 
  
   
June 30,      
   
September 30,
  
 
    

2004

 

 
2003

 

   
 
 
ASSETS
   
 
    
 
  
               
Current assets:
   
 
    
 
  
  Cash and cash equivalents
 
$
2,576
 
$
4,114
 
  Trade accounts receivables
   
50,887
   
41,310
 
  Inventories
   
26,244
   
24,166
 
  Assets held for sale
   
850
   
-
 
  Prepaid expenses and other
   
8,719
   
11,952
 
   
 
 
    Total current assets
   
89,276
   
81,542
 
   
 
 
 
    
 
    
 
  
Property, plant and equipment, net
   
52,540
   
54,639
 
Goodwill
   
8,454
   
8,245
 
Other
   
522
   
835
 
   
 
 
    Total assets
 
$
150,792
 
$
145,261
 
   
 
 
 
    
 
    
 
  
LIABILITIES, STOCKHOLDERS' EQUITY AND
   
 
    
 
  
ACCUMULATED OTHER COMPREHENSIVE LOSS
   
 
    
 
  
               
Current liabilities:
   
 
    
 
  
  Short-term borrowings
 
$
7,695
 
$
5,846
 
  Current portion of long-term debt
   
6,537
   
3,210
 
  Accounts payable
   
28,348
   
22,120
 
  Accrued salaries and wages
   
4,148
   
3,766
 
  Other accrued expenses
   
10,841
   
11,399
 
  Oilfield Services liabilities retained
   
1,386
   
2,476
 
   
 
 
    Total current liabilities
   
58,955
   
48,817
 
   
 
 
 
    
 
    
 
  
  Deferred income taxes
   
3,889
   
4,108
 
  Long-term liabilities
   
1,687
   
1,629
 
  Long-term debt, net of current portion
   
18,419
   
23,378
 
   
 
 
    Total liabilities
   
82,950
   
77,932
 
   
 
 
 
    
 
    
 
  
    Commitments and Contingencies
   
-
   
-
 
    Stockholders' equity:
   
 
    
 
  
    Convertible preferred stock, without par value- 345,000 shares
   
 
    
 
  
      authorized; 322,500 shares issued and outstanding with
   
 
    
 
  
      a liquidation preference of $35,514 and $33,882, respectively
   
13
   
13
 
    Undesignated preferred stock, without par value-
   
 
    
 
  
      105,000 shares authorized; 0 shares issued and outstanding
   
-
   
-
 
    Junior participating preferred stock, without par value- 0 and 50,000
   
 
    
 
  
      shares authorized, respectively; 0 shares issued and outstanding
   
-
   
-
 
    Common stock, without par value- 50,000,000 shares
   
 
    
 
  
      authorized; 25,290,721 and 25,146,550 shares issued
   
 
    
 
  
      and outstanding, respectively
   
43,710
   
43,555
 
    Additional paid-in capital
   
103,241
   
102,811
 
    Accumulated other comprehensive loss
   
(2,874
)
  
(4,211
)
    Accumulated deficit
   
(76,248
)
  
(74,839
)
   
 
 
    Total stockholders' equity
   
67,842
   
67,329
 
   
 
 
    Total liabilities and stockholders' equity
  
$
150,792
 
$
145,261
 
   
 
 
 
    
 
    
 
  
OTHER BALANCE SHEET DATA
   
 
    
 
  
               
Working capital
  
$
30,321
 
$
32,725
 
Current ratio
    
1.5
   
1.7
 
Total debt
 
$
32,651
 
$
32,434
 
Debt-to-capitalization
    
32.5
%
  
32.5
%

     
 

ICO, Inc.
Supplemental Segment Information
(Unaudited and in thousands, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months ended June 30:
 
2004
 
% of Total
 
 
2003
 
% of Total
 
 
Change
 
%
 
 
 

 

 
 
ICO Europe
$
30,932
 
46
%
$
24,540
 
45
%
$
6,392
 
26
%
Bayshore Industrial
 
14,401
 
22
%
 
11,707
 
22
%
 
2,694
 
23
%
ICO Australasia
 
9,557
 
14
%
 
8,824
 
16
%
 
733
 
8
%
ICO Polymers North America
 
10,120
 
15
%
 
8,162
 
15
%
 
1,958
 
24
%
ICO Brazil
 
1,769
 
3
%
 
1,183
 
2
%
 
586
 
50
%
 
 
  
 
 
Consolidated
$
66,779
 
100
%
$
 54,416
 
 
100
%
  
$
12,363
 
23
 
%
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30:
 
2004
 
% of Total
 
 
2003
 
% of Total
 
 
Change
 
%
 
ICO Europe
$
85,292
 
45
%
$
67,617
 
44
%
$
17,675
 
26
%
Bayshore Industrial
 
43,675
 
23
%
 
35,997
 
24
%
 
7,678
 
21
%
ICO Australasia
 
29,557
 
15
%
 
23,994
 
16
%
 
5,563
 
23
%
ICO Polymers North America
 
27,602
 
14
%
 
23,292
 
15
%
 
4,310
 
19%
%
ICO Brazil
 
5,001
 
3
%
 
2,268
 
1
%
 
2,733
 
121
%
Consolidated
$
191,127
 
100
%
$
153,168 
 
 
100
%
  
$
37,959
 
25
 
%

 

Operating income (loss)
Three Months ended June 30:
    
2004

 

 
2003

 

 
Change
  
   
 
 
 
ICO Europe
  
$
673
   $
(1,899
)
$
2,572
 
Bayshore Industrial
    
1,313
   
627
   
686
 
ICO Australasia
    
730
   
943
   
(213
)
ICO Polymers North America
    
670
   
(1,128
)
  
1,798
 
ICO Brazil
    
104
   
(192
)
  
296
 
   
 
 
 
Subtotal
    
3,490
   
(1,649
)
  
5,139
 
General Corporate Expense
    
(2,163
)
  
(1,974
)
  
(189
)
   
 
 
 
Consolidated
  
$
1,327
   
($3,623
)
$
4,950
 
 
  
 
  
  
  
 
  
 
    
 
    
 
    
 
  
Nine Months Ended June 30:
    
2004
    
2003
    
Change
  
   
 
 
 
ICO Europe
  
$
2,294
   $
(3,205
)
$
5,499
 
Bayshore Industrial
    
3,938
   
1,153
   
2,785
 
ICO Australasia
    
3,070
   
2,832
   
238
 
ICO Polymers North America
    
1,735
   
(1,728
)
  
3,463
 
ICO Brazil
    
67
   
(525
)
  
592
 
   
 
 
 
Subtotal
    
11,104
   
(1,473
)
  
12,577
 
General Corporate Expense
    
(6,031
)
  
(6,521
)
  
490
 
   
 
 
 
Consolidated
  
$
5,073
   $
(7,994
)
$
13,067
 
   
  		  
 		  
 		  

 

 Operating income (loss) as a percentage of revenues
 
  
Three Months Ended
Nine Months Ended
 
  
June 30,
June 30,
   
 
  
 
 
Increase/
 
Increase/
 
  
2004
2003
(Decrease)
2004
2003
(Decrease)
   
ICO Europe
    
2
%
  
(8
%)
  
10
%
  
3
%
  
(5
%)
  
8
%
Bayshore Industrial
    
9
%
  
5
%
  
4
%
  
9
%
  
3
%
  
6
%
ICO Australasia
    
8
%
  
11
%
  
(3
%)
  
10
%
  
12
%
  
(2
%)
ICO Polymers North America
    
7
%
  
(14
%)
  
21
%
  
6
%
  
(7
%)
  
13
%
ICO Brazil
    
6
%
  
(16
%)
  
22
%
  
1
%
  
(23
%)
  
24
%
Consolidated
    
2
%
  
(7
%)
  
9
%
  
3
%
  
(5
%)
  
8
%

 

 
     
 
 
 
 
ICO, Inc.
Supplemental Segment Information (cont'd.)
(Unaudited and in thousands, except percentages)
                               
                               
 
 
Three Months Ended
 
 
 
 
 
Revenues
June 30,
 
March 31,
 
 
 
 
 
 
 
2004
 
% of Total
 
 
2004
 
% of Total
 
 
Change
 
%
 
 
 

 
ICO Europe
$
30,932
 
46
%
$
30,036
 
45
%
$
896
 
3
%
Bayshore Industrial
 
14,401
 
22
%
 
15,697
 
23
%
 
(1,296
)
(8
)%
ICO Australasia
 
9,557
 
14
%
 
10,342
 
15
%
 
(785
)
(8
)%
ICO Polymers North America
 
10,120
 
15
%
 
9,814
 
15
%
 
306
 
3
%
ICO Brazil
 
1,769
 
3
%
 
1,612
 
2
%
 
157
 
10
%
 
 
  
 
 
Consolidated
$
66,779
 
100
%
$
 67,501
 
 
100
%
  
$
(722
)
(1
 
)%

 

 
Operating income (loss)
    
 
    
 
    
 
  
 
  
Three Months Ended 
   
 
   
June 30, 
    
March 31,
    
 
  
   
 
       
 
    
2004

 

 
2004

 

 
Change

 

   
 
 
 
ICO Europe
  
$
673
 
$
1,461
 
$
(788
)
Bayshore Industrial
    
1,313
   
1,651
   
(338
)
ICO Australasia
    
730
   
1,215
   
(485
)
ICO Polymers North America
    
670
   
894
   
(224
)
ICO Brazil
    
104
   
5
   
99
 
   
 
 
 
Subtotal
    
3,490
   
5,226
   
(1,736
)
General Corporate Expense
    
(2,163
)
  
(2,451
)
  
288
 
   
 
 
 
Consolidated
  
$
1,327
 
$
2,775
   
($1,448
)
   
 
  		  
 
 		  
 
 		  

 
 
Operating income (loss) as a percentage of revenues 
 
  
Three Months Ended 
   
 
 
    
June 30,

 

 
March 31,

 

  
 
  
   
 
       
 
    
2004

 

 
2004

 

 
Increase/(Decrease)
  
   
 
 
 
ICO Europe
    
2
%
  
5
%
  
(3
%)
Bayshore Industrial
    
9
%
  
11
%
  
(2
%)
ICO Australasia
    
8
%
  
12
%
  
(4
%)
ICO Polymers North America
    
7
%
  
9
%
  
(2
%)
ICO Brazil
    
6
%
  
0
%
  
6
%
Consolidated
    
2
%
  
4
%
  
(2
%)