CONSOLIDATED AMERICAN INDUSTRIES, INC. CONTINUES PURSUIT OF FRAUD ACTION AGAINST BANK AFTER FAVORABLE PARTIAL SETTLEMENT
CONSOLIDATED AMERICAN INDUSTRIES, INC. CONTINUES PURSUIT OF
FRAUD ACTION AGAINST BANK AFTER FAVORABLE PARTIAL SETTLEMENT
TAMPA, Fla., Nov. 4 /PRNewswire/ -- Consolidated American Industries, Inc. (NASDAQ: COAM) today announced a third quarter 1991 net loss of ($3,427,426), or ($.61) per share, down from a third quarter 1990 net loss of ($34,151), or ($.01). The earnings per share include a ($3,257,613), or ($.58) per share, asset writeoff which was reported in the company's Form 8K filed Sept. 14, 1991. Company management felt the write down of assets was appropriate to more accurately reflect the assets value in light of the recent discovery of fraud on the part of Multipress, Incorporated from whom the Multipress division was purchased. This fraud is the basis for Count II of a complaint filed in Federal Court against Industrial Investments, Inc. f/k/a Multi-Press, Incorporated; American Bank Securities, Inc.; and Huntington National Bank.
Operating results for the nine months ended Sept. 30, 1991 and 1990 were ($2,863,345) or ($.56) per share, and ($659,487) or ($.14) per share, respectively. Year-to-date operating earnings before asset writeoff and depreciation was $925,448 on revenue of $2,743,738, compared with an operating earnings before depreciation of $232,364 on revenue of $3,569,796 in the prior year period. COAM management sighted optimism noting a 16 percent increase in sales from the prior quarter, and a partial settlement of the fraud action with American Bank Securities, Inc. whereby 19.8 percent of the common shares of COAM will be surrendered (10.6 percent fully diluted) to COAM, and American Bank Securities, Inc. will provide full and complete cooperation in assisting COAM's continued prosecution of Huntington National Bank in the federal fraud action.
/CONTACT: Stephen A. Springer of Consolidated American Industries, 614-228-8120/ CO: Consolidated American Industries, Inc. ST: Florida, Ohio IN: MTC SU: CG -- CL020 -- 0895 11/04/91 16:31 EST