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CONTINENTAL MATERIALS CORP. REPORTS SLOWER SALES, EXTRAORDINARY CHARGES CONTRIBUTE TO RESULTS

 /NOTE TO EDITORS: The following was released late yesterday:/
 CHICAGO, Nov. 9 /PRNewswire/ -- A decrease in sales, along with expenditures for new product development, combined to lower Continental Materials Corp. (AMEX: CUO) third quarter net income to $469,000 and 40 cents per share, compared to $764,000 and 65 cents per share in the similar period in 1992.
 Third quarter income from operations decreased to $760,000, compared to $1,542,000 in the third quarter of 1992. This reflects the recording of the company's share ($387,000) of the Oracle Ridge Mining Partners operating loss, the previously mentioned new product development expenditures and a 4 percent decrease in the quarterly net sales from $16,613,000 in 1992 to the $15,951,000 recorded in the third quarter of 1993.
 For the first nine months of 1993, Continental Materials Corp. recorded a loss of $1,038,000, equal to 89 cents per share, compared to a loss last year for nine months of $512,000, and 44 cents per share. Net sales from continuing operations increased to $46,216,000 vs. $44,913,000 for the first nine months in 1992.
 In June 1993, the company sold its Imeco, Inc. subsidiary and recorded an after-tax gain of $1,244,000. However, this gain was offset by the after-tax loss from operations of this subsidiary of $671,000. This compared to an after-tax loss from the discontinued operation of $601,000, as restated for 1992.
 Cash from the Imeco sale, along with a portion of additional term loan proceeds, were utilized to retire unsecured 11.18 percent senior notes of $11,050,000, and to pay the prepayment penalty of $2,023,000. This has been recorded net of tax as an extraordinary item of $1,335,000.
 On an opening basis, the sales and results of the company's heating and air conditioning segment increased from year-ago levels. This segment includes the operations of Williams Furnace Co. of Colton, Calif., and Phoenix Manufacturing, Inc. of Phoenix, Ariz. Sales increased across all product lines at Williams, while volume at Phoenix declined slightly, due primarily to inclement weather in the market it serves.
 Although the combined sales volume of the company's two contruction materials subsidiaries remained strong, operating results were weaker than the prior year. This segment is comprised of Transit Mix Concrete Co. and Castle Concrete Co., located in Colorado Springs, Colo.
 The investment in the Oracle Ridge Mining Partners copper venture was accounted for on an equity basis in 1993. The company recorded a loss in the third quarter of $387,000. The year-to date loss is $910,000, due mainly to lower than anticipated mill recoveries and weak copper prices. The 1993 year-to-date results from continuing operations also includes a gain of $719,000 from the sale of an equity investment.
 CONTINENTAL MATERIALS CORP. SUMMARY OF SALES AND EARNINGS
 Period ended Oct. 2: Three months Nine months
 1993 1992 1993 1992
 Net Sales $15,951,000 $16,613,000 $46,216,000 $44,913,000
 Oper. Income 1,194,000 1,761,000 116,000 723,000
 Int. Expense, net (192,000) (216,000) (573,000) (644,000)
 Gain on sale of
 equity investment -- -- 719,000 --
 Equity loss from mining
 partnership (387,000) -- (910,000) --
 Other inc.(loss) 145,000 (3,000) 200,000 55,000
 Inc. (loss) from cont.
 opers. before
 income taxes 760,000 1,542,000 (448,000) 134,000
 Provision (credit)
 for inc. taxes 257,000 524,000 (172,000) 45,000
 Income (loss) from
 cont. operations 503,000 1,018,000 (276,000) 89,000
 (Loss) gain from
 discont. operations net
 of tax (34,000) (254,000) 573,000 (601,000)
 Income (loss) before
 extraord. item 469,000 764,000 297,000 (512,000)
 Extraordinary
 loss net of tax -- -- (1,335,000) --
 Net inc.(loss) $469,000 $764,000 $(1,038,000) $(512,000)
 Net income (loss) per share:
 Cont. operations $.43 $.87 $(.24) $.07
 Discont. operations (.03) (.22) .49 (.51)
 Extraord. item -- -- $(1.14) --
 Net inc. (loss)
 per share: $.40 $.65 $(.89) $.(44)
 Avg. shares outst. 1,165,047 1,174,000 1,171,201 1,174,000
 -0- 11/9/93
 /CONTACT: Mark S. Nichter, 312-661-7247, for Continental Materials/
 (CUO)


CO: Continental Materials Corp. ST: Illinois IN: MNG SU: ERN

JS -- NY077 -- 2277 11/09/93 13:14 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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