Cerplex Announces Third Quarter 1997 Results.TUSTIN Tustin (tŭs`tĭn), residential city (1990 pop. 50,689), Orange co., S Calif., part of the greater Los Angeles area; founded 1868, inc. 1927. Plastics, furniture, computers, and electronic equipment are manufactured. , Calif.--(BUSINESS WIRE)--Nov. 13, 1997--The Cerplex Group Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : CPLX), a leading provider of electronic repair services, spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. and returns processing, Thursday Thursday: see week. announced third quarter income of $1 million or $0.03 per share compared with a $12.9 million net loss or ($0.12) per share for the quarter ended Sept. 30, 1996. 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 quarter ended Sept. 30, 1997 were $26.6 million compared with $50.6 million for the third quarter of 1996. The decrease in net sales in the three month period of 1997 compared with the corresponding period of the prior year is attributable to the sale of its subsidiary, Modcomp/Cerplex L.P. ("Modcomp") effective June 1997, the April 1997 sale of Peripheral Computer Support Inc. ("PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. "), a decrease in net sales in the company's North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. primarily attributable to the company's liquidity problems, particularly in relation to spare parts sales and a decrease in sales in the company's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations. Net income during the third quarter of 1997 is attributable to a reversal of a $2.8 million valuation reserve related to trade credits received in conjunction with a telephone remarketing program. For the nine month period ended Sept. 30, 1997, Cerplex reported a loss of $13.3 million compared with a loss of $13.8 million for the comparable period in 1996. Net sales for the nine month period ended Sept. 30, 1997 were $112.2 million, down from $142.8 million for the comparable period in 1996. The decrease in net sales compared to the nine months of 1996 is due partially to the sales of operations in 1997 discussion above, the April 1, 1996 sale of the InCirT Division and the closing of the company's Texas subsidiary. The decrease in net sales due to divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of subsidiaries was partially offset by European sales attributable to the May 1996 purchase of Cerplex SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. . About Cerplex Cerplex is an independent provider of service outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. for the high technology industry. The company specializes in repair services, spare parts sourcing and service management focusing on the computer peripherals, office automation and communication markets. Specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. post manufacturing capabilities include product repair, remanufacturing and conversion, parts sales and management, returns processing, logistics and service administration. Additionally, the company offers contract manufacturing of high value products and calibration calibration /cal·i·bra·tion/ (kal?i-bra´shun) determination of the accuracy of an instrument, usually by measurement of its variation from a standard, to ascertain necessary correction factors. services in Europe. The company's custom developed programs can offer manufacturers and service providers a reduction in service costs, shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. response times, and improved customer satisfaction. The company has transportation hubs Transportation hub is a location where traffic is exchanged across several modes of transport. These modes may include any of railway, tramway, rapid transit, bus, automobile, truck, airplane, spacecraft, ship, ferry, pedestrian or any other kind of transportation. and specialized facilities in the U.S. and Europe that enable it to support the diverse needs of its global customers. Visit Cerplex's homepage at www.cerplex.com . -0-
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
Sept. 30, Dec. 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 18,512 $ 23,782
Accounts receivable, net 10,782 19,539
Inventories 4,993 17,326
Net assets of discontinued
operations -- 1,681
Prepaid expenses and other
current assets 6,579 8,146
Total current assets 40,866 70,474
Property, plant and equipment,
net 22,822 28,039
Goodwill -- 4,953
Other long-term assets 1,268 2,028
Total assets $ 64,956 $ 105,494
-0-
LIABILITIES & STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable to banks $ 29,749 $ 6,000
Notes payable 4,714 5,026
Accounts payable 12,832 19,498
Accrued and other
current liabilities 21,143 25,347
Income taxes payable 174 1,729
Total current liabilities 68,612 57,600
Long-term debt, less current
portion 18,818 56,817
Long-term obligations 6,214 6,214
-0-
Commitments and contingencies
Stockholders' deficiency:
Preferred stock, par value $0.001;
3,066,340 shares authorized, none
outstanding. 8,000 shares Series B
Convertible Preferred Stock of which
379 and 7,197 are issued and outstanding
as of Sept. 30, 1997 and Dec. 31, 1996,
respectively; aggregate liquidation
preference of $758 and $14,394 as of
Sept. 30, 1997 and Dec. 31, 1996,
respectively. 379 7,197
Common stock, par value $0.001
per share; 60,000,000
shares authorized, 34,913,613 and
14,110,949 issued and outstanding
as of Sept. 30, 1997
and Dec. 31, 1996, respectively. 35 14
Additional paid-in capital 59,340 51,648
Notes receivable from
stockholders -- (139)
Unearned compensation -- (73)
Accumulated deficiency (87,745) (74,414)
Cumulative translation
adjustment (697) 630
Total stockholders' deficiency (28,688) (15,137)
Total liabilities and
stockholders' deficiency $ 64,956 $ 105,494
-0-
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
1997 1996 1997 1996
(As Restated) (As Restated)
Net sales $ 26,571 $ 50,636 $ 112,177 $ 142,821
Cost of
sales 19,720 46,885 95,796 121,170
Gross
profit 6,851 3,751 16,381 21,651
Selling,
general
and
administrative
expenses 3,129 11,842 23,250 27,702
Restructuring
charges -- 2,084 4,307 2,084
Operating
income
(loss) 3,722 (10,175) (11,176) (8,135)
Equity in
earnings
from
joint
venture -- -- -- 357
Gain on
sale of
InCirT
Division -- -- -- 450
Loss on
sale of
MODCOMP (394) -- (394) --
Gain on
sale of Peripheral
Computer Support
Inc. -- -- 6,607 --
Other
(income)
expense,
net (449) 391 549 170
Interest
expense,
net 1,925 1,811 5,881 4,980
Income
(loss)
before
income
taxes 1,852 (12,377) (11,393) (12,478)
Provision
for income
taxes 823 563 1,938 1,333
Net income
(loss) $ 1,029 $ (12,940) $ (13,331) $(13,811)
Net income
(loss) per
common
share $ 0.03 $ (1.12) $ (0.49) $ (1.23)
Weighted
average
common
and common
equivalent
shares
outstanding 36,833 13,422 27,426 13,332
-0- NOTE TO EDITORS: This news release contains 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. The company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the company's credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , business and results of operations; the company's limited capital resources and its ability to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the potential impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of assets; the company's dependence on key customers and their financial viability; the impact of competition; and the company's abilities to effectively manage growth. These and other risk factors are discussed in the company's filings on Forms 8-K, 10-Q and 10-K. CONTACT: Cerplex, Tustin Robert W. Hughes, 714/258-5631 rhughes@cerplex.com |
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