Questron Technology, Inc. Reports Quarterly Results.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Nov. 14, 2001 Questron Questron is a fantasy RPG computer game series produced by Strategic Simulations, Inc. Questron In Questron the player takes on the role of a young serf who tries to make a name for himself by traveling the realm in order to gain the power and experience Technology, Inc. (Nasdaq:QUST QUST Qingdao University of Science and Technology (China) ) (Nasdaq:QUSTW) announced today results for the quarter ended September September: see month. 30, 2001. Questron is a leading provider of supply chain management solutions and inventory logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet programs focused on the needs of Original Equipment Manufacturers (OEMs). For the quarter ended September 30, 2001, the Company reported sales of $27,721,531, compared with $41,919,379 reported for the quarter ended September 30, 2000. Earnings, before interest, taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the quarter was $356,812, excluding the impact of $2,450,000 of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , compared with $6,492,626 for the quarter ended September 30, 2000. The Company recorded non-cash charges of $2,050,000 and $400,000 to reflect valuation adjustments for slow moving inventory and potential bad debts, respectively. After reflecting the impact of these non-cash charges, the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the third quarter was $2,985,105, compared with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $5,845,704 for the 2000 third quarter. The net loss for the quarter ended September 30, 2001 was $3,934,596 or $.43 per common share and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, compared with net income of $1,570,225 or $0.18 per diluted common share and $0.19 per common share for the quarter ended September 30, 2000. There were 9,188,117 and 8,899,231 average number of diluted common shares outstanding, and 9,188,117 and 8,415,862 average number of common shares outstanding, for the 2001 and 2000 quarters, respectively. For the nine months ended September 30, 2001, sales totaled $103,538,011, compared with sales of $119,624,652 reported for the nine months of 2000. EBITDA for the 2001 nine-month period was $9,282,063, excluding the impact of the previously described non-cash charges, compared with $18,275,791 in 2000. After reflecting the impact of these non-cash charges, operating income for the nine months ended September 30, 2001 amounted to $4,531,283, compared with $16,387,030 for the 2000 nine-month period. The net loss for the nine months ended September 30, 2001 was $4,117,540, or $.45 per common share and per diluted common share, compared with income before an extraordinary gain in connection with the early extinguishments of debt (amounting to $459,844 net of applicable income taxes) of $4,344,577, or $.53 per common share and $.44 per diluted common share for the nine months ended September 30, 2000. The Company reported that its average daily sales were $440,024 in the third quarter of 2001 compared to $562,743 in the second quarter of 2001. The Company noted that there were 63 shipping days in the third quarter of 2001 compared to 64 shipping days in the second quarter of 2001. The Company also noted that its sales continue to be negatively impacted by weak overall economic conditions, the economic impact of the events which occurred on September 11, 2001, and weakness in the business sectors represented in its mature inventory logistics management ("ILM") account base. The Company noted that during the quarter it took a number of steps to try to reduce the impact of the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . Dominic Dominic hound who travels widely. [Children’s Lit.: Dominic] See : Dogs A. Polimeni, Chairman and Chief Executive Officer of Questron, said, "The Company has and is continuing to address staffing levels, has centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. its purchasing operations, has eliminated discretionary spending and will consolidate facilities where possible." Mr. Polimeni added, "These actions are difficult, but are necessary in this difficult and challenging environment." The Company continues to work with its investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. exploring strategic alternatives, including exploring possible sources of investments in the Company, possible refinancing Refinancing An extension and/or increase in amount of existing debt. of the Company's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. or a possible sale of the Company or some or all of its assets. Although these explorations are continuing and the Company has received some indications of interest in further discussion concerning these possible transactions, the Company has not received any proposals or entered into any negotiations with respect to possible investments, financings or sales. Further, the possibility of completing any such transaction has been adversely affected by the events which occurred on September 11, 2001 and their continuing impact on financial markets, on the U.S. economy generally and on the Company's business and finances. There can be no assurance that the Company can arrange any investment, refinancing or sale that will enable it to meet debt obligations coming due at the end of 2001. Further, the terms of any investment, refinancing or sale may not be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the Company or its shareholders, and any investment or refinancing could materially dilute di·lute v. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. the interests of the existing stockholders. Questron Technology Inc. is a leading provider of supply chain management solutions and professional inventory logistics management programs for small parts commonly referred to as "C" inventory items (fasteners fasteners In construction, connectors between structural members. Bolted connections are used when it is necessary to fasten two elements tightly together, especially to resist shear and bending, as in column and beam connections. and related products) focused on the needs of Original Equipment Manufacturers (OEMs). Questron's securities are traded on NASDAQ under the symbols QUST (common) and QUSTW (warrants). For more information on Questron Technology, please visit the Company's Web site at http://www.questrontechnology.com/. Information Relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain information contained in this press release includes "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. This information can be identified by the use of words like "expects," "will," "should," "believes," "intends" or "estimates" or similar expressions, and includes the statements with respect to expected 2001 financial and operating results. Such statements represent the Company's judgment and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, fluctuations in demand from the Company's customers, whether due to economic conditions, the demands of their customers or other factors, the cyclicality of the market for the Company's products and its customers' products, the concentration of a significant part of the Company's business in a limited number of customers, the ability to obtain new customers, the ability to integrate acquired businesses, changes in general economic conditions, levels of competition, the availability of capital, changes in interest rates and other factors which may adversely affect the Company's operating results, including the matters addressed in the "Risk Factors" set forth in the Company's current Annual Report on Form 10K for the year ended December 31, 2000. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect unanticipated events or developments.
QUESTRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the three-month and nine-month periods
ended September 30, 2001 and 2000
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -------------------------
2001 2000 2001 2000
----------- ----------- ------------ ------------
Sales $27,721,531 $41,919,379 $103,538,011 $119,624,652
Cost of goods sold 20,305,076 25,030,829 67,443,404 72,208,391
----------- ----------- ------------ ------------
Gross profit 7,416,455 16,888,550 36,094,607 47,416,261
Selling, general and
administrative
expenses 9,509,643 10,395,924 29,262,544 29,140,470
----------- ----------- ------------ ------------
Earnings (loss)
before interest,
taxes, depreciation
and amortization
(EBITDA) (2,093,188) 6,492,626 6,832,063 18,275,791
Depreciation and
amortization 891,917 646,922 2,300,780 1,888,761
----------- ----------- ------------ ------------
Operating (loss)
income (2,985,105) 5,845,704 4,531,283 16,387,030
Interest expense 3,833,952 3,161,558 11,671,490 8,960,402
----------- ----------- ------------ ------------
(Loss) income before
income taxes and
extraordinary gain (6,819,057) 2,684,146 (7,140,207) 7,426,628
(Benefit) provision
for income taxes (2,884,461) 1,113,921 (3,022,667) 3,082,051
----------- ----------- ------------ ------------
(Loss) income before
extraordinary gain (3,934,596) 1,570,225 (4,117,540) 4,344,577
Extraordinary gain in
connection with the
early extinguishment
of debt (less
applicable income
taxes of
$326,214 in 2000) -- -- -- 459,844
----------- ----------- ------------ ------------
Net (loss) income $(3,934,596)$ 1,570,225 $ (4,117,540)$ 4,804,421
=========== =========== ============ ============
Per common share:
----------------
(Loss) income
before
extraordinary
gain $ (.43)$ .19 $ (.45)$ .53
Extraordinary gain -- -- -- .05
----------- ----------- ------------ ------------
Net (loss) income $ (.43)$ .19 $ (.45)$ .58
=========== =========== ============ ============
Per diluted common share:
------------------------
(Loss) income before
extraordinary
gain $ (.43)$ .18 $ (.45)$ .44
Extraordinary gain -- -- -- .05
----------- ----------- ------------ ------------
Net (loss) income $ (.43)$ .18 $ (.45)$ .49
=========== =========== ============ ============
Average number of
common shares
outstanding 9,188,117 8,415,862 9,188,117 8,198,516
=========== =========== ============ ============
Average number of
diluted common
shares outstanding 9,188,117 8,899,231 9,188,117 9,807,160
=========== =========== ============ ============
This interim report is subject to independent audit at year-end. |
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