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CONSOLIDATED PRODUCTS, INC. REPORTS A FORTY PERCENT INCREASE IN NET EARNINGS FOR ITS THIRD QUARTER

 CONSOLIDATED PRODUCTS, INC. REPORTS A FORTY PERCENT
 INCREASE IN NET EARNINGS FOR ITS THIRD QUARTER
 INDIANAPOLIS, July 20 /PRNewswire/ -- Consolidated Products, Inc. (NASDAQ: COPIC) announced net earnings increased 40 percent to $1,292,397 for the twelve weeks ended July 1, 1992. The company had an all time record in sales and operating earnings (before interest and income taxes) for both the quarter and for the nine month period.
 Net earnings for the combined second and third quarters increased 62 percent over the comparable prior year quarters. The second and third quarters of fiscal 1992 are the first two full quarters since the company completed its Recapitalization Plan in which net earnings are based on the same capitalization as in the prior year.
 For the forty weeks ended July 1, 1992, net earnings were $2,889,193, a gain of 23 percent over the prior year. For the quarter, primary earnings per share were $.25 ($.19 in the prior year) and fully diluted earnings per share were $.17 ($.13 in the prior year). Year-to-date primary earnings per share were $.56 ($.49 in the prior year) and fully diluted earnings per share were $.41 ($.37 in the prior year). Year-to-date net earnings are not comparable to the prior year because increased interest expense in the first quarter of the current year resulting from debt incurred in the first quarter of last year in connection with the company's Recapitalization Plan offset part of the profit gains from operations in the first quarter of this year.
 The strong operating results are primarily attributable to the continuing double digit comparable unit sales gains in the Steak n Shake restaurants resulting from the highly successful marketing programs, importantly television advertising. Sales year- to-date in the central Indiana and St. Louis markets where the television advertising programs began in April, 1991 and Oct. 1991, respectively, have increased 15 percent as compared to a three percent gain in Steak n Shake's other markets. The company's operating earnings have also benefited from strong management operating controls.
 A new Steak n Shake unit opened in May at Marion, Ill. and experienced an all time record sales for its opening week. Another new Steak n Shake unit is scheduled to open in August in Bloomington, Ind.
 During the quarter, Steak n Shake entered into an agreement to franchise the Louisville and Bowling Green, Ky. markets which include an existing Steak n Shake in Louisville. An agreement to franchise a Steak n Shake unit in Branson, Mo. has also recently been completed. Several other markets for franchising are also under study and negotiation.
 As previously reported, Alan B. Gilman has been elected president and a director of the company. Gilman will become chief executive officer of the company on Oct. 1, 1992. Gilman, who is 61, began his business career as a management trainee with Federated Department Stores, Inc. where he achieved many successive promotions culminating with being named chairman and chief executive officer of Abraham & Straus in New York. Prior to becoming a private investor, Gilman was president of Murjani International, Ltd., an international marketing company, from 1980 to 1985.
 In May, the company announced a proposed offering and sale to the public of an aggregate of 2,000,000 shares of its common stock, of which not more than 1,300,000 shares would be primary shares sold by the company and the balance secondary shares of certain shareholders, subject to market conditions and the completion of the Securities and Exchange Commission regulatory filing requirements. The offering will be made only by means of a prospectus. The objectives of the offering are to raise capital to support the company's expansion plans and for other corporate purposes: to broaden the marketability of the company's stock by increasing ownership to include more shareholders and to reduce the concentration of management ownership. The company, subject to market conditions, plans on filing a Registration Statement with the Securities and Exchange Commission in August.
 CONSOLIDATED PRODUCTS, INC.
 SUMMARY OF CONSOLIDATED STATEMENTS OF EARNINGS
 (UNAUDITED)
 TWELVE WEEKS ENDED
 07/01/92 07/03/91
 Net sales $29,505,547 $27,887,140
 Total revenues 30,022,440 28,418,330
 Cost of sales 7,498,909 7,697,363
 Other costs and expenses 19,093,848 17,763,306
 Earnings before interest and income
 taxes 3,429,683 2,957,661
 Interest expense 1,262,286 1,415,556
 Earnings before income taxes 2,167,397 1,542,105
 Income taxes 875,000 620,000
 Net earnings $1,292,397 $ 922,105
 Net earnings per common and common
 equivalent share:
 Primary $.25 $.19(A)
 Fully diluted $.17 $.13(A)
 Weighted average shares outstanding
 Primary 5,201,549 4,874,443(A)
 Fully diluted 8,544,890 8,368,852(A)
 FORTY WEEKS ENDED
 07/01/92 07/03/91
 Net sales $93,563,064 $87,901,819
 Total revenues 94,593,898 88,987,575
 Cost of sales 24,154,938 24,500,599
 Other costs and expenses 61,315,684 56,433,123
 Earnings before interest and income
 taxes 9,123,276 8,033,853
 Interest expense 4,294,083 4,112,769
 Earnings before income taxes 4,829,193 3,921,084
 Income taxes 1,940,000 1,570,000
 Net earnings $2,889,193 $2,351,084
 Net earnings per common and common
 equivalent share:
 Primary $.56 $.49(A)
 Fully diluted $.41 $.37(A)
 Weighted average shares outstanding
 Primary 5,127,581 4,833,187(A)
 Fully diluted 8,531,473 7,588,215(A)
 (A) - Net earnings per share and average shares outstanding have been restated to give effect to the 10 percent stock dividend declared on December 31, 1991, payable on January 21, 1992 to shareholders of record on December 31, 1991.
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
 07/01/92
 (Unaudited)(B) 09/25/91(B)
 ASSETS
 Current assets $18,528,845 $13,931,765
 Property and equipment-net 34,006,187 38,539,331
 Leased property-net 9,658,791 10,390,303
 Other assets 3,174,132 3,222,931
 Total assets $65,367,955 $66,084,330
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities $18,944,876 $17,651,073
 Obligations under capital leases 13,016,630 13,880,186
 Long-term debt 33,022,200 37,369,200
 Shareholders' equity (deficit) 384,249 (2,816,129)
 Total liabilities and
 shareholders' equity $65,367,955 $66,084,330
 (B) The company adopted the provisions of Statement of Financial Accounting Standards 109 "Accounting for Income Taxes" in its financial statements for the 3rd quarter ended July 1, 1992 and restated all prior year financial statements presented. The adoption of Statement 109 had no effect on net earnings for any periods presented. The cumulative effect of adopting Statement 109 as of September 25, 1991, amounted to $1,616,575 and has been recorded as an increase in retained earnings as previously reported.
 -0- 7/20/92
 /CONTACT: James W. Bear, senior vice president and treasurer of Consolidated Products, Inc., 317-633-4100/
 (COPIC) CO: Consolidated Products, Inc. ST: Indiana IN: REA SU: ERN


KK -- CL001 -- 0564 07/20/92 08:36 EDT
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