MAXCO, INC. REPORTS SECOND-QUARTER RESULTS
MAXCO, INC. REPORTS SECOND-QUARTER RESULTS LANSING, Mich., Nov. 2 /PRNewswire/ -- Maxco, Inc.
(NASDAQ-NMS: MAXC) today announced results for the second quarter and six months ended Sept. 30, 1992.
Sales rose 14 percent to $30,056,000 from $26,320,000 for the quarter. Income before taxes and equity in operations of affiliates was $968,000 compared to $1,113,000 in the year-earlier quarter. Equity in earnings of affiliated companies (net of deferred tax), primarily from Maxco's 2.1 million shares of Medar, Inc. was $166,000 in the quarter, up from $125,000. Net income was $804,000, or 17 cents a share, compared to $993,000, or 21 cents a share for the same quarter last year. The year-earlier quarter included approximately $400,000 in gains from the sale of 80,000 shares of stock of Medar, Inc. There were approximately 4.4 million weighted average shares outstanding in this year's quarter compared to 4.5 million the year before. For the six months, sales rose to $58,832,000 from $48,894,000. Income before taxes and equity in operations of affiliates was $1,853,000 compared to $1,335,000 in the year earlier's first half. Equity in earnings of affiliated companies (net of deferred tax) was $289,000, up from $239,000. Net income was $1,512,000, or 32 cents a share, up from $1,274,000, or 26 cents a share. There were approximately 4.4 million weighted average shares outstanding in this year's six-month period vs. 4.5 million in the comparable period. "Of the quarter's $3.7 million sales increase, about $3 million of this came from Finishmaster, which has the most consistent growth record of any of Maxco's businesses," said Max A. Coon, chairman and president. "Sales growth at Finishmaster came from expanding market areas in Indiana and Wisconsin, although profitability was impacted by pressure on margins as the company competes for market share. "The construction supply group also showed a sales gain of about $1 million in the quarter. Wright Plastics, our supplier of automotive components, reported lower sales and profitability in the quarter. "We continue to invest in people and systems, which is a reason earnings grew at a slightly slower rate than sales in the quarter," Coon said. "Looking at the balance of the year, typically a slower period, we are optimistic about the year taken as a whole," Coon concluded. 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. CONSOLIDATED STATEMENTS OF OPERATIONS Maxco, Inc. and Subsidiaries (Unaudited; in thousands, except per-share data) Three Months Ended Sept. 30, 1992 1991 Net sales and other income $30,056 $26,320 Cost and expenses: Cost of sales and operating expenses 24,941 21,490 Selling, general and administrative 3,215 2,792 Depreciation and amortization 543 456 Interest expense 389 469 $29,088 $25,207 INCOME BEFORE FEDERAL INCOME TAXES AND EQUITY IN OPERATIONS OF AFFILIATES 968 1,113 Federal income taxes 330 245 INCOME BEFORE EQUITY IN OPERATIONS OF AFFILIATES 638 868 Equity in earnings of affiliated companies (net of deferred tax) 166 125 NET INCOME $ 804 $ 993 Net income per share $ 0.17 $ 0.21 CONSOLIDATED STATEMENTS OF OPERATIONS Maxco, Inc. and Subsidiaries (Unaudited; in thousands, except per-share data) Six Months Ended Sept. 30, 1992 1991 Net sales and other income $58,832 $48,894 Cost and expenses: Cost of sales and operating expenses 48,825 40,339 Selling, general and administrative 6,303 5,386 Depreciation and amortization 1,076 925 Interest expense 775 909 $56,979 $47,559 INCOME BEFORE FEDERAL INCOME TAXES AND EQUITY IN OPERATIONS OF AFFILIATES 1,853 1,335 Federal income taxes 630 300 INCOME BEFORE EQUITY IN OPERATIONS OF AFFILIATES 1,223 1,035 Equity in earnings of affiliated companies (net of deferred tax) 289 239 NET INCOME $ 1,512 $ 1,274 Net income per share $ 0.32 $ 0.26 -0- 11/2/92 /CONTACT: Max Coon, president, or Vince Shunsky, VP-Finance, both of Maxco, Inc., P.O. Box 22218, Lansing, MI 48909, 517-321-3130; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-874-6800, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for Maxco, Inc./ (MAXC) CO: Maxco, Inc. ST: Michigan IN: CST SU: ERN
SM -- DE012 -- 1594 11/02/92 12:07 EST
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|Date:||Nov 2, 1992|
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