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Abrams Industries Reports Second Quarter and Six Month Results; Increases Quarterly Dividend

ATLANTA, Nov. 21 /PRNewswire/ -- ABRAMS INDUSTRIES, INC. (Nasdaq: ABRI) -- construction, manufacturing and real estate -- today reported that for the second quarter ended October 31, 1996, revenues were $30,504,720 compared to $35,168,458 for the same period last year. The net earnings for the period were $33,261, or $.01 per share, compared to last year's net loss of $179,580, or $.06 per share.

For the six months ended October 31, 1996, revenues were $58,624,290 compared to $69,960,182 for the same period last year. The decrease in revenues is attributable to both the construction and manufacturing segments. The net earnings for the six months were $139,688, or $.05 per share, compared to last year's net loss of $167,426, or $.06 per share. The increase in earnings for the current second quarter and six months is attributed to the "re-engineering" efforts at Abrams Fixture Corporation and improved profit margins at Abrams Construction, Inc.

Alan R. Abrams, President of Abrams Properties, Inc., announced that the Company has contracted to sell three of its free-standing Kmart stores. These sales are anticipated to close in the next six to eight months.

Backlog at October 31, 1996 increased to $70,000,000 from $42,000,000 a year ago. The increases are primarily attributable to the following: (1) addition of a new customer at Abrams Fixture Corporation, (2) increased activity at Abrams Construction, Inc. and (3) the aforementioned anticipated real estate sales at Abrams Properties, Inc.

The Board of Directors today declared its regular quarterly dividend of $.02 per share (the 70th consecutive quarterly dividend), payable January 3, 1997, to shareholders of record December 11, 1996. This is an increase of $.005 over the previous quarterly dividend.
 CONDENSED RESULTS OF OPERATIONS
 (Unaudited)
 Second quarter ended 10/31/96 10/31/95
 Revenues $30,504,720 $35,168,458
 Costs and expenses 30,450,459 35,451,038
 Earnings (loss) before income taxes 54,261 (282,580)
 Income tax expense (benefit) 21,000 (103,000)
 Net earnings (loss) $ 33,261 $ (179,580)
 Net earnings (loss) per share $ .01 $ (.06)
 Weighted average shares outstanding 2,970,856 2,974,030
 Six months ended 10/31/96 10/31/95
 Revenues $58,624,290 $69,960,182
 Costs and expenses 58,398,602 70,222,608
 Earnings (loss) before income taxes 225,688 (262,426)
 Income tax expense (benefit) 86,000 (95,000)
 Net earnings (loss) $ 139,688 $ (167,426)
 Net earnings (loss) per share $ .05 $ (.06)
 Weighted average shares outstanding 2,970,856 2,983,470
 CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 ASSETS 10/31/96 4/30/96


Current Assets:
 Cash and cash equivalents $ 4,388,300 $ 5,452,453
 Receivables 16,633,299 16,132,372
 Less: allowance for doubtful accounts (35,896) (57,541)
 Inventories, net 1,869,754 1,676,541
 Costs and earnings in excess of billings 3,274,898 2,858,389
 Deferred income taxes 999,100 999,100
 Other 973,594 862,384
 Total current assets 28,103,049 27,923,698
 Income-producing properties, net 53,746,763 50,661,940
 Property, plant and equipment, net 3,716,284 3,831,902


Other assets:
 Land held for sale 5,014,435 4,980,903
 Notes receivable 571,583 624,017


Cash surrender value of life insurance
 on officers, net 948,482 947,134
 Deferred loan costs, net 845,412 914,153
 Other 1,800,768 1,229,443
 Total $94,746,776 $91,113,190


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
 Trade and subcontractors payables $10,755,134 $11,246,736
 Billings in excess of costs and earnings 1,651,975 781,818
 Accrued expenses 3,171,269 3,991,790
 Current maturities of long-term debt 1,466,638 1,485,657
 Total current liabilities 17,045,016 17,506,001
 Deferred income taxes 1,713,014 1,713,014
 Other liabilities 4,411,983 539,263


Mortgage notes and bonds payable, less
 current maturities 38,615,532 39,102,270


Other long-term debt, less current
 maturities 12,758,275 12,100,266
 Total liabilities 74,543,820 70,960,814


SHAREHOLDERS' EQUITY:

Common stock, $1 par value; authorized

5,000,000 shares; 3,010,039 issued and
 2,970,856 outstanding in 1997 and 1996 3,010,039 3,010,039
 Additional paid-in capital 2,012,190 2,012,190
 Retained earnings 15,340,028 15,289,448


Total paid-in capital and retained
 earnings 20,362,257 20,311,677
 Less cost of treasury stock 159,301 159,301
 Total shareholders' equity 20,202,956 20,152,376
 Total $94,746,776 $91,113,190
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited)
 Second quarter ended 10/31/96 10/31/95


Revenues
 Construction $24,639,225 $28,529,987
 Manufacturing 3,065,328 3,841,411
 Real estate 2,713,933 2,742,252
 Total 30,418,486 35,113,650
 Less: Intersegment eliminations (15,187) (73,827)
 Total 30,403,299 35,039,823
 Interest 104,860 114,661
 Other (3,439) 13,974
 Total 30,504,720 35,168,458


