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 EDISON, N.J., July 26 /PRNewswire/ -- E&B Marine Inc. announced today record second-quarter net income of $4,737,000, a 14.1 percent increase over last year's second quarter. Historically, these earnings exceed all quarters previously reported by the company.
 Earnings per share for the second quarter were $.28 compared to $.25 during the same period last year. For the six months ended June 26, 1993, net income was $2,751,000, a 36.9 percent increase over the reported 1992 net income of $2,009,000. On a year-to-date basis, earnings per share were $.18 in 1993 compared to $.14 in 1992.
 Revenues for the quarter were $37,539,000, a 9.0 percent increase over the second quarter 1992. For the six months ended June 26, 1993, sales increased $2,704,000, or 5.4 percent, over the comparable prior period.
 Selling, general and administrative expenses, as a percentage of sales, were 16.4 percent for the three months ended June 26, 1993, compared to 17.6 percent for the three months ended June 27, 1992. On a year-to-date basis, selling, general and administrative expenses were 20.5 percent of sales as compared with 21.8 percent in 1992, a result of the company's continued commitment to improve productivity.
 As previously announced, E&B Marine Inc. has made a $1,242,000 principal payment on its various loan agreements. This payment was made earlier than the agreed-upon terms. The company has also fulfilled its covenant under its $7,000,000 revolving credit agreement requiring a seasonal loan reduction to $2,500,000 for 30 consecutive days and believes it is in compliance with all covenants and provisions or conditions specified in the loan agreements.
 Kenneth G. Peskin, the company's chairman and chief executive officer, said: "We are pleased to report yet another record quarter for E&B Marine. Our commitment to lean operations and profitable sales growth has allowed us to reach this next plateau. To this end, the company has signed leases to open stores in Charleston, S.C., and Savannah, Ga., and intends to open additional stores in 1993 and 1994. We continue to benefit from the commitment and support of our fellow employees and suppliers."
 E&B Marine Inc. is one of the nation's largest direct-mail merchandisers and specialty retailers of marine supplies and accessories with 46 retail outlets and a catalog operation.
 Three Months Ended Six Months Ended
 June 26, June 27, June 26, June 27,
 1993 1992 1993 1992
 Net sales $37,539,000 $34,440,000 $52,476,000 $49,772,000
 Gross profit 11,510,000 10,914,000 14,773,000 14,306,000
 Selling, general
 and administrative
 expenses 6,154,000 6,068,000 10,742,000 10,862,000
 Depreciation and
 amortization 399,000 423,000 797,000 850,000
 Interest expense
 -- net 220,000 272,000 483,000 585,000
 Income before
 income taxes and
 item 4,737,000 4,151,000 2,751,000 2,009,000
 Income taxes -- 603,000 -- 603,000
 Income before
 item 4,737,000 3,548,000 2,751,000 1,406,000
 Extraordinary item(A) -- 603,000 -- 603,000
 Net income $ 4,737,000 $ 4,151,000 $ 2,751,000 $ 2,009,000
 Income per
 common share(B):
 Before extraordinary
 item $ 0.28 $ 0.21 $ 0.18 $ 0.10
 Extraordinary item 0.00 0.04 0.00 0.04
 Net income $ 0.28 $ 0.25 $ 0.18 $ 0.14
 Weighted average
 common shares
 outstanding 14,865,000 14,792,000 14,846,000 14,784,000
 A) The company recorded an extraordinary item of $603,000 in the second quarter of 1992, reflecting a reduction in income taxes arising from the carryforward of prior years' operating losses. In accordance with SFAS 109, beginning in 1993 the company records the utilization of net operating loss carryforwards as a reduction of income tax expense and not as an extraordinary item.
 B) The company has computed income per common share for the six months ended June 26, 1993, and for the three months ended June 26, 1993, and June 27, 1992, on the basis of the weighted average number of common shares and common equivalent shares outstanding during the period, in accordance with the modified treasury stock method. This method assumes that common stock equivalents (options and warrants) are exercised and treasury shares are assumed to be purchased (not to exceed 20 percent of the weighted average number of common shares outstanding) from the proceeds using the average market price for the period. Any excess proceeds not utilized for the purchase of treasury shares are assumed to reduce outstanding debt with an appropriate reduction of interest expense. Proceeds which exceed outstanding debt are assumed to be invested in government securities. Under such assumptions, for the six months ended June 26, 1993, and for the three months ended June 26, 1993, and June 27, 1992, 3,201,000, 3,026,000 and 3,320,000 incremental common shares, respectively, have been added to the weighted average number of shares outstanding and net interest has been adjusted by approximately $415,000, $196,000 and $322,000, respectively.
 The income per common share for the six months ended June 27, 1992, is based on the weighted average number of common shares outstanding during such period. Common stock equivalents are not considered in the computation, as their inclusion (utilizing the modified treasury stock method), would be anti-dilutive on the per share amount.
 No fully diluted per share amounts are shown in 1993 and 1992 since the closing market price is less than the average market price for the period.
 -0- 7/26/93
 /CONTACT: Walfrido A. Martinez, senior vice president and chief financial officer of E&B Marine Inc., 908-819-7400/

CO: E&B Marine Inc. ST: New Jersey IN: REA SU: ERN

SM-MG -- NY067 -- 5743 07/26/93 13:55 EDT
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Publication:PR Newswire
Date:Jul 26, 1993

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