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MONK-AUSTIN, INC. ANNOUNCES SECOND QUARTER RESULTS

 FARMVILLE, N.C., Feb. 12 /PRNewswire/ -- Monk-Austin, Inc. (NYSE: MK) today announced sales and earnings for its second quarter ending December 31, 1992. Net income before extraordinary items increased 3.4 percent from $8.9 to $9.2 million. Due to an 8.0 percent increase in the weighted average shares outstanding, earnings per share before extraordinary items decreased from $.58 to $.55. Net revenues were down 14.8 percent from $196.5 million to $167.5 million while net income after extraordinary items was down 5.4 percent from $9.8 to $9.2 million.
 For the six month period ending December 31, 1992, net income before extraordinary items increased 25.2 percent from $13.2 million to $16.5 million. Earnings per share before extraordinary items increased 21.2 percent from $.85 to $1.03, even though weighted average shares outstanding increased 3.7 percent. Net revenues increased 2.4 percent from $325.5 million to $333.3 million while net income after extraordinary items increased 8.8 percent from $15.1 million to $16.5 million.
 The decline in revenues in the second quarter was due primarily to decreased sales of tobaccos grown in the United States and Mexico. The sales decline of U.S.-grown tobaccos was attributable primarily to the company's decision not to participate in certain foreign tender sales in which prices were deemed to be unacceptable. Similar foreign tender sales represented approximately $16 million in revenues in the second quarter ended Dec. 31, 1991. The sales decline of Mexican-grown tobaccos was a result of extensive crop damage from a flood during calendar 1992. The company has filed a claim for lost profits under its applicable insurance policy.
 Gross profits (defined by the Company as net revenues less cost of revenues) as a percentage of net revenues increased to 11.1 percent in the second quarter ending Dec. 31, 1992, compared to 9.6 percent during the same period in the prior year. For the comparable six month period ending Dec. 31, 1991, the gross profit percentage increased to 12.7 percent from 11.6 percent. These increases were due primarily to a higher percentage of sales of foreign origin tobaccos, which typically have higher margins than U.S. origin tobaccos, and increased cost efficiencies achieved in U.S. processing operations.
 The company also announced that its Board of Directors, at a meeting held Feb. 9, 1993, declared a quarterly dividend of four cents ($.04) per share on the common stock of the company made payable April 7, 1993 to common shareholders of record at the close of business on March 15, 1993.
 In November 1992, the company completed an initial public offering in which it issued 1.9 million shares of common stock at a price of $16.50 per share. The company's gross proceeds from the offering was $31.0 million. Issuance costs of $3.3 million are included as a reduction of additional paid-in-capital. The company intends to use the proceeds of the offering to retire certain bank borrowings, general corporate purposes and capital expenditures.
 Monk-Austin is the fourth largest leaf tobacco merchant in the world. The company is involved in the purchase and processing of leaf tobacco. Processed tobacco is then sold world-wide to manufacturers of cigarettes and other consumer products.
 The company has an extensive network of purchasing and processing operations in five major regions of the world where export-quality flue-cured and burley tobaccos are grown. In addition to the United States, the company has facilities located in Brazil, Malawi, Mexico and Zimbabwe. Monk-Austin also operates in other major growing countries around the world.
 MONK-AUSTIN, INC.
 CONSOLIDATED STATEMENT OF INCOME
 (in thousands, except per share data)
 (unaudited)
 Three Months Ended Six Months Ended
 December 31, December 31,
 1992 1991 1992 1991
 Net Revenues $167,481 $196,496 $333,343 $325,511
 Cost of revenues 148,961 177,633 291,089 287,719
 Selling and
 administrative expenses 7,845 7,296 16,255 14,966
 Other (income) expenses - net 1,830 1,228 2,684 3,961
 Income before income taxes
 and other items 8,845 10,339 23,315 18,865
 Provision for income taxes 165 1,402 8,297 5,589
 Income after taxes 8,680 8,937 15,018 13,276
 Equity in (income) loss of
 unconsolidated affiliates (556) 4 (1,451) 120
 Income before extraordinary item 9,236 8,933 16,469 13,156
 Extraordinary item
 Tax benefit of foreign tax
 credit carryforward - (831) - (1,987)
 Net income $9,236 $9,764 $16,469 $15,143
 Weighted average number of
 shares outstanding used
 in computing net income
 per common share 16,713 15,477 16,067 15,493
 Net income per common share:
 income before extraordinary item $0.55 $0.58 $1.03 $0.85
 Extraordinary gain - 0.05 - 0.13
 Net Income $0.55 $0.63 $1.03 $0.98
 The Company's operations are seasonal; therefore, the results of operations for the three months and six months ended December 31, 1992 are not necessarily indicative of the results to be expected for the full year and should not be relied on as a basis for projecting year-end results.
 -0- 2/12/93
 /CONTACT: Jim Fyock, 919-659-8440/
 (MK)


CO: Monk-Austin, Inc. ST: North Carolina IN: TOB SU: ERN

DF -- CH005 -- 6063 02/12/93 09:34 EST
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Date:Feb 12, 1993
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