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APPLIED POWER REPORTS THIRD QUARTER LOSS DUE TO ONE-TIME $2.35 PER SHARE CHARGE FOR PLANNED WRIGHT LINE DIVESTITURE

APPLIED POWER REPORTS THIRD QUARTER LOSS DUE TO ONE-TIME $2.35 PER SHARE
 CHARGE FOR PLANNED WRIGHT LINE DIVESTITURE
 MILWAUKEE, June 30 /PRNewswire/ -- Applied Power Inc. (NASDAQ-NMS: APWRA) reported a net loss of $30,122,000, or $2.30 per share, for its fiscal third quarter ended May 31, 1992, due to a one- time charge of $33 million, or $2.53 per share, related principally to the planned divestiture of its Wright Line business.
 Earnings from continuing operations for the fiscal third quarter were $3,579,000, or 27 cents per share, a 1.4 percent increase over earnings from continuing operations of $3,531,000, also equal to 27 cents per share, during the comparable year-ago period.
 Richard G. Sim, chairman and chief executive officer, said that results from continuing operations were up due to reduced interest expense on declining debt and a lower tax rate.
 Operating earnings for the fiscal third quarter were $10,518,000, down 9 percent from $11,556,000 in the year-ago period, primarily due to a higher cost of sales resulting from a less favorable product mix. Overhead expenses were virtually unchanged.
 Net sales for the company's continuing businesses in the quarter were $92,612,000 compared with $91,464,000 for the year-ago fiscal third quarter.
 Debt declined in the third quarter by $10 million to $128 million, principally due to strong cash flow from continuing operations.
 Sim said although worldwide demand for products of the company's continuing businesses improved slightly in the third quarter, lead by double-digit order growth at APITECH, Barry Controls and GB Electrical, the recession continued to impact business activity in the Enerpac and Power-Packer businesses.
 WRIGHT LINE DIVESTITURE EXPLAINED
 Commenting on its planned divestiture of Wright Line, Sim noted that Wright Line's office products business is fundamentally different than Applied Power's core industrial products business, which is based on hydraulic, electronic and motion-control technologies.
 Wright Line was acquired by Applied Power in 1989 as part of its acquisition of the Barry Wright Corp. At the time, Applied Power indicated it would probably sell Wright Line within two to three years, after operating improvements were made.
 Sim said he was pleased with the results of these efforts and that Wright Line was now in a position to operate either as an independent business or as an important part of another company in a similar industry.
 Sim said that expected proceeds from the sale of Wright Line, together with substantial cash flow produced over the past three years, would provide much economic value to Applied Power.
 "We have decided to pursue an active selling effort now because, in our judgment, the incremental value of holding on to Wright Line as it benefits from the end of the current recession is not significant when compared to the alternative opportunities of using the proceeds in our ongoing business," Sim said.
 Additionally, included in the loss are estimates for the sale of an unoccupied Wright Line building, for settlement of a Wright Line legal dispute, for Wright Line operating results through its disposition, and for sale of the net assets of a small computer software business in France.
 CONTINUING EARNINGS HIGHER YEAR-TO-DATE
 For the first nine months of the current fiscal year, Applied Power reported earnings from continuing operations of $8,995,000, or 69 cents per share, compared with earnings from continuing operations in the year-ago period of $8,411,000, or 64 cents per share.
 Including charges for Wright Line's disposition and other items, Applied Power had a deficit for the first nine months of $24,956,000, or $1.91 per share, compared with net earnings in the year-ago period of $5,465,000, or 42 cents per share.
 Net sales for the first nine months of the 1992 fiscal year were $265,847,000 compared with $272,334,000 in the 1991 period.
 Applied Power is a world leader in industrial motion and position control applications and a pioneer in the marriage of hydraulic and vibration technologies with electronics. The company is comprised of two business groups. The Engineered Solutions Group includes APITECH, digitally controlled systems to provide "smart" hydraulic motion; Barry Controls, vibration and shock isolation products; and Power-Packer, truck cab and convertible top actuation systems. The Distributed Products Group consists of Enerpac, hydraulic high force tools and production automation components; and GB Electrical, products for electrical contractors and consumers.
 APPLIED POWER INC.
 Fiscal 1992 - Third Quarter
 Comparative Earnings Statements
 (Unaudited, Dollars in thousands except per share amounts)
 Periods ended Three months Nine months
 May 31 1992 1991 1992 1991
 Net sales $92,612 $91,464 $265,847 $272,334
 Cost of sales 58,124 56,371 167,318 168,353
 Gross profits 34,488 35,093 98,529 103,981
 Operating expenses 23,970 23,537 69,164 72,137
 Operating earnings 10,518 11,556 29,365 31,844
 Other expenses (Income)
 Interest expense 3,364 3,768 10,221 12,095
 Receivables financing
 costs 226 541 770 1,358
 Amortization of
 intangible assets 1,075 1,042 3,152 3,187
 Exchange adjustments 176 (245) 283 201
 Total 4,841 5,106 14,426 16,841
 Earnings before income
 taxes and discontinued
 operations 5,677 6,450 14,939 15,003
 Income taxes 2,098 2,919 5,944 6,592
 Earnings from
 continuing
 operations 3,579 3,531 8,995 8,411
 Discontinued operations,
 net of taxes
 Income (loss) from
 operations (501) (1,271) (751) (2,946)
 Loss on Dispositions (33,200) -- (33,200) --
 Net Earnings (loss) $(30,122) $2,260 $(24,956) $5,465
 Net Earns. Per Common Share
 - Primary Cont. Opers. $0.27 $0.27 $0.69 $0.64
 Discontinued Operations (2.57) (0.10) (2.60) (0.22)
 Net Earnings $(2.30) $0.17 $(1.91) $0.42
 Avg. Shares Outstg.
