F & C INTERNATIONAL REPORTS FISCAL 1992 RESULTS AND FOURTH QUARTER RESTRUCTURING CHARGE
F & C INTERNATIONAL REPORTS FISCAL 1992 RESULTS AND FOURTH QUARTER RESTRUCTURING CHARGE CINCINNATI, Sept. 9 /PRNewswire/ -- F & C International, Inc. (NASDAQ: FCIN), Cincinnati, today announced operating results for the fourth quarter and fiscal year ended June 30, 1992. In addition, F & C announced that it took an approximately $3.5 million pre-tax restructuring charge during the fourth quarter. For the fiscal year ended June 30, 1992 net sales were $57.9 million as compared with $46.9 million for fiscal 1991, an increase of $11.0 million. Operating income before the fourth quarter restructuring charge was approximately $1.8 million as compared to $5.1 million for fiscal 1991. Including the $3.5 million restructuring charge, the fiscal 1992 operating loss was $1.7 million. The fiscal 1992 net loss, including the $3.5 million restructuring charge, was approximately $3.5 million or $.43 per share compared with net income of $3.0 million or $.44 per share for fiscal 1991. For the fourth quarter ended June 30, 1992, net sales were $16.0 million as compared to $11.8 million for the same period of the prior fiscal year. Fourth quarter operating loss before the restructuring charge was approximately $2.1 million and the operating loss after the restructuring charge was approximately $5.6 million. Net loss for the fourth quarter was approximately $5.6 million or $.59 per share versus net income of $753,000 or $.11 per share for the fourth quarter of fiscal 1991. The company changed its method of accounting for inventory from LIFO to FIFO in the fourth quarter of fiscal 1992, resulting in a charge against earnings of $252,000. THREE MONTHS ENDED YEAR ENDED JUNE 30 JUNE 30 1991 1992 1991 1992 (Dollars in Thousands, Except per Share Data) NET SALES $11,815 $16,031 $46,923 $57,874 RESTRUCTURING CHARGE 0 3,523 0 3,523 INCOME (LOSS) FROM OPERATIONS 1,297 (5,609) 5,112 (1,724) INCOME (LOSS) BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAXES 822 (5,900) 3,293 (3,032) NET INCOME (LOSS) 753 (5,563) 3,015 (3,482) NET INCOME (LOSS) PER COMMON SHARE $ .11 $ (.59) $ .44 $ (.43) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 6,640,000 9,423,333 6,640,000 8,160,947 As a result of internal growth and the assimilation of two acquisitions, net sales of F & C have tripled from approximately $19 million in fiscal 1990 to over $57 million in fiscal 1992. Jon P.
Fries, chairman and CEO, stated that "growth of this magnitude dictated that the Company's facilities, staff, and business plans be reviewed and restructured to provide a base for anticipated future growth." Under the restructuring plan implemented in the fourth quarter of fiscal 1992, F & C will consolidate facilities, reduce overhead, streamline corporate staff and reduce inventories. Fries went on to state, "F & C has made significant progress through its continued commitment to product development, expansion of its customer base, market penetration and customer service. Although we are disappointed with fourth quarter results, we remain optimistic about the Company's future prospects and favorable impact anticipated to result from the restructuring plan. The Company anticipates annualized operating expense savings of approximately $1.7 million as a result of the restructuring."
F & C International is traded on the NASDAQ National Market System under the symbol "FCIN." F & C International is a creator and manufacturer of flavors and fragrances used by producers in the food, beverage, tobacco, personal care, household, institutional and pharmaceutical industries to impart or improve flavor or fragrance in a wide variety of consumer products. -0- 9//9/92 R /CONTACT: Craig R. Schuster of F & C International, 513-772-8160/ (FCIN) CO: F & C International ST: Ohio IN: FOD HOU SU: ERN
BM -- CL017 -- 7824 09/10/92 08:17 EDT
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|Date:||Sep 10, 1992|
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