Consolidated Container Company LLC Reports 2001 Fourth Quarter and Full Year Earnings

Business Wire, March 22, 2002

    Business Editors

      ATLANTA--(BUSINESS WIRE)--March 22, 2002--Consolidated Container
Company LLC announced today that it expects to report fourth quarter
revenues of approximately $181.9 million and a fourth quarter net loss
of approximately $18.7 million dollars.
      This compares to revenues during the fourth quarter of 2000 of
approximately $179.0 million and net income of approximately $2.0
million. Sales for the full year 2001 were approximately $786.7
million, with a net loss of approximately $31.2 million, compared to
revenues and net income of approximately $754.6 and $23.2 million in
2000, respectively. The 2001 results include adverse charges of
approximately $8.0 million in the fourth quarter and approximately
$21.7 million for the full year. The fourth quarter charges include
workers' compensation increases, write-off of certain disputed
accounts receivable, and one-time consulting fees. Approximately $13.7
million was incurred in prior quarters of 2001 and comprised primarily
restructuring charges related to organizational and management changes
including the relocation of the Company's corporate headquarters, the
settlement of a customer contract dispute and other costs related to
specific customer claims. Excluding the adverse charges, EBITDA was
approximately $12.7 million for the fourth quarter and $89.4 million
for the 2001 fiscal year. The comparable EBITDA for the fourth quarter
of 2000 and for the 2000 fiscal year was approximately $27.4 million
and $125.3 million, respectively.
      Steve Macadam, President and Chief Executive Officer, stated,
"2001 was a difficult year for Consolidated Container Company. As we
mentioned in our third quarter release, we expected fourth quarter
results to be disappointing. We believe that most of our problems are
related to the diversion of resources, significant expenses, and
higher operating costs related to the commercialization of several
large projects that began last year. We continue to believe that these
projects will add value over the long-term, and expect improvement in
these projects going forward; however, this will be an ongoing effort
over several quarters. There are several factors that we believe will
result in this difference going forward. We now have a fully staffed
and enthusiastic new management team, and have successfully
commercialized nearly all of the projects that we were working on
during the second half of last year. In addition, we have begun
several company-wide initiatives related to manufacturing excellence
and our information and financial systems infrastructures that we
expect to begin resulting in improvements over the next several
quarters."
      Tyler Woolson, Chief Financial Officer, commented, "Despite a top
line sales increase of approximately 4.2% for the year and increased
volume of approximately 3.8%, EBITDA for the quarter and the full year
were obviously very disappointing. As we have previously announced,
the shortfall of EBITDA put us below levels required to comply with
certain covenants in our credit agreement, and we were operating under
a waiver to the agreement for the last several months. However, as
also previously reported, we have since successfully renegotiated our
covenants with our banks."
      Woolson further added, "Our forecast for 2002 calls for a
measurable improvement over 2001 results, much of which is expected to
occur in the second half of the year. While we do not expect a
substantial increase in sales volume, we are looking for improvement
in EBITDA. Additionally, we will be limiting capital expenditures to
levels that are approximately half of what we have averaged over the
last two years, with a focus on maintenance and cost savings
projects."
      Consolidated Container Company LLC is a leading U.S. developer,
manufacturer, and marketer of blow-molded rigid plastic containers for
the beverage, consumer, and industrial markets. The Company was
created in 1999 through the merger of Reid Plastic Holdings with the
domestic plastic packaging operations of Suiza Foods Corporation, a
predecessor entity to Dean Foods Company.

      This press release contains statements, estimates, forecasts or
projections, not historical in nature, that may constitute
"forward-looking statements as defined under U.S. federal securities
laws. These statements, which speak only as of the date given, are
based on management's belief, as well as assumptions made by and
information currently available to management, and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from our Company's historical experience, and our
present expectations or projections. These risks, which include such
things as intense competition, operation under restrictive covenants,
and dependency on key customers, among others, are discussed in our
Company's filings with the Securities and Exchange Commission
including our Annual Report on Form 10-K, which filings are available
from the SEC.

