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ELECTRO RENT ACHIEVES INCREASED FIRST QUARTER REVENUES AND SHARPLY HIGHER PER SHARE EARNINGS FROM OPERATIONS

 VAN NUYS, Calif., Oct. 7 /PRNewswire/ -- Electro Rent Corp. (NASDAQ: ELRC) achieved higher revenues in the first quarter of its 1994 fiscal year. For the three months ended Aug. 31, 1993, the California- based company specializing in short-term rental and leasing of personal computers, workstations, and general purpose electronic test equipment produced revenues of $27,507,000, up 8 percent from the $25,449,000 reported in the prior year's first quarter.
 Revenues from the rental of personal computers and workstations increased over 30 percent, and those from test and measurement equipment registered double-digit growth. However, revenues from the company's leasing activities were substantially lower.
 "We are delighted to show the first substantial quarter-to-quarter jump in our revenues in the past seven years," stated Daniel Greenberg, chairman and chief executive officer, in making the announcement at Electro Rent's annual meeting of shareholders today in Van Nuys.
 He continued: "We were also very pleased by the company's solid improvement in net income from operations. On a per share basis, net income before a one-time accounting change climbed 31 percent from the prior year level. First quarter net income, plus depreciation, showed a robust $11,636,000 or $2.23 per share. Electro Rent's financial condition remains strong and liquid."
 Net income for the period was $2,646,000, or 51 cents per share, both sharply higher in comparison with the $2,356,000 and 39 cents for last year's initial quarter before an accounting adjustment. The company's adoption as of June 1, 1992, of FASB 109 (which relates to accounting for deferred income taxes) increased net income for last year's first quarter to $4,947,000, or 84 cents per share.
 The per share figures reflect the company's repurchase of its common stock under authorizations granted by the board of directors. The repurchase program lowered the average number of shares outstanding in the current period by 14 percent to 5,219,000 from 6,076,000 a year ago.
 "Personal computers and workstations now generate over 50 percent of our rental revenues, and this business is expected to continue posting significant growth," Greenberg said. "Virtually every corporation, governmental, or service unit with short-term product needs represents a potential customer."
 He concluded: "We've had success in building volume and penetrating new segments of the PC/workstation market. The positive trends in our business are continuing thus far in the second quarter, and we look forward to further progress in increasing our revenues, profits, and industry-leading position."
 Electro Rent Corp. is one of the largest nationwide organizations devoted to the short-term rental and leasing of personal computers, workstations, and general purpose electronic test equipment.
 ELECTRO RENT CORP.
 Consolidated Statements of Income
 (Unaudited)
 (000 omitted, except per share data)
 Three Months Ended
 Aug. 31,
 1993 1992
 Revenues $27,507 $25,449
 Depreciation and other costs of
 revenues 14,007 13,065
 Selling, administrative, and
 general expenses 8,493 7,854
 Interest expense 560 604
 Income before taxes 4,447 3,926
 Income taxes 1,801 1,570
 Income before cumulative effect/
 accounting change 2,646 2,356
 Cummulative effect of change/income
 tax accounting --- 2,591
 Net income $2,646 $4,947
 Earnings per share:
 Income before cumulative effect of
 accounting change 0.51 0.39
 Cumulative effect of change in
 accounting for income taxes --- 0.45
 Net income per share $0.51 $0.84
 Average shares outstanding 5,219 6,076
 -0- 10/7/93
 /CONTACT: Daniel Greenberg, chairman and CEO, 818-384-2525/
 (ELRC)


CO: Electro Rent Corp. ST: California IN: CPR SU: ERN

JB-LS -- LA024 -- 1294 10/07/93 14:07 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
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