Electronic Retailing Systems International reports second quarter results.WILTON Wilton, town, United States Wilton, town (1990 pop. 15,989), Fairfield co., SW Conn.; settled c.1701, inc. 1802. It is a residential and agricultural town. Wilton, town, England Wilton, town (1991 pop. , Conn.--(BUSINESS WIRE)--July 26, 1995--Electronic Retailing Systems International Inc. (ERS ERS, n.pr See extended rotated side-bent. ) today reported financial results for the quarter ended June June: see month. 30, 1995. Net loss for the second quarter of 1995 was $2,981,000, or $.25 per share, compared to a net loss of $2,820,000, or $.24 per share for the same period last year. Total revenues for the second quarter of 1995 were $397,000 compared to revenues of $976,000 during the corresponding 1994 quarter. The 1994 results include the effect of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for stock compensation expense of $291,000, or $.02 per share. Per share amounts do not reflect common stock equivalents that are anti-dilutive. "The results as reported are consistent with the company's expectations," commented Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. F. Failing, Jr., ERS's president and chief executive officer. "We continued to build sales momentum during the second quarter. There have been more planned store installations of electronic shelf label Electronic Shelf Label is a system used by Retailers for displaying price on shelves. Automating the price change process enhances in-store merchandising and store compliance. These features add up to increased sales and reduced overall operational costs. systems announced in the industry this year, than have been installed in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. in the last four years combined. ERS is proud to have been the vendor of choice for two thirds of these announced stores. Revenues were lower than the same period of last year, largely due to the uneven timing of our system installations. We are continuing to expand our customer base to include new chains as most recently indicated by the letter of intent we signed this week with Kmart For the Australasian department store chain, see Kmart Australia. "K-Mart" is also a nickname for NBA player Kenyon Martin. Kmart is a chain of department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. to install the ERS system in two newly-opening Super Kmart Centers subject to meeting Kmart's contractual and operational requirements (programming) operational requirements - Qualitative and quantitative parameters that specify the desired capabilities of a system and serve as a basis for determining the operational effectiveness and suitability of a system prior to deployment. . This will mark ERS's first move into the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive mass merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain supercenter segment of the retail industry. We are also pleased by the $8.5 million private equity placement we announced today. Based on the multi-store arrangements with chains including Stop & Shop, Shaw's, and Big Y Supermarkets announced earlier this year, we believe that ERS will show significant growth in our system installations during the second half of this year, further strengthening our position in this expanding market." The net loss for the six months ended June 30, 1995 was $5,768,000, or $.49 a share, compared to a net loss of $5,065,000, or $.44 a share, for the corresponding 1994 period. Revenues for the six months ended June 30, 1995 were $923,000 compared to revenues of $1,938,000 for the first half of 1994. Results for the six months ended June 30, 1995 and 1994 included non-cash charges for stock compensation expense of $54,000 and $582,000, respectively, or $.01 and $.05 per share. ERS, headquartered in Wilton, Connecticut Wilton is a town in Fairfield County, Connecticut, in the United States. As of the 2000 census, the town population was 17,633. It is one of the most affluent communities in the United States. , is a leading developer and supplier of electronic shelf label systems in the emerging market for those systems. ERS assists retailers in delivering accurate pricing information to consumers and provides the opportunity for its customers to achieve a competitive advantage through labor savings and enhanced merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. effectiveness. The company's common stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol "ERSI ERSI Environment Remote Sensing Institute ". -0-
Electronic Retailing Systems International Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1994 1995 1994
Revenues System sales $ 227 $ 751 $ 666 $ 1,530 Evaluation system sales 131 211 187 353 Maintenance 39 14 70 55 Total revenues 397 976 923 1,938 Cost of goods sold 844 1,312 1,537 2,422 Gross profit (447) (336) (614) (484) Operating expenses Selling, general and administrative 1,594 1,595 3,239 2,874 Research and development 807 586 1,704 1,084 Stock option compensation 27 291 54 582 Depreciation and amortization 27 40 54 90 Total operating expenses 2,455 2,512 5,051 4,630 Loss from operations (2,902) (2,848) (5,665) (5,114) Other income (expenses) (79) 28 (103) 49 Net loss $(2,981) $(2,820) $(5,768) $(5,065) Earnings per share Weighted average common shares outstanding 11,746 11,721 11,737 11,643 Net loss per common share $ (0.25) $ (0.24) $ (0.49) $ (0.44) -0-
Electronic Retailing Systems International Inc.
Consolidated Pro Forma Balance Sheet
(in thousands)
Pro Forma
June 30, Pro Forma June 30, Dec. 31,
1995 Adjustments 1995 1994
(unaudited) (unaudited) (unaudited)
Assets Cash and short-term investments $ 633 $ 6,000(a) $ 6,633 $ 2,081 Accounts receivable 350 350 504 Inventories 1,131 1,131 1,376 Prepayments and other current assets 428 (115)(b) 313 437 Total current assets 2,542 5,885 8,427 4,398 Equipment, net 676 676 664 Other non-current assets 126 126 133 Total assets $ 3,344 $ 5,885 $ 9,229 $ 5,195 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 1,257 $ -- $ 1,257 $ 946 Line of credit borrowings 2,500 (2,500)(a) -- -- Total current liabilities 3,757 (2,500) 1,257 946 Long-term debt 3,033 3,033 1,981 Stockholders' equity Preferred stock, Series A $7.50 Cumulative Convertible ($1.00 par value; liquidation value $100.00 per share; 120,000 shares authorized, 85,000 shares issued and outstanding) -- 85(c) 85 -- Common stock (par value $0.01 per share; 25,000,000 shares authorized, 11,747,099 shares issued and outstanding) 117 117 117 Additional paid-in capital 26,511 8,300(d) 34,811 26,457 Accumulated deficit (30,074) (30,074) (24,306) Total stockholders' equity (deficit) (3,446) 8,385 4,939 2,268 Total liabilities and stockholders' equity $ 3,344 $ 5,885 $ 9,229 $ 5,195 Notes to Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Balance Sheet: Presented above are the unaudited historical and pro forma balance sheets as of June 30, 1995. The pro forma balance sheet as of June 30, 1995 reflects the sale of 85,000 shares of $7.50 cumulative convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , as if the sale had occurred as of that date. The comparative historical balance sheet as of Dec. 31, 1994 is also presented. Pro forma adjustments as of June 30, 1995 are as follows: (a) Proceeds from issuance of convertible preferred stock ($8.5 million), net of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of line of credit ($2.5 million). (b) Deferred transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). charged to equity upon consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. . (c) Issuance of 85,000 shares of convertible preferred stock, $1.00 par value. (d) Proceeds from issuance of convertible preferred stock in excess of par value ($8.415 million), net of transaction costs (see (b) above). CONTACT: Electronic Retailing Systems International Inc. Bruce F. Failing, Jr., 203/761-7900 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion