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E-Z SERVE REPORTS THIRD QUARTER, 1991 RESULTS

 E-Z SERVE REPORTS THIRD QUARTER, 1991 RESULTS
 HOUSTON, Nov. 14 -- E-Z Serve Corporation, (AMEX: EZS) of Houston


today reported a net loss of $2,555,000, or $0.32 per common share, for the third quarter of 1991 and a net loss of $4,424,000, or $0.86 per common share, for the nine months ended Sept. 30, 1991. Results for 1990 were not previously reported as the company was a wholly-owned subsidiary of Harken Energy Corporation (AMEX: HEC) prior to May, 1991. However, on a stand-alone basis, the company would have reported net losses of $3,113,000, or $0.31 per common share and $26,749,000, or $2.68 per common share for the three and nine months ended Sept. 30, 1990, respectively.
 Total operating revenues were $56,241,000 and $173,365,000 in the three and nine months ended Sept. 30, 1991, respectively, representing declines of 49 percent and 71 percent from the same 1990 periods. These declines primarily reflect the company's decision to close its unprofitable trading operation in August, 1990, and its wholesale business in September, 1991.
 Retail gasoline sales were 45.7 and 137.6 million gallons in the three and nine months ended Sept. 30, 1991, respectively, as compared to 58.7 and 188.9 million gallons for the same periods in 1990. These volume declines primarily reflect the company's active program to sell or close retail locations that provide no significant future growth potential, or that do not fit into the company's overall strategic plan of marketing in non-urban areas. In this regard, the average number of open and operating gasoline retail locations was down by 74 and 78 locations for the three and nine months ended Sept. 30, 1991 as compared to the same periods in 1990.
 In the third quarter of 1991, convenience store merchandise sales declined 1 percent from the same 1990 period, but increased 1 percent for the nine months ended Sept. 30, 1991 vs. the same 1990 period. However, sales per location of $35,000 and $34,000 for the three and nine month periods ended Sept. 30, 1991 increased as compared to the same 1990 periods.
 As compared to 1990, all major expense categories, except depreciation and amortization, declined in the three and nine month periods of 1991, reflecting the Company's continued efforts at cost control. Also, interest expense is down 54.8 percent in the third quarter and 42.5 percent in the nine months vs. 1990 reflecting the effects of the recapitalization in the second quarter of 1991 pursuant to the rights offering and the company's ongoing program of paying down debt from the proceeds of sales of nonstrategic assets. Total long-term indebtedness of $39.0 million at Sept. 30, 1991 is down 42.2 percent from Sept. 30, 1990.
 Neil H. McLaurin, president and chief executive officer, stated, "Our program is on track. Expenses continue to decline and debt reduction through asset sales is proceeding. Around the first of the year, we anticipate closing the previously announced proposed acquisition of Taylor Petroleum and I look forward to the opportunities that transaction will present."
 E-Z SERVE CORPORATION
 Selected Operational Information
 Periods ended Three months Nine months
 Sept. 30 1991 1990 1991 1990
 GASOLINE RETAILING
 Average number of
 open and operating
 locations(A) 557 631 574 652
 Gallons sold 45,726,000 56,653,000 137,622,000 168,942,000
 Revenues $50,317,000 $63,785,000 $152,464,000 $179,316,000
 Gross profit(B) $5,506,000 $6,634,000 $15,459,000 $18,121,000
 Gross profit
 per gallon(A) $0.1204 $0.1171 $0.1123 $0.1073
 CONVENIENCE STORE(C)
 Average number of
 open and operating
 locations 55 59 55 58
 Sales $5,770,000 $5,812,000 $16,944,000 $16,704,000
 Gross profit $1,698,000 $1,822,000 $4,860,000 $5,148,000
 Gross profit
 gallon (percent) 29.43 31.35 28.68 30.82
 GASOLINE WHOLESALING(D)
 Gallons sold 17,000 19,157,000 6,371,000 91,404,000
 Revenues $23,000 $19,133,000 $3,270,000 $66,603,000
 Gross profit
 (loss) ($11,000) ($216,000) $503,000 $988,000
 Gross profit (loss)
 gallon ($0.6471) ($0.0113) $0.0790 $0.0108
 SUPPLY AND TRADING
 Gallons sold -- 43,007,000 -- 635,079,000
 Revenues -- $20,454,000 -- $335,544,000
 Gross profit
 (loss) -- ($73,000) -- ($1,363,000)
 Gross profit (loss)
 percentage -- ($0.0017) -- ($0.0021)
 (A) Represents retail outlets and company-owned convenience stores that retail gasoline.
 (B) Gross profit is shown before deducting compensation paid to operators of locations not operated by the company of $1,801,000, $2,236,000, $4,979,000, and $6,137,000 for the three and nine months ended Sept. 30, 1991 and 1990, respectively.
 (C) Represents revenues from merchandise related sales at company- owned locations.
 (D) Represent operations discontinued in September of 1991; third quarter activity represents miscellaneous transactions related primarily to disposal of remaining inventory.
 Selected Financial Information
 Periods ended Three months Nine months
 Sept. 30 1991 1990 1991 1990
 Operating
 Revenues $56,241,000 $110,416,000 $173,365,000 $600,265,000
 Cost of Sales 48,917,000 101,017,000 151,856,000 575,273,000
 Gross Profit 7,324,000 9,399,000 21,509,000 24,992,000
 Operating
 Expenses 5,361,000 6,144,000 15,525,000 17,274,000
 Selling,
 General and
 Administrative
 Expenses 1,975,000 2,675,000 6,488,000 13,803,000
 Depreciation &
 Amortization 1,414,000 1,394,000 4,234,000 3,943,000
 Interest Expense:
 Bank 892,000 1,415,000 2,927,000 5,549,000
 Indebtedness
 to Related
 Parties 130,000 786,000 1,307,000 1,145,000
 Other 23,000 109,000 104,000 845,000
 Gain (loss) on
 Sale of Assets (84,000) 11,000 4,652,000 34,000
 Provision for Asset
 Impairments and
 Restructuring
 Costs -- -- -- 8,028,000
 Loss before
 Income
 Taxes (2,555,000) (3,113,000) (4,424,000) (25,561,000)
 Income Tax
 Expense -- -- -- 1,188,000
 Net Loss ($2,555,000) ($3,113,000) ($4,424,000)($26,749,000)
 Loss Per
 Share ($0.32) ($0.31) ($0.86) ($2.68)
 Average Shares
 Outstanding 8,009,234 10,000,000 5,169,562 10,000,000
 E-Z Serve Corporation is a distributor of motor fuels through approximately 500 retail outlets and 55 company-owned convenience stores located predominantly in rural areas in 19 states.
 -0- 11/14/91
 /CONTACT: John Miller, senior vice president of E-Z Serve, 1-800-255-0600 or 713-591-1111/
 (EZS HEC) CO: E-Z Serve Corporation ST: Texas IN: REA SU: ERN SH -- NY022 -- 4306 11/14/91 09:47 EST
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Date:Nov 14, 1991
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