MORGAN PRODUCTS REPORTS PROFITABLE SECOND QUARTER
MORGAN PRODUCTS REPORTS PROFITABLE SECOND QUARTER LINCOLNSHIRE, Ill., July 24 /PRNewswire/ -- Morgan Products Ltd.
(NYSE: MGN) today announced net income of $557,000 or 7 cents per share for the second quarter ended July 4, 1992, compared to a loss of $3,841,000 or 45 cents per share in the prior year's second quarter.
Excluding the results from the company's former Heritage Hardwoods subsidiary, which ceased operations in the second half of 1991, second quarter 1991 earnings were $148,000 or 2 cents per share. The improved earnings resulted from increased sales, up 10 percent to $104,822,000, compared to the $95,418,000 reported in the second quarter of 1991. Arthur Knight, president and CEO, commented: "While sales increased over the prior year, the rate of improvement has dropped substantially from the first quarter, indicating the tepid economic recovery. Approximately one-half of the higher volume is a reflection of our new Canadian export program and the recently opened distribution operation in Denver. Our profitability benefited from the higher sales even though the record high level of raw material prices had a significant adverse effect on profits. Although some lumber prices recently have stabilized, the current price levels continue to put pressure on margins. In order to offset the rising costs of old growth lumber, we are accelerating the utilization of substitute engineered materials and lower cost alternative woods." Year-to-date the company's sales were $195,298,000 with a net loss of $475,000 or 6 cents per share compared to sales of $165,211,000 and a loss of $7,978,000 or 94 cents per share in the first half of 1991. Excluding Heritage, results for 1991 reflected sales of $162,422,000 and a loss of $2,524,000 or 30 cents per share. Commenting on year-to-date results, Knight further noted that the company would have been profitable except for its Morgan Technologies software operations. "Morgan Technologies had a year-to-date after-tax loss of $722,000. However, this important business unit represents an investment in the future which we feel will strengthen Morgan Products' position as a leader in the millwork industry," Knight said. "The latest version of Morgan Technologies' Portfolio software product is currently being evaluated by several important major home center accounts," he added. Morgan Products' working capital levels increased by approximately $5.5 million over the first quarter 1992 levels of $83 million, a reflection of seasonally higher volume levels. Funding of these seasonal working capital requirements resulted in total long-term debt increasing by $6 million to $58.3 million. Morgan Products Ltd. is a leading manufacturer and distributor of specialty building products through its three business units: Morgan Distribution, Morgan Manufacturing, and Morgan Technologies. Morgan Distribution, a regional wholesale distributor, is comprised of 11 distribution/fabrication centers. Major products distributed include Morgan doors, Andersen premium window systems, Morgan mantels, Morgan stairway systems, Pease and Therma-Tru steel and composite doors, flush doors, molded doors, bi-fold doors and louvered doors. Morgan Manufacturing is a national manufacturer of premium solid wood interior and exterior doors and entrance systems and other specialty building products such as wood veneer and fireplace mantels. Products manufactured by the company are sold under the trade names "Morgan" and "Nicolai." Manufactured products are sold through the company's captive Morgan Distribution unit, independent distributors, home improvement chain stores and other retail outlets. Morgan Technologies is a developer and marketer of electronic and computer software services for the building products industry. MORGAN PRODUCTS LTD. (Unaudited) Periods Six Months Three Months ended 7/4/92 6/29/91 7/4/92 6/29/91 Net sales $195,298,000 $165,211,000 $104,822,000 $ 95,418,000 Net income (loss) $ (475,000) $ (7,978,000) $ 557,000 $ (3,841,000) Earns. (loss) per share $(0.06) $(0.94) $0.07 $(0.45) Average shares outstanding 8,489,410 8,450,919 8,489,904 8,451,434 -0- 7/24/92 /CONTACT: Arthur L. Knight Jr., president and CEO, or Douglas H. MacMillan, vice president and CFO of Morgan Products, 708-317-2400; or Gerard Coffey of G.A. Kraut Company, 212-696-5600, for Morgan Products/ (MGN) CO: Morgan Products Ltd. ST: Illinois IN: CST SU: ERN
GK-TQ -- NY041 -- 3070 07/24/92 13:56 EDT
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|Date:||Jul 24, 1992|
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