Pliant reports $24 million in preliminary first-quarter EBITDAR

By Caroline Salls

Pittsburgh, April 13 - Pliant Corp. recorded $24 million in preliminary EBITDAR for the first quarter of 2006 on $298 million in sales, according to a company news release.

This represents a 10% increase in EBITDAR and a 13% increase in sales over the first quarter of 2005.

According to the release, EBITDAR is defined as EBITDA with the company's financial restructuring expenses added back, including legal fees and financial adviser fees.

Pliant said it had $19.8 million of cash on hand at the end of the quarter, which exceeded its forecast by $1.4 million, and it has a still-unused DIP facility that can provide up to $69 million of additional liquidity.

The company said it has had a strong response to its request for formal proposals for exit financing packages, and most of the proposals have included maximum availability of $170 million or higher, exceeding the $140 million of maximum availability under Pliant's pre-bankruptcy revolving credit facility.

"We were pleased with our performance in the first quarter," president and chief executive officer Harold Bevis said in the release.

"We have approved our next round of capital spending, customer investment programs and innovation investments. We remain firmly committed to our strategically sound business plan built on accretive sales growth, lean business practices, cost reduction and innovation."

Pliant, a Schaumburg, Ill., producer of film and flexible packaging products, filed for bankruptcy on Jan. 3 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10001.

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