ADAGE REPORTS EARNINGS
ADAGE REPORTS EARNINGS PHILADELPHIA, Nov. 7 /PRNewswire/ -- Adage, Inc. (NASDAQ: ADGE), a
diversified niche manufacturing company with operations in recycled paperboard, cold drawn steel and electronic access control systems, told analysts at a meeting of the Philadelphia Security Association today that on a quarter to quarter basis, it is on target toward improving operations at its Allister Access Controls and Niagara Cold Drawn subsidiaries with income from continuing operations improving to $244,000 for the third quarter ended Sept. 30, 1991, from an operating loss of $79,000 in the immediately prior second quarter ended June 30, a trend which it expects should continue, according to Robert H. Cahill, president and CEO.
"These improvements are the direct result of the restructuring program and dramatic cost reductions implemented in the first quarter at both the Allister and Niagara operations, as well as an overall 15 percent reduction in S,G & A expenses in the third quarter," said Cahill. "In addition, our Fort Orange recycled paperboard mill continues to establish new records for profits with an 8 percent improvement in its contribution to consolidated net income for the first nine months of this year versus the same period a year ago." "Improvements to the Fort Orange paper mill have enabled us to increase tonnage capacity to 110 tons per day from 100 tons per day two years ago. Further improvements in 1992 will add another 15 tons capacity per day to the mill's capacity. In addition, a cogeneration facility currently being built on the Fort Orange site and scheduled for completion in early 1992, will enable Adage to purchase steam from the co-gen facility at half it's annual cost," added Cahill. For the three months ended Sept. 30, 1991, Adage had total sales of $18,968,000 compared with $18,549,000 for the same period a year ago. Income from continuing operations for the quarter amounted to $244,000 vs. $358,000 in the comparable year ago quarter. After a loss from discontinued operations of $68,000 related to the sale of the company's Pulsar Security division, there was net income of $153,000, or $.05 per share, vs. net income of $321,000, or $.09 per share, in the corresponding 1990 third quarter. For the nine months ended Sept. 30, 1991, Adage had total sales of $57,605,000 compared with $60,564,000 last year. Income from continuing operations for the nine months was $634,000 vs. $1,036,000 in the 1990 nine month period. After a loss from discontinued operations of $466,000, there was net income of $294,000, or $.09 per share, vs. $764,000, or $.25 per share, for the first nine months of 1990. Cahill noted that Adage's pending acquisition of RELM Communications, Inc. (NASDAQ: RGCY), is moving ahead and is expected to be completed by the end of this year, as planned. "The synergies created by the consolidation of Allister's electronic assembly manufacturing operations into RELM's state-of-the-art facilities in Melbourne, Fla., as well as continued cost-cutting measures, should add to Adage's overall improvement," he said. ADAGE, INC. Condensed Financial Statement (Dollars in thousands, except per share data, unaudited) Period ended Three months Nine months Sept. 30 1991 1990 1991 1990 (restated) Sales $18,968 $18,549 $57,605 $60,564 Income from cont. opers. 244 358 634 1,036 Net income 153 321 294 764 Earnings (loss) per common share: Cont. opers. .073 .105 .187 .334 Discont. opers. (.027) (.011) (.100) (.088) Net income per share .046 .094 .087 .246 Wtd. avg. comm. shrs. outstanding 3,347,221 3,420,825 3,389,085 3,096,479 -0- 11/7/91 /CONTACT: Robert H. Cahill, president or Robert T. Holland, chief financial officer of Adage, 215-563-6500; or Sherry Spalter of Wall Street Group, 212-888-4848, for Adage/ (ADGE) CO: Adage, Inc. ST: Pennsylvania IN: PAP SU: ERN SM-OS -- NY057 -- 2252 11/07/91 13:07 EST
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|Date:||Nov 7, 1991|
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