CARDIS CORP. REPORTS RESULTS
CARDIS CORP. REPORTS RESULTS BUENA PARK, Calif., Aug. 28 /PRNewswire/ -- Cardis Corp. (OTC)
today reported a net loss of $444,000, or $0.20 per share, for its first fiscal quarter ended July 31, 1992. This is sharply improved from the corresponding year earlier quarter when Cardis reported a net loss of $960,000, or $1.86 per share.
Sales for the first quarter declined to $17,638,000, partly reflecting effects of civil disturbances in Los Angeles and operating two fewer retail stores than a year ago when Cardis' net sales were $19,051,000. The company's operating profit before interest for the quarter was $132,000, compared with $231,000 a year ago. The prior-year net income per share amount has been restated to reflect the 1-for-20 reverse stock split effected concurrently with the company's Oct. 31, 1991, recapitalization. The recapitalization involved the exchange of $20 million of bank debt and $724,000 in interest owed on that debt for Cardis' common stock; the extension
of term and interest relief on approximately $8.1 million of other indebtedness in exchange for stock; conversion of the company's mandatory redeemable Class B preferred stock into shares of common stock; the reverse stock split; and an increase in the number of options available for grant to Cardis officers and directors.
"We are pleased that we achieved a small operating profit for the quarter, but disappointed that our sales have not grown to support what we see as a sufficiently trimmed down organization," said Kenneth C. Cleveland, president and chief executive officer. "We now are concentrating on measures to build sales and produce bottom line profitability, although net profits may not come this year." Cardis Corp. currently operates nine warehouse distribution centers and 19 retail stores located primarily in California. CARDIS CORP. AND SUBSIDIARIES Condensed Consolidated Statements Of Operations for the Three Months Ended July 31, 1992 and 1991 (Not covered by report of independent public accountants) 1992 1991 Net sales $17,638 $19,051 Cost of sales 12,262 12,973 Gross profit 5,376 6,078 Selling general and administrative expenses 5,244 5,847 Operating profit 132 231 Interest expense 576 1,191 Net loss ($444) ($960) Loss per common share (After 1-for-20 reverse split) Net loss ($0.20) ($1.86) Weighted average number of common shares used in computing loss per share (after 1-for-20 reverse split) 2,172,140 547,587 -0- 8/28/92 /CONTACT: Kenneth C. Cleveland, president and CEO, of Cardis, 213-227-4855; or Cecilia A. Wilkinson or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for Cardis/ CO: Cardis Corp. ST: California IN: REA SU: ERN
BP-JL -- LA014 -- 4679 08/28/92 18:25 EDT
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|Date:||Aug 28, 1992|
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