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INACOM CORP. REPORTS THIRD QUARTER PROFIT

 INACOM CORP. REPORTS THIRD QUARTER PROFIT
 OMAHA, Neb., Oct. 15 /PRNewswire/ -- InaCom Corp. (NASDAQ: INAC)


reported net earnings of $2.7 million on revenues of $239.6 million for the third quarter of 1992, compared to a loss of $912,000 on revenues of $191.9 million for the third quarter of 1991, according to InaCom president and chief executive officer Bill Fairfield. Per share earnings were 32 cents, compared with a 13 cent loss in 1991 third quarter.
 Year-to-date revenues for 1992 were $737.3 million. Earnings were $6.8 million and earnings per share were 80 cents through the first 39 weeks of 1992. This compares to revenues of $427.8 million, earnings of $1.1 million and earnings per share of 22 cents for the comparable period of 1991. Increased revenues for 1992 reflect a complete third quarter with the Inacomp Computer Centers channel, vs. just two months of the combined ValCom and Inacomp organizations in the 1991 third quarter, after their merger in Aug. 1991.
 "Customer demand for computer products and services during the third quarter was very strong," said Fairfield. "That was offset somewhat by the inability of major vendors to fill product orders, which negatively impacted revenue and earnings for the quarter." He added that InaCom is working closely with vendors to obtain the products that customers need.
 InaCom generated $24.1 million of cash flow from operating activities in the third quarter. Fairfield attributed this result, in part, to aggressive management of inventory, accounts receivable and accounts payable. "The recent increase in new product announcements from major vendors made managing inventory even more important," he said.
 Despite industry-wide price reductions, InaCom's gross margins continued to increase during the 1992 third quarter to 12.2 percent, compared with 11.6 percent for the second quarter of 1992. This positive trend results from continued emphasis on the sale of services and expansion of the customer base at company-owned centers to include more small and mid-sized businesses.
 Selling, general and administrative expenses as a percentage of gross margins continued a positive downward trend, falling from 79.6 percent in the 1992 second quarter to 78.2 percent in the third quarter, primarily due to continued centralization of information systems, distribution and other corporate functions.
 Going forward, Fairfield said InaCom will emphasize asset management and expense control, and continue to leverage its technical expertise by focusing on higher-margin service business.
 According to InaCom Chairman Rick Inatome, the company is upbeat about the prospects for the computer reseller industry. "Despite vendors' exploration of alternate channels of distribution, the lion's share of computer system sales and support to businesses is still going through resellers that can design and support multi-vendor, networked systems," said Inatome. "Customers, as well as investors, will be looking for stable, well-managed companies with a clear strategy to deliver these advanced solutions to corporate America."
 InaCom markets personal computers and related support to customers in 50 states through ValCom and Inacomp Computer Centers. The InaCom channel also includes system integrators, value-added resellers and other specialized providers of computer systems and support.
 For more information on InaCom, contact Dave Guenthner, 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 39 Weeks Ended
 Sept. 26, Sept. 28, Sept. 26, Sept. 28,
 1992 1991 1992 1991
 Revenues:
 Franchisor $144,904 $106,360 $433,431 $278,887
 Company-owned
 business centers 94,680 85,546 303,834 148,894
 Total $239,584 191,906 737,265 427,781
 Direct costs:
 Franchisor $130,908 95,696 394,022 256,053
 Company-owned
 business centers 79,476 73,156 256,778 122,339
 Total $210,384 168,852 650,800 378,392
 Gross Profit $29,200 23,054 86,465 49,389
 Selling, general,
 and administrative
 expenses 22,842 22,853 68,602 45,410
 Operating income 6,358 201 17,863 3,979
 Interest expense 1,822 1,583 6,426 2,037
 Earnings (loss) before
 income taxes 4,536 (1,382) 11,437 1,942
 Income tax expense
 (benefit) 1,828 (470) 4,622 792
 Net earnings (loss) $2,708 (912) $6,815 $1,150
 Earnings (loss)
 per share 32 cents (13 cents) 80 cents 22 cents
 Weighted
 average shares
 outstanding 8,565 6,831 8,520 5,280
 Condensed Consolidated Balance Sheets
 (Unaudited)
 (Amounts in Thousands, Except Share Data)
 Sept. 26, Dec. 28,
 1992 1991
 Current Assets:
 Cash and temporary
 cash investments $10,391 4,118
 Accounts receivable, net 96,431 93,803
 Recoverable and deferred income
 taxes 611 611
 Inventories 103,970 134,959
 Other current assets 5,680 11,265
 Total current assets 217,083 244,756
 Other assets, net 18,498 21,137
 Cost in excess of net assets of
 business acquired, net of
 accumulated amortization 21,015 21,796
 Property and equipment, net 18,619 20,113
 Total 275,215 307,802
 Liabilities and Stockholders Equity
 Current liabilities:
 Account payable 70,120 72,178
 Notes payable and current
 portion of long term debt 41,326 57,316
 Other current liabilities 14,203 21,985
 Total current liabilities 125,649 151,479
 Long term debt 48,286 59,242
 Other long-term liabilities 3,975 7,548
 Stockholders' equity:
 Capital stock:
 Class A preferred stock of $1
 par value. Authorized 1 million
 shares; none issued common stock of
 10 cents par value.
 Authorized 10 million shares;
 issued 8,640,000
 shares 864 864
 Additional paid-in capital 66,758 67,163
 Retained earnings 33,529 26,714
 Total 101,151 94,741
 Less cost of common shares
 in treasury of 437,678 in 1992
 and 552,991 in 1991 3,846 5,208
 Total stockholders equity 97,305 89,533
 Total 275,215 307,802
 -0- 10/15/92
 /CONTACT: Dave Guenthner, InaCom CFO, 402-392-3940/
 (INAC) CO: InaCom Corp. ST: Michigan, Nebraska IN: TLS SU: ERN


CH -- NE002 -- 0172 10/15/92 06:31 EDT
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