SWING-N-SLIDE CORP. REPORTS THIRD QUARTER RESULTS
SWING-N-SLIDE CORP. REPORTS THIRD QUARTER RESULTS JANESVILLE, Wis., Oct. 22 /PRNewswire/ -- Swing-N-Slide Corp.
(NASDAQ: SNSC) today reported a third quarter net loss of $1.5 million, or $.18 per share. Third quarter earnings included a nonrecurring, extraordinary charge of $0.9 million, or $.11 per share, related to the write-off of certain deferred financing fees. On a pro forma basis, Swing-N-Slide lost $.3 million, or $.03 per share, for the third quarter of 1992 compared with a pro forma net loss of $.6 million, or $.06 per share, in the third quarter of 1991. Results for both fiscal 1991 and 1992 are presented on a pro forma basis because Swing-N-Slide completed an initial public offering in August 1992. Net sales for the third quarter increased 43 percent to $5.0 million from $3.5 million for the year-ago period.
For the first nine months of 1992, pro forma net income was $7.4 million, or $.77 per share, an increase of 86 percent over pro forma net income of $4.0 million, or $.42 per share, for the first nine months of 1991. Net sales for the nine months increased 42 percent to $43.6 million from $30.7 million for the year-ago period. Thomas R. Baer, president and chief executive officer of Swing-N- Slide said that the sales were strong across each of the company's major product lines. "The increase in third quarter sales mirrored the growth the company experienced during the first half of the year. The selling season for our products continues to lengthen." Baer also noted that while Swing-N-Slide has historically recorded losses during the second half of the year, "We continue to focus on controlling our fixed costs during our slower quarters. We are continually refining our manufacturing and warehouse operations to further expand our operating margins. The new 66,000 square foot addition to our manufacturing and distribution facility will be completed by December and will help us reduce our operating costs further. "During these slower periods, we are also actively preparing our new product offerings for 1993. Our new products are on schedule and have been well received by our customers." Swing-N-Slide Corp. is the leading designer, manufacturer and marketer of do-it-yourself, wooden home playground equipment sold through home center, building supply and hardware stores. SWING-N-SLIDE CORPORATION CONSOLIDATED STATEMENT OF INCOME (000s) (Unaudited) Three Months Ended 9/30/92 Net sales $4,964 Cost of sales 2,756 Gross profit 2,208 Selling and administrative 2,155 Operating income 53 Interest expense 813 Other expense 41 Income before taxes and extraordinary item (801) Income taxes (257) Income before extraordinary item (544) Extraordinary item (922) Net income $(1,466) Per share data: Income before extraordinary item $(.07) Extraordinary item (.11) Net income per share $(.18) Weighted average shares outstanding 7,961 The following Pro Forma Consolidated Statements of Income are included to provide a basis to compare current earnings with prior years. They give effect to the acquisition, the IPO and the application of proceeds to reduce debt as if they occurred as of Jan. 1, 1992, and Jan. 1, 1991. The historical results included in the 1992 Pro Formas consist of one months results of the predecessor company and eight months of the successor company. SWING-N-SLIDE CORPORATION PRO FORMA CONSOLIDATED STATEMENT OF INCOME (000s) (Unaudited) Three Months Ended Nine Months Ended 9/30/92 9/30/91 9/30/92 9/30/91 Net sales $4,963 $3,471 $43,580 $30,648 Cost of sales 2,738 2,151 19,392 14,538 Gross profit 2,225 1,320 24,188 16,110 Selling expense 777 596 5,406 3,444 Administrative expense 752 493 2,863 1,913 Amortization of intangibles 576 573 1,723 1,719 Operating expenses 2,105 1,662 9,992 7,076 Operating income 120 (342) 14,196 9,034 Interest expense 476 566 1,665 1,814 Other expense 0 (2) (5) 382 Income before taxes (356) (906) 12,536 6,838 Income taxes (82) (297) 5,113 2,854 Net income $(274) $(609) $7,423 $3,984 Net income per share $(.03) $(.06) $.77 $.42 Average shares outstanding 9,600 9,600 9,600 9,600 -0- 10/22/92 /CONTACT: Richard E. Ruegger, CFO, Swing-N-Slide Corp., 608-755-4777/ (SNSC) CO: Swing-N-Slide Corp. ST: Wisconsin IN: LEI SU: ERN
KH -- MN018 -- 3811 10/22/92 16:10 EDT
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|Date:||Oct 22, 1992|
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