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INACOM REPORTS REVENUES UP FOR THIRD QUARTER 1993

 OMAHA, Neb., Oct. 14 /PRNewswire/ -- Officials of Inacom Corp. (NASDAQ: INAC) announced today that revenues of $394.2 million were reported for the third quarter ended Sept. 25, 1993, which compares to second quarter revenues of $379.3 million and third quarter 1992 revenues of $239.6 million.
 According to President and Chief Executive Officer Bill L. Fairfield, "Our revenues increased from the second quarter, and we're continuing to see strong order flow. This represents a clear sign that our industry remains very strong. Through realignment of our distribution process in the third quarter, we are now shipping 40 percent of our product from the Omaha and Swedesboro configuration centers directly to the end customer. This realignment will result in lower costs and increased operating efficiency in the fourth quarter of 1993 and into the future."
 The costs incurred to streamline the distribution process by adding a distribution center location and reducing inventory and staff in the direct channel resulted in lower net earnings and per-share earnings for the third quarter, according to Fairfield. Net earnings were $2.1 million, compared to third quarter 1992 net earnings of $2.7 million. Earnings per share were 20 cents, compared to earnings of 32 cents per share for the same time period last year. "Our conscientious decision to streamline distribution led to some short-term pain, but it will result in long-term benefits for the company," Fairfield said.
 Year-to-date revenues for 1993 were $1.1 billion. Net earnings were $8.9 million, and earnings per share were 95 cents through the first 39 weeks of 1993. This compares to year-to-date revenues of $737.3 million, earnings of $6.8 million, and earnings per share of 80 cents through the first 39 weeks of 1992.
 "We are very mindful of our investors' desire for continued trendline earnings improvement. Strategic improvement requires that we take a long-term view of our company and the industry," Fairfield said. "Inacom is financially sound and can afford to make long-term investments for growth. These investments, coupled with continued strength in the industry, should result in improved performance during the remainder of 1993 and beyond."
 "Industry trends point to a critical need for a true nationwide high-capabilities information integrator, and that requires building a cost-effective distribution system," said Inacom Chairman Rick Inatome. "We are confident that Inacom, through the steps we have taken in recent months, is on target to meet this challenge."
 Inacom, headquarted in Omaha, with executive offices in Omaha and Troy, Mich., markets computers and communications systems and services through a nationwide network of more than 1,300 locations including Inacom Information Systems offices, franchises, systems integrators, and other affiliates of computer systems and services.
 For more information on Inacom, contact Geri Michelic, vice president of corporate communications, Inacom Corp., 10810 Farnam Drive, 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. 25, Sept. 26, Sept. 25, Sept. 26,
 1993 1992 1993 1992
 Revenues:
 Independently owned
 business centers $188,127 $139,001 $518,293 $417,328
 Company-owned
 business centers 192,091 94,680 548,506 303,834
 Other 13,970 5,903 37,993 16,103
 Total 394,188 239,584 1,104,792 737,265
 Direct costs:
 Independently owned
 business centers 174,084 126,801 482,504 382,924
 Company-owned business
 centers 167,637 79,476 471,541 256,778
 Other 9,489 4,107 27,856 11,098
 Total 351,210 210,384 981,901 650,800
 Gross margin 42,978 29,200 122,891 86,465
 Selling, general, and
 administrative
 expenses 36,965 22,842 102,129 68,602
 Operating income 6,013 6,358 20,762 17,863
 Interest expense 2,601 1,822 6,354 6,426
 Earnings before income
 taxes 3,412 4,536 14,408 11,437
 Income tax expense 1,337 1,828 5,784 4,622
 Earnings before cumulative
 effect of change in
 accounting for income
 taxes 2,075 2,708 8,624 6,815
 Cumulative effect of
 change in accounting
 for income taxes --- --- 229 ---
 Net earnings $2,075 2,708 8,853 6,815
 Earnings per share $.20 $.32 $.95 $.80
 Weighted average shares
 outstanding 10,200 8,565 9,300 8,500
 INACOM CORP. AND SUBSIDIARIES
 Condensed and Consolidated Balance Sheets
 (Unaudited)
 (Amounts in thousands)
 Sept. 25, Dec. 26,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $5,833 $11,835
 Accounts receivable, net 174,850 98,575
 Current and deferred income taxes 3,260 670
 Inventories 192,104 111,806
 Other current assets 1,441 4,713
 Total current assets 377,488 227,599
 Other assets, net 24,481 21,836
 Cost in excess of net assets of
 business acquired, net of
 accumulated amortization 27,512 20,756
 Property and equipment, net 23,779 18,174
 Total $453,260 $288,365
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts payable $104,733 $88,016
 Notes payable and current portion
 of long-term debt 166,300 46,016
 Other current liabilities 26,318 13,481
 Total current liabilities 297,351 147,513
 Long-term debt 20,000 36,800
 Other long-term liabilities 1,211 2,777
 Deferred income taxes 1,501 ---
 Stockholder's equity:
 Capital stock:
 Class A preferred stock of $1 par value.
 Authorized 1,000,000 shares; none issued --- ---
 Common stock of $.10 par value.
 Authorized 30,000,000 shares; issued
 10,040,000 shares in 1993 and
 8,640,000 shares in 1992 1,004 864
 Additional paid-in capital 88,645 67,086
 Retained earnings 46,301 37,448
 Total 135,950 105,398
 Less:
 Cost of common shares in treasury
 of 257,965 in 1993 and
 364,469 in 1992 2,271 3,202
 Unearned restricted stock 482 921
 Total stockholders' equity 133,197 101,275
 Total $453,260 $288,365
 -0- 10/14/93
 /CONTACT: Jackie Fox of Bozell Worldwide, 402-978-4258; or David C. Guenthner, executive VP and CFO of Inacom, 402-392-3940/
 (INAC)


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

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