IN-STORE ADVERTISING REPORTS SECOND QUARTER RESULTS
IN-STORE ADVERTISING REPORTS SECOND QUARTER RESULTS NEW YORK, July 24 /PRNewswire/ -- In-Store Advertising, Inc.
(NASDAQ: ISAN) today announced results for the second quarter and six months ended June 30, 1992.
Advertising revenues for the second quarter increased 27 percent to $4.9 million compared to $3.8 million in the same quarter of 1991. The net loss for the second quarter was $3.4 million or $0.43 per share compared to a net loss of $6.6 million or $0.84 per share in the second quarter of 1991. The 1991 results include an extraordinary loss resulting from a writeoff of $909,677 in unamortized costs relating to a termination of an unused bank line of credit. The company achieved a profit of $15,386 from operations before depreciation and amortization in the second quarter of 1992 versus a loss of $2,518,653 in the second quarter of 1991. The improvement resulted from a 48 percent reduction in revenue sharing payments to participating supermarkets as a result of amended sign placement agreements, and a 9 percent decrease in other operating expenses due to lower legal costs and improved operating efficiencies in running the electronic sign network. The number of installed stores increased 11 percent to 5,415 stores at June 30, 1992 from 4,857 stores at June 30, 1991. Advertising revenues for the first six months of 1992 increased 36 percent to $10.7 million compared to $7.9 million in the prior year. The net loss for the six month period was $6.0 million or $0.77 per share compared to a net loss of $11.1 million or $1.42 per share in 1991. Income from operations before depreciation and amortization in the first half of 1992 was $733,720, compared with a loss of $4.0 million in 1991, as revenue sharing expenses decreased by 39 percent and other operating expenses decreased by 3 percent. Steve Kahler, president and chief executive officer of In-Store Advertising, said, "We are pleased with the growth in our advertising sales in the first half of 1992, while we reduce operating expenses even as our installed store base grows." As previously reported, In-Store has signed a letter of intent with lessors and a lender with respect to a proposed restructuring of the company's existing equipment leases and term loan. Although the original letter of intent provided that the proposed restructuring and continued forbearance by such financers was subject to the company's receipt of a new financing commitment acceptable to the existing lessors and lender by May 31, 1992, with a closing by July 31, 1992, these deadlines have been extended by mutual agreement. The current deadline for a new financing commitment is July 31, 1992, with closing required by Sept. 30, 1992. While active negotiations continue with equity investors and the financers, the company can make no assurances that it will be able to meet those deadlines, or that further extensions by the financers will be forthcoming. Kahler stated, "We are gratified by the support of our equipment lessors and lender, who have continued to work with the company to design a restructuring that addresses the concerns of the company, its stockholders and its lenders. We remain optimistic that these issues will soon be successfully resolved." In-Store Advertising, Inc. delivers advertising and promotional messages from consumer product companies at the point of purchase through its computerized network of in-store electronic signs located in approximately 5,400 supermarkets nationwide, reaching 80 million shoppers weekly. IN-STORE ADVERTISING, INC. Statements of Operations (unaudited) Periods ended Second Quarter Six Months June 30 1992 1991 1992 1991 Advertising Revenues $4,866,200 $3,817,300 $10,683,100 $7,870,400 Revenue Sharing Expense 1,192,306 2,314,502 2,612,130 4,300,932 Operating Expense 3,658,508 4,021,451 7,337,250 7,585,498 Income (Loss) from Operations before Depreciation and Amortization 15,386 (2,518,653) 733,720 (4,016,030) Loss from Operations (2,538,577) (4,830,095) (4,351,733) (8,550,339) Net Interest Income (Expense) (799,641) (804,273) (1,599,548) (1,600,306) Loss before Extraord. Item (3,366,024) (5,665,811) (6,013,846) (10,201,719) Extraord. Item -- (909,677) -- (909,677) Net Loss $(3,366,024) $(6,575,488) $(6,013,846) $(11,111,396) Loss per Share before Extraord. Item $(0.43) $(0.72) $(0.77) $(1.30) Net Loss per Share $(0.43) $(0.84) $(0.77) $(1.42) Wtd Avg. No. of Shares Outstg. 7,857,449 7,857,449 7,857,449 7,857,449 Balance Sheets 6/30/92 12/31/91 (Unaudited) (Audited) Assets Total Current Assets $ 4,599,855 $ 4,547,236 Property and Equipment, Net 33,563,703 37,745,236 Other Assets, Net 776,793 663,403 Total Assets $38,940,351 $42,955,875 Liabilities and Stockholders' Equity Total Current Liabilities $28,273,234 $26,243,868 Long-term Debt -- -- Other Liabilities 460,626 491,670 Total Stockholders' Equity 10,206,491 16,220,337 Total Liabilities and Stockholders' Equity $38,490,351 $42,955,875 -0- 7/24/92 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for In-Store Advertising/ (ISAN) CO: In-Store Advertising Inc. ST: New York IN: ADV SU: ERN
SH -- NY008 -- 2925 07/24/92 09:12 EDT
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|Date:||Jul 24, 1992|
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