GROW REPORTS SECOND QUARTER AND SIX MONTHS PROFITS
COMPARED TO LOSSES IN PRIOR YEAR
NEW YORK, Jan. 16 /PRNewswire/ -- Grow Group, Inc. (NYSE: GRO) announced today net income for its second quarter ended Dec. 31, 1991 of $1,033,000 or $.09 per primary and fully diluted share on revenues of $88,784,000 as compared to the prior year's loss of $2,630,000 or $.23 loss per share on revenues of $87,418,000. Included in the 1991 second quarter's earnings was $900,000 of aftertax income representing recoveries of insurance claims net of provisions for other unusual items.
For the six months ended Dec. 31, 1991, Grow earned $3,451,000 or $.29 per primary and fully diluted share on revenues of $202,361,000 as compared to a loss in the comparative period of the prior year of $1,499,000 or $.13 loss per share on revenues of $195,504,000.
Russell Banks, president of Grow, stated, "These excellent results reaffirm our belief that our restructuring program will enable the company to achieve its objective of the higher range of its previous forecast of $.50 to $.75 per share for its fiscal year ended June 30,
1992." He added, "The full benefits of the program will have a more favorable earnings impact for the second half of the year when the new addition to our Fort Worth plant presently in pilot production will be fully utilized."
The major improvement in operating income for the six months ended Dec. 31, 1991 was the dramatic turnaround in the Consumer and Professional Products Group from an operating loss of approximately $4.5 million to an operating profit of approximately $1.4 million on a 7.6 percent increase in revenues. This is a direct result of our restructuring program which included the elimination of a considerable number of products and a number of plants. Of particular interest is the substantial increase in revenues related to club stores and mass merchandisers of our quality store brands which reflects the trend towards value shopping by American consumers.
Commenting on the results from Grow's Coatings and Chemicals Group, Banks stated, "The relatively stable revenues and operating income reported during a recessionary environment is further evidence of the strength of this core business."
The company recently announced the purchase of 100,000 shares of its stock as part of a block of 276,200 shares through Morgan Stanley & Co. from Jack Hunter, a member of a group that had previously filed a Schedule 13D, as well as $2,500,000 of its 12-1/2 percent notes (at $98-1/2).
Grow Group is one of the world's leading producers of specialty chemical coatings and paints. Grow operations include manufacturing facilities, sales offices and licensees throughout the world.
GROW GROUP, INC.
Summary of Results of Operations
Periods ended Quarter Six Months
Dec. 31 1991 1990 1991 1990
Revenues $88,784 $87,418 $202,361 $195,504
Income (loss) before
extraord. item 1,033(A) (2,722) 3,451(A) (1,591)
Net income (loss) 1,033(A) (2,630)(B) 3,451(A) (1,499)(B)
Income (loss) before
Per share (primary
& fully diluted) .09 (0.24) 0.29 (0.14)
Net income (loss)
Per share (primary &
fully diluted) .09 (0.23) 0.29 (0.13)
outstanding 11,751,000 11,361,000 11,749,000 11,389,000
(A) -- Includes recoveries of insurance claims net of provisions for other unusual items amounting to $900,000 after tax.
(B) -- Extraordinary item is gain on repurchase of debt.
/CONTACT: Russell Banks of Grow Group, 212-599-4400, or Jennifer R. Wall or Marisa Heine of D.F. King & Co., 212-269-5550, for Grow Group/
(GRO) CO: Grow Group, Inc. ST: New York IN: CHM SU: ERN FC-SM -- NY088 -- 0728 01/16/92 17:00 EST