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 SKOKIE, Ill., Oct. 28 /PRNewswire/ -- Elek-Tek, Inc. (NASDAQ: ELEK), today reported results for the third quarter and first nine months ended Sept. 30, 1993. This represents the first quarter Elek-Tek has completed since it became a public company in August 1993 when it sold 1.5 million of its common shares through an initial public offering at a price of $10.75 per share.
 Net sales for the third quarter increased 27 percent to $54.9 million from $43.1 million in the comparable 1992 quarter. Pro forma net income increased 39 percent to $991,000 from $714,000. Pro forma net income per share increased to 17 cents from 13 cents per share.
 For the nine months ended Sept. 30, 1993, net sales increased 19 percent to $150.6 million from $126.1 million in the same period last year. Pro forma net income increased 81 percent to $3.0 million from $1.7 million. Pro forma net income per share increased to 55 cents from 31 cents per share.
 Hal Goldman, president and CEO said: "This was a strong quarter for Elek-Tek and puts us firmly on track to have an excellent 1993 year. Retail and direct sales were particularly strong, generating increases of $6.4 million and $4.5 million, respectively. Comparable store sales increased 27 percent over the third quarter of 1992."
 Goldman added: "Elek-Tek's newest microcomputer superstore will open in Indianapolis on Nov. 8. This is the first superstore to open outside the Chicago metropolitan area and we are excited about taking Elek-Tek's successful retail concept into a new market."
 Elek-Tek, Inc., is a full line, regional retailer of microcomputer hardware, software and related accessories and supplies. Elek-Tek currently operates four microcomputer retail centers ("superstores") in the Chicago metropolitan area and plans to open a fifth store in Indianapolis on Nov. 8, 1993. Elek-Tek also sells its products through a direct sales force and a mail order operation to individuals, businesses, institutions and government agencies.
 Statements Of Operations
 (In thousands except per share amounts)
 For the periods Three Months Nine Months
 ended Sept. 30, 1993 1992 1993 1992
 Net sales $54,866 $43,103 $150,556 $126,144
 Cost of sales 46,704 36,335 127,535 106,558
 Gross profit 8,162 6,768 23,021 19,586
 Selling, general and
 expenses 6,388 5,515 17,531 16,627
 Income from operations 1,774 1,253 5,490 2,959
 Other (income) expense:
 Other income, net (65) (41) (168) (122)
 Interest expense 215 123 718 358
 Total 150 82 550 236
 Income before income
 taxes 1,624 1,171 4,941 2,723
 Income tax provision 263 15 301 34
 Net income $1,361 $1,156 $4,640 $2,689
 Pro forma income data:
 Pro forma income
 before income
 tax provision $1,624 $1,171 $4,941 $2,723
 Pro forma income
 tax provision(A) 633 457 1,927 1,062
 Pro forma net income $991 $714 $3,014 $1,661
 Pro forma net income
 per share(B) $.17 $.13 $.55 $.31
 Pro forma weighted
 average number of
 common shares
 outstanding 5,789 5,360 5,505 5,360
 (A) -- From July 1, 1987, through Aug. 18, 1993, the date the company terminated its S Corporation election, the company has been treated as an S Corporation for income tax purposes and accordingly was not subject to federal and certain state income taxes. The pro forma provision for income taxes represents an effective tax rate of 39 percent which would have been recorded had the company been a C Corporation.
 (B) -- Pro forma net income per share is based on the weighted average number of shares of common stock outstanding and assumed to be outstanding during the respective periods which includes 4.8 million actual shares outstanding and 560,000 shares assumed to be outstanding through Aug. 19, 1993, and 6.3 million actual shares outstanding since Aug. 20. The 560,000 shares assumed to be outstanding are equivalent to the number of shares required, at the public offering price, net of underwriting discount, to fund the estimated distribution of the company's undistributed S Corporation earnings through Aug. 18, 1993, the date on which the S Corporation election was terminated.
 -0- 10/28/93
 /CONTACT: Hal Goldman, president and CEO of Elek-Tek, 708-677-7660, ext. 5002.

CO: Elek-Tek, Inc. ST: Illinois IN: REA SU: ERN

TW -- NY018 -- 7740 10/28/93 09:14 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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