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TELECOM CORPORATION REPORTS YEAR END RESULTS

 TELECOM CORPORATION REPORTS YEAR END RESULTS
 DALLAS, Feb. 28 /PRNewswire/ -- TeleCom Corporation (NYSE: TEL)


today reported a net loss of $792,000 ($0.21 per share) with revenues of $51.9 million for the year ended Dec. 31, 1991, compared to net income of $3,104,000 ($0.84 per share) with revenues of $52.5 million for the year ended Dec. 31, 1990. The results for 1991 reflect the following items: (1) loss from continuing operations before extraordinary item of $1,404,000 ($0.38 per share); and (2) an extraordinary gain on forgiveness of debt of $612,000 ($0.17 per share). The 1990 results reflect the following items: (1) loss from continuing operations of $593,000 ($0.16 per share); and (2) income from discontinued operations, net of the effect of income taxes, of $3,697,000 ($1.00 per share).
 For the three months ended Dec. 31, 1991, TeleCom Corporation reported a net loss of $798,000 ($0.21 per share) with revenues of $11.1 million compared to net income of $2,706,000 ($0.73 per share) with revenues of $10.8 million for the same period in 1990. The results for the three months ended Dec. 31, 1991, include the following items: (1) loss from continuing operations before extraordinary item of $1,006,000 ($0.27 per share); and (2) an adjustment to the extraordinary gain on forgiveness of debt of $208,000 ($0.06 per share). The adjustment reflects the reversal of the tax provision on the extraordinary gain from forgiveness of debt reported in the first quarter of 1991 due to the company's net loss position. The results for the three months ended Dec. 31, 1990, include the following items: (1) loss from continuing operations of $991,000 ($0.27 per share); and (2) income from discontinued operations, net to the effect of income taxes, of $3,697,000 ($1.00 per share).
 The weak economy is continuing to have a negative impact on the company's operations. On the positive side, Comfort Supply reported significantly improved results for the fourth quarter as well as the year. The improved results at Comfort Supply were due to increased sales and reduced selling, general and administrative expense. The manufacturing operations reported a loss in 1991 resulting from lower earnings at Meyer Machine and continued losses at Meyer Tempco and Meyer Vi-Tech. Meyer Machine's results were negatively impacted by the loss on the sale of Meyer Conveyair of approximately $831,000 which was recorded in the third quarter and lower sales. Allen-Lewis also reported lower earnings due to lower gross profit margins and costs incurred to develop the silkscreen business.
 Management continues to be concerned by the negative impact the economy is having on its operations. As reported earlier, management is in the process of evaluating all of the company's operations in an effort to improve operating results and maximize shareholder value.
 TeleCom Corporation has interests in the manufacture of specialized conveying and processing equipment primarily for the food industry and the wholesale distribution of air conditioning and heating products as well as souvenir, novelty and gift items.
 TELECOM CORPORATION AND SUBSIDIARIES
 Summary of Operations
 (Unaudited)
 (In thousands, except per share amounts)
 For the Three Months
 Ended Dec. 31,
 1991 1990
 Revenues $ 11,129 $ 10,840
 Loss from continuing operations
 before extraordinary item $ (1,006) $ (991)
 Income from discontinued operations,
 net of tax -- 3,697
 Income from extraordinary item 208(A) --
 Net income (loss) $ (798) $ 2,706
 Weighted average number of common
 shares outstanding 3,699 3,699
 Earnings (loss) per share:
 From continuing operations before
 extraordinary item $ (.27) $ (.27)
 From discontinued operations,
 net of tax -- 1.00
 From extraordinary item .06 --
 Net income (loss) per share $ (.21) $ .73
 For the Year
 Ended Dec. 31,
 1991 1990
 Revenues $ 51,903 $ 52,452
 Loss from continuing operations
 before extraordinary item $ (1,404)(B) $ (593)
 Income from discontinued operations,
 net of tax -- 3,697
 Income from extraordinary item 612 --
 Net income (loss) $ (792) $ 3,104
 Weighted average number of common
 shares outstanding 3,699 3,699
 Earnings (loss) per share:
 From continuing operations before
 extraordinary item $ (.38) $ (.16)
 From discontinued operations,
 net of tax -- 1.00
 From extraordinary item .17 --
 Net income (loss) per share $ (.21) $ .84
 (A) Reflects reversal of the tax provision on the extraordinary
 gain from forgiveness of debt reported in the first quarter
 of 1991.
 (B) Includes a loss on sale of Meyer Conveyair, Inc. of $831,000.
 -0- 2/28/92
 /CONTACT: Larry T. Marek of TeleCom Corporation, 214-638-0638/
 (TEL) CO: TeleCom Corporation ST: Texas IN: SU: ERN


TW -- DC031 -- 3854 02/28/92 16:10 EST
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Date:Feb 28, 1992
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