THE RIVAL CO. REPORTS INCREASE IN EARNINGS
THE RIVAL CO. REPORTS INCREASE IN EARNINGS KANSAS CITY, Mo., Oct. 21 /PRNewswire/ -- The Rival Co.
(NASDAQ: RIVL) reported higher earnings for the quarter ended Sept. 30, 1992.
Net earnings for the quarter ended Sept. 30, 1992 were $2.9 million (31 cents per share) compared to $2.1 million (33 cents per share) in the prior year. The increase in earnings was achieved despite a decrease in sales from $47.1 million for the September 1991 quarter to $39.4 million in the current quarter. Operating margins as a percentage of sales increased from 12.5 percent to 14.7 percent due to sales mix together with better manufacturing efficiency and cost controls. New products including the Cookie Factory(TM), a countertop cookie maker, generated higher margins, but lower sales than last years hot products which were sandwich makers and hand blenders. Shipments of the Cookie Factory began on schedule in August, but were adversely impacted by delays in obtaining duplicate tooling and parts from outside vendors. By Sept. 30, the Cookie Factory was in full production and early sales trends are favorable. Thomas K. Manning, president and chief executive officer, said, "We are pleased by the improvements in operating margins. The decline in sales for the quarter is the result of retailers delaying their normal holiday season buildup until October and November, together with the timing of our new product introductions. When considering our significant improvement in margins and our sales expectations, we are still very optimistic for the balance of the year." During the quarter the company completed two significant transactions which will have favorable long term implications. A new bank credit agreement was finalized in late July and provided for the early retirement of $40 million in high cost subordinated debt. In the middle of September, Rival acquired Simer Pump Co., a $22 million manufacturer and marketer of sump, utility and other pumps. Although this acquisition had minimal impact on operating results for the September quarter, Simer should provide significant increases in sales and manufacturing utilization during the second half of the fiscal year. The Rival Co. is a leading manufacturer and marketer of small household appliances. The company sells approximately 20 different product lines of kitchen heating appliances, kitchen motor-driven appliances, and other small electrics. Its products include slow cookers (Crock Pot|R~), can openers, space heaters, ice cream freezers and simmering potpourri cookers (Potpourri Crock|R~). Over 90 percent of the products sold by the company are manufactured by the company in the United States. THE RIVAL CO. (in thousands, except per share data) Quarter Ended Sept. 30, 1992 1991 Sales $39,408 $47,115 Net income 2,897 2,145 Net income to common shareholders 2,897 1,896 Net income per share $0.31 $0.33 Average common and common equivalent shares outstanding 9,411 5,681 -0- 10/21/92 /CONTACT: Bill Yager or Stan Biggs of The Rival Co., 816-943-4100/ (RIVL) CO: The Rival Co. ST: Missouri IN: HOU SU: ERN
BB -- DV004 -- 2697 10/21/92 09:01 EDT
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|Date:||Oct 21, 1992|
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