AM International Inc. reports profitable first quarter.MT. PROSPECT, Ill.--(BUSINESS WIRE)--Dec. 8, 1994--AM International Inc. Thursday Thursday: see week. reported a profitable first quarter for the fiscal 1995 quarter ended Oct. 29, 1994. The company's profitable first quarter marked the fourth consecutive profitable quarter the company has completed since the company emerged from 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 slightly over a year ago. For the fiscal 1995 first quarter, the company had an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $2.2 million on revenues of $116.0 million. Net income for the quarter ended Oct. 29, 1994 was $0.3 million or 4 cents per common share. The first quarter results are not comparable to the prior year due to the significant restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and implementation of Fresh Start Reporting which occurred in the company's fiscal 1994 first quarter following the company's emergence from bankruptcy on Oct. 13, 1993. Also as a result of various changes, the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. company's net income and balance sheet are not comparable (for the period which began Sept. 30, 1993) with the predecessor company. First quarter revenues were lower than the three preceding quarters due to historical weakness in market demand, which adversely affects the company's first fiscal quarter, as well as lower than anticipated revenues in certain foreign operations in this particular quarter. The first quarter net income of $0.3 million was achieved through continued lower operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. levels which have resulted from the restructuring of operations and cost reductions. Over the course of the past year the company has introduced a number of key new products which are receiving favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market acceptance. Future quarters should begin to reflect the impact of these new products. In addition, a significant portion of the company's revenues are dependent on continuing strong demand for key capital goods Capital Goods Any goods used by an organization to produce other goods. Notes: Examples of capital goods include office buildings, equipment, and machinery. See also: Capital Expenditure, Disinvestment Capital goods printing equipment items which has historically been cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. . The company also continues to implement various restructuring actions which include reductions in workforce and facilities, the wind down of unprofitable product lines and exits from unprofitable operations. AM's Chairman, President and Chief Executive Officer, Jerome Jerome St. Latin doctor of Church; preeminent biblical scholar. [Christian Hagiog.: Attwater, 185] See : Wisdom D. Brady Bra·dy , James Buchanan Known as "Diamond Jim." 1856-1917. American financier and philanthropist who gained his nickname because of his attraction to diamonds and his extravagant lifestyle. Noun 1. said, "The profitable first quarter result, despite the lower revenue level, continues to provide positive reinforcement positive reinforcement, n a technique used to encourage a desirable behavior. Also called positive feedback, in which the patient or subject receives encouraging and favorable communication from another person. for the customer oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. direction that the company has embraced as well as further indication that restructuring actions are on target." He added further that, "While profitability has been sustained for the longest consecutive period in the recent history of the company, additional significant efforts are necessary for the continued profitability of the company. These efforts involve enhancing our product offerings through both the broadening of distribution arrangements and internal product development, all of which are backed by our extensive sales, service and support organizations. Major efforts are underway to improve our order fulfillment Order fulfillment (in BE also: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order fulfillment and customer responses processes throughout the company." As previously announced, AM emerged from bankruptcy on Oct. 13, 1993. Implementation of the plan resulted in the conversion of more than $93.6 million of debt and unpaid interest into equity with a significant reduction of AM's ongoing interest expense. Various changes were also made in AM's financial reporting upon emergence from bankruptcy. AM reports results for the predecessor company through the period ended Sept. 29, 1993 and separate results for the reorganized company for the period which began Sept. 30, 1994. Because of the adjustments and changes in the company's capital structure, net earnings and earnings per share comparisons between the predecessor and reorganized companies are not meaningful. AM International, with corporate headquarters in Mt. Prospect, sells and services a wide range of printing and print production equipment, newspaper mailroom mail·room n. A room in which ingoing and outgoing mail is handled for a company or other organization. systems, bindery A NetWare file used for security and accounting in the early NetWare 2.x and 3.x versions. The bindery pertained only to the server it resided in and contained the names and passwords of users authorized to log in to that server. systems and products as well as service and supplies to the worldwide graphics industry. The company's common stock 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," and the warrants trade under the symbol "AM.WS." AM International has annual revenues of nearly $500 million and employs about 3,300 people. -0-
AM International Inc.
Condensed Consolidated Statement of Operations
(Dollars in thousands except per share amounts)
Predecessor
Reorganized Company (a) Company
Three Sept. 30, August 1,
Months 1993 1993
Ended through through
Oct. 29, Oct. 30, Sept. 29,
1994 1993 1993
Revenues $115,982 $50,729 $69,214
Operating costs & expenses:
Cost of goods sold 82,460 35,462 50,486
Selling, general and
administrative 28,139 13,977 19,372
Research, development
and engineering 3,141 314 1,705
Operating income (loss) 2,242 976 (2,349)
Non-operating (expense):
Interest (945) (560) (286)
Other (418) (157) (3,385)
Income (loss) before taxes
and extraordinary gain 879 259 (6,020)
Income tax (expense) benefit (580) (30) 5
Net Income (loss) before
extraordinary gain 299 229 (6,015)
Extraordinary gain 0 0 58,704
Net Income (Loss) $299 $229 $52,689
Net Income Per Common Share 4 cents 3 cents
Weighted average shares of
common stock and common
stock equivalents outstanding 7,048,527 7,000,000
(a) Due to the reorganization and implementation of Fresh Start
Reporting, financial statements for the new reorganized company
(period starting Sept. 30, 1993) are not comparable to those of the
predecessor company.
AM International Inc.
Condensed Consolidated Balance Sheet
(Dollars in Thousands)
Oct. 29, July 31,
1994 1994
Assets
Current assets:
Cash and cash equivalents $17,083 $25,959
Accounts receivable, net 75,611 83,403
Inventories, net 103,743 96,565
Prepaid expenses and other assets 14,501 12,055
Total current assets 210,938 217,982
Property, plant and equipment, net 33,822 32,950
Excess reorganization value 33,208 35,760
Other assets, net 17,370 16,539
Total assets $295,338 $303,231
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt $11,152 $9,635
Accounts payable 45,557 46,493
Service contract deferred income 24,365 25,756
Payroll related expenses 25,493 29,951
Other 77,645 81,807
Total Current Liabilities 184,212 193,642
Long-term debt 25,893 27,023
Other long-term liabilities 39,584 39,035
Total liabilities 249,689 259,700
Total shareholders' equity 45,649 43,531
Total liabilities and shareholders'
equity $295,338 $303,231
CONTACT: AM International Inc., Mt. Prospect Thomas D Thomas D. (born Thomas Dürr, December 30 1968 in Ditzingen close to Stuttgart, Germany) is a rapper in the German hip hop group Die Fantastischen Vier. He frequently works on solo projects. Life After finishing Realschule he took on an apprenticeship as a barber. . Rooney, 708/818-3425 |
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