Watson General/USTMAN Reports First Quarter Fiscal 1998 Results.LAKEWOOD, Colo.--(BUSINESS WIRE)--Nov. 14, 1997--Watson General/USTMAN (Nasdaq:WGEN) reported financial results for the first quarter of fiscal 1998, ended Sept. 30, 1997.
For the first quarter compared with the same quarter in the prior year, sales increased 179 percent to $1,560,000. The net loss was $554,000 or 3 cents per share Cents per share
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared with a net loss of $652,000 or 6 cents per share.
In July 1997, the company changed its fiscal year end from Sept. 30 to June 30.
"The increase in sales is due primarily to the acquisition of Ustman Industries in May 1997," said Dan Cook, president. "Gross margins of 63 percent were achieved by focusing our business on Statistical Inventory Reconciliation (SIR) services. The loss for the quarter included approximately $312,000 for transitioning operations from Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). and Irvine to Denver. These costs should be significantly reduced in the second quarter."
Cook noted that considering the elimination of the transitioning costs and depreciation and amortization charges of $391,000 for the first quarter on an ongoing basis, the company would have achieved positive cash flow during the quarter.
Subsequent to the Watson General/Ustman combination, the company implemented a strategic plan to reposition itself in pursuit of its most significant market opportunity -- leak (programming) leak - With a qualifier, one of a class of resource-management bugs that occur when resources are not freed properly after operations on them are finished, so they effectively disappear (leak out). This leads to eventual exhaustion as new allocation requests come in. detection/monthly monitoring of underground storage tanks An Underground Storage Tank (UST), in United States environmental law, is a tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground. using SIR -- and to eliminate its holding company structure. During the first quarter, its Toxguard Systems Inc. subsidiary ceased operations and filed a voluntary petition for bankruptcy under Chapter 7.
Toxguard Systems' financial statements have not been consolidated with those of the company and prior quarter results have been restated. The company intends to divest To deprive or take away.
Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. its Toxguard Fluid Technologies Inc. subsidiary.
Watson General/USTMAN is the largest provider of critical information to owners of underground storage tanks through statistical inventory reconciliation services and remote tank monitoring -- building a recurring re·cur
intr.v. re·curred, re·cur·ring, re·curs
1. To happen, come up, or show up again or repeatedly.
2. To return to one's attention or memory.
3. To return in thought or discourse. revenue base from each tank being monitored.
Statistical Inventory Reconciliation (SIR) is one of the most cost-effective methods of detecting leaks in underground storage tanks and is fully approved for purposes of compliance with EPA EPA eicosapentaenoic acid.
n.pr See acid, eicosapentaenoic.
n. leak-detection regulations, which cover nearly every UST USt Umsatzsteuer (German: Tax)
UST Underground Storage Tank
UST University of St. Thomas (Minnesota, Texas)
UST University of Santo Tomas (Manila, Philippines) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . -0-
Except for the historical information contained in this release, the other statements in this release are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including without limitations, the company's ability to sell its products, the timely negotiations of new contracts, the level of increased sales with existing customers, as well as such other risks as from time to time may be detailed in the company's Securities and Exchange Commission reports. -0-
WATSON GENERAL/USTMAN Financial Highlights (unaudited) Quarter Ended Sept. 30, 1997 1996 Sales $ 1,560,000 $ 559,000 Cost of sales $ (580,000) $ (170,000) Gross profit $ 980,000 $ 389,000 Selling, general and administrative expenses $ (1,312,000) $ (1,006,000) Interest and expense, net of interest income $ (222,000) $ (35,000) Loss from operations before benefit for income taxes $ (554,000) $ (652,000) Benefit for income taxes $ -- $ -- Net (loss) $ (554,000) $ (652,000) Net income (loss) per share $ (0.03) $ (0.06) -0- At Sept. 30, June 30, 1997 1997 Cash and equivalents $ 624,000 $ 799,000 Total assets $ 10,720,000 $ 11,180,000 Stockholders' equity $ 1,798,000 $ 2,325,000
CONTACT: Watson General/USTMAN, Lakewood
Dan Cook, 800/253-8054
Bruce Russell Bruce Russell is a New Zealand experimental musician.
He is a founding member and guitarist of the noise rock trio The Dead C and the free noise combo A Handful of Dust (with Alastair Galbraith). He has released solo albums featuring guitar and tape manipulation. , 310/216-1414 (investor relations Investor relations
The process by which the corporation communicates with its investors. )