GUEST SUPPLY ANNOUNCES FIRST QUARTER RESULTS
GUEST SUPPLY ANNOUNCES FIRST QUARTER RESULTS NORTH BRUNSWICK, N.J., Jan. 27 /PRNewswire/ -- Guest Supply, Inc.
(NASDAQ: GEST) announced today that sales for the first quarter ended Dec. 31, 1991, were $18,949,000. This represents an 8.5 percent increase over the $17,452,000 reported in the first quarter last year. The net loss for the quarter was $147,000, or $.04 per share, compared to a loss of $158,000 or $.04 per share in the first quarter last year.
Commenting on the results, Clifford W. Stanley, president of Guest Supply, said, "Considering the recessionary environment and the negative impact that has had on the lodging industry, the 8.5 percent increase in sales is acceptable and demonstrates we are continuing to gain market share. While the lodging industry lags a recovery by three to six months, we expect to experience accelerated growth when the economy improves. The net loss of $147,000, or $.04 per share was essentially the same as the prior year. "Contributing to this loss was a slight decline in gross margin percent and an increase in SG&A expense compared to the first quarter last year. "The gross margin rate was lower because revenue from luxury and resort properties decreased as a percent of total sales, while sales to mid-priced and budget properties increased. This change in sales mix was because occupancies at luxury hotels have been more severely affected by the economy than have occupancies at the budget hotels. Since we have not reduced the number of customers in the luxury segment, we anticipate that our mix and gross margin percent will improve with the economy. "During the second half of fiscal 1991, fixed warehousing and trucking expense was added to accommodate increased sales and the change in mix. As we enter the travel season, increased volume should more than offset the higher expenses. "Our contract manufacturing business continues to increase; and, even if growth in hotel sales remains at the current rate because of the economy, we believe we will substantially increase earnings in fiscal 1992." Guest Supply is the leading manufacturer and marketer of toiletries, personal care products, and other amenities, as well as housekeeping and accessory products, to the lodging industry in the United States. GUEST SUPPLY, INC. Consolidated Statements of Operations (In thousands, except share-related data) Three months ended Dec. 31; 1991 1990 Sales $18,949 $17,452 Cost of sales 14,798 13,560 Gross profit 4,151 3,892 Selling, general & administrative expenses 3,994 3,739 Operating income 157 153 Interest expense 333 335 Loss before income taxes (176) (182) Income tax benefit (29) (24) Net loss (147) (158) Loss per share $(.04) $(.04) Weighted average shares outstanding 3,894,000 3,834,000 -0- 1/27/92 /CONTACT: Clifford W. Stanley of Guest Supply, 908-246-3011; or Anthony J. Russo of Noonan/Russo Communications, 212-979-9180, for Guest Supply/ (GEST) CO: Guest Supply, Inc. ST: New Jersey IN: LEI SU: ERN
CK-JT -- NY054 -- 3730 01/27/92 12:03 EST
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|Date:||Jan 27, 1992|
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