IN-STORE ADVERTISING REPORTS THIRD QUARTER RESULTS
IN-STORE ADVERTISING REPORTS THIRD QUARTER RESULTS NEW YORK, Nov. 3 /PRNewswire/ -- In-Store Advertising, Inc.
(NASDAQ: ISAN) today announced results for the third quarter and nine months ended Sept. 30, 1992.
Advertising revenues for the third quarter increased to $4,219,200 compared to $4,175,300 in the same quarter of 1991. The net loss for the third quarter was $3.6 million or $0.45 per share compared to a net loss of $6.4 million or $0.81 per share in the third quarter of 1991. The company's loss from operations before depreciation and amortization in the third quarter was reduced to $119,446 versus a loss of $3,117,615 in the third quarter last year. The improvement resulted from a 71 percent reduction in revenue sharing payments to participating supermarkets as a result of amended sign placement agreements, and a 15.6 percent decrease in other operating expenses due to improved operating efficiencies in running the electronic sign network and lower professional services costs. Advertising revenues for the first nine months of 1992 increased 23.7 percent to $14.9 million compared to $12.0 million in the same period last year. The net loss for the nine month period was $9.6 million or $1.22 per share compared to a net loss of $17.5 million or $2.23 per share in 1991. The 1991 results include an extraordinary loss of $909,677 or $0.12 per share resulting from a writeoff of unamortized costs relating to a termination of an unused bank line of credit. Income from operations before depreciation and amortization in the first nine months of 1992 was $614,273, compared with a loss of $7.1 million in 1991, as revenue sharing expenses decreased by 53 percent and other operating expenses decreased by 7.5 percent. The company is continuing in its efforts to restructure its equipment leases and other indebtedness and to seek a capital infusion from one or more existing investors or new investors. No assurances can be given that such efforts will be successful. The company remains in default under its financing arrangements. The company also recently reported that settlement talks among lawyers for the company and the plaintiffs in the company's ongoing securities litigation have been suspended without reaching a settlement. A conference with Judge Conboy of the United States District Court for the Southern District of New York has been scheduled for Nov. 13, 1992, to discuss the status of such litigation. In-Store Advertising, Inc. delivers advertising and promotional messages from consumer product companies at the point of purchase through its computerized network of in-store electronic signs located in approximately 5,400 supermarkets nationwide, reaching 80 million shoppers weekly. IN-STORE ADVERTISING, INC. Statements of Operations (Unaudited) Periods ended: Third quarter Nine months 9/30/92 9/30/91 9/30/92 9/30/91 Advertising revenues $ 4,219,200 $ 4,175,300 $14,902,300 $ 12,045,700 Revenue sharing expense 949,116 3,276,770 3,561,246 7,577,702 Operating expense 3,389,530 4,016,145 10,726,781 11,601,643 Income (loss) from operations before depreciation and amortization (119,446) (3,117,615) 614,273 (7,133,645) Loss from operations (2,775,588) (5,555,012) (7,127,321) (14,105,351) Net interest income (expense) (807,308) (801,315) (2,406,857) (2,401,621) Loss before extraordinary item (3,559,231) (6,373,247) (9,573,077) (16,574,966) Extraordinary item -- -- -- (909,677) Net loss $(3,559,231) $(6,373,247) $(9,573,077)$(17,484,643) Net loss per share before extraordinary item $(0.45) $(0.81) $(1.22) $(2.11) Net loss per Share $(0.45) $(0.81) $(1.22) $(2.23) Weighted average number of shares outstanding 7,857,449 7,857,449 7,857,449 7,857,449 Balance Sheets 9/30/92 12/31/91 (Unaudited) (Audited) Assets Total current assets $ 4,356,528 $ 4,547,236 Property and equipment, net 31,201,981 37,745,236 Other assets, net 766,181 663,403 Total assets $36,324,690 $42,955,875 Liabilities and stockholders' equity Total current liabilities $29,232,746 $26,243,868 Long-term debt -- -- Other liabilities 444,684 491,670 Total shareholders' equity 6,647,260 16,220,337 Total liabilities and stockholders' equity $36,324,690 $42,955,875 -0- 11/3/92 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for In-Store Advertising/ (ISAN) CO: In-Store Advertising, Inc. ST: New York IN: ADV SU: ERN
TS -- NY005 -- 1927 11/03/92 08:50 EST
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|Date:||Nov 3, 1992|
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