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EZCONY ANNOUNCES SECOND QUARTER RESULTS; OBTAINS NEW FINANCING

 MIAMI, Aug. 18 /PRNewswire/ -- As had been expected, Ezcony Interamerica Inc. (NASDAQ: EZCOF) today reported a net loss of $1.3 million, or 29 cents per share on 4.5 million shares outstanding, for the three months ended June 30, 1993.
 On July 12, 1993, Ezcony had announced an estimated loss of between 25 cents and 30 cents for the second quarter of 1993.
 The 1993 second quarter compared to a profit of $836,000, or 28 cents per share on 3 million shares outstanding for the second quarter of 1992.
 Approximately 21 cents of the second quarter loss was the result of a non-recurring dispute over defective merchandise which resulted in a $950,000 writedown of a receivable from a customer in Paraguay. Ezcony is seeking recovery of the $950,000 from one of its manufacturers in the Far East. The writedown arose from a $1.75 million receivable that was settled in July for $800,000 to be paid over a period of 16 months. The company also wrote down additional 1993 receivables in excess of reserves amounting to a loss of approximately 9 cents per share.
 For the second quarter of 1993, sales were $25.3 million, compared to sales of $32.2 million for the same period of 1992.
 Also during the second quarter, Ezcony obtained a new $5 million line of credit from a bank based in Panama, and one of its existing lines of credit with a Florida bank was increased by $5 million.
 The increased lending facilities gives Ezcony the ability to buy additional consumer electronics for sale in Latin America.
 For the six months ended June 30, 1993, Ezcony has posted a loss of $1.5 million, or 33 cents per share (4.5 million shares outstanding), on sales of $48.6 million. This compares to a profit of $1.8 million, or 61 cents per share (3 million shares outstanding), on sales of $64.6 million during the first half of 1992.
 Ezcony continues to expect that revenues and profits in the second half of 1993 will improve over the comparable period in 1992 as a result of expected strong orders during the Christmas selling season, and the company's ability to purchase and re-sell consumer electronics using the expanded credit facilities. However, the improvement is not expected to occur until the fourth quarter.
 Ezcony has also diversified its trade credit risk during the past year. At June 30, 1993, the company's three largest customers owed it approximately $4 million, compared to $16.5 million owed by its three largest customers at the same time in 1992. Ezcony management continues to carefully monitor its allowance for bad debts based on the knowledge of its custome individual conditions in each market in which its customers are located.
 Ezcony is a wholesale distributor of consumer electronics in Latin America, and handles popular brands such as Sony, Pioneer and AIWA, as well as its own brand, ELTEC(TM).
 EZCONY INTERAMERICA INC.
 THREE MONTHS ENDED SIX MONTHS ENDED
 JUNE 30 JUNE 30
 1993 1992 1993 1992
 (000s omitted except per share amounts)
 SALES $25,310 $32,174 $48,644 $64,568
 NET EARNINGS (LOSS) $(1,313) $ 836 $(1,491) $ 1,830
 NET EARNINGS (LOSS)
 PER SHARE $(.29) $ .28 $ (.33) $ .61
 NUMBER OF SHARES
 OUTSTANDING 4,500 3,000 4,500 3,000
 -0- 8/18/93
 /CONTACT: Candido Sosa Jr., chief financial officer of Ezcony Interamerica, 305-599-1352; or Robert Kneeley of Robert Kneeley & Co., 305-739-7121, or evenings, 305-583-9282, for Ezcony Interamerica/
 (EZCOF)


CO: Ezcony Interamerica Inc. ST: Florida IN: HOU SU: ERN

AW-JB -- FL011 -- 4050 08/18/93 16:32 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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