         CONSOLIDATED CONTAINER COMPANY LLC AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                      DECEMBER 31, 2000 AND 2001
                        (Amounts in thousands)

                                     2000               2001
                               ---------------    ---------------
ASSETS
CURRENT ASSETS:
 Cash and cash equivalents          $ 8,956            $ 1,187
 Investment securities                  123                114
 Accounts receivable, net of
  allowance for doubtful
  accounts of $8,732 and $4,623      87,001             82,945
 Inventories                         39,516             42,702
 Prepaid expense                      2,524              2,010
 Other receivables                   10,123             15,727
                               ------------       ------------
    Total current assets            148,243            144,685
PROPERTY AND EQUIPMENT, Net         314,466            295,728
INTANGIBLES AND OTHER ASSETS        538,916            520,018
                               ------------       ------------
                                $ 1,001,625          $ 960,431
                               ============       ============

LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES:
 Accounts payable                  $ 69,323           $ 84,561
 Accrued liabilities                 35,977             42,370
 Revolving credit facility           34,500             23,000
 Current portion of long-term
  debt                               22,996             29,125
                               ------------       ------------
    Total current liabilities       162,796            179,056
LONG-TERM DEBT                      530,971            501,869
OTHER LIABILITIES                    29,417             45,512
COMMITMENTS AND CONTINGENCIES

MEMBER'S EQUITY:
  Member's equity                   279,032            248,286
  Foreign currency translation
   adjustment                          (591)              (862)
  Minimum pension liability
   adjustment                            -             (13,430)
                               ------------       ------------
    Total member's equity           278,441            233,994
                               ------------       ------------
                                $ 1,001,625          $ 960,431
                               ============       ============


          CONSOLIDATED CONTAINER COMPANY LLC AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
                        (Amounts in thousands)

                                        Year Ended    Year Ended
                                       December 31,  December 31,
                                           2000          2001
                                      ------------- -------------

NET SALES                               $ 754,649     $ 786,695
COST OF SALES                             626,965       694,219
                                        ---------     ---------
GROSS PROFIT                              127,684        92,476

SELLING, GENERAL AND ADMINISTRATIVE
   EXPENSES                               (50,146)      (62,753)
RESTRUCTURING (CHARGES) CREDITS             3,992        (3,778)
CONTRACT DISPUTE SETTLEMENT & OTHER            -         (6,626)
                                        ---------     ---------


OPERATING INCOME                           81,530        19,319

INTEREST EXPENSE, Net                     (58,581)      (50,485)

OTHER INCOME (EXPENSE)                        (22)          (33)
                                        ---------     ---------

INCOME BEFORE INCOME TAXES                 22,927       (31,199)

INCOME TAX (EXPENSE) BENEFIT                   -             -

MINORITY INTEREST IN SUBSIDIARIES             243            -
                                        ---------     ---------

INCOME BEFORE EXTRAORDINARY ITEM           23,170       (31,199)

EXTRAORDINARY ITEM, EARLY
 EXTINGUISHMENT OF DEBT, NET
 OF INCOME TAX BENEFIT OF $781                 -             -
                                        ---------     ---------


NET INCOME (LOSS)                          23,170       (31,199)

OTHER COMPREHENSIVE INCOME (LOSS) -
  Foreign currency translation
   adjustment                                 (73)         (271)
  Minimum pension liability
   adjustment                                  -        (13,430)
                                        ---------     ---------

COMPREHENSIVE INCOME (LOSS)              $ 23,097     $ (44,900)
                                        =========     =========

    --30--ks/at*

    CONTACT: Consolidated Container Company
             Joyce Foster, 678/742-4605

    KEYWORD:  GEORGIA
    INDUSTRY KEYWORD:  CHEMICALS/PLASTICS CONSUMER/HOUSEHOLD
FOOD/BEVERAGES EARNINGS
    SOURCE:  Consolidated Container Company