HA-LO INDUSTRIES REPORTS THIRD QUARTER/NINE MONTHS RESULTS; RECENT PUBLIC OFFERING TO 'FUEL GROWTH'
SKOKIE, Ill., Nov. 23 ~PRNewswire~ -- HA-LO Industries, Inc. (NASDAQ: HALO), a lender in the distribution of specialty and premium advertising products, today reported results for the third quarter and nine months ended Sept. 30, 1992. On Oct. 28, 1992, the company completed its initial public offering of 1.6 million shares at $6.50 per share through an underwriting syndicate headed by Hamilton Investments, Inc. "After spending a significant portion of 1992 completing the offering, management is again able to focus on operations," Lou Weisbach, president and chief executive officer, said. Third quarter pro forma net income was $72,000 or $.03 per share on sales of $5.4 million compared to pro forma net income of $208,000 or $.07 per share on sales of $5.5 million for the same period last year. The pro forma income includes provisions for federal and state income tax at an effective rate of 38 percent, as if the company had not elected to be treated as an S Corporation. For the nine months ending Sept. 30, 1992, pro forma net income was $444,000 or $.16 per share on sales of $17.1 million versus pro forma net income of $430,000 or $.15 per share on sales of $15.4 million for the like period of the prior year. The third quarter and nine months of 1991 included sales of $2.1 million and $2.7 million, respectively, from one customer that has not generated significant 1992 sales. While the company was able to replace these sales, the new product mix was not as favorable. Since the president was deeply involved in the offering in 1992, he decided to waive any commissions for his third quarter sales. The company also announced that it added two new corporate fulfillment programs in the fourth quarter, Andersen Consulting and FMC Corporation. The Andersen program includes its offices worldwide and FMC will be distributing catalogs of HA-LO merchandise to each of its 23,000 employees. "We are excited about 1993. Since the offering, the proposal level has been very strong. The credibility and recognition of being a public company has opened the door to establishing corporate fulfillment programs next year for many more major companies in the U.S.," Weisbach commented. In order to finance the expected growth, the company has obtained a commitment for a new $15 million credit facility to fund corporate fulfillment programs, Weisbach noted. As part of the company's program to have a national presence, a small Los Angeles office was opened during the third quarter, which will be expanded to a full showroom and sales office early in 1993. "While 1992 is being impacted by the offering process, we are confident of the future and look to exceed our historical growth rate in 1993," Weisbach concluded. HA-LO INDUSTRIES, INC. Financial Highlights (Unaudited) Periods ended Three months Nine months Sept. 30 1992 1991 1992 1991 Sales $5,380,000 $5,478,000 $17,127,000 $15,373,000 Net income 116,000 336,000 716,000 694,000 Pro forma net income(A) 72,000 208,000 444,000 430,000 Pro forma income per share (A) $ .03 $ .07 $ .16 $ .15 Weighted average shares outstanding(B) 2,776,000 2,776,000 2,776,000 2,776,000 (A) Includes provisions for federal and state income taxes at an effective rate of 38 percent as if the company had not elected to be treated as a S Corporation prior to its initial public offering on Oct. 28, 1992. (B) After giving effect to 2,776.428-for-1 stock split declared Aug. 28, 1992. -0- 11~23~92 ~CONTACT: Richard A. Magid of HA-LO Industries, Inc., 708-674-3900~ (HALO)
CO: HA-LO Industries, Inc. ST: Illinois IN: ADV SU: ERN
TM-OS -- NY072 -- 0717 11~23~92 16:08 EST
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|Date:||Nov 23, 1992|
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