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WELLS-GARDNER ANNOUNCES CORPORATE RESTRUCTURING AS COMPANY REPORTS YEAR-END RESULTS

 WELLS-GARDNER ANNOUNCES CORPORATE RESTRUCTURING
 AS COMPANY REPORTS YEAR-END RESULTS
 CHICAGO, March 9 /PRNewswire/ -- Wells-Gardner Electronics Corporation (ASE: WGA) today announced a corporate restructuring which will result in a lower sales breakeven as well as an increased focus on those manufacturing activities which provide the most value added and profitability to the company's products. The company also reported its results for the year.
 For the year ended Dec. 31, 1991, revenues amounted to $38,814,000, a 14-percent reduction from the year-ago $45,099,000. The company incurred a loss from continuing operations of $1,464,000, or 39 cents a share, primarily the result of a $992,000 one-time restructuring charge against the fourth quarter. This loss compares to net income from continuing operations of $750,000, or 20 cents a share, in the prior year. 1990 also benefited from a tax loss carryforward of $410,000, or 11 cents a share, making 1990's net income $1,160,000, or 31 cents a share.
 For the fourth quarter, sales increased 8 percent over the year earlier to $10,054,000 from $9,287,000. Net loss was $1,308,000, or 35 cents a share, compared to a net loss from operations of $252,000, or six cents a share, in the previous year's quarter. After benefiting from a $15,000 tax loss carryforward, the 1990 fourth quarter reported a net loss of $237,000, or six cents a share. The loss in the fourth quarter of 1991 was mostly attributable to the restructure charge of $992,000, or 26 cents a share. This charge consists of costs associated with a voluntary early retirement plan, severance for personnel affected by discontinued activities and some inventories and equipment being eliminated by the restructuring. Annual pre-tax savings resulting from the restructuring are estimated at $750,000, or 20 cents per share.
 There were 3,766,195 weighted average common and common equivalent shares outstanding in 1991 and 3,767,078 in 1990.
 "The continued weakness of the economy was mainly responsible for our lower sales in 1991," said Frank J. Myers, chairman and chief executive officer of Wells-Gardner, "with sales to the automotive and data display markets most affected. Also accounting for some of the sales difference is the discontinuation of a television assembly contract which was terminated at the end of 1990. That activity contributed $3,441,000 to 1990 revenues. Without that component, sales on a year-to-year basis would have only declined 7 percent as the company continued to hold or gain share in its major video monitor markets. Profitability was adversely impacted by both the sales and production volume losses and the costs of restructuring.
 "The decision to discontinue certain activities offers several significant advantages to Wells-Gardner. Most importantly, it lowers our sales breakeven point. Additionally, it will improve our competitive position by reducing the cost of the many sub-assemblies used in the final assembly of our monitors. Finally, it will intensify management's focus on those activities offering the greatest potential for greater efficiencies and profitability," Myers continued.
 "This restructuring positions the company to even better capitalize on the growth and profit potential offered by the highly profiled and emerging video lottery terminal (VLT) market. Management remains cautiously optimistic about the company's potential to be the dominant supplier of monitors to this industry. Initial orders from firms selected by the State of Oregon to supply VLTs to that state appear to confirm that optimism. VLTs contributed about 5 percent to 1991 sales. We estimate that the 1992 contribution from VLTs could more than double."
 "We have the people, production and financial capabilities to take the company to much higher levels of business. Our balance sheet is strong, we have no debt, and are currently at a book value of $3.22 per share," Myers concluded.
 Wells-Gardner Electronics Corporation is a video products company. It designs and manufactures color and monochrome video monitors for sale to the business, industrial and computer markets. It has a customer base that is growing both domestically and internationally.
 WELLS-GARDNER ELECTRONICS CORPORATION
 Condensed Balance Sheet
 Audited Audited
 Dec. 31, Dec. 31,
 1991 1990
 Asset:
 Cash and Short-Term Investments $423,000 $630,000
 Refundable Income Taxes 265,000 375,000
 Accounts Receivable 5,716,000 5,765,000
 Inventory 7,839,000 9,029,000
 Other Current Assets 309,000 604,000
 Total Current Assets 14,552,000 16,403,000
 Long-Term Bond 25,000 25,000
 Net Properties and Equipment 1,970,000 1,958,000
 Total Assets $16,547,000 $18,386,000
 Liabilities and Shareholders' Equity:
 Current Liabilities $4,188,000 $4,292,000
 Deferred Taxes 217,000 505,000
 Shareholders' Equity 12,142,000 13,589,000
 Total Liabilities and
 Shareholders' Equity $16,547,000 $18,386,000
 WELLS-GARDNER ELECTRONICS CORPORATION
 Statement of Operations
 Fourth Quarter Ended Dec. 31,
 1991 1990
 Net Sales $10,054,000 $9,287,000
 Cost of Sales 9,243,000 8,749,000
 Selling and Administrative
 Expenses 1,129,000 1,034,000
 Other Income, Net (2,000) (2,000)
 Restructuring charge 992,000 ---
 Total Cost 11,362,000 9,781,000
 Earnings (Loss) before
 Income Taxes (1,308,000) (494,000)
 Income Taxes (benefit) --- (242,000)
 Net Earnings (Loss)
 from continuing
 operations ($1,308,000) ($252,000)
 Net Earnings form Extraordinary
 item-Tax Effect of Loss
 Carryforward --- 15,000
 Net Earnings (Loss) ($1,308,000) ($237,000)
 Net Earnings (Loss) per
 share from Continuing
 Operations ($0.35) ($0.06)
 Net Earnings per share
 from Extraordinary
 item - Tax Effect of
 Loss Carryforward --- ---
 Net Earnings (Loss)
 per share ($0.35) ($0.06)
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,766,195 3,767,078
 WELLS-GARDNER ELECTRONICS CORPORATION
 Statement of Operations
 Year Ended Dec. 31,
 1991 1990
 Net Sales $38,814,000 $45,099,000
 Cost of Sales 35,087,000 39,726,000
 Selling and Administrative
 Expenses 4,371,000 4,262,000
 Other Income, Net (115,000) (74,000)
 Restructuring charge 992,000 ---
 Total Cost 40,335,000 43,914,000
 Earnings (Loss) before
 Income Taxes (1,521,000) 1,185,000
 Income Taxes (benefit) (57,000) 435,000
 Net Earnings (Loss)
 from continuing
 operations ($1,464,000) $750,000
 Net Earnings from Extraordinary
 item - Tax Effect of Loss
 Carryforward --- 410,000
 Net Earnings (Loss) ($1,464,000) $1,160,000
 Net Earnings (Loss) per
 share from Continuing
 Operations ($0.39) $0.20
 Net Earnings per share
 from Extraordinary
 item - Tax Effect of
 Loss Carryforward --- 0.11
 Net Earnings (Loss)
 per share ($0.39) $0.31
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,766,195 3,767,078
 -0- 3/9/92
 /CONTACT: Rick Conquest, chief financial officer, Wells-Gardner Electronics, 312-252-8220; or Gale Strenger, 708-564-5610, Bruce Marcus, 212-580-0703, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for Wells-Gardner Electronics/
 (WGA) CO: Wells-Gardner Electronics Corporation ST: Illinois IN: CPR SU: ERN


ML-SM -- DE012 -- 6357 03/09/92 11:15 EST
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Date:Mar 9, 1992
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