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HORIZON REPORTS NINE-MONTH, THIRD QUARTER RESULTS

 GOLDEN, Colo., Feb. 23 /PRNewswire/ -- Horizon Resources Corp. (NASDAQ: HRIZ) today reported revenues of $26,197,056 and a net loss of $1,568,781 or 40 cents per share for the nine months ended Dec. 31, 1992. For the comparable period last year, the company had no revenues and a net loss of $2,166,884 or 64 cents per share.
 For the fiscal third quarter ended Dec. 31, 1992, Horizon reported revenues of $5,900,867 and a net loss of $507,023 or 13 cents per share compared to no revenues and a net loss of $1,126,766 or 32 cents per share for the like period last year.
 Income from operations for the recent nine months totalled $3,522,017 compared to no income from operations a year ago. For the fiscal third quarter just ended, the company reported a $670,076 loss from operations compared to no income from operations for the like period last year.
 The net loss for the recent nine-month period included a non-cash charge of $1,967,185 attributed to financing costs primarily related to the issuance of common stock in connection with the private placements of short-term notes in February and November of 1992. This provided a portion of the funds used last year to acquire and operate Horizon's potash subsidiary, Horizon Potash Corp.
 During the first nine months of fiscal 1991, the company had no revenues from sales of precious metals as there were no operations at either of its precious metals facilities, the Buffalo Valley Mine or the Tuscarora Gold Mines, both of which are currently out of operation. Because the company's potash operations were not acquired until February of 1992, no revenues were recorded during the nine-month period ended Dec. 31, 1991.
 John E. Watson, chairman and chief executive officer of Horizon, said factors affecting recent earnings included a temporary two-month suspension of potash production due to a late harvest in the United States last year and an increase in shipments of lower-priced Russian potash into Latin America and the United States during October and November. This caused an industry-wide decrease in sales and a buildup in potash inventories.
 Horizon had sufficient inventory to maintain its sales levels during this period. However, because costs incurred during the shutdown were not allocable to production of inventories, profitability will be negatively affected for the fourth quarter ending March 31, 1993.
 "We believe these conditions are temporary and will not have a long- term material adverse effect on the company," said Watson. "The cash flow potential from our potash operations remains strong. The worldwide demand for potash will continue as long as there is a need to increase crop yields for a growing population."
 The recent third quarter net loss also included an unrealized foreign exchange gain of $1,602,553 related to Horizon's subordinated convertible debentures payable in Swiss francs, which are due in 1996. For the recent nine months, the total effect was an unrealized loss of $163,097.
 During the three months just ended, Horizon sold 88,906 tons of potash for a net selling price of $66.37 per ton. Operating costs and expenses for the like period amounted to $73.91 per ton. However, $8.69 per ton of this cost was attributable to the temporary suspension of production.
 During the nine months just ended, Horizon sold 351,019 tons of potash, for a net selling price of $74.63 per ton. Operating costs and expenses for the like period amounted to $64.60 per ton, of which $2.20 per ton was attributable to the temporary production suspension.
 Based in Golden, Horizon Resources is a diversified mineral resources company engaged in the exploration of industrial minerals, precious metals and base metals.
 HORIZON RESOURCES CORP.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended Nine Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Potash operations:
 Revenues $5,900,867 --- $26,197,056 ---
 Operating costs
 and expenses:
 Cost of sales 5,878,848 --- 20,397,295 ---
 Royalties 504,494 --- 1,496,713 ---
 Selling 187,601 --- 781,031 ---
 Gross operating
 margin
 (deficit) (670,076) --- 3,522,017 ---
 Precious metals
 operations:
 Revenues --- --- --- ---
 Operating costs
 and expenses:
 Cost of sales --- --- --- ---
 Reserve for
 shutdown costs --- --- --- ---
 Writedowns of
 inventory --- --- --- ---
 Royalties --- --- --- ---
 Gross operating
 margin (deficit) --- --- --- ---
 Total gross
 operating margin
 (deficit) (670,076) --- 3,522,017 ---
 Other operating costs
 and expenses:
 General and
 administrative 280,671 257,410 885,267 862,819
 Exploration 35,750 16,205 49,211 116,639
 Royalties and rentals,
 nonproducing
 properties 28,284 30,844 96,519 94,181
 Abandonment of
 properties --- --- 64,691 ---
 Income (loss) from
 operations (1,014,781) (304,459) 2,426,329 (1,073,639)
 Interest expense,
 net (574,811) (216,598) (1,867,635) (463,489)
 Financing costs (528,132) --- (1,967,185) ---
 Foreign exchange
 gain (loss), net 1,602,553 (611,547) (163,091) (636,081)
 Miscellaneous
 income, net 8,148 5,325 2,801 5,147
 (Loss) before
 minority interest (507,023) (1,127,279) (1,568,781) (2,168,062)
 Minority interest --- 513 --- 1,178
 Net (loss) $(507,023) $(1,126,766) $(1,568,781) $(2,166,884)
 Net (loss)
 per share $(0.13) $(0.32) $(0.40) $(0.64)
 Number of common
 shares for
 computing per
 share data 3,948,439 3,418,912 3,940,414 3,417,766
 -0- 2/23/93
 /CONTACT: John Watson of Horizon Resources, 303-239-8701; or Carl Thompson of Carl Thompson Associates, 303-494-5472/
 (HRIZ)


CO: Horizon Resources Corp. ST: Colorado IN: MNG SU: ERN

BB -- DV002 -- 9514 02/23/93 14:40 EST
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Date:Feb 23, 1993
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