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AMRE ANNOUNCES RESULTS FOR SECOND QUARTER

 AMRE ANNOUNCES RESULTS FOR SECOND QUARTER
 DALLAS, Aug. 10 /PRNewswire/ -- AMRE, Inc. (NYSE: AMM), a Dallas-


based direct consumer marketer of home improvement products, today announced results for its second quarter and six months ended June 28, 1992.
 Second Quarter Results
 For the second quarter ended June 28, 1992, revenues decreased 1.7 percent to $76.3 million from $77.6 million for the same period last year. The company's Interior Division contributed $18.2 million in revenues, a 15.3 percent increase from $15.8 million for the second quarter last year. The Exterior Division revenues decreased 6.1 percent to $58.1 million from $61.8 million.
 Income from operations was $4.4 million, a decrease of 39.4 percent from the $7.2 million reported for last year's second quarter.
 Net income for the second quarter was $2.9 million or $0.20 per share compared with $5.1 million or $0.38 per share for the same period last year. Last year's results included $2.6 million of pretax expenses associated with the work of the special committee of the board of directors which reduced earnings per share by $0.12.
 At June 28, 1992, the company maintained 74 sales branches (53 Exterior Division and 21 Interior Division).
 Closing ratios continued to gradually improve during the second quarter and began to approach anticipated levels in June. Adequate sales staffing levels were also achieved by the end of May and were maintained in June. However, advertising spending for the quarter did not produce the expected amount of contract revenues primarily because of the lower closing ratios. Other factors were the understaffing early in the period, lead shortages in certain markets and rainy weather which inhibited installations.
 Six Months Results
 For the six months ended June 28, 1992, revenues decreased 2.4 percent to $135.9 million from $139.2 million last year. The company's Interior Division contributed $31.2 million in revenues, an 8.9 percent increase over $28.7 million for the six months ended June 30, 1991. The Exterior Division's revenues decreased 5.4 percent to $104.6 million from $110.6 million during the same period last year.
 Income from operations decreased to $447,000 from the $7.3 million reported for the same period last year.
 Net income for the six months ended June 28, 1992 was $792,000 or $0.06 per share compared with $5.4 million or $0.39 per share for the same period last year. Last year's results included $3.7 million of pretax expenses associated with the work of the special committee of the board of directors which reduced earnings per share by $0.17.
 Reorganization
 Management has initiated an extensive evaluation of the consumer trends expected to be encountered during the 1990s. As part of this evaluation, changes are being implemented in the company's organizational structure and marketing practices, including advertising and pricing. These changes will position the company to further build on its leadership position in an industry that is projected to achieve substantial growth. This review will result in a restructuring of the company's operations to focus on profit responsibility in decentralized geographic regions, rather than the current national product line focus. Functional operations that were formerly centralized, such as marketing and credit, will now be regionally focused and will report to the newly established vice president/general manager of each region. These changes in the organizational structure and marketing practices may have an adverse effect on the company's financial results in the short term. Because the near-term financial effects of these changes are uncertain, the company has reached an agreement in principle for an as yet undetermined, but possibly significant, reduction in license fees for the balance of the year based on the actual financial results. Management believes these changes will result in improving the company's market leadership position and will help to achieve the goal of returning to a high level of growth and profitability.
 Cash
 During the quarter the company funded approximately $14.8 million relating to a settlement agreement pertaining to stockholder litigation. As a result of funding the litigation settlement, AMRE's cash position declined to $14.4 million in cash and marketable securities at June 28, 1992, compared with $25.6 million at March 29, 1992.
 Management believes AMRE, Inc. is North America's largest direct sales and marketing company for siding, coating and kitchen cabinet refacing products.
 AMRE, INC.
 Statement of Operations
 (Unaudited; in thousands, except per-share amounts)
 Three months ended 6/28/92 6/30/91
 Contract revenues $76,272 $77,619
 Gross profit 55,881 56,994
 Operating income 4,365 7,208
 Net income 2,893 5,148
 Net income per share $0.20 $0.38
 Weighted average shares
 outstanding 13,957 13,916
 Six months ended 6/28/92 6/30/91
 Contract revenues $135,871 $139,240
 Gross profit 99,750 100,758
 Operating income 447 7,256
 Net income 792 5,416
 Net income per share $0.06 $0.39
 Weighted average shares
 outstanding 14,253 13,673
 -0- 8/10/92
 /CONTACT: Michael Keane of AMRE, 214-819-7000/
 (AMM) CO: AMRE, Inc. ST: Texas IN: HOU SU: ERN


CK -- NY023 -- 8419 08/10/92 10:18 EDT
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Date:Aug 10, 1992
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