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 FARMVILLE, N.C., Sept. 15 /PRNewswire/ -- Monk-Austin, Inc. (NYSE: MK), today announced sales and earnings for the year ended June 30, 1993. Net income, before extraordinary item, was up 15.5 percent from $24.8 million to $28.7 million. Earnings per share, before extraordinary item, was up 10.5 percent from $1.52 to $1.68. Net revenues for the year decreased slightly from $617.2 million in 1992 to $611.4 million in 1993.
 Income before extraordinary item for the fourth quarter was $5.3 million, up from $4.8 million in the comparable period of 1992. Net revenues for the fourth quarter decreased from $152.3 million to $120.3 million, reflecting the seasonal fluctuations typical of the leaf tobacco business and an increased percentage of lower-cost, foreign-sourced tobacco handled by the company. Earnings per share before extraordinary item increased 7.4 percent over the comparable period in 1992, from $0.27 to $0.29.
 Although the volume of tobaccos handled this year was greater than last year, the company's net revenues declined slightly -- $617.2 to $611.4 million -- primarily as a result of lower priced tobaccos making up a larger share of the company's business, a flood in Mexico where a substantial portion of the 1992 tobacco crop was destroyed and the company's decision in fiscal 1992 to close its processing operations in Korea.
 In 1993, approximately $3 million of the increase in net income was due to the realization by a Brazilian subsidiary of the tax benefit of a deduction for a change in pre-acquisition indexing for tax purposes. This partially offset market value adjustments to unsold inventory of $4.2 million in 1993, as compared to $0.9 million in 1992. Improvement in net income also resulted from increased sales of certain foreign grown tobaccos and increased operating efficiencies in U.S. processing operations.
 "As we complete our first year as a public company, we are entering 1994 with cautious optimism. We find ourselves in a strong financial condition and well-positioned to capitalize on the positive trends we see in the industry. These trends -- worldwide growth in consumer preference for American blend cigarettes, demand for lower-cost tobaccos to accommodate the value-priced sector of the market and the emergence of new markets such as the former Soviet Union, Eastern Europe and the Pacific Rim -- play to the strengths of our company," said Monk-Austin President and Chief Executive Officer, Albert C. Monk, III.
 Monk further stated: "Notwithstanding the favorable trends, the climate in the industry has changed dramatically in the past few months. Crops in Africa, China, South America and the United States were extremely large. At the same time, we've witnessed a lingering recession in Europe, a slowing of deliveries to the former Soviet Union due to payment problems, a cigarette price war in the United States, a possible increase in the Federal excise tax on cigarettes and enactment of a law requiring a minimum domestic content in cigarettes produced in the United States whether for domestic consumption or export. Despite these factors, we are confident we can adapt to the changing circumstances."
 Monk-Austin is engaged in the business of purchasing and processing leaf tobacco on a worldwide basis and selling processed tobacco to manufacturers of cigarettes and other consumer tobacco products. The company has operated for over 100 years and believes that, based on revenues, it is the fourth largest leaf tobacco merchant in the world.
 (in thousands, except per share data)
 Three Months Ended Year Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net Revenues $120,344 $152,260 $611,433 $617,225
 Cost of Revenues 106,097 134,336 538,061 544,220
 Selling and Admin-
 istrative Expenses 8,885 9,120 34,286 33,068
 Other (income)
 Expenses-net 280 1,892 4,173 8,723
 Income before Income
 Taxes and Other Items 5,082 6,912 34,913 31,214
 Provision for Income Taxes (138) 2,514 6,995 7,008
 Income after Taxes 5,220 4,398 27,918 24,206
 Equity in (income) Loss
 of Unconsolidated Affiliates (52) (449) (774) (640)
 Income before Extraordinary
 Item 5,272 4,847 28,692 24,846
 Extraordinary Item
 Tax benefit of Foreign Tax
 Credit Carryforward -- (432) -- (2,900)
 Net Income $5,272 $5,279 $28,692 $27,746
 Less-preferred Dividend
 Requirement -- 668 -- 1,337
 Net Income Available to
 Common Shareholders $5,272 $4,611 $28,692 $26,409
 Weighted Average Number of
 Shares Outstanding Used in
 Computing Net Income per
 Common Share 18,114 15,422 17,082 15,468
 Net Income per Common Share:
 Income before Extraordinary
 Item $0.29 $0.27 $1.68 $1.52
 Extraordinary Gain -- ($0.03) -- ($0.19)
 Net Income $0.29 $0.30 $1.68 $1.71
 -0- 9/15/93
 /CONTACT: Jim Fyock of James A. Fyock & Associates, 919-659-8440/

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

MM -- CH009 -- 2251 09/15/93 12:41 EDT
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Publication:PR Newswire
Date:Sep 15, 1993

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