Printer Friendly

EZCONY INTERAMERICA REPORTS FIRST QUARTER RESULTS

 MIAMI, MAY 10 /PRNewswire/ -- Ezcony Interamerica Inc. (NASDAQ: EZCOF) today reported its first quarter results. Net sales were $23.3 million, with a gross profit margin of 9.2 percent. The company posted a net loss of $178,000, or 4 cents per share on 4.5 million shares outstanding, for the first quarter ended March 31, 1993.
 Ezcony is one of the largest independent distributors of consumer electronics to Latin America. Major brands handled include Sony, Pioneer and AIWA electronics, and 3M and Scotch brand tapes and diskettes.
 "We're optimistic that we will see a return to profitability and sales growth during the second quarter and going forward," said Ezra Cohen, president and chief executive officer. "Our major markets are returning to political and economic stability, and that creates a good selling environment for our merchandise."
 Ezcony's gross margin of 9.2 percent is a substantial improvement over the fourth quarter of 1992, when the gross profit margin was 4.5 percent.
 The margin increase was the result, in part, of Ezcony's successful efforts to expand consumer acceptance of its own brand of consumer electronics, ELTEC. Sales of ELTEC have increased to 30 percent of the company's total sales during the first quarter of 1993, up from 22 percent of sales for the same period of 1992.
 "We're seeing a continued strong demand for our products throughout the region, and a growing shortage of product," Cohen said. "That has allowed us to charge slightly higher rates, and shorten the credit terms on transactions."
 During the first quarter of 1992, the company earned $995,000, or 33 cents per share on 3 million shares outstanding, with gross revenues of $32.3 million. The first quarter of 1992 included an extraordinary sales incentive and credit arrangements with Sony to promote sales of specific equipment.
 The company is constantly exploring its banking and credit relationships to maximize its ability to acquire inventory.
 In Mexico, the company's largest single market, Ezcony has taken steps to ease market pressures on gross margins. During the first quarter, and continuing into the second quarter, Ezcony began to sell directly to retailers in Mexico, reducing some of the margin pressure. The company also expects that new Sony products, which will be introduced during the second quarter, will be offered at higher margins. Further, AIWA severed its relationship with its official distributor to Mexico, creating a short-term opportunity to boost sales of that brand in Mexico. AIWA is generally sold at higher gross margins than Sony. The result of these steps has been a significant increase in gross margins in Mexico.
 During the fourth quarter of 1992, Ezcony introduced its ELTEC line to Mexico, and continues to offer limited incentive pricing on ELTEC equipment as part of efforts to build market share.
 In other markets, Ezcony is reaping benefits from new distributor agreements. Sales to Argentina, for example, are up almost 130 percent, from $1.3 million in first quarter 1992 to $3.1 million in 1993. In the Dominican Republic, a new market for Ezcony, a distributor sold $700,000 worth of ELTEC equipment during the first quarter of 1993, and in Uruguay, a new distributor handled ELTEC sales of $151,000 for the quarter, compared to $18,000 for the year-earlier period.
 Ezcony also introduced a cost-control program that resulted in a reduction of $140,000 of Selling, General and Administrative costs during the first quarter of 1993. That program should result in significant cost savings during the year.
 EZCONY INTERAMERICA INC.
 First Quarter Summary
 1993 1992
 Net Sales $23,334,000 $32,394,000
 Gross Profit 2,150,000 $3,741,000
 Selling, General &
 Administrative $2,223,000 $2,364,000
 Net Income (Loss) ($178,000) $995,000
 Income (Loss) Per Share ($.04) $.33
 Number of Common
 Shares Outstanding 4,500,000 3,000,000
 -0- 5/10/93
 /CONTACT: Robert Kneeley of Robert Kneeley & Co., 305-739-7121, or evenings, 305-583-9282, for Ezcony Interamerica Inc./
 (EZCOF)


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

AW -- FL006 -- 6361 05/10/93 09:55 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 10, 1993
Words:679
Previous Article:DAVID KEARNS ELECTED TO RYDER SYSTEM BOARD OF DIRECTORS
Next Article:CHARLES OBERMEYER ELECTED PRESIDENT OF MARQUEST MEDICAL PRODUCTS INC.
Topics:


Related Articles
EZCONY ANNOUNCES PRELIMINARY RESULTS FOR SECOND QUARTER
EZCONY ANNOUNCES SECOND QUARTER RESULTS; OBTAINS NEW FINANCING
EZCONY INTERAMERICA ANNOUNCES FIRST AND SECOND QUARTER REVISIONS
/C O R R E C T I O N -- EZCONY INTERAMERICA INC./
EZCONY RETURNS TO PROFITABILITY IN 1994 FIRST QUARTER
EZCONY REPORTS RESULTS FOR 1994
EZCONY REPORTS FIRST QUARTER RESULTS
EZCONY REPORTS SECOND QUARTER RESULTS
EZCONY REPORTS FIRST QUARTER 1996 RESULTS
Ezcony Reports First Quarter 1997 Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters