ARC International reports record third quarter sales and earnings; Income From Operations Rises 120%.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , Ontario--(BUSINESS WIRE)--October 30, 1996 ARC's Ballantyne Ballantyne may refer to: Places
Valued at Over $5.00 Per Share 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 record results for the third quarter and nine months ended September September: see month. 30, 1996. All figures are reported in U.S. Dollars. 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 in the third quarter ended September 30, 1996 increased 47% to $26,733,005, compared to $18,235,279 in the third quarter of 1995. The growth in sales for the quarter was largely due to operating strength at ARC's publicly-traded operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Ballantyne of Omaha, Inc. (AMEX: 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. ) and Cabletel Communications Corp. (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 , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : TTV), as well as continued improvements at privately-held subsidiaries, ARC Sports Ltd. and Inteledigm Corp. For the third quarter of 1996, income from operations (before non-recurring gains from the issuance of subsidiaries' shares, interest, other income, income taxes, minority interests and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ) rose 120% to $2,138,784 from $974,046. The strength in income from operations is primarily attributable to the strong financial performances of Ballantyne and Cabletel, each approximately 51%-owned by ARC International. Net income rose 80% to $8,288,614, or $0.64 per share, in the 1996 third quarter, compared to net income of $4,614,605, or $0.43 per share, in the third quarter of 1995. The increase in net income was due to gains of $8,465,499 and $4,936,611, respectively, on ARC's issuance of Ballantyne and Cabletel shares and to an improvement in income from operations. The weighted average number of shares outstanding for the third quarter of fiscal 1996 increased to 12,883,897, compared to 10,822,467 in the year-ago period, principally as a result of 1,817,000 shares issued in a November 1995 institutional private placement and 500,000 shares issued to ANTEC Corp. pursuant to Cabletel's August 1996 purchase of ANTEC's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. distribution operations. For the nine months ended September 30, 1996, net sales increased 31% to $69,754,654, compared to $53,111,280 in the first nine months of 1995. During the current nine month period, income from operations rose 75% to $6,499,515 from $3,724,232, while net income rose 60% to $9,425,532, or $0.74 per share, compared to net income of $5,894,170, or $0.55 per share, in the first nine months of 1995. The 1996 and 1995 net income figures include gains of $8,465,499, and $4,936,611, respectively, on the issuance of subsidiary shares during the period. Per share results are based on a weighted average number of shares outstanding of 12,721,812 and 10,802,708 for the first nine months of 1996 and 1995, respectively. Commenting on the record third quarter results, Arnold S. Tenney, Chairman, President and Chief Executive Officer of ARC, stated, "The third quarter and nine month results reflect the continuing development and strong financial performances of ARC's publicly-traded subsidiaries, Ballantyne and Cabletel, and emphasize the benefit of ARC's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. asset- and value-building strategy. "Both Ballantyne and Cabletel are excellent examples of our ability to nurture NURTURE. The act of taking care of children and educating them: the right to the nurture of children generally belongs to the father till the child shall arrive at the age of fourteen years, and not longer. Till then, he is guardian by nurture. Co. Litt. 38 b. leisure and communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. businesses through financial and operating support, with the longer-term objective of unlocking the value of these businesses through the creation of stand-alone public companies in which we maintain significant equity positions. As an example, at current share prices, ARC's approximately 2,882,000 Ballantyne and approximately 3,340,000 Cabletel shares represent a combined value to ARC shareholders of over $5.00 per share. "Given the strong long-term prospects for Ballantyne and Cabletel, we recently purchased (and retired) from the underwriters of Ballantyne's initial public offering an option to purchase 132,831 Ballantyne shares. In addition, ARC acquired 400,000 Cabletel shares at an average price of $6 through the conversion of an ARC inter-company note and the purchase of shares pursuant to Cabletel's acquisition of ANTEC's Canadian distribution business. These transactions demonstrate ARC's continued, long-term support of these companies. "With Ballantyne and Cabletel established and growing, we are now focusing our attention and resources on actively developing our 75%-held subsidiary ARC Sports, a developer and operator of family entertainment centers built around state-of-the-art ice- skating skating: see ice skating; ice dancing; roller skating. skating Sport in which bladelike runners or sets of wheels attached to shoes are used for gliding on ice or on surfaces other than ice. facilities, and 51%-held Inteledigm, an information services See Information Systems. company." ARC International Corp. acquires and develops companies into attractive public vehicles in which it maintains substantial equity interests. The Company's prime focus is on the leisure, entertainment and communications industries. Through Ballantyne of Omaha, Inc., it is the world's leading manufacturer of motion picture theatre projection equipment. Through Cabletel Communications Corp., it is Canada's leading broadline supplier of equipment for the cable television industry. ARC Sports Ltd. is a leading Canadian operator of ice-based entertainment facilities, and Inteledigm Corporation is a business information company that provides detailed intelligence on companies, markets and distribution channels. Except for the historical information in this press release, it includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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.
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ARC International Corporation
Consolidated Statements of Operations
(Unaudited, in U.S. Dollars)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Net Sales $26,733,005 $18,235,279 $69,754,654 $53,111,280
Cost of Sales 20,327,383 14,048,664 52,825,698 40,560,583
Gross Profit 6,405,622 4,186,615 16,928,956 12,550,697
Selling, General &
Administrative
Expenses 4,266,838 3,212,569 10,429,441 8,826,465
Income From
Operations 2,138,784 974,046 6,499,515 3,724,232
Other Income:
Gain on issuance of
subsidiary's
shares 8,408,484 4,936,611 8,465,499 4,936,611
Interest expense (457,364) (859,544) (1,648,083) (2,136,510)
Other income, net 9,552 16,533 87,030 118,088
7,960,672 4,093,600 6,904,446 2,918,189
Income From Continuing Operations
Before Income Taxes & Minority
Interest 10,099,456 5,067,646 13,403,961 6,642,421
Income Taxes 1,119,789 280,350 2,609,049 582,244
Income From Continuing Operations
Before Minority
Interest 8,979,667 4,787,296 10,794,912 6,060,177
Minority Interest (691,053) 93,906 (1,461,579) 178,345
Income From Continuing
Operations 8,288,614 4,693,390 9,333,333 5,881,832
Discontinued Operations 0 (78,785) 92,199 12,338
Net income $8,288,614 $4,614,605 $9,425,532 $5,894,170
Earnings Per Share
From continuing
operations $0.64 $0.43 $0.73 $0.55
From discontinued
operations $0.00 $0.00 $0.01 $0.00
Net income per share $0.64 $0.43 $0.74 $0.55
Weighted average shares
outstanding 12,883,897 10,822,467 12,721,812 10,802,708
CONTACT: ARC International, Arnold S. Tenney, 416/630-0200 |
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