ARC International Reports Third Quarter and Nine-month Results.TORONTO--(BUSINESS WIRE)--Nov. 4, 1998-- Authorizes Repurchase of Up To 10% of Its Outstanding Shares ARC International This article is about the publicly traded processor company. For the privately held French housewares company of the same name, see ARC International (household). Corporation (AMEX AMEX See: American Stock Exchange : ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. ) today reported results for the third quarter and nine- month periods ended September 30, 1998. ARC noted that year-over- year results for the nine month period ended September 30, 1998 are not comparable because the Company now accounts for its 25% stake in Ballantyne of Omaha (NYSE NYSE See: New York Stock Exchange : BTN BTN In currencies, this is the abbreviation for the Bhutan Ngultrum. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) as an equity interest in an affiliate, compared to the year-ago nine-month period when ARC held a 51% stake in Ballantyne and consolidated its results. The Company also announced that its Board of Directors has authorized the repurchase of up to 10% of its outstanding Common Stock. The Company currently has approximately 14,279,000 shares of common stock issued and outstanding. The purchases will be made from time-to-time in open-market or private transactions at prevailing market prices. ARC International will finance the repurchase program through working capital. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (all figures are reported in U.S. Dollars) for the third quarter ended September 30, 1998 were $18,239,397, compared to $19,841,134 in the comparable year-ago quarter. Third quarter sales benefited from a $12.2 million gross revenue contribution by ARC Sport Supply, a 32% increase over 1997 third quarter sales of $9.1 million. The Company narrowed its 1998 third quarter net loss to $312,827, or $0.02 per diluted share, from $333,667, or $0.02 per diluted share, in the third quarter of 1997. The weighted average number of diluted shares outstanding were 14,791,096 and 15,399,046 for the third quarters of 1998 and 1997, respectively. Net sales for the nine month period ending September 30, 1998 were $43,065,829. The Company reported a net loss of $2,255,138, or $0.16 per diluted share, for the first nine months of 1998. The weighted average number of diluted shares outstanding was 15,042,641. Commenting on the results, Arnold S. Tenney, Chairman, President and Chief Executive Officer of ARC, stated, "Despite lower seasonal revenues at our U.S. and Canadian skating facilities, ARC IceSports generated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $220,433 during the third quarter, primarily due to operating strength at our ice rink supply and services division. ARC Sport Supply's better-than-expected performance during the quarter contributed profits of $573,821, compared to a loss of approximately $18,000 in the year-ago quarter, and significantly improved the Company's overall gross margin. "Our Rockville location experienced strong sales during the month of September, and demand for ice-time during the upcoming 1998-1999 winter season is robust. During the fourth quarter we anticipate opening three new skating facilities in Chesapeake, Virginia Chesapeake is an independent city located in the South Hampton Roads region of eastern Virginia in the United States. One of the Seven Cities of Hampton Roads, Chesapeake was formed in 1963 by a political consolidation of the City of South Norfolk with the former Norfolk County, ; Danbury, Connecticut “Danbury” redirects here. For other uses, see Danbury (disambiguation). Danbury is a city in Fairfield County, Connecticut, United States. It has an estimated population as of July 1, 2005 of 78,736. ; and, East Lansing, Michigan East Lansing is a city in the U.S. state of Michigan. The city is located directly east of Lansing, Michigan, the state's capital. Most of the city is within Ingham County, though a small portion lies in Clinton County. - all of which are near completion and staffed to jumpstart marketing and sales for the upcoming season." Mr. Tenney concluded, "Our Ballantyne and Cabletel holdings remain important components to the value of ARC, as our 25% and 51% stakes in the two companies, respectively, represent a combined value to our shareholders of approximately $1.84 per share. With an implied combined net asset value of approximately $2.50 per ARC share, the Board of Directors believes the Company's shares are attractively valued, and that at current market prices, repurchases can represent an excellent use of capital." ARC International Corp. is a leading developer and operator of, and full-service equipment supplier to, ice skating ice skating, gliding along an ice surface on keellike runners known as ice skates. Skating as a Sport Skating, besides being an important form of winter recreation and the essential skill in the game of ice hockey (see hockey, ice) has developed facilities in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . ARC also has significant equity holdings in Cabletel Communications Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , AMEX: TTV TTV Transfusion Transmitted Virus TTV Total Thickness Variation (semiconductor wafer planarity) TTV TechTV TTV Total Transaction Value TTV Tapping the Vein (band) TTV Target Test Vehicle ), Canada's leading supplier of broadband equipment, and Ballantyne of Omaha, America's leading manufacturer of motion picture projection and specialty entertainment lighting equipment. Additional corporate information is available at the Company's web site - http://www.arc-atv.com. The Company's Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been prepared in accordance with Canadian Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations. -0-
ARC International Corporation
Consolidated Statements of Operations
(Unaudited, in U.S. Dollars)
Three Months Ended Nine-Months Ended
September 30, September 30,
1998 1997 1998 1997
Net Sales $18,239,397 $19,841,134 $43,065,829 $78,600,462
Cost of Sales 15,101,639 16,773,271 35,558,710 61,132,097
Gross Profit 3,137,758 3,067,863 7,507,119 17,468,365
Selling, General &
Administrative Expenses 3,247,441 3,170,394 9,631,411 13,862,242
Income From Operations (109,683) (102,531) (2,124,292) 3,606,123
Other Income (Deductions):
Share of income of
Ballantyne 541,088 468,104 1,748,096 468,104
Gain (loss) on issuance
of subsidiary's shares 0 10,754 (9,837) 122,329
Gain on sale of
subsidiary's shares 0 0 0 27,717,036
Loss on extinguishment of debt 0 0 0 (1,074,196)
Restructuring charges 0 0 0 (1,634,079)
Interest expense (477,759) (549,836) (1,540,645)(1,687,854)
Interest income 52,319 344,242 342,448 478,040
Depreciation and
amortization (410,885) (487,160) (1,281,915)(1,683,336)
(295,237) (213,896) (741,853) 22,706,044
Income (loss) From
Continuing Operations
Before Income Taxes
& Minority
Interest (404,920) (316,427) (2,866,145) 26,312,167
Income Taxes (recovery) 23,199 14,448 (352,546) 12,347,908
Income (loss) From
Continuing Operations
Before Minority
Interest (428,119) (330,875) (2,513,599) 13,964,259
Minority Interest (115,292) 2,792 (258,461) 1,269,748
Net income (loss) $(312,827) $(333,667)$(2,255,138)$12,694,511
Net Income (loss) Per Share
Basic ($0.02) ($0.02) $(0.16) $0.93
Diluted ($0.02) ($0.02) $(0.16) $0.84
Weighted average
shares outstanding
Basic 14,278,517 13,779,292 14,236,806 13,699,872
Diluted 14,791,096 15,399,046 15,042,641 15,056,838
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