Printer Friendly

INTERTAN REPORTS FISCAL 1992 RESULTS

 INTERTAN REPORTS FISCAL 1992 RESULTS
 BARRIE, Ontario, Aug. 27 /PRNewswire/ -- InterTAN Inc. (NYSE: ITN)


reported today that consolidated sales for the fourth quarter of fiscal 1992 increased, $7,682,000 to $138,441,000 compared to $130,759,000 reported in the fourth quarter of fiscal 1991, an increase of 5.9 percent. Sales for the fiscal year ended June 30, 1992 declined $14,874,000 to $681,440,000 from $696,314,000 in fiscal 1991.
 The company reported a net loss for the year of $45,892,000 (including a one-time restructuring charge) or $5.15 per share based on 8,912,000 average shares outstanding, This compared to a net profit for the prior year of $9,289,000 or $1.05 per share based on 8,848,000 average shares outstanding. The company's net loss for the fourth quarter of $53,049,000 or $5.92 per share compares to a net loss of $851,000 for last year or 10 cents per share.
 The fourth quarter results included a charge for business restructuring of $49,754,000 previously announced on June 5, 1992. The objective of the restructuring plan is to streamline the business, reduce operating costs and eliminate outlets with a poor track record of sales and earnings. Approximately 200 stores will be closed, primarily in Europe, during the first 6-9 months of fiscal year 1993. Administration and operational activities are also being reorganized to improve efficiency and effectiveness through the establishment of separate management teams for the profit centers in the United Kingdom and in Continental Europe. The company anticipates its actions will result in an overall reduction of European administrative staff by approximately 25 percent.
 In its June 5, announcement InterTAN noted that the company expected to be in default under a financial ratio covenant in its credit line agreement after the end of the fourth quarter. In today's announcement the company stated that agreement in principle had been reached with its lender regarding the waiver of the default on this covenant.
 InterTAN also announced the company adopted a new accounting policy for amortization of leasehold premiums in the fourth quarter of 1992. The charge to earnings in fiscal year 1992 is $965,000, of which $242,000 is reflected in the fourth quarter results. The cumulative effect of the change for fiscal year 1991 and prior years is $1,006,000, net of $811,000 in income taxes.
 Commenting on the fourth quarter and fiscal year results, Robert E. Keto, president and chief executive officer said, "The improvement of sales in the fourth quarter is an indicator of the progress made in the second half of fiscal 1992. We anticipate this trend to continue. We are well into the restructuring process and are pleased with the progress made thus far. Notably, all of the retail outlets in Holland are now closed and plans are proceeding in other countries. Management teams have been established and our executive vice president of operations, Richard Erhart, has been assigned to Europe to implement the business restructuring plan. We anticipate the benefits of the restructuring will begin to materialize in the second quarter of fiscal 1993 and thereafter."
 INTERTAN INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share data)
 Periods ended Three months Percent 12 Months Percent
 June 30: 1992 1991 change 1992 1991 change
 (Unaudited)
 Net sales $138,441 $130,759 5.9 $681,440 $696,314 (2.1)
 Other income 3,165 3,011 9,011 9,423
 Total 141,606 133,770 690,451 705,737
 Costs and expenses:
 Cost of products
 sold 71,915 60,233 349,865 344,548
 SG&A expenses 77,300 71,124 324,551 330,536
 Depreciation and
 amortization 3,970 3,469 15,835 14,163
 Foreign currency
 transaction
 (gains) losses (272) (1,316) 2,126 1,688
 Interest expense, net 945 384 3,431 4,999
 Provision for
 business
 restructuring 49,754 -- 49,754 --
 Total 203,612 133,894 745,562 695,934
 Income (loss) before
 income taxes,
 extraordinary
 item and
 cumulative effect
 of accounting
 change (62,006) (124) (55,111) 9,803
 Income tax benefit (9,963) (180) (10,225) (584)
 Income (loss)
 before extraord.
 item and cumulative
 effect of
 accounting
 change (52,043) 56 (44,886) 9,219
 Extraordinary item
 - realization of
 operating loss
 carryforward -- (907) -- 70
 Cumulative effect
 of accounting
 change for
 amortization
 of fixed assets
 net of income
 taxes of $811 (1,006) -- (1,006) --
 Net income (loss) (53,049) (851) (45,892) 9,289
 Income (loss) per
 average common
 share before
 extraordinary
 item and
 cumulative
 effect of
 accounting
 change ($5.81) $.01 ($5.04) $1.04
 Extraordinary item
 per average
 common share -- (.11) -- .01
 Cumulative effect
 of accounting
 change per
 average common
 share (.11) -- (.11) --
 Net income (loss)
 per average
 common share ($5.92) ($.10) ($5.15) $1.05
 Average common
 shares outstanding 8,961 8,853 8,912 8,848
 -0- 8/27/92
 /CONTACT: Keith H. Wettlaufer, senior vice president-finance and administration of InterTAN, 705-739-6268/
 (ITN) CO: InterTAN Inc. ST: Ontario IN: REA SU: ERN


SH-TS -- NY011 -- 3802 08/27/92 09:12 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 27, 1992
Words:859
Previous Article:TSI CORPORATION REPORTS FISCAL 1992 RESULTS
Next Article:BUTTREY FOOD AND DRUG STORES CO. ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF 31 CENTS PER SHARE VERSUS 14 CENTS PER SHARE
Topics:


Related Articles
INTERTAN ANNOUNCES RESTRUCTURING PLANS AND COMMENTS ON FOURTH QUARTER EARNINGS
INTERTAN INC. REPORTS FIRST QUARTER EARNINGS
INTERTAN ANNOUNCES BOARD APPOINTMENT
INTERTAN REPORTS FISCAL 1993 RESULTS
INTERTAN INC. REPORTS FIRST QUARTER EARNINGS
INTERTAN INC. REPORTS SIGNIFICANT IMPROVEMENT IN SECOND QUARTER EARNINGS
InterTAN, Inc. Announces Sale of Loss Making United Kingdom Subsidiary.
InterTAN Reports Sales for May.
InterTAN Reports Sales for Third Quarter of Fiscal 2003.
InterTAN Announces Share Buyback and Updates First Quarter Guidance.

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