LARIZZA INDUSTRIES, INC. REPORTS FIRST-QUARTER EARNINGS
LARIZZA INDUSTRIES, INC. REPORTS FIRST-QUARTER EARNINGS TROY, Mich., April 10 /PRNewswire/ -- Larizza Industries, Inc.
(AMEX: LII), an original equipment supplier to the automotive industry, today announced net income for the first quarter ended March 31, 1992, of $164,000 ($0.01 per share) on sales of $24,268,000 compared to a net loss of $2,674,000 ($0.19 per share) on sales of $16,842,000 for the previous year's first quarter.
The net earnings for the first quarter were reduced by approximately $1 million of interest expense on the company's U.S. loan which is not payable for seven years. The company's banks have the option to convert the U.S. loan of $47.0 million, along with accrued interest, into a minority position in the company. During the first quarter, the company's Manchester, Mich., facility successfully launched a program to manufacture all the interior door panels for Chrysler's new Jeep Grand Cherokee. During 1992, the company will also launch its second major program with Honda to produce interior door panels for the Honda Civic manufactured in Marysville, Ohio. In addition, the company will launch programs to produce interior trim for the new Ford minivan, which is a joint venture between Ford and Nissan, and interior trim parts for the Lincoln Mark VIII. Ronald T. Larizza, president and chief executive officer of Larizza Industries, Inc., pointed out that the profit shown during the first quarter of 1992 was the first quarterly profit recorded by the company in the past 14 quarters. Mr. Larizza said, "The fact that the company showed a net profit in this soft automotive market is a clear indication of the success of our operational and financial restructurings. We believe that the company is positioned to take advantage of a recovery in the North American automotive market." The company also announced that it was making a significant investment in the area of low-pressure injection molding. The company expects to take delivery of this new equipment and be in production before the end of 1992. LARIZZA INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands, except per-share amounts; unaudited) Three Months Ended March 31, 1992 1991 Net sales $24,268 $16,842 Cost of goods sold 20,656 15,015 Gross profit 3,612 1,827 Selling, general & administrative expenses 2,571 1,709 Amortization of intangibles 18 30 Operating income 1,023 88 Other income (expense): Interest expense, net (1,708) (2,581) Other, net 849 (181) (859) (2,762) Income (loss) before income tax provision 164 (2,674) Income tax provision --- --- Net income (loss) 164 (2,674) Income (loss) per common share $.01 ($.19) Weighted average number of shares of common stock outstanding 13,805 13,805 LARIZZA INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands) March 31, Dec. 31, 1992 1991 ASSETS: Cash $ 137 $ 4,099 Receivables 13,116 10,789 Inventories 6,633 6,660 Net current assets of discontinued operations 1,705 1,953 Other current assets 2,369 1,903 Total current assets 23,960 25,404 Net property, plant and equipment 28,547 29,472 Goodwill and other intangibles 3,226 3,296 Net noncurrent assets of discontinued operations 453 419 Other assets 1,783 1,755 $57,969 $60,346 LIABILITIES AND SHAREHOLDERS' DEFICIT: Current installments of long-term debt $ 500 $ 201 Accounts payable and accrued expenses 21,190 21,154 Accrual for loss on sale of discontinued operations 1,975 2,126 Total current liabilities 23,665 23,481 Long-term debt, excluding current installments 96,250 99,205 Deferred gain on debt restructure 8,483 8,821 Accrued interest 1,144 103 Other noncurrent liabilities 3,968 3,352 Shareholders' deficit (75,541) (74,616) $57,969 60,346 -0- 4/10/92 /CONTACT: Terence C. Seikel, chief financial officer, Larizza Industries, 313-689-5800/ (LII) CO: Larizza Industries, Inc. ST: Michigan IN: AUT SU: ERN
SB-JG -- DE013 -- 7174 04/10/92 11:12 EDT
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|Date:||Apr 10, 1992|
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