6-K 1 a2145340z6-k.txt FORM 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF A FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES ACT OF 1934 For the month of September 2004 ----------------------------------------- Acetex Corporation ------------------------------------------------------------------------------- (Translation of registrant's name into English) 750 World Trade Centre, 999 Canada Place Vancouver, British Columbia, Canada V6C 3E1 ------------------------------------------------------------------------------- (Translation of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.] Form 20-F Form 40-F X ----------- ----------- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No X ------------ ----------- [If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______________] This Form 6-K consists of a press release dated September 17, 2004 announcing strategic discussions. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ACETEX CORPORATION (Registrant) DATE: October 21, 2004 By: /s/ Lori Bondar ------------------------ Lori Bondar Chief Financial Officer

~~THREE~~Exhibit MONTHS THREE MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED JUNE 30, 2004 JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2003 ---------------------------------------------------------------- Sales $ 129,024 $ 74,687 $ 256,836 $ 155,514 Net earnings (loss) for the period 1,093 (2,683) 449 (704) Net earnings (loss) per share $ 0No.03 $Document (0.11) $ 0.01 $ (0.03) Cash generated from (applied to) operations(2) 7,857 2,948 15,048 10,460 Cash generated from (applied to) operations per share(2) $ 0.23 $ 0.12 $ 0.44 $ 0.41 Cash position at end of period 57,216 71,438 57,216 71,438 EBITDA(1) Acetyls Segment 11,706 9,550 22,649 22,668 Specialty Polymers & Films 4,769 -- ~~8,517~~ -- ~~Corporate (1,095) (660) (2,069) (1,078)~~ -------~~---------------------------------------------------------~~ ~~15,380 8,890 29,097 21,590~~ --------~~-------------------------------------------------------------------------------------------------~~ ~~EBITDA(~~1) - pro-forma Acetyls Segment 11,706 9,550 22,649 22,668 Specialty Polymers & Films Segment 4,769 6,154 8,517 11,691 Corporate (1,095) (660) (2,069) (1,078) ---------------------------------------------------------------- 15,380 15,044 29,097 33,281 --------------------------------------------------------------------------------------------------------- Long-term debt at end of period 265,000 190,000 265,000 190,000 --------------------------------------------------------------------------------------------------------- (1) Operating income plus amortization and restructuring charge, both as stated on the consolidated statements of operations. ~~EBITDA~~Press isRelease ~~not~~September a term that has an established meaning under generally accepted accounting principles and should not be considered in isolation from net earnings (loss) or other amounts as calculated under generally accepted accounting principles. EBITDA may not be calculated in a comparable manner to other companies. The Company has calculated EBITDA consistently for all periods presented. (2) Calculated as cash flow from operations less increases in non-cash operating working capital. This is not a term that has an established meaning under generally accepted accounting principles and should not be considered in isolation from net earnings (loss) or other amounts as calculated under generally accepted accounting principles. Cash flow may not be calculated in a comparable manner to other companies. The Company has calculated cash flow consistently for all periods presented. --------------------------------------------------------------------------------------------------------- PRODUCTION VOLUME INFORMATION (TONNES) ACETYLS SEGMENT Acetic Acid 106,647 96,494 207,828 201,585 VAM - Pardies 36,416 34,410 73,965 69,876 Acetic Acid Derivatives 17,~~917~~ ~~18,065 36,101 36,228 SPECIALTY POLYMERS & FILMS SEGMENT Specialty Polymers 35,690 *34,791 69,461 *65,998 Films 4,265 *4,187 8,478 *7,632~~2004

ASSETS JUNE 30, DECEMBER 31, 2004 2003 ----------- ------------ (UNAUDITED) CURRENT ASSETS: Cash and cash equivalents $ 57,216 $ 53,903 Accounts receivable 87,322 79,774 Inventories 66,202 68,505 Prepaid expenses and other 6,419 7,175 ----------- ------------ 217,159 209,357 PROPERTY, PLANT AND EQUIPMENT 239,567 254,010 OTHER ASSETS 10,366 10,229 ----------- ------------ $ 467,092 $ 473,596 ----------- ------------ ----------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 96,737 $ 94,108 PENSION OBLIGATION 20,592 20,976 REVOLVING CREDIT FACILITY 27,330 29,137 SENIOR UNSECURED DEBT 265,000 265,000 ----------- ------------ 409,659 409,221 ----------- ------------ SHAREHOLDERS' EQUITY Share capital 103,074 103,059 Additional paid-in capital 1,547 1,547 Deficit (30,250) (30,699) Cumulative translation adjustment (16,938) (9,532) ----------- ------------ 57,433 64,375 ----------- ------------ $ 467,092 $ 473,596 ----------- ------------ ----------- ------------

THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2004 2003 2004 2003 ------------- ------------ ---------- ---------- SALES $ 129,024 $ 74,687 $ 256,836 $ 155,514 COST OF GOODS SOLD 106,720 62,216 214,037 127,722 AMORTIZATION 7,159 5,139 14,692 10,322 ------------- ------------ ---------- ---------- 113,879 67,355 228,729 138,044 ------------- ------------ ---------- ---------- GROSS PROFIT 15,145 7,332 28,107 17,470 OTHER OPERATING EXPENSES: Selling, general and administrative 5,977 3,093 11,745 5,188 Research and development 947 488 1,957 1,014 ------------- ------------ ---------- ---------- 6,924 3,581 13,702 6,202 ------------- ------------ ---------- ---------- OPERATING EARNINGS 8,221 3,751 14,405 11,268 Equity income (loss) 410 (94) 225 (79) Interest expense (7,560) (5,297) (15,492) (10,466) Foreign exchange gain (loss) 22 (1,043) 1,311 (1,427) ------------- ------------ ---------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 1,093 (2,683) 449 (704) INCOME TAXES -- -- -- -- ------------- ------------ ---------- ---------- INCOME (LOSS) FOR THE PERIOD 1,093 (2,683) 449 (704) DEFICIT, BEGINNING OF PERIOD (31,343) (9,729) (30,699) (11,563) EXCESS OF REPURCHASE PRICE OVER ASSIGNED VALUE OF COMMON SHARES -- (14) -- (159) ------------- ------------ ---------- ---------- DEFICIT, END OF PERIOD $ (30,250) $ (12,426) $ (30,250) $ (12,426) ------------- ------------ ---------- ---------- ------------- ------------ ---------- ---------- INCOME (LOSS) PER COMMON SHARE Basic $ 0.03 $ (0.11) $ 0.01 $ (0.03) Diluted $ 0.03 $ (0.11) $ 0.01 $ (0.03) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic 33,907,045 25,492,734 33,905,560 25,528,875 Diluted 34,425,111 25,901,711 34,373,442 25,897,273

THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2004 2003 2004 2003 ------------- ------------ ---------- ---------- CASH PROVIDED BY (USED FOR): OPERATIONS: Income (loss) for the period $ 1,093 $ (2,683) $ 449 $ (704) Charges and credits to income not involving cash: Amortization 7,159 5,139 14,692 10,322 Pension expense 111 110 225 203 Amortization of deferred financing costs 456 288 930 560 Amortization of bond premium (297) -- (594) -- Unrealized foreign exchange gain (loss) (255) -- (429) -- Distributions received from equity (410) 94 (225) 79 investee in excess of income Changes in noncash operating working capital (1,313) 5,572 (3,450) (2,724) ------------- ------------ ---------- ---------- 6,544 8,520 11,598 7,736 ------------- ------------ ---------- ---------- INVESTMENTS: Purchase of property, plant and equipment (2,142) (541) (4,113) (1,204) Other (404) (56) (674) (73) ------------- ------------ ---------- ---------- (2,546) (597) (4,787) (1,277) ------------- ------------ ---------- ---------- FINANCING: Increase in share capital 8 5 15 40 Repurchase of common shares -- (33) -- (597) Increase (decrease) in long-term debt (3,206) -- (1,807) -- Increase (decrease) in pension obligation (69) (123) 27 (122) ------------- ------------ ---------- ---------- (3,267) (151) (1,765) (679) ------------- ------------ ---------- ---------- FOREIGN EXCHANGE GAIN (LOSS) ON CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES 207 2,312 (1,733) 3,768 ------------- ------------ ---------- ---------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 938 10,084 3,313 9,548 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 56,278 61,354 53,903 61,890 ------------- ------------ ---------- ---------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 57,216 $ 71,438 $ 57,216 $ 71,438 ------------- ------------ ---------- ---------- ------------- ------------ ---------- ----------

SPECIALTY POLYMERS AND ACETYLS FILMS CORPORATE TOTAL -------- ------------ --------- -------- THREE MONTHS ENDED JUNE 30, 2004 Sales $ 76,658 $ 52,366 $ -- $129,024 Cost of goods sold and operating expenses 64,952 47,579 1,095 113,644 Amortization 5,586 1,559 14 7,159 -------- ------------ --------- -------- 70,538 49,156 1,109 120,803 -------- ------------ --------- -------- OPERATING EARNINGS $ 6,120 $ 3,210 $ (1,109) 8,221 -------- ------------ --------- -------- ------------ --------- Interest expense (7,560) Equity income (loss) 410 Foreign exchange gain (loss) and other 22 Income taxes -- -------- NET EARNINGS (LOSS) $ 1,093 -------- -------- SIX MONTHS ENDED JUNE 30, 2004 Sales $159,426 $ 97,410 $ -- $256,836 Cost of goods sold and operating expenses 136,777 88,893 2,069 227,739 Amortization 11,460 3,196 36 14,692 -------- ------------ --------- -------- 148,237 92,089 2,105 242,431 -------- ------------ --------- -------- OPERATING EARNINGS $ 11,189 $ 5,321 $ (2,105) 14,405 -------- ------------ --------- -------- ------------ --------- Interest expense (15,492) Equity income (loss) 225 Foreign exchange gain (loss) and other 1,311 Income taxes -- -------- NET EARNINGS (LOSS) $ 449 -------- -------- ----------------------------------------------------------------------------------------------- AS AT JUNE 30, 2004 TOTAL ASSETS $253,430 $ 206,506 $ 7,156 $467,092 -------- ------------ --------- -------- -------- ------------ --------- --------

--------------------------------------------------------------------------- Number of Assigned common shares value --------------------------------------------------------------------------- Issued, December 31, 2002 25,643,964 $ 64,039 Issued on exercise of options 63,000 125 Issued on AT Plastics Acquisition 8,370,574 39,162 Repurchased and other (176,100) (267) --------------------------------------------------------------------------- Issued, December 31, 2003 33,901,438 $103,059 Issued on exercise of options 3,333 7 --------------------------------------------------------------------------- Issued, March 31, 2004 33,904,771 $103,066 Issued for cash on exercise of options 4,083 8 --------------------------------------------------------------------------- Issued, June 30, 2004 33,908,854 $103,074 --------------------------------------------------------------------------- ---------------------------------------------------------------------------

------------------------------------------------------------------------- Number Weighted average of options exercise price ------------------------------------------------------------------------- Outstanding, December 31, 2002 2,893,188 $ 6.14 Granted 50,000 6.10 Exercised (63,000) (2.78) Issued on AT Plastics Acquisition 666,866 21.31 Forfeited (12,583) (10.03) ------------------------------------------------------------------------- Outstanding, December 31, 2003 3,534,471 $ 9.05 Exercised (3,333) (2.66) Expired (30,238) (54.23) ------------------------------------------------------------------------- Outstanding, March 31, 2004 3,500,900 $ 8.09 Exercised (4,083) (2.61) Granted 150,000 5.55 ------------------------------------------------------------------------- Outstanding, June 30, 2004 3,646,817 $ 7.99 ------------------------------------------------------------------------- -------------------------------------------------------------------------

---------------------------------------------------------------------------------------- Options outstanding Options exercisable --------------------------------------------------- -------------------------------- Weighted average Weighted average Range of exercise exercise price Exercisable exercise price Prices Number (CDN$) number (CDN$) ---------------------------------------------------------------------------------------- $2.60 - $3.18 745,167 $ 2.72 725,167 $ 2.71 $5.50 - $8.00 2,653,360 6.99 2,221,088 7.20 $10.08 - $81.60 248,290 34.42 245,290 34.71 ---------------------------------------------------------------------------------------- 3,646,817 $ 7.99 3,191,545 $ 8.30 ---------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------

THREE MONTHS SIX MONTHS ENDED ENDED JUNE 30, JUNE 30, 2003 2003 ------------ ---------- SALES $ 120,133 $ 241,622 COST OF GOODS SOLD AND OTHER 105,089 208,341 OPERATING(1) AMORTIZATION 6,798 13,655 ------------ ---------- 111,887 221,996 ------------ ---------- OPERATING EARNINGS $ 8,246 $ 19,626 ------------ ---------- ------------ ----------

----------------------------------------------------------------------------------------------------------------------------------- Guarantors ----------------------------------------- Combined Acetex Acetex Acetex Acetex AT Alberta AG non- Corporation Corporation LLC BV Plastics Industries guarantors Eliminations Consolidated ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Sales 90,185 587 $ 166,064 $ 256,836 Amortization 36 3,191 5 11,460 14,692 Cost of goods sold 75415 755 137,867 214,037 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ (36) 11,579 (173) 16,737 28,107 Selling, general & administrative 2,075 5,110 0 4,560 11,745 Research and development 975 982 1,957 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Operating earnings (loss) (2,111) 0 0 5,494 (173) 11,195 0 14,405 Equity loss 10,751 (1,718) (173) 8,053 (16,688) 225 Interest expense - net (8,093) 13,890 (5,731) (15,558) (15,492) Loss on debt refinancing 0 0 0 Foreign exchange and other (97) 276 1,132 1,311 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Earnings (loss) before income taxes 450 13,890 (1,718) (134) (173) 4,822 (16,688) 449 Income taxes 0 0 0 0 0 0 0 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Deferred income tax 0 0 0 0 0 0 0 0 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Net earnings (loss) 450 13,890 (1,718) (134) (173) 4,822 (16,688) 449 Retained earnings (deficit) at beginnning (31,307) 46,884 (92,465) (12,779) (31) (54,602) 112,993 (31,307) Dividends paid (14,219) 0 14,219 0 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Retained earnings (deficit) at end (30,857) 46,555 (94,183) (12,913) (204) $ (49,780) 110,524 $ (30,857) ----------- ------- ------- -------- ---------- ---------- ------------ ------------ ----------- ------- ------- -------- ---------- ---------- ------------ ------------

----------------------------------------------------------------------------------------------------------------------------------- Guarantors ----------------------------------------- Combined Acetex Acetex Acetex Acetex AT Alberta AG non- Corporation Corporation LLC BV Plastics Industries guarantors Eliminations Consolidated ----------- ------- ------- -------- ---------- ---------- ------------ ------------ CASH PROVIDED BY (USED IN): Operating Activities Net earnings (loss) 449 13,890 (1,718) (134) (173) $ 4,822 (16,688) $ 449 Charges and credits to income -non-cash Amortization 36 3,191 5 11,460 14,692 Pension expense 0 225 225 Unrealized foreign exchange gain (429) 0 (429) Amortization of deferred financing costs 930 930 Amortization of bond premium (594) (594) Distribution from equity investee in excess of income 2,046 0 1,718 173 (6,631) 2,469 (225) Changes in noncash working capital (5,416) 329 0 1,127 168 1,584 (1,243) (3,450) ----------- ------- ------- -------- ---------- ---------- ------------ ------------ (3,479) 14,219 0 3,928 0 12,390 (15,462) 11,598 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Investing Activities Purchase of property, plant and equipment (2,294) (1,819) (4,113) Other (270) (404) (674) Investment in affiliates 0 1 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ (270) 0 0 (2,294) 0 (2,222) 0 (4,787) ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Financing activities Repayment of long-term debt 0 (1,807) (1,807) Increase in share capital 15 15 Dividend paid (14,219) 14,219 0 Decrease in pension obligation 74 (47) 27 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ 15 (14,219) 0 (1,733) 0 (47) 14,219 (1,765) ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Foreign exchange gain (loss) on cash and cash equivalents held in foreign currencies (2,975) 1,243 (1,733) ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Increase in cash during the period (3,734) 0 0 (99) 0 7,146 0 3,313 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Cash, beginning of period 10,382 0 0 234 0 43,287 53,903 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ Cash, end of period 6,648 0 0 135 0 $ 50,433 0 $ 57,216 ----------- ------- ------- -------- ---------- ---------- ------------ ------------ ----------- ------- ------- -------- ---------- ---------- ------------ ------------

Filing Compare · ACETEX CORP