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BIZMART CONTRIBUTES $1 MILLION TO NET INCOME; INTELLIGENT POSTS 33RD RECORD-BREAKING QUARTER

 BIZMART CONTRIBUTES $1 MILLION TO NET INCOME;
 INTELLIGENT POSTS 33RD RECORD-BREAKING QUARTER
 EXTON, Pa., March 2 /PRNewswire/ -- Intelligent Electronics, Inc. (NASDAQ-NMS:INEL) today announced its 33rd consecutive record-breaking quarter, reporting revenues of $691.1 million and earnings of $10.6 million, or $0.28 per share on 38.7 million shares adjusted for a 2-for-1 stock split effective earlier this month.
 The quarter ended Feb. 1, 1992, marks more than eight years of consistent year-over-year growth in both earnings and revenues. The company's new fiscal year began Feb. 2.
 Intelligent's consolidated revenues rose 60 percent over 1991's comparable quarter revenues of $431.7 million, primarily due to the rapid growth of the re-merchandised and expanded chain of BizMart supercenters acquired last June. On target with its strategic expansion plan, the BizMart chain contributed $175 million to the quarter's revenues and $1 million to Intelligent's consolidated net income.
 According to Richard D. Sanford, Intelligent's chairman and chief executive officer, "Intelligent's strategy of capitalizing on synergies in addressing complementary market segments is resulting in greater efficiencies, increased customer demand, and hearty growth."
 SUPERCENTER RETAILING
 Revenues from Intelligent Electronics' Consumer Retail Group, operating under the chain name BizMart, rose 148 percent to $175 million from BizMart's pre-acquisition revenues of $70.5 million reported for its quarter ended Jan. 26, 1991.
 Net income from the retail group rose to $1 million, accelerating the rate of profitability set in motion last quarter when the chain contributed $108,000 in earnings to the company during its first full quarter as a subsidiary. The retail group contributed $0.03 per share during the period.
 Same store sales for the quarter, calculated on a base of 47 locations in operation a year or more, averaged 54 percent.
 According to Sanford, the retail group's positive contribution reflects the success of the company's innovative approach to office productivity. "BizMart's results affirm Intelligent's strategy of focusing on office productivity solutions to become customers' retailer of choice. Customers are responding enthusiastically to the total office productivity concept," he said.
 WHOLESALE DISTRIBUTION
 Revenues from Intelligent's wholesale distribution business reached $516.0 million, increasing 20 percent from $431.7 achieved during the comparable quarter last year, when the group comprised the company's total sales. Net income from the wholesale distribution group was $9.6 million. The quarter's results reflect the company's market driven pricing strategy and its focus on building efficiencies and driving costs down. Sanford said the company effectively counteracted industrywide margin pressures through enhanced efficiencies in selling, general and administrative expenses. He cited the wholesale distribution group's income from operations, which achieved 3.4 percent of revenues, compared to 3.5 percent during the quarter ended Oct. 31, 1991.
 "Last year we focused on building distribution efficiencies and driving down costs. This quarter we continued that focus, with the added goal of generating demand in targeted niche markets," said Sanford. He cited several recently introduced programs designed to stimulate demand, including the Intelligent Systems Group, which links high-end systems resellers nationwide to service multi-regional accounts; the Minority Network, which assists minority- and women-owned businesses in securing federal and state contracts; and an affiliate program which supplies technology products to niche-specific resellers and electronics retailers.
 Intelligent Electronics is a leading source of office productivity solutions. Its network of 75 BizMart supercenters and more than 1,500 franchised and affiliated resellers serves businesses ranging in size from one to 100,000 employees in all 50 states and more than 700 market areas nationwide.
