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WELLS-GARDNER REPORTS LOSS ON LOWER SALES

 CHICAGO, July 30 /PRNewswire/ -- Wells-Gardner (AMEX: WGA) announced today that sales for the second quarter ended June 30, 1993, declined 30.5 percent to $10,059,000 from the year ago's $14,486,000. The Company also reported a net loss of $349,000, or nine cents a share, which included a $17,000 tax benefit, compared to net earnings of $970,000, or $0.25 a share in the 1992 second quarter. Included in last year's quarter was a benefit from a tax loss carryforward of $391,000, or $0.10 per share.
 For the six months, sales were $19,948,000, a 20.4 percent reduction from the $25,075,000 posted in the prior year's period. Net loss for the first six months was $585,000 or $0.15 per share, including a tax benefit of $235,000, or six cents per share and a net benefit of $102,000 or three cents per share, from the cumulative effect of FASB 109 accounting change. Net earnings for the comparable 1992 period were $1,044,000, or $0.27 per share which included a benefit from a tax loss carryforward of $403,000, or $0.10 per share.
 In the 1993 quarter, there were 3,866,607 weighted average common and common equivalent shares outstanding compared to 3,895,005 in 1992. For the six months of 1993, there were 3,888,021 weighted average and common equivalent shares outstanding compared to 3,912,064 for the comparable 1992 period.
 "While sales were down sharply from last year's quarter and first six months, the Company believes that it has not lost market share in any of its key market segments," commented Frank J. Myers, Chairman and CEO. "As forecasted earlier this year, demand from the coin-operated amusement segment was down due to the lack of successful new game introductions. Demand from the VLT segment was off due to no enabling legislation passing during the 1992 fall legislative sessions," according to Myers.
 "Our loss for the second quarter was primarily volume related, with only slight margin erosion compared to the year-ago quarter. We continue to make progress in our stated objective of further reducing the Company's break-even point. Restructuring during the second quarter will result in annualized pre-tax savings of more than $1,200,000, or $0.30 per share, beginning third quarter 1993," added Myers.
 "The sales outlook for the balance of 1993 is mixed at this time. The third quarter is typically soft for our major markets and this year's third quarter will likely reflect that pattern. The outlook for the fourth quarter, however, is encouraging due to expected strong new coin-operated game introductions and a large Canadian province due to go on-line with video lottery late third or early fourth quarter," Myers concluded.
 The Company enters the second half of 1993 with a strong balance sheet, a current ratio of 3.1 to 1.0 and book value of $3.45. With a newly lowered production break-even point, the Company is ideally positioned to capitalize on an anticipated recovery in the late third or early fourth quarter.
 Wells-Gardner is a video products company that designs and manufactures color and monochrome video monitor for sale to the commercial and industrial markets.
 Wells-Gardner Electronics Corporation
 Condensed Balance Sheet
 (Unaudited) (Audited)
 June 30, December 31,
 1993 1992
 Assets:
 Cash and Short Term Investments $ 80,000 $ 733,000
 Refundable Income Taxes 247,000 28,000
 Accounts Receivable 5,474,000 4,863,000
 Inventory 9,512,000 11,570,000
 Other Current Assets 241,000 523,000
 Total Current Assets 15,554,000 17,717,000
 Long Term Bond 25,000 25,000
 Net Properties and Equipment 2,693,000 2,447,000
 Total Assets $ 18,272,000 $ 20,189,000
 Liabilities and Shareholders' Equity:
 Current Liabilities $ 5,034,000 $ 6,252,000
 Deferred Taxes ---- 152,000
 Shareholders' Equity 13,238,000 13,785,000
 Total Liabilities and
 Shareholders' Equity $ 18,272,000 $ 20,189,000
 Wells-Gardner Electronics Corporation
 Consolidated Statement of Income
 (Unaudited)
 Second Quarter Ended June 30,
 1993 1992
 Net Sales $ 10,059,000 $ 14,486,000
 Cost of Sales 9,456,000 12,323,000
 Selling and Administrative
 Expenses 965,000 1,192,000
 Other Income, Net 4,000 1,000
 Tt?al Cost 10,425,000 13,516,000
 Earnings (Loss) before
 Income Taxes (366,000) 970,000
 Income Taxes (benefit) (17,000) 391,000
 Net Earnings (Loss)
 from Continuing
 Operations (349,000) 579,000
 Net Earnings form Extraordinary
 Item-Tax Effect of Loss
 Carryforward ---- 391,000
 Net Earnings (Loss) $ (349,000) $ 970,000
 Net Earnings (Loss) per
 share from Continuing
 Operations (0.09) 0.15
 Net Earnings per share
 from Extraordinary
 Item - Tax Effect of
 Loss Carryforward ---- 0.10
 Net Earnings (Loss)
 per share $ (0.09) $ 0.25
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,866,607 3,895,005
 Wells-Gardner Electronics Corporation
 Consolidated Statement of Income
 (Unaudited)
 Six Months Ended June 30,
 1993 1992
 Net Sales $ 19,948,000 $ 25,075,000
 Cost of Sales 18,841,000 21,844,000
 Selling and Administrative
 Expenses 2,022,000 2,204,000
 Other Income, Net 7,000 (17,000)
 Total Cost 20,870,000 24,031,000
 Earnings (Loss) before
 Income Taxes (922,000) 1,044,000
 Income Taxes (benefit) (235,000) 403,000
 Net Earnings (Loss)
 from Continuing
 Operations (687,000) 641,000
 Net Earnings form Extraordinary
 Item-Tax Effect of Loss
 Carryforward 403,000
 Cumulative Effect of Change
 in Accounting Principle 102,000 ----
 Net Earnings (Loss) $ (585,000) $ 1,044,000
 Net Earnings (Loss) per
 share from Continuing
 Operations $ (0.18) $ 0.17
 Net Earnings per share
 from Extraordinary
 item - Tax Effect of
 Loss Carryforward ---- 0.10
 Cumulative Effect of Change
 in Accounting Principle 0.03 ----
 Net Earnings (Loss)
 per share $ (0.15) $ 0.27
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,888,021 3,912,064
 -0- 7/30/93
 /CONTACT: Rick Conquest, Chief Financial Officer, Wells-Gardner Electronics, 312-252-8220; or Gale Strenger, 708-564-5610, Mark Perlgut, 212-874-6800, or Earle Brown, 813-796-1452, all of The Investor Relations Company for Wells-Gardner Electronics/
 (WGA)


CO: Wells-Gardner Electronics Corporation ST: Illinois IN: SU: ERN

ML -- DE014 -- 7814 07/30/93 14:00 EDT
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Date:Jul 30, 1993
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