/C O R R E C T I O N -- FoxMeyer Corporation/
/C O R R E C T I O N -- FoxMeyer Corporation/ DALLAS, Jan. 24 /PRNewswire/ -- In NY095, "FoxMeyer Announces
Improved Sales and Earnings," moved yesterday (1/23/92), we are advised by a representative of the company that in the Condensed Statements of Consolidated Income table for the nine months ended Dec. 31, the percent change in Operating costs should have read "-13.4 percent," instead of "13.4 percent" as previously issued. The complete corrected version of the story is repeated below.
FOXMEYER ANNOUNCES IMPROVED SALES AND EARNINGS increased net income 14.7 percent to $10.2 million, or $0.33 per share, for the third quarter ended Dec. 31, 1991, compared with $8.9 million, or $0.42 per share reported in the prior year, it was announced today. Year-to-year comparisons of net income per share are affected by the 49 percent increase in the average number of shares outstanding in August 1991, when FoxMeyer made its initial public offering. Average shares outstanding for the third quarter of the current fiscal year were 31.35 million, vs. average shares outstanding of 21 million for the same period the previous year. Operating income increased 43.4 percent in the quarter to $14.6 million from $10.2 million in the year-ago period. Sales were 7.4 percent higher, increasing to $788.1 million from $733.6 million reported a year ago. Net income in the quarter included an extraordinary gain of $2.8 million, or $0.09 per share, from the utilization of tax-loss carryforwards. This compares with an extraordinary gain of $3.6 million, or $0.17 per share, for the third quarter last year. "We're extremely pleased with our continued improvement in operating margins, " said Robert L. King, president and chief executive officer for FoxMeyer, the nation's third largest wholesale distributor of pharmaceuticals. "Strong improvements in productivity and cost controls have reduced our operating costs. "Sales growth is accelerating and we have more than recovered from our change in supplier status in March 1991 with Kmart. We increased sales 6.5 percent through the first nine months of fiscal 1992. However, our non-Kmart related sales are up $361.8 million, or 19.7 percent," King said. "Our strategic plan is on track. We continue to explore opportunities for acquisitions that would expand our geographical coverage, capture additional market share and contribute to growth in sales and earnings," he said. "We are confident that we can continue to improve our performance." Results for the First Nine Months Net income for the nine months ended Dec. 31, 1991, was $23.2 million, or $0.90 per share, up 44.5 percent over $16 million, or 0.76 per share, for same period the previous year. This includes an extraordinary gain of $6.3 million, or $0.24 per share, from the utilization of tax-loss carryforwards. Net income for the prior year's first nine months included a similar gain, $6.3 million, or $0.30 per share, partially offset by a one-time charge of $1.9 million, or $0.09 per share, related to the cumulative effect of a change in accounting principle. Year-to-year comparisons in net income per share are affected by the increase in average shares outstanding, reflecting the company's August 1991 public offering. Average number of shares outstanding for the first nine months of the current fiscal year was 25.7 million, vs. average shares outstanding of 21 million for the same period the previous year. Operating income increased 36.4 percent to $32.3 million for the nine months, compared with $23.7 million for the same period last year. This improvement was based on net sales of $2.24 billion, an increase of 6.5 percent over the prior-year sales of $2.10 billion in the first nine months. FoxMeyer distributes pharmaceuticals and health and beauty aids to 37 states in the Midwest, mid-Atlantic, South and Southwest. Headquartered in Dallas, the company serves independent pharmacies, chain stores, hospitals and other health care facilities. Sixty-seven percent of FoxMeyer's stock is owned by National Intergroup, Inc. FOXMEYER CORPORATION AND SUBSIDIARIES Statements of Consolidated Income (Unaudited; in thousands, except for per-share data) Pct. Third quarter ended Dec. 31 1991 1990 Change Net sales $788,128 $733,551 7.4 Cost of goods sold 738,639 678,817 Total 49,489 54,734 Operating costs 34,870 44,542 -21.7 Operating income 14,619 10,192 43.4 Net financing costs 1,911 1,204 Income before income tax provision and extraordinary item 12,708 8,988 Income tax provision 5,337 3,746 Income before extraordinary item 7,371 5,242 Extraordinary item -- utilization of net operating loss carryforward 2,823 3,646 Net income 10,194 8,888 14.7 Per share of common stock(A): Income before extraordinary item $0.24 $0.25 -4(A) Extraordinary item 0.09 0.17 Net income per share 0.33 0.42 -21.4(A) Average number of shares outstanding 31,350 21,000 49.3 Pct. Nine months ended Dec. 31 1991 1990 Change Net sales $2,237,081 $2,101,117 6.5 Cost of goods sold 2,094,977 1,950,685 Total 142,104 150,432 Operating costs 109,791 126,748 -13.4 Operating income 32,313 23,684 36.4 Net financing costs 3,353 4,417 Income before income tax provision, extraordinary item and cumulative effect of change in accounting principle 28,960 19,267 Income tax provision 12,093 7,607 Income before extraordinary item and cumulative effect of change in accounting principle 16,867 11,660 Extraordinary item -- utilization of net operating loss carryforward 6,309 6,311 Cumulative effect of change in accounting principle -- (1,932) Net income 23,176 16,039 44.5 Per share of common stock(A): Income before extraordinary item and cumulative effect of change in accounting principle $0.66 $0.55 20(A) Extraordinary item 0.24 0.30 Cumulative effect of change in accounting principle -- (0.09) Net income per share 0.90 0.76 18.4(A) Total 25,705 21,000 (A) -- Net income per share comparisons are affected by increase in the number of shares outstanding, resulting from the August 1991 initial public offering. Summarized Balance Sheet Data (Thousands of dollars) Dec. 31, 1991 March 31, 1991 (Unaudited) (Audited) Net working capital $350,485 $252,976 Properties -- net 58,180 51,204 Other assets 193,958 199,817 Long-term debt 102,252 43,008 Deferred gain and other liabilities 5,494 5,545 Stockholders' equity 494,877 455,444 -0- 1/24/92 /CONTACT: J. Warren Henry of FoxMeyer, 214-446-4270, or Roy Winnick or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for FoxMeyer/ (FOX) CO: FoxMeyer Corporation ST: Texas IN: MTC SU: ERN SM -- NY066 -- 3393 01/24/92 15:18 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 24, 1992|
|Previous Article:||EDDIE BAUER PROMOTES MARSHA SAVERY TO VICE PRESIDENT OF ADVERTISING|
|Next Article:||NORTH COAST HARBOR, INC. SELECTS MASTER PLAN DESIGN TEAM|