Printer Friendly

NU-KOTE REPORTS FIRST QUARTER 14 PERCENT SALES INCREASE; INCOME FROM OPERATIONS UP 10.5 PERCENT

    DALLAS, Aug. 5 /PRNewswire/ -- Nu-kote Holding, Inc., (NASDAQ: NKOT) announced today that for the fiscal first quarter ended July 2, 1993, revenues increased 14 percent to $34.5 million compared with $30.2 million in last year's comparable quarter.
    Income from operations increased 10.5 percent from $4.2 million in the comparable quarter last year to $4.6 million.  However, net income decreased from $2.4 million to $1.5 million as a result of the $1.0 million non-recurring charge associated with the Company's secondary offering in May 1993 and the unavailability of net operating loss carryforwards which had reduced the Company's income tax liability in the comparable quarter last year.  The improvement in income from operations reflected increased net sales and higher margins.
    Commenting on the results, Nu-kote President and Chief Executive Officer, David F. Brigante, said: "We saw the positive result of our strategy of expanding in the rapidly growing toner business in the fiscal first quarter.  Toner sales accounted for a significant portion of the Company's sales growth during the quarter and now account for approximately 34 percent of our total sales. We also saw the beneficial impact of our ongoing drive to lower manufacturing production costs." Fiscal first quarter sales results include the operations of Future Graphics, the laser cartridge remanufacturer Nu-kote acquired in February 1993.
    While North American ribbon sales were down slightly over last year, comparable sales figures were impacted by incremental sales in last year's quarter related to an initial stocking order by a new major national retailer who added Nu-kote products.  Additionally, this year's first quarter sales were reduced because one of the Company's largest distributors rationalized its inventory levels and temporarily reduced ordering activity while reviewing its supply needs.  Commenting on the North American ribbon sales, Mr. Brigante noted, "We had anticipated this customer's actions and the customer has advised us that they expect future volumes to return at least to normal levels."
    The Company also recently signed a license agreement with Eastman Kodak Company to manufacture and distribute impact printer ribbons by Nu-kote under the Kodak trademark.  Mr. Brigante said, "We expect our agreement with Kodak to increase ribbon sales later this fiscal year."
    Nu-kote's European ribbon business continues at the depressed levels experienced for the past three quarters, reflecting a sharp downturn in the European economy.
    Nu-kote is one of the leading independent manufacturers and marketers of toner, ribbons, and other products for printing equipment. Nu-kote produces over 900 products, including more than 150 new products introduced in fiscal 1993, for use in over 22,000 models of printers, copiers, and fax machines in the U.S., Europe and Latin America.  The company sells ribbons and other supplies to the substantial installed base of impact printers, which in the U.S. alone represents 46 million existing printer units.  The company has been able to capitalize on its experience in the market for impact printer supplies to gain a portion of the expanding market for toner, remanufactured toner cartridges, and other supplies used by non-impact printing devices, including laser printers, copiers and fax machines.
                       NU-KOTE HOLDING, INC.
              Consolidated Statements of Operations
      (Unaudited, dollars in thousands, except per share data)
                            For the three months ended 7/2/93 and 7/3/92
                                      Actual                Pro Forma(A)
                               July 2          July 3         July 3
                                1993            1992            1992
    Net Sales                 $34,539         $30,221         $33,689
    Cost of Sales              24,410          21,509          23,970
    Gross Margin               10,129           8,712           9,719
    Selling, General &
     Administrative Expense     5,510           4,531           5,484
    Income from Operations      4,619           4,181           4,235
    Interest Expense              512             889             478
    Other Expense                 945(B)           25              25
    Income from Continuing
     Operations before Income
     Taxes                      3,162           3,267           3,732
    Provision for Income Taxes  1,646             857           1,094(C)
    Income from Continuing
     Operations                 1,516           2,410           2,638
    Loss from Discontinued
     Operations, net of Tax
     Benefit                        0               0               0
    Net Income                 $1,516          $2,410          $2,638
    Net Income Per Share of
     Common Stock From
     Continuing Operations      $0.18           $0.41           $0.31
    Discontinued Operations      0.00            0.00            0.00
    Net Income Per Common Share $0.18           $0.41           $0.31
    Weighted Average Shares
     Outstanding (000)          8,477           5,876           8,477
    (A)  Pro Forma adjustments give effect to the February 1993 Future Graphics acquisition and the October 1992 initial public offering.
    (B)  Includes $1.0 million ($.12 per share) pre and after tax charge associated with the Company's secondary offering completed on May 27, 1993.
    (C)  Include>` / utilization of net operating tax loss carryforwards which had the effect of reducing the effective tax rate from 40 percent to 29 percent ($.05 per share).
    -0-             08/05/93
    CONTACT:  Thomas C. Franco, or Jill L. Austin, both of Broadgate Consultants, 212-229-2222, for Nu-kote Holding Inc.
    (NKOT) CO:  NU-KOTE HOLDING, INC. SU:  ERN ST:  TX


-- NY006 -- X046 08/05/93
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 5, 1993
Words:816
Previous Article:AMRION SHARES NOW TRADE IN NASDAQ SMALL-CAP MARKET
Next Article:HEALTH MANAGEMENT ASSOCIATES EXECUTES 10-YEAR LEASE AGREEMENT ON FLORIDA HOSPITAL
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters