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MATTHEWS REPORTS THIRD QUARTER/NINE MONTHS RESULTS

 BURBANK, Calif., Aug. 12 /PRNewswire/ -- Matthews Studio Equipment Group (NASDAQ: MATT), a single source supplier of support equipment to the entertainment industry, today reported results for the third quarter and nine months ended June 30, 1993.
 Third-quarter loss was $69,000, or one cent per share, on revenues of $6,525,000, compared with net income of $239,000, or two cents per share, on revenues of $7,718,000 for the same quarter a year earlier.
 Nine-month net income rose to $645,000, or six cents per share, on revenues of $19,737,000, from net income of $348,000, or three cents per share on revenues of $23,360,000 in the like period of the prior year.
 Results include operations of Keylite Holdings, Inc., an equipment rental company, acquired on May 25, 1993, and accounted for as a pooling of interests. Results prior to the acquisition date have been re-stated to include Keylite's losses from operations.
 "The acquisition of Keylite, together with recent purchases of rental assets has resulted in duplication of certain types of rental equipment and the need to refurbish a significant amount of other rental equipment. This will require a reserve for these costs which will be recorded in the fourth quarter of 1993," Carlos De Mattos, co-chairman and chief executive officer, explained. "In addition, the streamlining of the company's manufacturing operations by the elimination of certain product lines will require a write off of assets which will also be recorded in the fourth quarter. Although the total costs have not yet been determined, the company expects to report a loss for the fourth quarter and fiscal year that ends Sept. 30, 1993," he added.
 "Although severe competition in our industry continues to impact on our sales, rental revenues and gross margins, the acquisition of Keylite will enhance our long-term competitive position in the Los Angeles and Southwest rental markets. We will also benefit from the July 7 acquisition of J&L Service, Inc., a rental supplier to the film and television production industry. We are encouraged by some industry sources which have reported significant increases in production activity recently," De Mattos said.
 Matthews Studio Equipment Group designs, manufactures, sells and rents grip, camera and lighting equipment for the film, television, commercial photography and theatrical production industries worldwide. The company also designs, manufactures and rents its proprietary electromechanical Cam-Remote(R) Systems.
 MATTHEWS STUDIO EQUIPMENT GROUP
 Comparative Analysis (Unaudited)(A)
 Periods ended Three months Nine months
 June 30 1993 1992 1993 1992
 Total revenue $6,525,000 $7,718,000 $19,737,000 $23,360,000
 Net income (loss) (69,000) 239,000 645,000 348,000
 Net income (loss)
 per share ($.01) $.02 $.06 $.03
 Weighted average
 shares outstanding 10,199,000 10,374,000 10,404,000 10,027,000
 (A) -- Includes operations of Keylite Holdings, Inc., acquired on May 25, 1993, and accounted for as a pooling of interests. Results prior to the acquisition date have been re-stated to include Keylite operations.
 -0- 8/12/93
 /CONTACT: Gregory Moiseeff or Neil Kaplan of Matthews Studio Equipment Group, 818-843-6715/
 (MATT)


CO: Matthews Studio Equipment Group ST: California IN: ENT SU: ERN

TS-MP -- NY010 -- 2029 08/12/93 09:52 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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