 (in thousands) 13,117 13,035 13,086 13,054
 Comparative Balance Sheet Information
 (Unaudited, Dollars in thousands)
 Periods ended Quarter Fiscal Year Quarter
 May 31, Aug. 31, May 31,
 1992 1991 1991
 Cash $ 3,047 $ 3,604 $ 2,247
 Receivables 48,331 50,412 53,311
 Inventories 73,952 81,236 85,880
 Prepaids 6,031 8,557 8,685
 Assets Held for
 Sale, net 21,108 -- --
 Current Assets 152,469 143,809 150,123
 Property and
 Equipment 53,799 74,574 78,484
 Other Assets 8,097 9,068 7,722
 Intangible Assets 71,323 98,771 99,696
 TOTAL ASSETS 285,688 326,222 336,025
 Bank Loans 20,082 20,986 18,648
 Payables 24,968 26,242 24,835
 Accurals 31,720 38,510 37,965
 Current Liabilities 76,770 85,738 81,448
 Long-Term Debt 107,619 114,387 129,179
 Deferred Liabilities 8,824 9,293 9,394
 Shareholders' Equity 92,475 116,804 116,004
 TOTAL LIABILITIES
 EQUITY $285,688 $326,222 $336,025
 Statement of Continuing Operations
 By Fiscal Quarter, Years Ended Aug. 31, 1991 and 1992
 Unaudited, Amounts in Thousands, Except Per Share Amounts
 First Second Third Fourth
 Quarter Quarter Quarter Quarter
 1991 1991 1991 1991
 Net sales $92,500 $88,370 $91,464 $86,268
 Cost of product
 sold 56,600 55,382 56,371 54,965
 Gross profit 35,900 32,988 35,093 31,323
 Operating expenses 24,177 24,423 23,537 20,520
 Operating profit 11,723 8,565 11,556 10,803
 Operating expense(income)
 Interest expense 4,249 4,078 3,768 3,352
 Sale of A/R expense 442 375 541 193
 Amortization of
 intangibles 1,080 1,065 1,042 1,020
 Foreign currency 537 (91) (245) (37)
 Total 6,308 5,427 5,106 4,528
 Pre-tax income 5,415 3,138 6,450 6,275
 Income tax expense 2,170 1,503 2,919 2,716
 Earns. from
 cont. opers. 3,245 1,635 3,531 3,559
 Discontinued operations,
 net of taxes (loss) from
 discon. opers. (675) (1,000) (1,271) (1,182)
 (Loss) on disposals -- -- -- --
 Total (675) (1,000) (1,271) (1,182)
 Net earnings $2,570 $ 635 $ 2,260 $ 2,377
 Average shares 13,089 13,056 13,035 13,049
 Earnings (loss) per share
 cont. opers. $0.25 $0.13 $0.27 $0.27
 Discontinued
 operations (0.05) (0.08) (0.10) (0.09)
 Net earnings $0.20 $0.05 $0.17 $0.18
 Statement of Continuing Operations
 By Fiscal Quarter, Years Ended Aug. 31, 1991 and 1992
 Unaudited, amounts in thousands except per share amounts:
 First Second Third
 Quarter Quarter Quarter
 1992 1992 1992
 Net sales $87,861 $85,374 $92,612
 Cost of product sold 55,132 54,062 58,124
 Gross profit 32,729 31,312 34,488
 Operating expenses 22,760 22,434 23,970
 Operating profit 9,969 8,878 10,518
 Operating exp. (income)
 Interest expense 3,348 3,509 3,364
 Sale of A/R expense 348 196 226
 Amortization of
 intangibles 1,025 1,052 1,075
 Foreign currency 206 (99) 176
 Total 4,927 4,658 4,841
 Pre-tax income 5,042 4,220 5,677
 Income tax expense 2,183 1,663 2,098
 Earnings from
 cont. operations 2,859 2,557 3,579
 Discontinued operations,
 net of taxes (loss) from
 discont. operations (248) (2) (501)
 (Loss) on disposals -- -- (33,200)
 Total (248) (2) (33,701)
 Net earnings $2,611 $2,555 $(30,122)
 Average shares 13,056 13,084 13,117
 Earnings (loss) per share
 Cont. opers. $0.22 $0.20 $0.27
 Discontinued
 operations (0.02) 0.00 (2.57)
 Net earnings $0.20 $0.20 $(2.30)
 -0- 6/30/92
 /CONTACT: Robert T. Foote Jr., vice president and CFO of Applied Power, 414-781-6600 or Jim Tolan or Nick Biro of O'Connor Biro & Associates, 708-498-2284, for Applied Power/
 (APWRA) CO: Applied Power Inc. ST: Wisconsin IN: SU: ERN


SH -- NY028 -- 5122 06/30/92 11:05 EDT
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