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HOLSON BURNES GROUP REPORTS SECOND QUARTER AND SIX MONTH RESULTS

 HOLSON BURNES GROUP REPORTS SECOND QUARTER AND SIX MONTH RESULTS
 NORTH SMITHFIELD, R.I., July 28 /PRNewswire/ -- The Holson Burnes Group, Inc. (NASDAQ: HBGI) today announced results for the second quarter and six months ended June 30, 1992.
 Revenues for the second quarter ended June 30, 1992 increased 20 percent to $25.0 million from $20.8 million reported last year. Operating income increased to $279,000 for the second quarter versus a loss of $101,000 in the year ago period. The loss from continuing operations for the second quarter was $804,000, or $0.18 per share, compared with a loss from continuing operations of $631,000, or $0.17 per share, for the second quarter last year. The loss from continuing operations in the 1992 second quarter was impacted by (1) higher interest expense from the utilization of interim financing which was prepaid in the quarter from the proceeds of the initial public offering completed on May 20, 1992, and (2) a credit for income taxes in the second quarter of 1991 which could not be recorded in the second quarter of 1992. As a result of the debt prepayment, the company realized a one-time $3.8 million early debt extinguishment cost recorded as an extraordinary charge in the 1992 second quarter.
 In the second quarter, the company also announced that it completed the planned divestitures of its Professional Wedding Album business and Linden clock division (Cuckoo Clock Manufacturing Co.).
 Sales for the six months ended June 30, 1992 increased 20 percent to $53.0 million compared with $44.1 million for the same period last year. Operating income increased to $1,409,000 from a loss of $169,000 for the last year six month period. The loss from continuing operations for the 1992 six months was $893,000, or $0.22 per share, versus a loss from continuing operations of $1,299,000, or $0.35 per share, last year.
 Charles Gordon, chief executive officer noted "We are pleased with the results from operations for the first six months of 1992. With the divestitures of the Professional Wedding Album and Linden clock operations and the reduction of debt, we are now poised to take advantage of even greater operating efficiencies. We are encouraged by the overall performance of the company, the strong demand for our lines of frames and photo albums and the prospects for Showbox, an exciting new product planned to be launched in September. Our strategy will continue to focus on the introduction of new products under established brand names, and cross-marketing these new products to our retail distribution channels."
 The Holson Burnes Group is the largest designer, manufacturer and distributor of photo albums in the United States and the second largest designer and distributor of photo frames. The company is the only supplier in the U.S. with a substantial market presence in both albums and frames and which serves all major retail distribution channels.
 THE HOLSON BURNES GROUP, INC.
 Consolidated Statements of Operations
 (in 000's except per share data, unaudited)
 Three Months Ended Six Months Ended
 1992 1991 1992 1991
 Periods ended June 30
 Net Sales $24,977 $20,833 $52,996 $44,147
 Cost and expenses:
 Cost of sales 17,614 14,689 37,233 31,380
 Variable selling 2,527 2,033 5,319 4,323
 SG&A 4,557 4,212 9,035 8,613
 Oper. income (loss) 279 (101) 1,409 (169)
 Interest expense 611 776 1,311 1,636
 Interest expense on
 notes payable to
 shareholders and
 officers 472 0 991 0
 Total 1,083 776 2,302 1,636
 Loss from cont.
 opers. bef. credit
 for income taxes (804) (877) (893) (1,805)
 Credit for income taxes 0 (246) 0 (506)
 Loss from continuing
 operation (804) (631) (893) (1,299)
 Loss from discont.
 opers. (net of income
 tax benefit) 0 (212) 0 (533)
 Extraordinary loss (3,758) 0 (3,758) 0
 Net loss $(4,562) $(843) $(4,651) $(1,832)
 Loss per share from
 continuing opers. $(0.18) $(0.17) $(0.22) $(0.35)
 Net loss per share(A) $(1.00) $(0.23) $(1.15) $(0.50)
 Weighted average
 shares outstng. 4,561,568 3,642,776 4,022,825 3,642,776
 (A) The net loss per share for the three and six months ended June 30, 1992 reflects the extraordinary charge of $0.82 and $0.93 per share, respectively, related to the early extinguishment of debt. The net loss per share for the three and six months ended June 30, 1991 includes a $0.06 and $0.15 loss per share, respectively, from discontinued operations.
 THE HOLSON BURNES GROUP, INC.
 Condensed Balance Sheet
 (in 000s, unaudited)
 Period ended June 30 1992 1991
 Assets:
 Current assets $64,603 $41,090
 Property and equipment, net 13,186 10,755
 Other assets 3,625 6,469
 Total $81,414 $58,314
 Liabilities and shareholder's equity:
 Current liabilities $ 8,374 $ 9,306
 Long-term debt 37,458 38,542
 Deferred Credit 3,985 4,811
 Shareholder's equity 31,597 5,655
 Total $81,414 $58,314
 -0- 7/28/92
 /CONTACT: Amy Ludwig or Brad Miller of Morgen-Walke Associates, 212-986-5900, for Holson Burns Group, Inc./
 (HBGI) CO: The Holson Burnes Group, Inc. ST: Rhode Island IN: SU: ERN


LD-TM -- NY008 -- 3830 07/28/92 08:31 EDT
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