MEI DIVERSIFIED INC. REPORTS RESULTS
MEI DIVERSIFIED INC. REPORTS RESULTS MINNEAPOLIS, Nov. 11 /PRNewswire/ -- MEI Diversified Inc.
(NYSE: MEI), reported a third quarter 1991 loss of $3,937,000 or $0.21 per share compared with a 1990 third quarter loss of $1,549,000 or $0.08 per share. Revenues for the 1991 quarter were $107,959,000 compared to $60,122,000 in the 1990 quarter. The nine-month 1991 period has a net loss of $9,960,000 or $0.53 a share compared to a net loss of $8,369,000 or $.44 a share for the comparable 1990 period. The 1990 nine-month period reflects a $1,086,000 gain relative to the June 1990 sale of the Candy and Snack Group. Revenues for the nine months were $330,711,000 in 1991 and $146,987,000 in 1990. The 1991 revenues reflect the August 1990 acquisition of the professional beauty salon and medical products businesses whereas 1990 revenues reflect one month of the professional beauty salon revenues and three months of medical products revenues together with five months of sales for the Candy and Snack Group sold in June 1990. Both years include Nut and Related Snack Group revenues.
Loss from operations was $658,000 for third quarter 1991 and $2,241,000 for the year-to-date period compared to $312,000 of operating income for third quarter 1990 and a $7,433,000 operating loss for the 1990 nine-month period much of which was incurred because of the delayed sale of the Candy and Snack Group. The loss from operations for the 1991 quarter and nine-month period reflects the continued losses from the Nut and Related Snack Group. However, Donald E. Benson, MEI Diversified Inc. president, stated, "With the sale of Azar Nut Company, effective Sept. 30, 1991, and its related losses behind us, we look forward to the fourth quarter 1991 and beyond with optimism for improved earnings from all three of our operating segments. We are encouraged by the results of recent operational meetings with divisional executives of MEI-Regis Salon Corp. and that, despite soft revenue in the beauty salon sector, prospects for improved operating earnings are enhanced by the continued consolidation of operations and consolidation of management of the three beauty salon entities and promotional activity designed to increase revenue scheduled for fourth quarter 1991 and into calendar year 1992." Benson also said, "The third quarter 1991 operating results while disappointing, due largely to the losses of the sold business, do reflect positive contributions from both the beauty salon segment and the medical products segment." The litigation against the former shareholders of The Glemby Company which was filed in United States District Court for the District of Minnesota in which MEI is seeking a substantial monetary recovery is still pending. Benson also said, "Through Nov. 4, 1991, the company has purchased 552,400 common shares at an aggregate cost of $2,601,000 representing approximately 2.9 percent of the shares outstanding when the stock purchase program was initiated in fourth quarter 1990." MEI DIVERSIFIED INC. AND SUBSIDIARIES STATEMENT OF CONSOLIDATED OPERATIONS (Unaudited, in thousands) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 1991 1990 1991 1990 Revenues $107,959 $60,122 $330,711 $146,987 Costs and expenses: Cost of sales 93,720 50,665 289,579 117,089 Operating expenses 13,182 7,445 37,820 33,009 Corporate general and administrative expenses 812 1,139 2,997 2,958 Amortization of intangible assets 903 561 2,556 1,364 Total costs and expenses 108,617 59,810 332,952 154,420 Operating income (loss) (658) 312 (2,241) (7,433) Interest expense (3,525) (3,214) (10,063) (9,539) Investment income 577 1,954 2,461 7,958 Realized and unrealized gains (losses) on marketable securities -- (667) 195 (332) Gain on sale of candy and snack group -- -- -- 1,086 Other income (expense), net (331) 66 (312) (109) Net loss (3,937) (1,549) (9,960) (8,369) Per common share (a) $(0.21) $(0.08) $(0.53) $(0.44) (a) Based on weighted average common shares outstanding of 18,730,409 and 19,238,388 for the quarter and 18,765,712 and 19,235,751 for the nine-month period in 1991 and 1990, respectively. -0- 11/11/91 /CONTACT: James A. Cesario, vice-president-controller of MEI Diversified, Inc., 612-339-8853/ (MEI) CO: MEI Diversified, Inc. ST: Minnesota IN: FOD SU: ERN AL-JS -- MN005 -- 2967 11/11/91 10:48 EST
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|Date:||Nov 11, 1991|
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