FARR CO. REPORTS RESULTS
FARR CO. REPORTS RESULTS EL SEGUNDO, Calif., April 23 /PRNewswire/ -- Farr Co.
(NASDAQ: FARC) recorded sharply higher first quarter sales, reflecting the company's acquisition of Cambridge Filter Corp. in April 1991. The company achieved a return to profitability during the quarter; however, earnings were substantially less than in last year's record first quarter. With respect to earnings, the company noted that the integration of Cambridge continues to be more costly and time-consuming than anticipated. In addition, sales continue to be impacted by the sluggish economy.
In light of these factors, the company's board of directors has elected to suspend the payment of cash dividends in order to preserve and maintain the company's liquidity and working capital. Previously, the company paid quarterly cash dividends at the rate of 6 cents per share. Charles Wofford, chairman and president, noted: "We believe that the board's action, while difficult, represents a prudent step. Our financial condition is satisfactory, but we are experiencing some temporary pressure on working capital and it is important that we conserve cash and maintain our financial health. At the same time, we are encouraged by Farr's return to profitability in the most recent quarter." For the 13 weeks ended March 28, 1992, sales advanced to $27,777,000 from $22,899,000 in the comparable period a year ago. Net income for the quarter was $264,000 equal to 7 cents per share, vs. a record $854,000, or 24 cents per share, in the prior year. Wofford added: "We are pressing forward with the integration of Cambridge. This strategic acquisition has broadened our product line and offers important benefits which we intend to realize fully. In addition to completing the absorption of Cambridge, we are focusing on enhancing on-time delivery, improving manufacturing efficiency and the timely introduction of new products. "The company is making progress in several key areas and results during the first quarter slightly exceeded our 1992 operating plan. Depending on the timing of recovery in the economy, we are cautiously optimistic about prospects for further improvements in sales and earnings as the year progresses." Farr Co. is a leading producer of filters for particulate, liquid and gaseous filtration systems. The company has 10 manufacturing facilities in the United States as well as plants in Canada and England. FARR CO. AND SUBSIDIARIES Condensed Consolidated Income Statements (Thousands omitted except per share data) (Unaudited) First quarter ended March 28, March 30, 1992 1991 Net sales $27,777 $22,899 Costs and expenses: Cost of sales $21,524 $16,417 Selling, general and administrative 5,120 4,870 Interest expense 574 354 Total costs and expenses $27,218 $21,641 Income (loss) before income taxes $559 $1,258 Income taxes $295 $404 Net income (loss) $264 $854 Earnings per common share(a) $0.07 $0.24 (a) Based upon 3,622,965 and 3,597,915 average shares outstanding in 1992 and 1991. -0- 4/23/92 /CONTACT: Charles Wofford, chairman and president of Farr Co., 213-772-5221/ (FARC) CO: Farr Co. ST: California IN: SU: ERN
EH-JL -- LA048 -- 2248 04/23/92 21:14 EDT
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|Date:||Apr 23, 1992|
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