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GRAHAM-FIELD HEALTH PRODUCTS, INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDING SEPT. 30, 1993

 HAUPPAUGE, N.Y., Nov. 11 /PRNewswire/ --Graham-Field Health Products, Inc. (NYSE: GFI), a manufacturer and supplier of healthcare products, today reported revenues and a net loss for the third quarter ended Sept. 30, 1993. Revenues for the quarter were $23,042,000 as compared to $24,421,000 for the same period last year, representing a 6 percent decrease in revenues. Loss before income taxes was $1,045,000 as compared to income before income taxes of $1,449,000 for the same period in the prior year. Net loss for the quarter was $682,000 or $.05 loss per share on 12,815,000 weighted average shares outstanding as compared to net income of $875,000 or $.07 on 12,810,000 weighted average shares outstanding for the same period in the prior year.
 For the nine months ending Sept. 30, 1993, revenues were $69,762,000 as compared to $59,729,000 for the same period last year, representing a 17 percent increase in revenues. Loss before income taxes and a cumulative effect of change in accounting principle was $3,926,000 as compared to income before income taxes of $3,454,000 for the same period last year. Net loss, after the cumulative effect of a change in accounting for income taxes recorded in the first quarter of 1993 of $530,000 or $.04 per share, was $2,075,000 or $.16 per share on 12,789,000 weighted average shares outstanding as compared to net income of $2,054,000 or $.16 on 12,683,000 weighted average shares outstanding for the same period in the prior year.
 The Company attributed the loss principally to lower than anticipated revenues for the three months ended Sept. 30, 1993, an increase in cost of revenues and an increase in general and administrative expenses. The decrease in revenues is due to decreased service and efficiency levels resulting from the continued reorganization of the Company's distribution network, the loss of revenues attributable to certain customers with financial difficulties, and a collapse of a portion of the roof at the Company's primary distribution facility located in St. Louis caused by heavy rainfall.
 The decline in gross margins is attributed to increased revenues in the home healthcare market, which has lower margins than the medical/surgical market. The Company expects that the lower gross profit margins associated with the continuing growth in the home healthcare market will partially be offset by gross margin improvements resulting from manufacturing efficiencies and purchasing efficiencies associated with the implementation of new automated process systems and improved vendor relations. In addition, general and administrative expenses included an adjustment of $150,000, which was recorded to reflect the effects of an audit of the Company's workers' compensation policy for the period ended July 1992.
 Although the roof collapse at the Company's St. Louis facility interrupted and delayed shipments and increased backorders during this period, management believes that the direct impact was not material to the Company's operations, however, management believes that customer service and efficiency levels were adversely impacted with a resultant reduction of revenues which cannot be quantified at this time.
 Irwin Selinger, Chairman and Chief Executive Officer stated, "While revenues and earnings for the quarter were disappointing, we believe the Company's investments over the past 18 months will ultimately reward our shareholders. The industry is undergoing a revolution and our commitment in both distribution technology and the continued expansion of our Consolidation Advantage Program will ultimately position us as the market leader."
 Graham-Field manufactures, markets and distributes more than 20,000 healthcare products for hospital, physician and home use to approximately 16,000 home healthcare, physician, hospital supply and pharmaceutical distributors, retailers and wholesalers.
 GRAHAM-FIELD HEALTH PRODUCTS, INC. AND SUBSIDIARIES
 Consolidated Condensed Statements Of Operations
 (Unaudited)
 Period ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 REVENUES:
 Operations $23,026,000 $24,352,000 $69,712,000 $59,431,000
 Interest 16,000 69,000 50,000 298,000
 Total 23,042,000 24,421,000 69,762,000 59,729,000
 COST AND EXPENSES:
 Cost of
 revenues 16,280,000 15,976,000 49,393,000 38,277,000
 SG&A 7,208,000 6,509,000 22,522,000 16,790,000
 Interest exp. 599,000 487,000 1,773,000 1,208,000
 Total 24,087,000 22,972,000 73,688,000 56,275,000
 (LOSS) INCOME BEFORE
 INCOME TAXES (BENEFIT)
 AND CUMULATIVE EFFECT
 OF CHANGE IN ACCT.
 PRINCIPLE (1,045,000) 1,449,000 (3,926,000) 3,454,000
 INCOME TAXES
 (BENEFIT) (363,000) 574,000 (1,321,000) 1,400,000
 (LOSS) INCOME BEFORE
 CUMULATIVE EFFECT
 OF CHANGE IN ACCT.
 PRINCIPLE (682,000) 875,000 (2,605,000) 2,054,000
 CUMULATIVE EFFECT
 OF CHANGE IN
 ACCOUNTING FOR
 INCOME TAXES --- --- 530,000 ---
 NET (LOSS) INC. $(682,000) $ 875,000 $(2,075,000) $ 2,054,000
 PER SHARE DATA:
 (LOSS) INCOME BEFORE
 CUMULATIVE EFFECT
 OF CHANGE IN ACCT.
 PRINCIPLE $ (.05) $ .07 $ (.20)$ .16
 CUMULATIVE EFFECT
 OF CHANGE IN
 ACCOUNTING FOR
 INCOME TAXES --- --- .04 ---
 NET (LOSS)
 INCOME PER SHARE $ (.05) $ .07 $ (.16)$ .16
 WEIGHTED AVERAGE
 NUMBER OF COMMON
 AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING 12,815,000 12,810,000 12,789,000 12,683,000
 -0- 11/11/93
 /CONTACT: Gary M. Jacobs, chief financial officer of Graham-Field Health Products, 516-582-5900/
 (GFI)


CO: Graham Field Health Products, Inc. ST: New York IN: HEA SU: ERN

MP -- NY014 -- 3107 11/11/93 09:26 EST
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Date:Nov 11, 1993
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