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NII ACHIEVES HIGHER EARNINGS ON $1 BILLION SALES; FIRST QUARTER OPERATING, NET INCOME SIGNIFICANTLY IMPROVED

 NII ACHIEVES HIGHER EARNINGS ON $1 BILLION SALES;
 FIRST QUARTER OPERATING, NET INCOME SIGNIFICANTLY IMPROVED
 DALLAS, July 23 /PRNewswire/ -- National Intergroup, Inc. (NYSE: NII) today reported significantly improved results from operations, based on $1 billion in sales for the first quarter ended June 30, 1992, according to Abbey J. Butler and Melvyn J. Estrin, co- chairmen and co-chief executive officers.
 For the first quarter, National Intergroup reported net income of $2.8 million, which was 16.7 percent higher than net earnings for the first quarter of the previous year.
 National Intergroup reported net income available to common shareholders of $1.4 million, or $0.07 per share, after payment of $1.4 million in preferred dividends in the first quarter. This was 38.8 percent higher than net income for the same period last year of $1.0 million, after a preferred dividend charge of the same amount.
 Net income available to common shareholders for the first quarter last year included an extraordinary gain of $1.3 million, or $0.06 per share, from utilization of net operating loss carryforwards. No extraordinary gain was recorded in the first quarter of the current year. Average shares outstanding for the first quarter of the current fiscal year were 20.5 million, a reduction of 6.3 percent compared with the previous year due to the company's repurchase of shares.
 Higher earnings were based on just over $1 billion in net sales, which was 29.2 percent higher than those for the first quarter of fiscal 1992.
 The company's improved results were generated by earnings from operations. For the first quarter, the company reported income from continuing operations of $9.3 million, 23.1 percent higher than that of the first quarter of fiscal 1992. There was no income or gain on disposal from discontinued operations in the first quarter of fiscal 1993 or the first quarter of fiscal 1992. National Intergroup did record a gain from discontinued operations in the second quarter of last fiscal year.
 "These results demonstrate National Intergroup's progress in executing its long-term strategies," according to Butler and Estrin. "In the past year we sold one subsidiary; completed partial public offerings of our two remaining operating subsidiaries, FoxMeyer Corporation and Ben Franklin Retail Stores, Inc.; and bought back all of our subordinated debt to reduce interest costs. Our results show the company's success in concentrating on the opportunities we have with FoxMeyer and Ben Franklin."
 Net interest costs for the first quarter of the current year were just under $2.0 million, compared with $5.8 million for the same period the previous year. National Intergroup has no long-term debt, except for that directly attributable to FoxMeyer and Ben Franklin.
 "Both subsidiaries delivered significantly improved sales and earnings from operations in the first quarter. We look for these positive trends in sales and earnings to continue," they said.
 FoxMeyer (NYSE: FOX) is the nation's third largest pharmaceuticals distributor, serving independent drug stores, chain drug stores, mass merchandisers, and hospitals and institutions throughout the United States, except for Alaska and Hawaii. On May 7, FoxMeyer acquired Harris Wholesale Company, which at that time was the nation's seventh largest pharmaceuticals distributor.
 Ben Franklin Retail Stores (NASDAQ: BFRS) franchises retail variety and craft stores and is a national distributor of variety and crafts merchandise in 48 states.
 Both subsidiaries recently reported operating results for the first quarters of their fiscal years.
 National Intergroup is headquartered in Dallas, Texas.
 NATIONAL INTERGROUP, INC. AND SUBSIDIARIES
 Statement of Consolidated Income
 (In thousands, except per share data)
 For first quarter 1992 1991 Percent
 ended June 30: ---------- -------- change
 Net sales $1,015,790 $786,062 29.2 pct
 Cost of goods sold 949,813 729,886
 Gross profit 65,977 56,176
 Selling, general and
 administrative expense 54,511 47,551
 Depreciation and
 amortization 4,315 3,669
 Other income 2,113 2,572
 Operating income 9,264 7,528 23.1 pct
 Preferred dividend income
 National Steel Company 1,671 1,899
 Net financing cost 1,974 5,840
 Income before income
 tax provision 8,961 3,587
 Income tax provision 4,138 2,492
 Minority interest 2,005 --
 Income before extra-
 ordinary item 2,818 1,095 157.4 pct
 Extraordinary item
 -- utilization of net
 operating loss carry-
 forward -- 1,320
 Net income 2,818 2,415 16.7 pct
 Preferred stock
 dividends 1,375 1,375
 Net income applicable
 to common shareholders $1,443 $1,040 38.8 pct
 Average number of shares
 outstanding 20,500 21,890
 Per share of common stock:
 Income before extraor-
 dinary item $0.07 ($0.01)
 Extraordinary item -- 0.06
 Net income per share $0.07 $0.05
 NATIONAL INTERGROUP, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (In thousands)
 June 30, March 31,
 1992 1992
 (Unaudited)
 ASSETS
 Current assets
 Cash and short-term
 investments $100,043 65,308
 Receivables -- net 348,374 276,760
 Inventories 502,574 380,812
 Other current assets 15,894 12,458
 Total current assets 966,885 735,338
 Investment in National Steel
 Corporation 113,986 111,787
 Property, plant and equipment 114,001 110,822
 Less allowance for depreciation 47,241 47,534
 Net property, plant and equipment 66,760 63,288
 Other assets
 Goodwill 240,01 158,154
 Intangible assets 15,340 15,746
 Miscellaneous assets 58,380 45,264
 Total other assets 313,791 219,164
 Total assets $1,461,422 $1,129,577
 LIABILITIES AND STOCKHOLDERS' EQUITY
 June 30, March 31,
 1992 1992
 (Unaudited)
 Current liabilities
 Accounts payable $561,881 $349,921
 Accrued liabilities 64,565 52,754
 Long-term debt due within
 one year 10,989 1,014
 Total current liabilities 637,435 403,689
 Long-term debt 121,384 29,638
 Reserves and other liabilities 85,358 84,510
 Minority interest in consolidated
 subsidiary 177,068 167,488
 Redeemable preferred stock 55,000 55,000
 Stockholders' equity
 Common stock 119,940 119,940
 Capital in excess of par
 value 201,103 202,132
 Retained earnings 144,877 143,434
 Less: treasury stock 80,743 76,254
 Total stockholders' equity 385,177 389,252
 Total liabilities and stockholders'
 equity $1,461,422 $1,129,577
 -0- 7/23/92
 /CONTACT: J. Warren Henry of FoxMeyer Corporation, 214-446-4270/
 (NII) CO: National Intergroup Inc. ST: Texas IN: SU: ERN


TQ -- NY042 -- 2407 07/23/92 10:38 EDT
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