AIR-CURE ENVIRONMENTAL REPORTS YEAR-END RESULTS
AIR-CURE ENVIRONMENTAL REPORTS YEAR-END RESULTS MINNEAPOLIS, June 29 /PRNewswire/ -- Air-Cure Environmental, Inc.
(NASDAQ: AIRE) today reported the results of operations for the fiscal year ended March 31, 1992. Net revenues for the year totaled $7,026,550 compared to $10,664,938 in fiscal 1991. Net income totaled $20,645, or $.01 per share, this year, compared to $569,624, or $.29 per fully diluted share, last fiscal year.
Net revenues for the fourth quarter in fiscal year 1992 were $2,040,944 as compared to $2,161,132 for the comparable period in 1991. The company had a net loss of $98,614, or $.03 per share versus net income of $150,280, or $.06 per share for the comparable fiscal 1991 quarter. The decline in net revenues is primarily attributed to delays and postponements of contract awards beginning in the fourth quarter of calendar 1990. These delays were caused by unstable political and economic conditions resulting from the Persian Gulf War, as well as uncertainty surrounding the timing of implementation of the 1990 Amendments to the Federal Clean Air Act. As a percentage of net revenues, gross profit margin increased to 22.5 percent this year, from 16.7l percent last year. The increase in gross profit was primarily due to the lower cost of certain components obtained through Air-Cure's Pipkorn subsidiary, as well as the company's ability to secure favorable subcontract costs. Air-Cure's decline in net income was primarily influenced by a decrease in net revenues, combined with an increase in the company's selling, general and administrative expenses. SG & A expenses increased from $818,534 in fiscal 1991 to $1,664,300 in 1992, primarily due to an increased level of operations
atrributable to the company's new subsidiaries, Pipkorn and Interel, as well as additional personnel costs at Air-Cure.
Kam Tejwani, Air-Cure's chairman and chief executive officer, stated, "Although we are disappointed by fiscal 1992 results which were due to the above mentioned reasons we are optimistic about Air-Cure's future business opportunities and prospects for which we are well positioned." Air-Cure Environmental, Inc. designs, manufactures and markets proprietary air pollution control systems and components. These systems limit the emission of particulate and gaseouspollutants into the environment. Air-Cure Environmental, Inc. and Subsidiaries April 7, 1990 Year Ended (inception) through March 31, 1992 March 31, 1991 Net revenues $ 7,026,550 $10,644,938 Cost of revenues 5,443,143 8,869,040 Gross Profit 1,583,407 1,775,898 Selling, general & administrative expenses 1,664,300 818,534 Operating profit(loss) (80,893) 957,364 Other income (expense) Interest income 151,818 80,380 Interest expense (48,139) (71,279) Miscellaneous 11,859 159 115,538 9,260 Earnings before income taxes 34,645 966,624 Income taxes 14,000 397,000 NET EARNINGS $20,645 $569,624 Net earnings per common share: Primary $.01 $.30 Fully diluted $.01 $.29 Weighted average number of common shares and common equivalent shares outstanding: Primary 2,990,613 1,898,722 Fully diluted 3,160,580 2,155,039 Fourth Quarter March 31, 1992 March 31, 1991 Net revenues $2,040,945 $2,161,132 Cost of revenues 1,694,237 1,657,514 Gross profit 346,707 503,618 Selling, general & administrative expense 536,454 273,240 Depreciation/amortization 36,922 9,253 573,376 282,493 Operating income (loss) (226,669) 221,125 Other income (expense) Interest income 50,252 65,648 Interest expense (57) (18,493) Miscellaneous 11,859 -- 62,054 47,155 Income (loss) before taxes 1?64,614) 268,280 Taxes on income (benefits) (66,000) 118,000 Net income (loss) (98,614) 150,280 Net earnings per share: Primary $(.03) $.06 Fully diluted $(.03) $.06 Weighted average Shares outstanding: primary 2,990,613 2,476,000 fully diluted 3,160,580 2,742,667 -0- 06/28/92 /CONTACT: Kam Tejwani of Air-Cure Environmental, 612-571-0560; or Tom de Petra or Christopher Sellwood of de Petra & Associates, 612-338-7630 for Air-Cure Environmental/ (AIRE) CO: Air-Cure Environmental, Inc. ST: Minnesota IN: SU: ERN
AL -- MN002 -- 4616 06/29/92 10:24 EDT
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|Date:||Jun 29, 1992|
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