COHR AILING, UP FOR SALE.Byline: Ben Sullivan Daily News Staff Writer Officials at Cohr Inc. dropped a load of bad news on investors Tuesday, saying the company had misstated fiscal 1997 earnings, would take a larger-than-expected quarterly charge, and was again increasing its bad debt estimates. The only good news, it seemed, was that the company is officially up for sale and that U.S. Securities and Exchange Commission investigators have not come calling. Chatsworth-based Cohr runs a hospital equipment maintenance service and group purchasing plan. ``It's very difficult at this point to determine whether or not the basics of the company are still there,'' said Wedbush Morgan Securities analyst Roxanne Cheng, who participated in a conference call with the company Tuesday afternoon. ``I'm very disturbed.'' Rusty rust·y adj. rust·i·er, rust·i·est 1. Covered with rust; corroded. 2. Consisting of or produced by rust. 3. Of a yellowish-red or brownish-red color. 4. Page, Cohr's investor relations Investor relations The process by which the corporation communicates with its investors. consultant, did not return telephone calls for comment. Cohr officials held the conference call ostensibly os·ten·si·ble adj. Represented or appearing as such; ostensive: His ostensible purpose was charity, but his real goal was popularity. to discuss the company's third-quarter earnings, but the focus of the discussion was on results of an external audit commissioned by the firm's board of directors in December. The audit found that rather than a projected $8 million charge for fiscal 1998, the company will have to take a $12 million charge for the first three quarters alone. It will also increase by $1.5 million its allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. to $3.7 million. The audit also revealed that as a result of past sales being prematurely recorded and liabilities understated, Cohr had grossly inflated its 1997 earnings. Instead of $4.8 million worth of net income, or 93 cents a share for the year, the company actually had made just $2.4 million, or 46 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. . ``Sales premature recorded, liabilities understated; that's not good,'' Cheng said. Beyond the disappointing financial news, Cohr said its board of directors officially has decided to put the company up for sale and already has received several unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective offers. Cheng said she was encouraged by the announcement. ``It appears it will take so long to turn this company around given the upheaval that it may be better to start afresh a·fresh adv. Once more; anew; again: start afresh. afresh Adverb once more Adv. 1. with a whole new organization,'' she said. |
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