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ELEK-TEK, INC. REPORTS SECOND QUARTER RESULTS

 SKOKIE, Ill., Sept. 1 /PRNewswire/ -- Elek-Tek, Inc. (NASDAQ: ELEK) reported results for the second quarter and first six months ended June 30, 1993. Elek-Tek recently completed an initial public offering of 1.5 million of its common shares at a price of $10.75 per share.
 Net sales for the second quarter increased 21 percent to $47.0 million from $38.6 million in the comparable 1992 quarter. Pro forma net income increased 117 percent to $827,000 from $381,000. Pro forma net income per share increased to $.15 from $.07 per share.
 For the six months ended June 30, 1993 net sales increased 15 percent to $95.7 million from $83.0 million in the comparable 1992 period. Pro forma net income increased approximately 114 percent to $2.0 million from $947,000. Pro forma net income per share increased to $.38 from $.18 per share.
 The company said the sales increase in the 1993 second quarter was attributable to increases in retail, mail order and direct sales of 18 percent, 14 percent and 68 percent respectively, compared to the 1992 quarter. The largest dollar increase was in retail sales which resulted from increased sales at the company's two newest superstores, one of which opened in February 1992. In addition, direct sales increase by $2.7 million largely reflecting increased sales to corporate customers generated by an expanded sales force. Comparable store sales for the second quarter of 1993 increased 17.6 percent over the second quarter of 1992.
 Elek-Tek, Inc. is a full line, regional retailer of microcomputer hardware, software and related accessories and supplies. Elek-Tek currently operated four microcomputer retail centers ("superstores") in the Chicago metropolitan area and plans to open a fifth store in Indianapolis in late 1993. Elek-Tek also sells its products through a mail order operation and a direct sales force to individuals, businesses, institutions and government agencies.
 ELEK-TEK. INC
 Statement Of Operations
 (In thousands except per share amounts - Unaudited)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Net sales $46,960 $38,584 $95,689 $83,041
 Cost of sales 39,548 32,392 80,830 70,222
 Gross profit 7,412 6,192 14,859 12,819
 Selling, general and
 administrative expenses 5,854 5,461 11,143 11,113
 Income from operations 1,558 731 3,716 1,706
 Other (income) expenses:
 Other income, net (53) (44) (104) (82)
 Interest expense 255 151 503 235
 Total 202 107 399 153
 Income before state
 income tax provision 1,356 624 3,317 1,553
 State income
 tax provision 13 11 38 20
 NET INCOME $ 1,343 $ 613 $ 3,279 $ 1,533
 PRO FORMA INCOME DATA:
 Pro forma income before
 income tax provision 1,356 624 3,317 1,553
 Pro forma income tax
 provision (A) 529 243 1,293 606
 Pro forma net income $ 827 $ 381 $ 2,024 $ 947
 Pro forma net income
 per share (B) $ .15 $ .07 $ .38 $ .18
 Pro forma weighted average
 number of common shares
 outstanding 5,360 5,360 5,360 5,360
 NOTES:
 (A) -- Since July 1987, the company has been treated as an S Corporation for income tax purposes and accordingly was not subject to federal and certain state income taxes. The pro forma provision for income taxes represents an effective tax rate of 39 percent which would have been recorded had the company been a C Corporation.
 (B) -- Pro forma net income per share is based on 5,360,000 shares of common stock outstanding which includes 4,800,000 shares outstanding and 560,000 shares of common stock assumed to be outstanding. The 560,000 shares assumed to be outstanding are equivalent to the number of shares required, at the public offering price, net of underwriting discount, to fund the estimated distribution of the company's undistributed S Corporation earnings through Aug. 18, 1993, the date on which the S Corporation election was terminated.
 -0- 9/1/93
 /CONTACT: Hal Goldman, president and CEO of Elek-Tek, Inc., 708-677-7660, ext. 5002/
 (ELEK)


CO: Elek-Tek, Inc. ST: Illinois IN: REA CPR SU: ERN

SM -- NY014 -- 7813 09/01/93 09:18 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
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