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ARROW INTERNATIONAL REPORTS 19.9 PERCENT GROWTH IN NET SALES FOR FISCAL YEAR ENDED AUG. 31, 1992

 ARROW INTERNATIONAL REPORTS 19.9 PERCENT GROWTH
 IN NET SALES FOR FISCAL YEAR ENDED AUG. 31, 1992
 READING, Pa., Oct. 6 /PRNewswire/ -- Arrow International, Inc. (NASDAQ-NMS: ARRO) today reported a 19.9 percent increase in net sales and a 24.6 percent gain in net income for its fiscal year ended Aug. 31, 1992.
 For the year, net sales increased to $133.4 million from $111.3 million in fiscal 1991. Net income increased to $20.1 million from $16.1 million in the previous year. Fiscal year earnings per share increased to $0.92 in 1992 from $0.74 in 1991. The earnings per share figures are adjusted to give effect to the stock split and recapitalization of the company effected in connection with the company's initial public offering on June 9, 1992.
 Fiscal 1992 net income includes $4.4 million of non-recurring income from a patent litigation settlement, a $3.4 million non-recurring charge related to the adoption of SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and a $0.6 million non- recurring charge due to vesting of restricted stock grants at the time of the company's recent public offering. The net effect of these items increased earnings per share by $.02 for the year.
 Excluding the aforementioned non-recurring items, 1992 fiscal year net income increased 22.2 percent to $19.7 million, from $16.1 million in the previous fiscal year. Although the company's income before taxes, excluding non-recurring items, increased 29.9 percent from the previous fiscal year, a higher tax rate limited the increase in net income. Earnings per share, excluding non-recurring items, increased to $0.90 from $0.74 in the prior year.
 For the company's fourth quarter ended Aug. 31, 1992, net sales increased 19.0 percent to $35.9 million from $30.2 million in the prior year period. Net income for the quarter, including the non-recurring $0.6 million charge for vesting of restricted stock grants was $4.9 million, compared to $4.7 million in the comparable 1991 fiscal year period. Excluding this non-recurring charge net income increased 17.8 percent to $5.5 million from $4.7 million in the previous year.
 In conjunction with the adoption of SFAS 106, the company has elected, for financial reporting purposes, to recognize immediately the accumulated postretirement benefit obligation for current and future retirees, resulting in a non-recurring $3.4 million after tax charge to net income retroactive to the quarter ended Nov. 30, 1991. Additionally, all prior 1992 fiscal quarters will be restated to include a $0.2 million pre-tax charge for the estimated annual recurring costs under SFAS 106 of providing these postretirement benefits.
 The company also announced that during the 1993 fiscal first quarter it will replace four of its critical care product dealers with direct sales representation. These dealers purchased $8 million of the company's products in fiscal year 1992 and represented the company in northern California, Washington, Oregon, Minnesota, Wisconsin and western Pennsylvania. The company said it feels that it will be better able to fully serve the market in these areas with Arrow direct sales representatives. Dealers will continue to sell an estimated 30 percent of U.S. sales of critical care products in fiscal 1993.
 Arrow will introduce a new generation radial artery wire guide catheterization device at the American Society of Anesthesiologists meeting in New Orleans Oct. 19-21, 1992. This significantly improved device enhances visualization of blood flashback from the artery while containing the blood during catheter insertion over the wire guide. This improved version of Arrow's patented radial artery device is expected to increase the use of wire guided radial artery catheterization.
 Arrow International, Inc. develops, manufactures and markets a broad range of clinically advanced, disposable catheters and related products. The company's products are used primarily in critical care procedures by anesthesiologists, critical care specialists, surgeons, cardiologists and emergency and trauma physicians. These critical care products are used principally for central vascular access for administration of fluids, drugs and blood products, patient monitoring and diagnostic purposes, as well as for pain management. The company's shares are traded in the Over-The-Counter market on the NASDAQ National Market System under the symbol "ARRO."
 ARROW INTERNATIONAL, INC.
 Consolidated Statement of Income Data
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months Fiscal Year
 Aug. 31 1992 1991 1992 1991
 Net sales $35,947 $30,212 $133,353 $111,257
 Cost of sales(A) 18,618 16,431 69,700 60,010
 Gross profit 17,329 13,781 63,653 51,247
 Operating expenses(A):
 Research, development
 and engineering 2,480 1,559 8,179 5,988
 Selling, general and
 administrative 7,421 5,261 26,169 21,376
 Total oper. expenses 9,901 6,820 34,348 27,364
 Operating income 7,428 6,961 29,305 23,883
 Patent litigation
 settlement(B) --- --- 7,000 ---
 Other income, net 380 79 1,154 328
 Income bef. income taxes 7,808 7,040 37,459 24,211
 Provision for inc. taxes 2,920 2,363 14,010 8,098
 Income before cumulative
 effect of change in
 accounting principle 4,888 4,677 23,449 16,113
 Cumulative effect of
 change in accounting
 principle, net of tax(C) --- --- (3,380) ---
 Net income 4,888 4,677 20,069 16,113
 Net inc. per common share $.22 $.22 $.92 $.74
 Weighted average shares used in
 computing net income per
 common share 22,249 21,803 21,831 21,761
 (A) Cost of sales and operating expenses include (a) non-recurring charges for vesting of restricted stock as of the company's initial public offering on June 9, 1992, and (b) recurring charges related to the adoption of SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." For the three months ended Aug. 31, 1992, these charges were (a) $202 and (b) $129, respectively, to cost of sales and (a) $789 and (b) $81, respectively, to operating expenses. For the year ended Aug. 31, 1992, these charges were (a) $202 and (b) $516, respectively, to cost of sales and (a) $789 and (b) $326, respectively, to operating expenses.
 (B) This patent litigation settlement had the effect of increasing net income and net income per common share by $4,382 and $.20, respectively.
 (C) In conjunction with the adoption of SFAS 106, the company has elected to recognize immediately the accumulated postretirement benefit obligation for current and future retirees. This had the effect of decreasing net income per common share by $.15.
 /delval/
 -0- 10/6/92
 /CONTACT: Marlin Miller Jr., 215-478-3114, or John H. Broadbent Jr., 215-478-3116, both of Arrow International/
 (ARRO) CO: Arrow International, Inc. ST: Pennsylvania IN: HEA SU: ERN


CC-LJ -- PH032 -- 7221 10/06/92 16:27 EDT
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