Printer Friendly

MAXCO, INC. REPORTS THIRD QUARTER RESULTS

 LANSING, Mich., Feb. 17 /PRNewswire/ -- Maxco, Inc. (NASDAQ: MAXC) today announced results for the third quarter and nine months ended Dec. 31, 1992.
 Sales rose 17 percent to $24,623,000 from $21,025,000 for the quarter. The company reported net income of $15,000 and a loss of one cent a share attributable to common shareholders. Preferred dividend requirements resulted in a per share loss. The year earlier's third quarter included net income of $462,000, or nine cents a share.
 For the nine months, Maxco posted a 19 percent gain in net sales and other income, reporting $83,455,000 in the current year versus $69,919,000 in the prior year's nine months. Net income was $1,527,000, or 31 cents a share. This compares to $1,736,000, or 36 cents a share in the year earlier nine months.
 There were approximately 4.4 million weighted average shares outstanding in this year's quarter and nine month period versus 4.6 million in the comparable year earlier periods.
 Max A. Coon, chairman, noted that last year's revenue included several items with a high impact on profitability, with no comparable items in this year's results. "Last year's quarter included gains from the sale of stock in Medar Inc. (NASDAQ: MDXR) and real estate of approximately $325,000," he said. The nine months revenues last year included approximately $600,000 of these gains.
 In addition, last year's third quarter included an unusually strong contract from an aircraft manufacturer for the supply of polyester tooling by Akemi. The lack of a similar size contract this year resulted in Akemi having lower sales in the current quarter by approximately $800,000. Going forward, sales at Akemi are expected to be lower in the fourth quarter for the same reason.
 "The majority of the quarter's $3.5 million revenue gain came from FinishMaster as the Grand Rapids-based auto paint supplier expanded into northern Indiana and Wisconsin. Operating income continues to improve at FinishMaster. Looking forward, FinishMaster's recently announced Indianapolis acquisition will help boost its sales to a projected $65 million in the 1994 fiscal year, as we have said earlier," Mr. Coon said.
 "Although our fourth quarter is typically our slowest, we are expecting sales to reach $105 million for the fiscal year ending March 31, 1993," Mr. Coon said. "This will be up from $92 million in fiscal 1992, and Maxco's first break through the $100 million mark."
 Maxco distribution businesses include the construction supplies group (Ersco and Wisconsin Wire & Steel), which markets commercial and highway construction materials throughout Michigan, Wisconsin and Indiana, as well as FinishMaster, Wright Plastics, Pak Sak Industries and Akemi are other Maxco businesses.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 MAXCO, INC. AND SUBSIDIARIES
 Unaudited
 In thousands, except per share data
 Three Months Ended Dec. 31,
 1992 1991
 Net sales and other income $24,623 $21,025
 Cost and expenses:
 Cost of sales and operating expenses 20,711 16,851
 Selling, general and administrative 3,049 2,797
 Depreciation and amortization 518 451
 Interest expense 330 434
 $24,608 $20,533
 INCOME BEFORE FEDERAL INCOME
 TAXES AND EQUITY IN OPERATIONS
 OF AFFILIATES 15 492
 Federal income taxes 5 100
 INCOME BEFORE EQUITY IN
 OPERATIONS OF AFFILIATES 10 392
 Equity in earnings of affiliated
 companies (net of deferred tax) 5 70
 NET INCOME $15 $462
 Net income per share attributable
 to common stock $(0.01) $0.09
 Nine Months Ended Dec. 31,
 1992 1991
 Net sales and other income $83,455 $69,919
 Cost and expenses:
 Cost of sales and operating expenses 69,536 57,190
 Selling, general and administrative 9,352 8,183
 Depreciation and amortization 1,594 1,376
 Interest expense 1,105 1,343
 $81,587 $68,092
 INCOME BEFORE FEDERAL INCOME
 TAXES AND EQUITY IN OPERATIONS
 OF AFFILIATES 1,868 1,827
 Federal income taxes 635 400
 INCOME BEFORE EQUITY IN
 OPERATIONS OF AFFILIATES 1,233 1,427
 Equity in earnings of affiliated
 companies (net of deferred tax) 294 309
 NET INCOME $1,527 $1,736
 Net income per share attributable
 to common stock $0.31 $0.36
 -0- 2/17/93
 /CONTACT: Max Coon, president, or Vince Shunsky, vice president- Finance, Maxco, Inc., 517-321-3130; or Dixie Watterson, 708-564-5610, or Earle Brown, 813-796-1452, both of The Investor Relations Company, for Maxco, Inc./
 (MAXC)


CO: Maxco, Inc. ST: Michigan IN: SU: ERN

JG -- DE012 -- 7347 02/17/93 12:42 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 17, 1993
Words:736
Previous Article:FROM THE MEDICAL SETTING TO THE WAR ZONE, NEW DERMAFLEX 'LIQUID BANDAGE' BRINGS RELIEF
Next Article:HOWELL INDUSTRIES ANNOUNCES RESULTS
Topics:


Related Articles
MAXCO, INC. FILES REGISTRATION STATEMENT
MAXCO, INC. THIRD QUARTER NET UP SHARPLY
MAXCO, INC. THIRD QUARTER NET UP SHARPLY
MAXCO, INC. REPORTS STRONG GAINS FOR THE YEAR
MAXCO INCREASES EQUITY POSITION IN MEDAR THROUGH DEBT EXCHANGE
MAXCO, INC. EARNINGS TRIPLE IN FIRST QUARTER
MAXCO, INC. REPORTS SECOND-QUARTER RESULTS
MAXCO, INC. REPORTS FISCAL 1993 YEAR END RESULTS; EXPECTS STRONG 1994
MAXCO, INC. REPORTS SECOND-QUARTER RESULTS
MAXCO SALES AND PROFITS UP IN THIRD QUARTER

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters