AM International Inc. announces first quarter results.MT. PROSPECT, Ill.--(BUSINESS WIRE)--Jan. 7, 1997-- AM International Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :AM) announced its results for the first quarter ended Nov. 2, 1996. The company reported net income of $0.5 million (7 cents per common share) which improved by $4.0 million as compared with a net loss before results of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $3.5 million (49 cents per common share) for the comparable prior year quarter. The business of AM International now consists of AM Multigraphics business segment which distributes pre-press equipment and supplies and provides technical services to the graphics arts industry. The business currently employs approximately 800 people. AM International has previously announced the sale of substantially all of the assets of its Sheridan Systems Division and the sale of its interest in AM Japan Co. Ltd. In the fiscal year ended July 31, 1996, the company also completed the divestitures of its unprofitable European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. subsidiaries and in October 1996 the company's Canadian subsidiary filed a voluntary assignment in bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . The company has also announced its exit from the manufacture and distribution of offset duplicating presses and post press equipment used in the graphics arts market. During the first quarter, the company commenced the sell off of press and post press inventories and completed the build out of press equipment in November 1996. Revenues for the first quarter ended Nov. 2, 1996, of $27.7 million were $15.3 million below the prior year comparative quarter. Revenues of divested foreign subsidiaries in Japan and Canada accounted for $6.8 million of the decrease and the sell-off of press and post press equipment resulted in a revenue decrease of $5.3 million. Gross margin decreased by $3.6 million due to the divestitures of foreign subsidiaries and lower revenue levels, particularly in press and post press product lines. Selling, general and administrative expenses decreased by $5.5 million which reflected the cost reduction actions which have been implemented in reorganizing the company to focus on distribution and service activities as well as the divestitures of the subsidiaries in Canada and Japan. The company also had $2.1 million of unusual income in the quarter primarily from the gain on the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the company's interest in AM Japan Co. Ltd. In October the company entered into a definitive Merger Purchase Agreement with a corporation newly formed by affiliates of Pacholder Associates Inc., a Cincinnati-based provider of investment management, financial advisory and investment banking services to institutional clients. The merger agreement provides for the merger of the purchaser with and into AM International pursuant to which the current shareholders of AM International will receive $5 per common share and AM International will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the purchaser. The transaction is subject to certain conditions, including the approval by a majority of AM International's shareholders at a meeting which is tentatively ten·ta·tive adj. 1. Not fully worked out, concluded, or agreed on; provisional: tentative plans. 2. Uncertain; hesitant. scheduled for February 1997. The stock of AM International, which has corporate headquarters in Mt. Prospect, is traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "AM." CONTACT: AM International Inc., Mt. Prospect Jerome D. Brady, 847/685-2500 |
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