Compass Plastics & Technologies Inc. Reports Third Quarter Results.GARDENA Gardena (gärdē`nə), city (1990 pop. 49,847), Los Angeles co., SW Calif., an industrial suburb of Los Angeles; inc. 1930. Often called "Freeway City" because of its proximity to several major roads, Gardena manufactures aircraft , Calif.--(BUSINESS WIRE)--Sept. 22, 1997--Compass Plastics & Technologies Inc. (Nasdaq/NMS:CPTI CPTI Conscience and Peace Tax International CPTI Counselling and Psychotherapy Training Institute (Edinburgh, Scotland, UK) CPTI Center for Patent and Trademark Information CPTI Concrete Polishing Technical Institute ) Monday Monday: see week. announced results for the third quarter ended July July: see month. 27, 1997. Net income for the quarter was $387,000, or 11 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. on sales of $9.6 million. Net income for the nine months ended July 27, 1997, was approximately $1.6 million, or 44 cents per share, on sales of $29.9 million. For the company's predecessor, net income for the three months ended July 28, 1996, was $516,000 on sales of $8.5 million. Net income for the nine months ended July 28, 1996, was $1.3 million on sales of $27.9 million. The company's predecessor received tax treatment under subchapter S Subchapter S IRS regulation that gives a corporation with 35 or fewer shareholders the option of being taxed as a partnership to escape corporate income taxes. of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. , as a result of which federal income taxes were paid by the individual shareholders and the predecessor's income tax expense reflected only California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). income taxes. Had the company's predecessor paid federal income taxes, as the company now does, the net income for the three months ended July 28, 1996, would have been $314,000, and for the nine months ended July 28, 1996, net income would have been $810,000. Income from operations for the three months ended July 27, 1997, was $946,000, compared with $620,000 for the 1996 period. Income from operations for the nine months ended July 27, 1997, was approximately $3.3 million, compared with $1.7 million for the 1996 period. Commenting on the quarter's results, Chief Executive Officer Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. Gibbs Gibbs , Josiah Willard 1839-1903. American mathematician and physicist who formulated the theoretical foundation of physical chemistry, developed vector analysis, and conducted optical and thermodynamic research. Noun 1. said: "We are pleased with the company's performance during the third quarter. The increase in earnings is principally due to improved sales and our continued efforts to increase productivity and quality." During the third quarter, the company's revenues increased as a result of growing demand in its core markets. Also during the quarter, the company took possession of its new "build-to-suit" manufacturing facility in Tijuana, Mexico, and commenced the installation of its production equipment. This new facility has been logistically located near many of its customers' manufacturing plants in Mexico. On Sept. 3, 1997, the company completed its initial public offering of 1.65 million shares of common stock priced at $8 per share. The underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. was co-managed by Cruttenden Roth Inc. and Josephtal Lyon Lyon English Lyons City (pop., 1999: city, 445,452; metro. area, 1,348,932), east-central France. Located at the confluence of the Rhône and Saône rivers, it was founded as the Roman military colony Lugdunum in 43 BC (see & Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. Inc. Compass Plastics & Technologies Inc. through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , AB Plastics Corp., is a leading contract manufacturer and assembler Software that translates assembly language into machine language. Contrast with compiler, which is used to translate a high-level language, such as COBOL or C, into assembly language first and then into machine language. of custom injection-molded plastic components in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . The company manufactures the plastic exteriors of computer monitors, televisions, electronic music keyboards and other consumer electronics equipment. In addition to injection-molded components, the company offers a broad range of "value-added" services, including painting, decorating and assembly. -0-
Compass Plastics & Technologies Inc.
Statement of Operations
(Unaudited)
Successor Predecessor
nine months ended nine months ended
July 27, 1997 July 28,1996
Sales $ 29,888,702 $ 27,946,363
Cost of Sales $ 24,292,431 $ 24,774,196
Gross Profit $ 5,596,271 $ 3,172,167
Selling Expenses $ 482,443 $ 347,857
General Administrative $ 1,772,985 $ 1,152,406
Total $ 2,255,428 $ 1,500,263
Operating Income $ 3,340,843 $ 1,671,904
Interest Expense $ 694,923 $ 325,001
Other Expense/(Income) $ (5,339) $ (2,269)
Income Before Income
Taxes $ 2,651,259 $ 1,349,172
Income Taxes (a) $ 1,084,000 $ 20,645
Net Income $ 1,567,259 $ 1,338,527
Weighted Average Shares
Outstanding 3,600,000 N/A
Earnings Per Share $ 0.44
Proforma Income Tax Data
Income Before Income
Taxes $ 1,349,172
Proforma Income Taxes (b) $ 539,669
Net Income $ 1,567,259 $ 809,503
Successor Predecessor
three months ended three months ended
July 27, 1997 July 28, 1996
Sales $ 9,644,337 $ 8,536,387
Cost of Sales $ 7,899,182 $ 7,436,361
Gross Profit $ 1,745,155 $ 1,100,026
Selling Expenses $ 188,310 $ 124,220
General Administrative $ 610,919 $ 355,339
Total $ 799,229 $ 479,559
Operating Income $ 945,926 $ 620,467
Interest Expense $ 243,680 $ 98,913
Other Expense/(Income) $ (5,339) $ (2,269)
Income Before Income
Taxes $ 707,585 $ 523,823
Income Taxes (a) $ 320,230 $ 8,200
Net Income $ 387,355 $ 515,623
Weighted Avg. Shares
Outstanding 3,600,000 N/A
Earnings Per Share $ 0.11
Proforma Income Tax Data
Income Before Income
Taxes $ 523,823
Proforma Income Taxes (b) $ 209,529
Net Income $ 387,355 $ 314,294
-0- (a) For the 1996 fiscal periods, the company filed income taxes under the subchapter S of the Internal Revenue Code. Under these provisions, the company paid only California income taxes. Federal income taxes were paid by the individual shareholders. (b) Reflects the provision for income taxes using a 40 percent tax rate for the 1996 fiscal periods. CONTACT: Compass Plastics & Technologies Inc., Gardena Paul J. Iacono, 213/770-8771 or Coffin Communications Group, Sherman Oaks, Calif. William Coffin/Rachel Reynolds, 818/789-0100 |
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