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HEALTH-CHEM CORPORATION ANNOUNCES RESULTS

 HEALTH-CHEM CORPORATION ANNOUNCES RESULTS
 NEW YORK, Nov. 11 /PRNewswire/ -- Health-Chem Corporation


(AMEX: HCH) announced today operating results for the third quarter and nine months ended Sept. 30, 1992.
 For the three months ended Sept. 30, 1992, revenues were $9,667,000 compared to $9,219,000 in the comparable quarter last year. Loss from continuing operations in the 1992 period was $363,000 versus income from continuing operations of $1,723,000 for the corresponding earlier year quarter. Net loss in the 1992 period was $259,000 or $.04 per share compared to net income of $1,083,000 or $.15 per share for the same period last year, on a fully diluted basis.
 For the nine months ended Sept. 30, 1992, revenues were $29,845,000 compared to $27,797,000 for the comparable period last year. Loss from continuing operations was $884,000 compared to income from continuing operations of $458,000 in the first nine months of 1991. Net loss for the nine month period of 1992 amounted to $716,000 or $.11 per share compared to a loss of $223,000 or $.03 per share for the nine month period of 1991, on a fully diluted basis.
 The company noted that the increase in sales was primarily the result of an increase in shipments of its transdermal nitroglycerin patches. The loss for the third quarter was primarily the result of the recording of $500,000 for additional loss contingencies in connection with ongoing litigation in contrast to the third quarter of 1991 where operating income was substantially affected by the recovery of approximately $3.5 million, representing litigation losses previously provided for.
 The company also announced today that an agreement in principle was reached to settle the lawsuit captioned James B. Stubbins Trustee in Bankruptcy for Debtor Jaeger Energy Corporation v. Health-Chem Corporation, Medallion Group, Inc., Herculite Products, Inc., Stocklin Supply Company, Time Chemical, Inc., Hemisphere Leasing Corporation, f/k/a Jaeger Leasing Corporation, Stuyvesant Capital Management Corporation, Marvin Speiser, Leon C. Baker, P.C., Leon C. Baker, Charles Grim, James G. May, U.S. Resources, Inc. and John Doe(s). This previously reported action was commenced in January 1991 in the United States Bankruptcy Court for the Southern District of Ohio, Eastern Division and subsequently transferred to the United States District Court for the Southern District of Ohio. In this action, the Trustee had asserted claims for relief, sounding in breach of contract, breach of fiduciary duty, conversion and negligence against the company, certain of its subsidiaries, certain of its present and former officers and directors and others.
 This lawsuit had been dismissed as against all defendants by the Ohio District Court in February 1992 and an appeal was filed by the Trustee in the United States Court of Appeals for the Sixth Circuit. Oral arguments, which were due to be heard in the appeal on Nov. 9, 1992, have been postponed pending approval of the proposed settlement.
 The major terms of the proposed settlement are as follows: (a) the Trustee's appeal will be withdrawn and the action dismissed with prejudice; (b) the company will pay the Trustee the sum of $250,000; and (c) Jaeger Energy Corporation ("Jaeger") will transfer, sell and assign to the company all of the outstanding shares of common stock of Hemisphere Leasing Corporation ("Hemisphere"). The settlement is subject to the execution of a definitive agreement, as well as approval of the Bankruptcy Court in which Jaeger's Chapter 7 bankruptcy proceeding is pending. Upon approval of this settlement, the shares of preferred stock of Hemisphere owned by the company will be liquidated. The net effect of such liquidation, which is expected to be recognized by the company in the fourth quarter, will be the recognition of after- tax income in the approximate amount of $1.5 - $2.0 million. Funds received are expected to be utilized to reduce long-term liabilities.
 Health-Chem Corporation manufactures and distributes patented controlled release dispensers for the pharmaceutical industry, along with industrial and health-care synthetic fabrics.
 HEALTH-CHEM CORPORATION
 Results of Operations
 (In thousands, except in per share amounts, unaudited)
 Periods ended Three Months 12 Months
 Sept. 30 1992 1991 1992 1991
 Net Sales $ 9,667 9,219 29,845 27,797
 Cost of goods sold 6,378 6,869 20,045 20,456
 Gross profit 3,289 2,350 9,800 7,341
 Other expenses 3,810 (146) 11,047 6,676
 Income (loss) from continuing
 operations before taxes (521) 2,496 (1,247) 665
 Income tax provision (benefit) (158) 773 (363) 207
 Income (loss) from continuing opers.(363) 1,723 (884) 458
 Loss from discontinued opers. net
 of income taxes 0 (21) 0 (62)
 Loss on disposal of assets of
 discontinued operations net of
 income taxes 0 (645) 0 (645)
 Income (loss) before extraord. gain (363) 1,057 (884) (249)
 Extraordinary gain from repurchase
 of convertible subordinated
 debentures 104 26 168 26
 Net income (loss) (259) 1,083 (716) (223)
 Earnings per common share
 (Primary & fully diluted)
 Income (loss) from continuing
 operations (0.05) 0.24 (0.13) 0.06
 Loss from discontinued operations 0.00 0.00 0.00 (0.01)
 Loss on disposal of discontinued
 operations 0.00 (0.09) 0.00 (0.09)
 Extraordinary gain from repurchase
 of convertible subordinated
 debentures 0.01 0.00 0.02 0.00
 Net income (loss) (0.04) 0.15 (0.11) (0.03)
 -0- 11/11/92
 /CONTACT: Bruce M. Schloss, vice president of Health-Chem, 212-398-0700/
 (HCH) CO: Health-Chem Corporation ST: New York IN: MTC SU: ERN


AH -- NY088 -- 9948 11/11/92 18:35 EST
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