Printer Friendly

INACOM CORP. REPORTS FOURTH-QUARTER PROFIT

 OMAHA, Neb., Jan. 22 /PRNewswire/ -- InaCom Corp. (NASDAQ: INAC) reported a profitable fourth quarter with net earnings of $3.9 million, or 45 cents per share, on revenues of $277 million, according to InaCom President and Chief Executive Officer Bill Fairfield.
 This compares to net earnings of $2.3 million, or 26 cents per share, on revenues of $252.6 million for the fourth quarter of 1991.
 Total net earnings for 1992 were $10.7 million compared to $3.4 million in 1991, with earnings per share of $1.25 compared to 56 cents for 1991. Revenues grew from $680.4 million in 1991 to $1 billion in 1992, reflecting a complete year with the Inacomp Computer Centers channel, after the August 1991 merger of ValCom and Inacomp.
 According to Fairfield, fourth-quarter revenue gains were due largely to an increase in customer demand for products from major manufacturers, which account for the vast majority of InaCom hardware sales. "With IBM, Compaq and Apple continuing their competitive pricing strategies, customers are shifting toward name brand purchases," he said.
 Fairfield noted that availability from vendors continued to be a problem during the quarter. Despite improved shipments from vendors, the company's backlog remained at approximately $30 million -- a level consistent with the previous quarter. Fairfield said he anticipated an improvement during the latter part of the first quarter of 1993.
 InaCom's gross margin percentage continued an upward trend to 12.8 percent, up from 12.2 percent last quarter, and compared to 11.6 percent during the fourth quarter of 1991.
 Selling, general and administrative expenses as a percentage of gross margins continued to decrease, going from 78.2 percent in the third quarter to 77.3 percent in the fourth quarter of 1992 and compared with 80.0 percent in the fourth quarter of 1991.
 "Supporting a growing business with efficient, centralized operations functions has allowed InaCom to leverage revenue gains to drive profits," said Fairfield. He expects that strategy to continue to positively impact performance as InaCom proceeds with the acquisition of Sears Business Centers (SBC), announced on Jan. 13. SBC had revenues of over $500 million for 1992.
 Fairfield added that while InaCom's balance sheet for the fourth quarter looks similar to that of the prior quarter, increased sales and order flow resulted in moderate increases in inventory and accounts receivable.
 InaCom Chairman Rick Inatome said the company's continuing margin growth is largely a factor of InaCom's ability to add value to the computer purchase through its expertise in networking technology. Already the largest reseller of Banyan products and support in the U.S., Inatome said the merger with Sears Business Centers will make the company one of the top resellers and support organizations for Novell networks, as well.
 "Going forward, we think we have the size and strategic focus needed to deliver what the customer wants -- namely, excellent value and an information solution that capitalizes on the most advanced technology available to improve performance of mission-critical tasks," Inatome said.
 InaCom, headquartered in Omaha, with executive offices in Omaha and Troy, Mich., markets computer systems and services through a nationwide network of over 1,200 computer centers, systems integrators, value-added resellers and other specialized providers of computer systems and support.
 For more information on InaCom, contact Geri Michelic, InaCom Corp., 10810 Farnam, Omaha, NE 68154.
 INACOM CORP. AND SUBSIDIARIES
 Condensed and Consolidated Statements of Earnings
 (Unaudited)
 (Amounts in thousands, except per-share data)
 13 Weeks Ended 52 Weeks Ended
 Dec. 26, Dec. 28, Dec. 26, Dec. 28,
 1992 1991 1992 1991
 Revenues:
 Franchisor $179,112 124,388 612,543 403,275
 Company-owned
 business centers 98,089 128,253 401,923 277,147
 $277,201 252,641 1,014,466 680,422
 Direct costs:
 Franchisor $162,072 115,371 556,094 371,424
 Company-owned
 business centers 79,697 107,977 336,475 230,316
 $241,769 223,348 892,569 601,740
 Gross profit $35,432 29,293 121,897 78,682
 Selling, general,
 and administrative
 expenses 27,372 23,425 95,974 68,835
 Operating income $8,060 5,868 25,923 9,847
 Interest expense 1,538 2,109 7,964 4,145
 Earnings before
 income taxes $6,522 3,759 17,959 5,702
 Income tax expense 2,603 1,505 7,225 2,297
 Net earnings $3,919 2,254 10,734 3,405
 Earnings per share $0.45 0.26 1.25 0.56
 Weighted average
 shares outstanding 8,700 8,508 8,566 6,119
 -0- 1/22/93
 /CONTACT: Linda Wasche, 313-567-5006, or Jill Lucius, 313-567-5022, both of Anthony M. Franco, Inc., for InaCom Corp./
 (INAC)


CO: InaCom Corp. ST: Nebraska IN: CPR SU: ERN

JG-SB -- DE001 -- 7753 01/22/93 08:31 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 22, 1993
Words:789
Previous Article:RHONE-POULENC CONSIDERS SELLING 'CERAMIQUES & COMPOSITES'
Next Article:BELL SPORTS CORP. SECOND-QUARTER INCOME FROM CONTINUING OPERATIONS UP 47 PERCENT ON 24-PERCENT SALES GAIN
Topics:


Related Articles
INACOM ACHIEVES SUCCESSFUL POST-MERGER INTEGRATION; ANTICIPATES FOURTH QUARTER PROFIT
INACOM CORP. REPORTS FOURTH QUARTER PROFIT
INACOM REPORTS FIRST QUARTER PROFIT; PROFIT FUELED BY COST TAKEOUTS, STRENGTHENED DEMAND FOR COMPUTERS AND SERVICES
VALMONT REPORTS 68 PERCENT EARNINGS INCREASE
INACOM REPORTS 74 PERCENT INCREASE IN FIRST QUARTER PROFIT
INACOM REPORTS RECORD REVENUE, STRONGER PROFITS FOR FOURTH QUARTER
INACOM CONTINUES STRONG REVENUES WHILE GROWING PROFITS IN COMMUNICATIONS AND SERVICES
INACOM CORP. NOW CARRYING CANON PRODUCTS
INACOM REPORTS RECORD REVENUE AND STRONG EARNINGS FOR 1995
Inacom Posts Depressed Q3, Warns of Worse to Come Nearer Y2K.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters