AEP Industries Inc. Reports Fiscal 2015 Results

AEP Industries Inc. (Nasdaq: AEPI) (the “Company” or “AEP”) today reported financial results for its fiscal year ended October 31, 2015.

Net sales for fiscal 2015 decreased $51.6 million, or 4%, to $1,141.4 million from $1,193.0 million for fiscal 2014. The decrease was the result of a 3% decrease in average selling prices, primarily due to the pass through of lower resin costs, combined with a 1% decrease in sales volume compared to the prior fiscal year. Fiscal 2015 also included a $9.5 million negative impact of foreign exchange related to our Canadian operations.

Gross profit for fiscal 2015 was $181.7 million, an increase of $59.8 million, or 49%, compared to the prior fiscal year. Excluding the impact of the LIFO reserve change of $30.3 million during the periods, gross profit increased $29.5 million primarily resulting from improved material margins partially offset by higher manufacturing costs, including health and utility costs, an increase in share-based compensation expense associated with the Company’s performance units, an increase in the provision related to employee cash performance incentives and an asset impairment charge related to the poor performance of a new machine, currently in litigation. Fiscal 2015 also included a $1.4 million negative impact of foreign exchange related to our Canadian operations.

Operating expenses for fiscal 2015 were $120.3 million, an increase of $6.3 million, or 6%, compared to the prior fiscal year. The increase is primarily due to an increase in share-based compensation costs associated with the Company’s stock options and performance units and an increase in the provision related to employee cash performance incentives partially offset by a decrease in delivery expense primarily due to lower fuel costs and volumes sold. Fiscal 2015 also included a $1.1 million positive impact of foreign exchange related to our Canadian operations.
more at: http://www.prnewswire.com/news-releases/aep-industries-inc-reports-fiscal-2015-results-300204271.html

Back To Top
Close search
Search