MAXCO, INC. EARNINGS TRIPLE IN FIRST QUARTER
MAXCO, INC. EARNINGS TRIPLE IN FIRST QUARTER LANSING, Mich., Aug. 6 /PRNewswire/ -- Maxco, Inc.
(NASDAQ-NMS: MAXC) today reported per-share earnings which were three times that of the prior year, along with a 27-percent sales gain in its first quarter ended June 30, 1992.
Net sales and other income rose 27 percent to $28,776,000 from $22,574,000 in the year-earlier quarter. Income before taxes and equity in operations of affiliates was $885,000 vs. $223,000. Equity in earnings of affiliated companies (primarily Medar, Inc.) rose to $123,000 from $114,000 in the year-earlier quarter. Net income advanced to $708,000, or 15 cents a share, up from $282,000, or 5 cents a share, in the prior year's first quarter. There were approximately 4.3 million shares outstanding in this year's quarter compared to 4.6 million in the prior year's quarter. "Sales were up throughout Maxco's operations," said Max A. Coon, chairman. "About half of the $6.2 million in sales growth came from our auto paint distributor, Finishmaster. The rest of the revenue gain was spread across our other businesses. "Profitability was boosted by stronger margins in the construction supplies group and Akemi, Inc. Earnings at Finishmaster were impacted by price competition in some locations and a general slowdown in automobile repair. Higher earnings from our equity ownership in Medar (NASDAQ-NMS: MDXR) added to net income. "These strong results are especially gratifying as the overall economy remains sluggish," said Coon. "Maxco's financial performance is meeting our expectations. Earlier, we said we expect revenue in excess of $100 million, and it looks as if we're on our way." Maxco distribution businesses include Finishmaster, Inc., and the construction supplies group (Ersco and Wisconsin Wire & Steel) which markets commercial and highway construction materials throughout Michigan, Wisconsin and Indiana. Wright Plastics, Pak Sak Industries and Akemi are Maxco's manufacturing businesses. MAXCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, 1992 1991 (in thousands) Net sales and other income $28,776 $22,574 Cost and expenses: Cost of sales and operating expenses 23,884 18,849 Selling, general and administrative 3,088 2,594 Depreciation and amortization 533 469 Interest expense 386 439 27,891 22,351 INCOME BEFORE FEDERAL INCOME TAXES AND EQUITY IN OPERATIONS OF AFFILIATES 885 223 Federal income taxes 300 55 INCOME BEFORE EQUITY IN OPERATIONS OF AFFILIATES 585 168 Equity share of earnings from affiliated companies, net of tax 123 114 Net Income $ 708 $ 282 Net income per share $ .15 $ .05 -0- 8/6/92 /CONTACT: Max Coon, president, or Vince Shunsky, VP-Finance, Maxco, Inc., 517-321-3130; or Dixie Watterson, 708-564-5610, Bruce Marcus, 212-580-0703, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for Maxco, Inc./ (MAXC MDXR) CO: Maxco, Inc. ST: Michigan IN: CST SU: ERN
JG -- DE011 -- 7468 08/06/92 09:48 EDT
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|Date:||Aug 6, 1992|
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