Costs and Expenses:

Applicable to Revenues -
 Construction 23,289,167 27,222,520
 Manufacturing 2,070,192 3,052,715
 Real estate, exclusive of interest 1,578,032 1,603,817
 Total 26,937,391 31,879,052
 Less: Intersegment eliminations (13,995) (73,164)
 Total 26,923,396 31,805,888


Selling, shipping, general and administrative
 Construction 595,487 619,680
 Manufacturing 864,345 903,159
 Real estate 357,290 356,339
 Parent 531,822 560,850
 Total 2,348,944 2,440,028


Interest costs incurred, less
 interest capitalized 1,178,119 1,205,122
 Total 30,450,459 35,451,038
 Earnings (loss) before income taxes 54,261 (282,580)
 Income tax expense (benefit) 21,000 (103,000)
 Net earnings (loss) $ 33,261 $ (179,580)
 Net earnings (loss) per share $ .01 $ (.06)
 Dividends per share $ .015 $ .03
 Weighted average shares outstanding 2,970,856 2,974,030
 Six months ended 10/31/96 10/31/95


Revenues
 Construction $46,186,104 $55,395,518
 Manufacturing 6,626,640 8,867,425
 Real estate 5,904,718 5,496,468
 Total 58,717,462 69,759,411
 Less: Intersegment eliminations (344,780) (73,827)
 Total 58,372,682 69,685,584
 Interest 219,627 249,885
 Other 31,981 24,713
 Total 58,624,290 69,960,182


Costs and Expenses:

Applicable to Revenues -
 Construction 43,650,425 53,018,850
 Manufacturing 4,497,368 6,882,124
 Real estate, exclusive of interest 3,460,933 3,055,697
 Total 51,608,726 62,956,671
 Less: Intersegment eliminations (339,145) (73,164)
 Total 51,269,581 62,883,507


Selling, shipping, general and administrative
 Construction 1,189,139 1,161,075
 Manufacturing 1,747,847 1,901,753
 Real estate 761,729 761,799
 Parent 1,077,321 1,092,158
 Total 4,776,036 4,916,785


Interest costs incurred, less
 interest capitalized 2,352,985 2,422,316
 Total 58,398,602 70,222,608
 Earnings (loss) before income taxes 225,688 (262,426)
 Income tax expense (benefit) 86,000 (95,000)
 Net earnings (loss) $ 139,688 $ (167,426)
 Net earnings (loss) per share $ .05 $ (.06)
 Dividends per share $ .03 $ .06
 Weighted average shares outstanding 2,970,856 2,983,470
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited)
 Six months ended October 31 1996 1995


Cash flows from operating activities:
 Net earnings (loss) $ 139,688 $ (167,426)


Adjustments to reconcile net earnings (loss)
 to net cash used in operating
 activities
 Depreciation and amortization 1,716,402 1,652,660
 Gain on sale of real estate (85,914) ---


Decrease (increase) in assets:
 Receivables (522,572) (8,070,985)
 Inventories (193,213) 539,753
 Costs and earnings in excess of billings (416,509) (184,570)
 Other current assets (111,210) (80,274)
 Other assets (665,229) 81,716


Increase (decrease) in liabilities:
 Accounts payable (491,602) 5,194,321
 Billings in excess of costs and earnings 870,157 1,388,989
 Accrued expenses (820,521) (1,283,212)
 Other liabilities 170,681 36,759
 Net cash used in operating activities (409,842) (892,269)


Cash flows from investing activities:
 Proceeds from sale of real estate 256,000 ---


Additions to properties, property plant
 and equipment, net (973,455) (651,868)
 Net cash used in investing activities (717,455) (651,868)


Cash flows from financing activities:
 Debt proceeds 862,937 4,856,000
 Debt repayments (710,685) (5,627,767)
 Cash dividends (89,108) (178,972)
 Repurchases of common stock --- (102,868)


Net cash provided by (used in) financing
 activities 63,144 (1,053,607)


Net decrease in cash and cash equivalents (1,064,153) (2,597,744)

Cash and cash equivalents at beginning
 of period 5,452,453 8,270,703
 Cash and cash equivs. at end of period $ 4,388,300 $ 5,672,959


Supplemental schedule of cash flow information:

Interest paid, net of amounts capitalized $ 2,457,791 $ 2,549,250
 Income taxes paid, net of refunds $ 166,002 $ 208,402


Supplemental schedule of non-cash
 investing activities:
 Accrual of construction allowance payable $ 3,702,039 $ --- SOURCE Abrams Industries, Inc.
 -0- 11/21/96


/CONTACT: Edward M. Abrams, CEO, or Joseph H. Rubin, President and CFO, Abrams Industries, 404-256-9785/

(ABRI)

CO: Abrams Industries, Inc. ST: Georgia IN: SU: ERN DIV

BR -- ATTH016 -- 5516 11/21/96 15:20 EST http://www.prnewswire.com
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Date:Nov 21, 1996
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