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EZCONY INTERAMERICA ANNOUNCES THIRD QUARTER EARNINGS

 EZCONY INTERAMERICA ANNOUNCES THIRD QUARTER EARNINGS
 MIAMI, Nov. 10 /PRNewswire/ -- On Nov. 9, 1992, Ezcony Interamerica


(NASDAQ: EZCOF) reported earnings for the third quarter ended Sept. 30, 1992, of $183,000 ($.05 per share on 3.8 million shares outstanding), compared to 1991 third quarter earnings of $1 million ($.34 per share on 3 million shares outstanding). Third quarter sales decreased $10.9 million (31.3 percent) to $23.7 million from $34.6 million in 1991. For the nine months ended Sept. 30, 1992, earnings were $2 million ($.62 per share on 3.3 million shares outstanding) compared to $2.1 million ($.71 per share on 3 million shares outstanding) for the nine months ended Sept. 30, 1991. Sales for the nine months ended Sept. 30, 1992 increased $0.5 million (0.5 percent) to $88.3 million from $87.8 million for the nine months ended Sept. 30, 1991.
 EZCONY INTERAMERICA INC.
 THREE MONTHS ENDED NINE MONTHS ENDED
 SEPT. 30 SEPT. 30
 1992 1991 1992 1991
 (000s omitted except per share amounts)
 SALES $23,749 $34,606 $88,316 $87,792
 NET EARNINGS $ 183 $ 1,023 $ 2,013 $ 2,142
 NET EARNINGS PER SHARE $ .05 $ .34 $ .62 $ .71
 AVERAGE NUMBER OF
 SHARES OUTSTANDING 3,783 3,000 3,263 3,000
 Ezcony also announced its decision to diversify its Mexican distribution system. Virtually all of Ezcony's sales for distribution into Mexico have been through a single distributor, Japan Electronics. Recently, as Japan Electronics' payment performance began to slip, the company reduced the size of its sales to that company. Ezcony has decided to take this opportunity to diversify its Mexican distribution system by adding five to eight new distributors, thereby avoiding reliance on only one distributor, and substantially reducing the receivable from this customer. Ezcony's management has expressed confidence in the company's long-term position in the Mexican market.
 Due in large part to the start of the diversification described above and also as a result of the company's decision to reduce its receivables exposure due, in part, to anticipated currency devaluations in Argentina, Mexico, Venezuela and Paraguay, Ezcony has lowered its estimate for the fourth quarter revenues to between $25 to $28 million. However, earnings for the fourth quarter are expected to be from $.24 to $.27 per share, which is an increase in net profit margin to over 4.0 percent from 1.3 percent for the same period last year and is in line with previous expectations for full year earnings of $3.1 million to $3.2 million or $.87 to $.90 per share.
 The company has decided to indefinitely postpone plans for construction of a new Miami office and warehouse facility in favor of negotiations with its existing landlord for more favorable lease terms. Similarly, Ezcony is investigating cost savings opportunities in connection with the planned office and warehouse facility in Panama.
 Management cautioned that sales for the first half of 1993 are expected to be down from the same period in 1992 because of new import restrictions in some countries and anticipation of currency devaluation in some countries. However, management believes that the second half of 1993 will compare favorably with the same period of 1992, reflecting a return to sales growth which the company has historically experienced. The company's CEO Ezra Cohen said, "We believe the long range future of the company is excellent. Ultimately, the demand for our products in Latin America will explode and we have positioned the company for that occasion."
 The company is continuing to seek expanded lines of credit from banks by using the funds raised from its public offering last August as collateral. The company has experienced some difficulty in placing the lines that it would like to have but believes that the reorganization of the company's Mexican distribution network will enable it to obtain the bank lines it has been seeking. Candido Sosa Jr., the company's CFO, said, "The slowdown in sales has meant that the company has not been hurt by not having such lines available."
 Ezcony is a major independent distributor of consumer electronics in Latin America handling such lines as Sony, Pioneer, AIWA and its own brand, Eltec.
 -0- 11/10/92
 /CONTACT: Candido Sosa Jr., CFO of Ezcony Interamerica, 305-599-1352/
 (EZCOF) CO: Ezcony Interamerica Inc. ST: Florida IN: HOU SU: ERN


AW-JB -- FL002 -- 9091 11/10/92 08:51 EST
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Publication:PR Newswire
Date:Nov 10, 1992
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