DEVCON INTERNATIONAL REPORTS THIRD-QUARTER RESULTS
DEVCON INTERNATIONAL REPORTS THIRD-QUARTER RESULTS DEERFIELD BEACH, Fla., Nov. 12/PRNewswire/Devcon International
Corp. (NASDAQ: DEVC) today reported lower nine-months earnings primarily as a result of a disappointing third quarter in the face of continuing economic pressure.
For the third quarter ended Sept. 30, 1991, net income was $805,000 or 18 cents per share compared to earnings of $4,165,000 or 93 cents per share in the corresponding quarter last year. In the year-ago quarter, net income included a one-time $883,000 after-tax gain on the sale of a parcel of Florida real estate. Revenues were $19.8 million compared to $27.2 million which included $4.4 million from the sale of real estate in 1990. For the nine months, net income was $6,365,000 or $1.40 per share compared with $10,221,000 or $2.28 per share earned a year ago. Revenues totaled $73.1 million versus $68.2 million. Devcon Chairman and President Donald L. Smith, Jr., said, "The unfavorable economic climate which has impacted and continues to impact our Florida operations also affected our concrete operations during the third quarter -- most notably St. Maarten. The company's concrete and related products business in the Virgin Islands continues to operate satisfactorily." Smith noted that the company has made substantial investments to improve the productivity of the concrete and related products business and is well-positioned to take advantage of any resurgence of construction activity. Devcon's U.S. construction business is operating at a loss, Smith pointed out, and Caribbean construction revenues and earnings have declined "although our island construction operations continue to perform at a good margin of profitability." He said the company's Crown Bay Marina on St. Thomas continues to struggle as, among other things, charter-boat operators and yachtsmen feel the general economic pinch. Smith said that despite the current profit pressure he remains optimistic about the company's opportunities in the Caribbean markets. Devcon operates ready-mix concrete, aggregate, concrete block and bulk cement facilities; dredges harbors; builds golf courses and performs other heavy construction work in the Caribbean. Principal operations are on St. Thomas and St. Croix in the U.S. Virgin Islands, on the independent island nations of Antigua and Dominica, on St. Maarten, Netherlands Antilles, and on Tortola, British Virgin Islands. In Florida, where the company is headquartered, Devcon constructs golf courses and prepares sites for shopping malls, residential developments and industrial parks. DEVCON INTERNATIONAL CORP. CONSOLIDATED SUMMARY OF EARNINGS (UNAUDITED) (In thousands except per-share amounts) Quarter Ended Nine Months Ended Sept. 30, Sept. 30, 1991 1990 (A) 1991 1990 (A) Revenues $19,777 $27,171 $73,085 $68,238 Earnings before income taxes 894 4,469 6,723 10,646 Income taxes 89 304 358 425 Net earnings $ 805 $ 4,165 $ 6,365 $10,221 Net earnings per common share $ .18 $ .93 $1.40 $2.28 Weighted average common shares outstanding 4,547 4,481 4,539 4,468 (A) -- Includes revenues of $4,425,000, tax provision of $520,000 and net gain of $883,000 from the sale of real estate. Subject to year-end audit. -0- 11/12/91 /CONTACT: Richard L. Hornsby, executive vice president of Devcon International Corp., 305-429-1500; or Investor Relations Consultants 813-796-1452, for Devcon International Corp./ (DEVC) CO: Devcon International Corp. ST: Florida IN: CST SU: ERN AW-MR -- FL002 -- 3337 11/12/91 09:42 EST
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|Date:||Nov 12, 1991|
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