 INTELLIGENT ELECTRONICS, INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited; in thousands, except per-share data)
 Three months ended Feb. 1, 1992 Jan. 31, 1991
 Revenues $691,098 $431,695
 Cost of goods sold 623,485 397,625
 Gross profit 67,613 34,070
 Operating expenses:
 Selling, general and
 administrative expenses 43,738 15,525
 Amortization of intangibles,
 primarily goodwill 3,136 1,299
 Retail store pre-opening costs 564 ---
 Total operating expenses 47,438 16,824
 Income from operations 20,175 17,246
 Other income (expense):
 Investment and other income, net 178 1,507
 Interest expense (2,377) (2,109)
 Income before provision for
 income taxes 17,976 16,644
 Provision for income taxes 7,331 6,408
 Net Income 10,645 10,236
 Earnings per common share and share equivalents:
 Primary $0.28 $0.36
 Fully diluted $0.28 $0.34
 Weighted average number of common shares
 and share equivalents outstanding:
 Primary 38,010,647 28,721,808
 Fully diluted 38,683,015 29,881,770
 INTELLIGENT ELECTRONICS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheet
 (In thousands, except share-related data)
 ASSETS:
 Feb. 1, 1992 Oct. 31, 1991
 (unaudited)
 Current assets:
 Cash and cash equivalents $64,490 $93,169
 Accounts receivable, net 44,119 37,922
 Inventory 285,485 300,459
 Prepaid expenses and other current assets 7,054 5,265
 Deferred income taxes 3,125 2,667
 Total current assets 404,273 439,482
 Property and equipment 43,930 39,783
 Intangible assets, primarily goodwill, net 221,028 225,848
 Other assets 1,184 1,402
 Total assets $670,415 $706,515
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Current liabilities:
 Current portion of long-term debt $631 $729
 Accounts payable 305,340 359,913
 Accrued liabilities 45,475 41,640
 Total current liabilities 351,446 402,282
 Long-term debt 228 344
 Subordinated debt 29,462 29,412
 Commitments and contingencies --- ---
 Shareholders' equity:
 Common stock $.01 par value per share:
 Authorized 50,000,000 shares,
 issued and outstanding:
 36,592,294 and 36,144,694 shares 366 361
 Additional paid-in capital 193,307 189,155
 Retained earnings 95,606 84,961
 Total shareholders' equity 289,279 274,477
 Total liabilities and
 shareholders' equity $670,415 $706,515
 INTELLIGENT ELECTRONICS, INC. AND SUBSIDIARIES
 Consolidated Statement of Cash Flows
 (Unaudited; in thousands)
 Three months ended Feb. 1, 1992 Jan. 31, 1991
 CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income $10,645 $10,236
 Adjustments to reconcile net income to net cash
 provided by (used for) operating activities:
 Depreciation and amortization 5,782 2,161
 Provision for deferred taxes (457) 63
 Loss on disposal of fixed assets 15 6
 Provision for losses on trade receivables 119 210
 Changes in assets and liabilities net of effects
 from acquisitions:
 Accounts receivable (6,327) 3,098
 Inventory 14,850 (7,086)
 Other current assets (1,901) (1,392)
 Accounts payable (54,235) (24,296)
 Accrued liabilities 3,501 1,166
 Net cash used for operating activities (28,008) (15,834)
 CASH FLOWS FROM INVESTING ACTIVITIES:
 Acquisition of property and equipment,
 net of disposals (6,654) (1,330)
 Purchase of net assets of franchised center,
 less cash acquired --- (1,230)
 Net proceeds from sale of
 company-owned center 216 ---
 Tax benefit realized from acquired entities 1,675 152
 Other 149 83
 Net cash used for investing activities (4,614) (2,325)
 CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from exercise of stock options 3,967 328
 Proceeds from exercise of warrants 190 1,450
 Reduction in capital lease obligations (214) (74)
 Net cash provided by financing activities 3,943 1,704
 NET DECREASE IN CASH AND CASH EQUIVALENTS (28,679) (16,455)
 CASH AND CASH EQUIVALENTS
 AT BEGINNING OF PERIOD 93,169 120,721
 CASH AND CASH EQUIVALENTS AT END OF PERIOD $64,490 $104,266
 /delval/
 -0- 3/2/92
 /CONTACT: Patrice Johnson, vice president, 215-458-6706, or Bob Yablunsky, director, 215-458-6668, both of Intelligent Electronics/
 (INEL) CO: Intelligent Electronics, Inc. ST: Pennsylvania IN: REA SU: ERN


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