GUEST SUPPLY REPORTS FOURTH QUARTER AND YEAR-END RESULTS
GUEST SUPPLY REPORTS FOURTH QUARTER AND YEAR-END RESULTS NORTH BRUNSWICK, N.J., Dec. 5 /PRNewswire/ -- Guest Supply, Inc.
(NASDAQ: GEST), announced today that net sales for the fiscal year ended Sept. 30, 1991, increased to $78,362,000 from the $75,265,000 reported last year. If discontinued operations are eliminated from both periods, this represents 9 percent growth in revenue. The net profit for the fiscal year was $444,000 or 11 cents per share compared with last year's net loss of $333,000 or 9 cents per share.
Sales for the fourth quarter were $22,277,000 compared to $21,266,000 in the prior year. An increase of 7 percent excluding discontinued operations. Net income for the fourth quarter was $511,000 or 12 cents per share versus net income of $404,000 or 10 cents per share in the same period last year. Commenting on the results, Clifford W. Stanley, president and CEO of Guest Supply, said, "Because of the recession and the Gulf War, the lodging industry contracted sharply during 1991. In this market our revenue increase demonstrates that we are continuing to gain market share. The increase came principally from new customers since sales to most existing clients were reduced as a result of lower occupancies. When the economy improves and room demand increases, we anticipate accelerated growth with this expanded customer base. "We are, of course, very pleased that the company has returned to profitability. It is significant that in the fourth quarter, which was a particularly difficult economic period for the industry, net income increased by over 26 percent. "Continued progress is being made in our contract manufacturing business with revenue in 1991 exceeding the prior year by 164 percent. We believe that this segment of the business will show substantial gains again in 1992." Guest Supply is the leading manufacturer and marketer of toiletries, personal care products, and other amenities, as well as housekeeping and accessory products, to the lodging industry in the United States. GUEST SUPPLY, INC. Consolidated Statements of Operations (In thousands, except share related data) Periods ended Three Months Fiscal Year Sept. 30 1991 1990 1991 1990 Sales $22,277 $21,266 $78,362 $75,265 Cost of sales 17,266 16,719 60,920 59,536 Gross profit 5,011 4,547 17,442 15,729 Selling, general and administrative expenses 4,115 3,777 15,628 14,710 Operating income 896 770 1,814 1,019 Interest expense 354 341 1,350 1,294 Inc. (loss) bef. inc. taxes 542 429 464 (275) Income tax expense 31 25 20 58 Net income (loss) $ 511 $ 404 $ 444 $ (333) Earnings (loss) per share $0.12 $0.10 $0.11 $(0.09) Weighted average shares outstanding 4,392,000 3,950,000 4,140,000 3,825,000 -0- 12/5/91 /CONTACT: Clifford W. Stanley, president of Guest Supply, 908-246-3011; or Anthony J. Russo of Noonan/Russo Communications, 212-979-9180, for Guest Supply/ (GEST) CO: Guest Supply, Inc. ST: New Jersey IN: LEI SU: ERN
GK-TS -- NY026 -- 9579 12/05/91 10:28 EST
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|Date:||Dec 5, 1991|
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