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GRAHAM-FIELD HEALTH PRODUCTS, INC. ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDING JUNE 30, 1993

    HAUPPAUGE, N.Y., Aug. 13 /PRNewswire/ -- Graham-Field Health Products, Inc. (NYSE: GFI), a manufacturer and supplier of healthcare products, today reported revenues and net loss for the second quarter ended June 30, 1993.  Revenues for the quarter were $23,703,000 as compared to $18,623,000 for the same period last year, a 27 percent increase.  Loss before income taxes was $3,082,000 as compared to income before income taxes of $1,019,000 for the prior year.  Net loss was $2,034,000 or $.16 loss per share on 12,792,000 weighted average shares outstanding as compared to net income of $586,000 or $.05 on 12,629,000 weighted average shares outstanding for the prior year.
    For the six months ending June 30, 1993, revenues were $46,720,000 as compared to $35,308,000 for the same period last year, a 32 percent increase.  Loss before income taxes and cumulative effect of change in accounting principle was $2,881,000 as compared to income before income taxes of $2,004,000 for the same period last year.  Net loss, after the cumulative effect of a change in accounting for income taxes recorded in the first quarter of 1993 of $530,000 or $.04 per share, was $1,393,000 or $.11 per share on 12,775,000 weighted average shares outstanding as compared to net income of $1,178,000 or $.09 on 12,617,000 weighted average shares outstanding for the prior year.
    The company attributed the loss principally to an increase in cost of revenues and an increase in general  and administrative expenses. The decline in gross margins is attributed to increased revenues in the home healthcare market, which has lower margins than the medical/surgical market, and inventory dislocations due to the shift of the Company's principal distribution operations from Hauppauge to St. Louis.  The increase in cost of revenues was $921,000.  The increase in general and administrative expenses is the result of an increase of $1,000,000 in bad debt reserves, principally attributable to four customers having financial difficulties, and employee costs of $537,000, in excess of those anticipated in connection with the move to St. Louis and implementation of the automated distribution system there.
    Irwin Selinger, chairman and chief executive officer stated, "Our goal, to become the technology and low-cost distribution leader in the healthcare industry continues to be aggressive.  We continue to work with IBM as our technology partner in the development and implementation of our strategic goals.  The application of new technologies is arduous and painful, but continues to be necessary if we are to prosper in the second half of this decade.  Early signs of improvement began in June and continued throughout July.  Our service levels improved, costs were reduced and incoming orders and order size were at record levels.  The healthcare industry is in a state of flux.  We believe that when the shake-out is over, Graham-Field will be positioned to reap the benefits."
    Graham-Field manufactures, markets and distributes more than 20,000 healthcare products for hospital, physician and home use to approximately 16,000 home healthcare, physician, hospital supply and pharmaceutical distributors, retailers and wholesalers.
          GRAHAM-FIELD HEALTH PRODUCTS, INC. AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                              (Unaudited)
    Periods ended         Three months                  Six months
     June 30,           1993          1992          1993          1992
    REVENUES:
     Medical equip. &
      supplies       $23,687,000  $18,467,000  $46,686,000  $35,079,000
     Interest inc.        16,000      156,000       34,000      229,000
                      23,703,000   18,623,000   46,720,000   35,308,000
    COST AND EXPENSES:
     Cost of revenues 17,495,000   11,726,000   33,113,000   22,301,000
     S,G&A             8,672,000    5,412,000   15,314,000   10,281,000
     Interest exp.       618,000      466,000    1,174,000      722,000
                      26,785,000   17,604,000   49,601,000   33,304,000
    (LOSS) INC. BEF. INC. TAXES &
     CUMULATIVE EFFECT OF
     CHANGE IN ACCOUNTING
     PRINCIPLE        (3,082,000)   1,019,000   (2,881,000)   2,004,000
    INC. (BENEFIT)
     TAXES            (1,048,000)     433,000     (958,000)     826,000
    (LOSS) INC. BEF.
     CUMULATIVE EFFECT OF
     CHANGE IN ACCOUNTING
     PRINCIPLE        (2,034,000)     586,000   (1,923,000)   1,178,000
    CUMULATIVE EFFECT
     OF CHANGE IN ACCOUNTING
     FOR INCOME TAXES     --           --          530,000        --
    NET (LOSS) INC.  $(2,034,000) $   586,000  $(1,393,000) $ 1,178,000
    PER SHARE DATA:
    (LOSS) INC. BEF. CUMULATIVE
     EFFECT OF CHANGE IN
     ACCOUNTING PRINCIPLE  (.16)         .05         (.15)         .09
    CUMULATIVE EFFECT OF CHANGE IN
     ACCOUNTING FOR
     INC. TAXES            --             --           .04          --
    NET (LOSS) INC.  $     (.16) $       .05  $       (.11) $       .09
    WTD. AVG. NO. OF
     COMMON & COMMON
     EQUIV. SHARES
     OUTSTANDING       12,792,000   12,629,000   12,775,000   12,617,000
    -0-             08/13/93
    CONTACT:  Gary M. Jacobs, CFO of Graham-Field Health Products, Inc., 516-582-5900
    (GFI) CO:  GRAHAM-FIELD HEALTH PRODUCTS, INC. IN:  HEA SU:  ERN ST:  NY


-- NY063 -- X700 08/13/93
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Date:Aug 13, 1993
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