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KRUG INTERNATIONAL RETAINS INVESTMENT BANKING FIRM AND ANNOUNCES QUARTERLY RESULTS

 DAYTON, Ohio, Oct. 29 /PRNewswire/ -- KRUG International (NASDAQ-NMS: KRUG) reported today that it has engaged Janney Montgomery Scott, Inc. (JMS), investment bankers, to assist in refinancing its domestic bank loans due July 1994. The corporation's earnings from continuing operations have substantially improved since the bank loans were structured in November 1991; as a result, the corporation, with JMS' assistance, will seek long-term financing.
 The corporation announced fiscal 1994 results for the second quarter and six-month period ended Sept. 30, 1993. Revenues for the second quarter were $22.2 million compared to $26.9 million in the second quarter last year. For the six months, revenues were $46.0 million, compared to $51.3 million in the corresponding period last year. The decrease in revenues for the six months resulted from the unfavorable effect of currency translation.
 For the second quarter, earnings from continuing operations were $505,000 or $.11 per share compared to $647,000 or $.15 per share for the same period last year. The decrease in earnings from continuing operations for the second quarter resulted from the unfavorable effect of currency translation. For the six months, earnings from continuing operations were $1,548,000 or $.35 per share compared to $1,257,000 or $.29 per share for the same period last year. In the second quarter and six month periods, the corporation's three operating businesses were profitable.
 In fiscal 1989, KRUG discontinued the operations of its Industrial Segment. At that time, provisions for losses on discontinued operations were recorded. Subsequently the corporation has disposed of substantially all of the net assets of the Segment; however, lease obligations for two properties (the Knoxville, Tenn. property and the Toronto, Canada property) and for product liability claims which may arise related to this Segment remain. In October, 1993 the corporation's major tenant of the leased facility in Knoxville filed for bankruptcy. Primarily as a result of this action, the corporation has determined that an additional provision for loss related to discontinued operations is required. Accordingly, an after tax charge of $1,452,000 was recorded in the second quarter. The corporation does not anticipate any future additions to this reserve.
 For the second quarter, the corporation recorded a net loss of $947,000 or $.22 per share after offsetting earnings from continuing operations of $505,000 or $.11 per share against the after tax charge for discontinued operations of $1,452,000 or $.33 per share. Net earnings were $647,000 or $.15 per share for the same period last year. Net earnings for the six months were $96,000 or $.02 per share compared to $1,257,000 or $.29 per share for the same period last year; again with the decrease due to the discontinued operations charge.
 Through its three businesses -- Life Sciences and Engineering Services in the U.S.; Leisure Marine Distribution and Housewares Manufacturing in the U.K. -- KRUG International provides government, industry and consumers with a wide variety of products and services.
 KRUG International common shares are traded on the NASDAQ National Market System, symbol KRUG; Wall Street Journal OTC National Market issue, symbol KRUG.
 Amounts in $000's, except share and per share amounts
 Three Months Ended Sept. 30
 1993 1992
 Revenues $22,244 $26,908
 Earnings from Continuing Operations $ 505 $ 647
 (Loss) from Discontinued Operations $(1,452) ---
 Net Earnings (Loss) $ (947) $ 647
 Earnings Per Share from
 Continuing Operations $ .11 $ .15
 (Loss) Per Share from
 Discontinued Operations $ (.33) ---
 Net Earnings (Loss) Per Share $ (.22) $ .15
 Average Common and Common
 Equivalent Shares Outstanding 4,402,417 4,331,234
 Six Months Ended Sept. 30
 1993 1992
 Revenues $45,982 $51,328
 Earnings from Continuing Operations $ 1,548 $ 1,257
 (Loss) from Discontinued Operations $(1,452) ---
 Net Earnings $ 96 $ 1,257
 Earnings Per Share from
 Continuing Operations $ .35 $ .29
 (Loss) Per Share from
 Discontinued Operations $ (.33) ---
 Net Earnings Per Share $ .02 $ .29
 Average Common and Common
 Equivalent Shares Outstanding 4,379,529 4,329,027
 -0- 10/29/93
 /CONTACT: Ellen H. Geron, director-corporate communications, of KRUG International, 513-224-9066/
 (KRUG)


CO: Krug International ST: Ohio IN: ARO LEI HOU SU: ERN

BM-KL -- CL011 -- 8493 10/29/93 12:02 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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