Printer Friendly

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, 1993.
 Sales rose 10 percent to $32,897,000 from $29,780,000 for the quarter. Net income was $810,000, or 17 cents a share, compared to $804,000, or 17 cents a share for the same quarter last year.
 In the prior year's second quarter, net income was boosted by a gain of $250,000 on the sale of certain assets. There were no comparable gains in this year's second quarter. Also impacting net income was the equity in the earnings of affiliated companies, primarily from Maxco's 2.2 million shares of Medar, Inc. (NASDAQ-NMS: MDXR), which are reported net of deferred tax. This amounted to $220,000 or $166,000 for the two quarters, respectively.
 For the six months, sales rose to $65,581,000 from $58,513,000. Equity in earnings of affiliated companies (net of deferred tax) was $400,000, up from $289,000.
 Net income was $1,634,000, or 34 cents a share, up from $1,512,000, or 32 cents a share.
 There were approximately 4.4 million weighted average shares outstanding in all reporting periods.
 "Finishmaster continues to post the strongest sales gains of the Maxco businesses," said Max A. Coon, chairman and president. "Revenues for Finishmaster were up $3.7 million, or 22 percent, in the second quarter. These gains are primarily the result of our expansion into the Indiana market.
 "Sales of construction supplies were lower in this year's second quarter. General construction activity in our principal markets was lower resulting in fewer shipments of fabricated re-steel," Coon said.
 "Sales at Wright Plastics were up 18 percent over last year's second quarter. Orders are continuing to grow for this supplier of automotive components. The facility expansion currently under way will permit substantial revenue growth in the future.
 "As we are now midway through the third quarter, and entering our typically slower period, we are confident of stronger results for our current fiscal year, ending in March 1994," Coon said.
 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,
 1993 1992
 Net sales $32,897 $29,780
 Cost and expenses:
 Cost of sales and operating
 expenses 27,556 24,941
 Selling, general and
 administrative 3,476 3,215
 Depreciation and amortization 580 543
 31,612 28,699
 Operating Earnings 1,285 1,081
 Interest expense (net) (395) (363)
 Gain on sale of investments and
 other assets --- 250
 Income before federal income taxes and
 equity in operations of affiliates 890 968
 Federal income taxes 300 330
 Income before equity in operations
 of affiliates 590 638
 Equity in earnings of affiliated
 companies (net of deferred tax) 220 166
 Net income $810 $804
 Net income per share $.17 $.17
 Six Months Ended Sept. 30,
 1993 1992
 Net sales $65,581 $58,513
 Cost and expenses:
 Cost of sales and operating
 expenses 54,966 48,825
 Selling, general and
 administrative 6,815 6,303
 Depreciation and amortization 1,166 1,076
 62,947 56,204
 Operating Earnings 2,634 2,309
 Interest expense (net) (765) (706)
 Gain on sale of investments and
 other assets --- 250
 Income before federal income taxes
 and equity in operations of
 affiliates 1,869 1,853
 Federal income taxes 635 630
 Income before equity in operations
 of affiliates 1,234 1,223
 Equity in earnings of affiliated
 companies (net of deferred tax) 400 289
 Net income $1,634 $1,512
 Net income per share $.34 $.32
 -0- 11/2/93
 /CONTACT: Max Coon, president, or Vince Shunsky, vice president- finance of Maxco, Inc., 517-321-3130; or Dixie Watterson of The Investor Relations Company, 708-564-5610, for Maxco, Inc./
 (MAXC)


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

JG-KE -- DE021 -- 9695 11/02/93 13:43 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:Nov 2, 1993
Words:685
Previous Article:BUCKEYE COMMUNICATIONS, INC. AND COUNTRY MUSIC FOUNDATION, INC. TO COLLABORATE IN THE TELEVISION DIRECT RESPONSE MARKETING OF CMF PRODUCTS
Next Article:WOLOHAN LUMBER CO. DECLARES QUARTERLY DIVIDEND
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters