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TOROTEL REPORTS STABLE EARNINGS ON SLIGHTLY LOWER REVENUES FOR FIRST QUARTER

 TOROTEL REPORTS STABLE EARNINGS ON SLIGHTLY
 LOWER REVENUES FOR FIRST QUARTER
 KANSAS CITY, Mo., Sept. 10 /PRNewswire/ -- Torotel, Inc. (AMEX: TTL), a leading manufacturer of magnetic components, today announced first quarter results continued to reflect last year's pattern of consistent earnings on slightly lower sales.
 For the three months ended July 31, 1992, net sales were $2.5 million, or 2.7 percent lower than the $2.6 million reported in last year's first quarter. Earnings before income taxes were stable, at $221,000 for the latest quarter, compared with $223,000 at this time last year. Net earnings for the fiscal 1993 quarter increased 1.4 percent to $218,000, or eight cents per share, compared with $215,000, or eight cents per share, for the same period last year.
 Gross Margins Near 40 Percent Goal
 Gross margins continued their pattern of improvement, approaching Torotel's goal of 40 percent. For the latest quarter, gross margins were 38.9 percent, up from 37.4 percent a year ago, showing the results of the company's program to control costs and increase operating efficiencies and customer service.
 Stockholders' Equity Up Seven Percent On Lower Debt
 Torotel continued to make strides in its financial condition. Working capital was up 3.2 percent between the two quarters, at $4.4 million. Although total assets were stable, at $6.7 million, total liabilities were 6.1 percent lower, at $3.3 million. This primarily resulted from decreases in short-term debt (by 1.6 percent) and long- term debt (by 4.2 percent). As a result, stockholders' equity increased 7.1 percent in the latest quarter, to $3.4 million. These improvements were reflected in advances in the current ratio, which reached 3.9-to-1, and the debt-to-equity ratio, which declined to 1.0 to-1.
 Sales Bookings Improve
 In discussing the quarter's results, Alfred F. Marsh, president and chief executive officer, said, "We continued the pattern established in fiscal 1992, of stable, predictable earnings despite a sluggish economy. This was particularly challenging in the latest quarter. We entered the period with a lower than usual order backlog, due to delays in the awarding of U.S. Department of Defense (DOD) contracts.
 "This situation began to turn around during the quarter," Marsh continued. "At the end of the first four months of fiscal 1993, sales bookings reached $4.0 million, compared with $7.0 million for all of the last fiscal year. We believe regardless of who wins the November presidential election, that DOD budget cuts will continue to have no adverse affect on the defense electronics market we serve.
 First Contract For New Electrical Assemblies Product
 "The biggest story of the quarter actually occurred after it ended," Marsh explained. "At the close of fiscal 1992, we announced Torotel was expanding its product base by offering complete electrical assemblies that use many magnetic components. We believe this segment of the military market offers immediate growth opportunities. Our market is the U.S. government, and our goal is to achieve significant growth in sales and earnings. In late August, we learned Torotel will receive the first contract on which we submitted a bid -- $1.2 million for power supplies (including options), subject to a pre-award survey conducted by the DOD. We have several bids in process for other assembly contracts.
 "The combination of improved sales bookings, plus the great potential of the electrical assembly business, give us an optimistic outlook for growth," Marsh concluded.
 Torotel, Inc. specializes in the design and high-volume manufacture of a broad line of precision magnetic components used in military and industrial electronic systems. These components, which include transformers, chokes and toroidal coils, are sold to original equipment manufacturers for use in such programs as avionic equipment, marine communication and navigation, telecommunications, and weapons fire control systems. The company has a customer base of more than 400 companies and substantially all of its sales are to defense contractors.
 For Further Information on Torotel as an Investment, Contact Alfred F. Marsh at 1-800-TALKSTK.
 TOROTEL, INC.
 Operating Data
 (Unaudited)
 Three months ended July 31, 1992 1991
 Net Sales $2,490,000 $2,561,000
 Gross Profit 969,000 957,000
 Earnings from
 Operations 276,000 292,000
 Earnings before
 Income Taxes 221,000 223,000
 Net Earnings 218,000 215,000
 Earnings Per Share $.08 $.08
 Weighted Average Common and
 Common Equivalent
 Shares Outstanding 2,877,000 2,735,000
 TOROTEL, INC.
 Balance Sheet Data
 7/31/92 5/30/92
 Working Capital $4,376,000 $4,239,000
 Current Ratio 3.9 3.6
 Total Assets $6,713,000 $6,703,000
 Short-term Debt 120,000 122,000
 Long-term Debt $1,829,000 $1,909,000
 Total Liabilities $3,323,000 $3,539,000
 Debt-to-Equity 1.0:1 1.1:1
 Stockholders' Equity $3,390,000 $3,164,000
 For further information on Torotel by FAX, Dial 1-800-PRO-INFO, ext. 155.
 -0- 9/10/92
 /CONTACT: Al Marsh, president at Torotel, 816-761-6314; or Lynne Franklin, 312-266-7800, or Regina Ryan, 212-661-8030, both of the Financial Relations Board/
 (TTL) CO: Torotel, Inc. ST: Misouri IN: SU: ERN


SM -- NY066 -- 8073 09/10/92 13:59 EDT
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Date:Sep 10, 1992
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