MODTECH INC. ANNOUNCES THIRD QUARTER RESULTS
MODTECH INC. ANNOUNCES THIRD QUARTER RESULTS PERRIS, Calif., Nov. 11 /PRNewswire/ -- Modtech Inc.
(NASDAQ: MODT) today announced results for its third quarter and the nine months ended Sept. 30, 1991.
Revenues for the third quarter were $10,838,000 compared to $15,458,000 in the same period a year ago. Net loss for the third quarter was $338,000 or $.09 a share, compared to net income of $1,153,000 or $.31 a share for the third quarter of fiscal 1990. According to Evan M. Gruber, chief executive officer, "We continue to be hampered by the budget shortfalls which plague the state of California. The California economy continues to underperform the nation. The estimate of a $3 billion state budget shortfall is based on a sharp drop-off in tax collections. School districts, troubled by the looming state deficit, appear to be hesitant in placing orders even though the student population continues to grow rapidly. "As I have stated in the past, we see no signs of change in the overall market demand. The kindergarten through 12th grade enrollment is still estimated to increase more than 200,000 students each year for the next five years. We are of course hopeful that State Schools Superintendent Bill Honig's proposal to place $3 billion in education bonds before the voters next year to finance new school construction will be accepted by Gov. Wilson and eventually approved by the voters." As noted in a Sept. 23, 1991, press release, Modtech Inc. announced an interim lay-off of approximately 15 percent of its work force. The lay-offs have continued, and through today the total lay- offs have reached approximately 30 percent. Modtech Inc. designs, manufactures and installs modular relocatable classrooms, marketing its products to California school districts, as well as to the state of California and leasing companies which in turn lease the classrooms to school districts. MODTECH INC. Selected Unaudited Financial Data Sept. 30 ($ thousands, except EPS) Third Quarter: 1991 1990 Net sales $10,838 $15,458 Net (loss)/income (338) 1,153 (Loss)/earnings per share (.09) .31 Average shares outstanding 3,886,000 3,768,000 Nine months: Net sales $32,141 $38,535 Net income 6 2,241 Earnings per share nil .74 Average shares outstanding 3,922,000 3,270,000 NOTE: A pro-forma adjustment has been made to provide for income tax expense. Prior to the effective date of the July, 1990 public offering, the company was an S corporation and paid no federal and minimum state income taxes. -0- 11/11/91 /CONTACT: Evan M. Gruber, CEO of Modtech Inc., 714-943-4014/ (MODT) CO: Modtech Inc. ST: California IN: SU: ERN EH-CH -- LA018 -- 3137 11/11/91 16:00 EST
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|Date:||Nov 11, 1991|
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