IN-STORE ADVERTISING REPORTS FIRST QUARTER RESULTS
IN-STORE ADVERTISING REPORTS FIRST QUARTER RESULTS NEW YORK, April 23 /PRNewswire/ -- In-Store Advertising, Inc.
(NASDAQ: ISAN) today announced results for the first quarter ended March 31, 1992.
Advertising revenues for the first quarter increased 44 percent to $5.8 million compared to $4.1 million in the same quarter of 1991. The net loss for the first quarter was $2.6 million or $0.34 per share compared to a net loss of $4.5 million or $0.58 per share in the first quarter of 1991. The company achieved a profit of $718,334 from operations before depreciation and amortization in the first quarter of 1992 versus a loss of $1,497,377 in the first quarter of 1991. Revenue sharing expenses with supermarkets were reduced by 29 percent as a result of the amended sign placement agreements with participating retail chains which deleted a minimum monthly payment. Other operating expenses increased by just 3 percent, despite a 23 percent increase in the number of installed stores from 4,357 stores at March 31, 1991 to 5,370 stores at March 31, 1992. Steve Kahler, president and chief executive officer of In-Store Advertising, said, "We are very pleased with our revenue growth in the first quarter, which includes commitments from advertisers in important new categories." As previously reported, In-Store has signed a letter of intent with lessors and a lender with respect to a proposed restructuring of the company's existing equipment leases and term loan. The proposed restructuring, and the current forbearance by the equipment lessors and lender, are subject to the company's receipt by May 31, 1992 of a financing commitment acceptable to such financers. The closing of the restructuring, concurrent with the closing of such financing, must occur by July 31, 1992. Kahler stated, "The company's improved operating performance should enhance our current efforts to arrange the necessary financing to complete the restructuring agreement. Financing discussions continue with venture capital and other sources, including certain of the Company's current investors." In-Store Advertising, Inc. delivers advertising and promotional messages from consumer product companies to shoppers at the point of purchase through its computerized network of in-store electronic signs located in approximately 5,400 supermarkets nationwide. IN-STORE ADVERTISING, INC. Statements of Operations (Unaudited) Quarter ended March 31 1992 1991 Advertising revenues $ 5,816,900 $ 4,053,100 Revenue sharing expense 1,419,824 1,986,430 Operating expense 3,678,742 3,564,047 Income (loss) from operations before depreciation and amortization 718,334 (1,497,377) Loss from operations after depreciation and amortization (1,813,156) (3,720,244) Net interest income (expense) (799,907) (796,033) Net loss $(2,647,822) $(4,535,908) Net loss per share $(0.34) $(0.58) Weighted average shares outstanding 7,857,449 7,857,449 Balance Sheets 3/31/92 12/31/91 (Unaudited) (Audited) Assets Total current assets $ 6,148,300 $ 4,547,236 Property and equipment, net 35,720,249 37,745,236 Other assets, net 644,045 663,403 Total assets $42,512,594 $42,955,875 Liabilities and Stockholders' Equity Total current liabilities $28,463,794 $26,243,868 Long-term debt -- -- Other liabilities 476,285 491,670 Total stockholders' equity 13,572,515 16,220,337 Total liabilities and stockholders' equity $42,512,594 $42,955,875 -0- 4/23/92 /CONTACT: June Filingeri/Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900/ (ISAN) CO: In-Store Advertising Inc. ST: New York IN: ADV SU: ERN
TS -- NY017 -- 1644 04/23/92 08:25 EDT
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|Date:||Apr 23, 1992|
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