Arrow Automotive Industries announces new financing commitments and fourth quarter and year end fiscal 1997 operating results.FRAMINGHAM, Mass.--(BUSINESS WIRE)--Oct. 7, 1997--Arrow Automotive Industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר 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. :AI) announced new financing commitments and operating results for its fourth quarter of fiscal 1997 and for the year ended June 28, 1997. The company has received commitments to extend its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. of $20 million plus a replacement term loan of $7.5 million, both maturing on July 31, 2000. The refinancing will provide the company with additional working capital at substantially lower interest rates as compared with current terms. The company expects the refinancing will be completed within the current week. 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 for the current quarter were $19,309,000 compared to net sales of $24,502,000 for the same quarter in fiscal year 1996. Arrow sustained a net loss of $3,273,000 or $1.14 per share compared to a net loss of $624,000 or 22 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the fourth quarter of fiscal 1996. Net sales for the fiscal year were $87,501,000 in 1997 compared to net sales of $103,603,000 in fiscal 1996. Operating results for the current fiscal year were a net loss of $10,997,000 or $3.83 per share compared to a net loss of $1,444,000 or 50 cents per share for the 1996 fiscal year. The fiscal 1997 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. includes a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and non-recurring period charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the closing of the company's California manufacturing facility of $1,100,000 and $1,842,000 respectively; an inventory write-down of $4,000,000 due to excess inventories; and $437,000 of additional accrued environmental liability resulting from the company's adoption of Statement of Position 96-1, Environmental Remediation Liabilities. Also contributing to the fiscal 1997 net loss were lower unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. during the year and manufacturing inefficiencies resulting from consolidation of operations. Arrow's President, Jim L. Osment, stated that, "the decline in sales during the current year is primarily related to lower customer demand combined with a higher level of customer returns." Osment attributed the higher level of customer returns primarily to the consolidation of inventories occurring in the industry as a result of acquisition and merger activity among distributors. Osment stated that great strides have been made to remove excess overhead costs overhead costs see fixed costs. from the company's operations. Osment said, "Arrow has successfully reduced its operating break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. significantly." Looking ahead, Osment indicated that fiscal 1998 was "on plan" with first quarter revenues approximating those of the first quarter of fiscal 1997. Arrow, with headquarters in Framingham, Mass., is one of the nation's largest remanufacturers of precision replacement parts for domestic and import passenger cars, light and heavy trucks, farm vehicles and off-road industrial and construction equipment. Arrow operates remanufacturing and distribution facilities in Spartanburg, SC and Morrilton, Ark. Arrow's shares are 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. (Symbol AI).
Arrow Automotive Industries Inc.
Condensed Statements of Operations
(In thousands except per share data)
Twelve Months Ended
June 28, 1997 June 29, 1996
(52 weeks) (53 weeks)
Net Sales $ 87,501 $ 103,603
Loss before Taxes (11,594) (2,269)
Benefit from Income Taxes (597) (825)
Net Loss $ (10,997) $ (1,444)
Loss Per Share
Net Loss Per Share $ (3.83) $ (0.50)
Average Number of
Shares Oustanding 2,873,083 2,873,083
-0-
(Unaudited)
Three Months Ended
June 28, 1997 June 29, 1996
Net Sales $ 19,309 $ 24,502
Loss before Taxes (3,285) (989)
Benefit from Income Taxes (12) (365)
Net Loss $ (3,273) $ (624)
Loss Per Share
Loss Per Share $ (1.14) $ (0.22)
Average Number of
Shares Outstanding 2,873,083 2,873,083
CONTACT: Arrow Automotive Industries Inc. Jim Fagan or Kathleen Carroll-Coelho, 508/872-3711 |
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