LARIZZA INDUSTRIES, INC. REPORTS THIRD-QUARTER EARNINGS
LARIZZA INDUSTRIES, INC. REPORTS THIRD-QUARTER EARNINGS TROY, Mich., Oct. 15 /PRNewswire/ -- Larizza Industries, Inc.
(AMEX: LII), an original equipment supplier to the automotive industry, today announced net income for the third quarter ended Sept. 30, 1992, of $188,000 ($0.01 per share) on sales of $25,394,000, compared to a net loss of $2,098,000 ($0.15 per share) on sales of $21,040,000 for the previous year's third quarter.
For the first nine months of 1992, the company reported net income of $853,000 ($0.06 per share) on sales of $78,331,000, compared to a net loss of $9,810,000 ($0.71 per share) on sales of $60,891,000 for the first nine months of 1991. The prior-year period included a loss on disposal of discontinued operations of $3,900,000 ($0.28 per share). The net earnings for each of the three quarters in 1992 have been reduced by approximately $1 million per quarter reflecting interest expenses on the company's $47.0 million U.S. loan. This loan and the accrued interest thereon are not payable until 1998. The company's banks have the option to convert the U.S. loan along with accrued interest into a minority position in the company. Sales for the quarter and nine months increased over the prior year as a result of increased car builds as well as the launching of new programs. During the fourth quarter of 1991, the company launched its first program with Honda to manufacture door panels for the Honda Civic manufactured in Alliston, Ontario. During the first quarter of 1992, the company launched a program to manufacture all the interior door panels for Chrysler's Jeep Grand Cherokee as well as interior trim for the Ford Crown Victoria, Mercury Grand Marquis and the Ford F-Truck Supercab. During the third quarter of 1992, the company launched its second program with Honda to produce interior door panels for the Honda Civic manufactured in Marysville, Ohio, and programs to produce interior trim for the new Ford Villager and Nissan Quest minivans as well as interior trim for the Lincoln Mark VIII. Ronald T. Larizza, president and chief executive officer of Larizza Industries, Inc., pointed out that these programs successfully launched within the past year should result in new sales in excess of $50 million annually. LARIZZA INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands, except per-share amounts, unaudited) Three Months Ended Sept. 30 1992 1991 Net sales $25,394 $21,040 Cost of goods sold 21,370 18,082 Gross profit 4,024 2,958 Selling, general & administrative expenses 2,242 2,125 Nonrecurring operating expenses --- 457 Amortization of intangibles 18 30 Operating income 1,764 346 Other income (expense): Interest expense, net (1,728) (2,469) Other, net 152 34 (1,576) (2,435) Income (loss) before income tax provision 188 (2,089) Income tax provision --- 9 Net income (loss) $188 ($2,098) Net income (loss) per common share $.01 ($.15) Weighted average number of shares of common stock outstanding 13,805 13,805 Nine Months Ended Sept. 30 1992 1991 Net sales $78,331 $60,891 Cost of goods sold 65,583 52,631 Gross profit 12,748 8,260 Selling, general & administrative expenses 7,533 5,855 Nonrecurring operating expenses --- 636 Amortization of intangibles 54 90 Operating income 5,161 1,679 Other income (expense): Interest expense, net (5,221) (7,539) Other, net 202 (41) (5,019) (7,580) Income (loss) from continuing operations before income tax provision and extraordinary gain 142 (5,901) Income tax provision --- 9 Income (loss) from continuing operations before extraordinary gain 142 (5,910) Discontinued operations: Loss on disposal of discontinued operations --- 3,900 Income (loss) before extraordinary gain 142 (9,810) Extraordinary gain on extinguishment of debt 711 --- Net income (loss) $853 ($9,810) Income (loss) per common share: Income (loss) from continuing operations before extraordinary gain $.01 ($.43) Loss from discontinued operations before extraordinary gain --- ($.28) Extraordinary gain $.05 --- Net income (loss) per common share $.06 ($.71) 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, unaudited) Sept. 30 Dec. 31, 1992 1991 ASSETS: Cash $165 $4,099 Receivables 15,938 10,789 Inventories 7,179 6,660 Net current assets of discontinued operations 2,067 1,953 Other current assets 956 1,903 Total current assets 26,305 25,404 Net property, plant and equipment 28,908 29,472 Goodwill and other intangibles 3,113 3,296 Net noncurrent assets of discontinued operations 479 419 Other assets 1,894 1,755 $60,699 $60,346 LIABILITIES AND SHAREHOLDERS' DEFICIT: Current installments of long-term debt $697 $201 Accounts payable and accrued expenses 20,649 21,154 Accrual for loss on sale of discontinued operations 2,063 2,126 Total current liabilities 23,409 23,481 Long-term debt, excluding current installments 99,258 99,205 Deferred gain on debt restructure 7,776 8,821 Accrued interest 3,237 103 Other noncurrent liabilities 2,957 3,352 Shareholders' deficit: Common stock 17,202 17,202 Additional paid-in capital 5,551 5,551 Accumulated deficit (97,599) (98,452) Foreign currency translation adjustment (1,092) 1,083 Total shareholders' deficit (75,938) (74,616) $60,699 $60,346 -0- 10/15/92 /CONTACT: Terence C. Seikel, chief financial officer of Larizza Industries, Inc., 313-689-5800/ (LII) CO: Larizza Industries, Inc. ST: Michigan IN: AUT SU: ERN
DH-SJ -- DE016 -- 0494 10/15/92 14:01 EDT
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|Date:||Oct 15, 1992|
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