MERCOM REPORTS LARGE LOSS
MERCOM REPORTS LARGE LOSS WILKES-BARRE, Pa., Jan. 17 /PRNewswire/ -- Mercom, Inc.
(NASDAQ: MEROC) today reported that preliminary, unaudited 1991 operating results reflect a net loss of approximately $7,647,000 or $3.19 per share.
Included in this preliminary estimate are unusual and non-recurring charges of approximately $5,247,000 (after tax) or $2.19 per share. Preliminary figures also indicate that Mercom's liabilities exceed the book value of its assets at Dec. 31, 1991, by approximately $11,021,000. Charles E. Parente, Mercom's newly appointed chief executive officer, also announced that Mercom faces significant challenges in the months ahead. These include the need to secure adequate long-term financing to permit the company to continue to serve its customers with the quality program offerings and services that are demanded and, at the same time, satisfy the company's suppliers and lenders. Parente added that through C-TEC Corporation (NASDAQ: CTEX), he has the organizational, technical and human resources available to support Mercom. In addition, Parente stated he has the commitment of C-TEC's board of directors to use these resources on an equitable basis to assist Mercom. He said that the issue now is to turn around Mercom's current financial position and become a viable cable operation. Finally, it was reported that Mercom has been in continued violation of certain NASDAQ requirements that threaten the continued listing of Mercom's stock. Prior management had secured short-term waivers of these violations. Parente added that management will continue to seek a solution to the NASDAQ problem but that he could give no assurance that continuing waivers would be granted. /delval/ -0- 1/17/92 /CONTACT: Patricia Amendola, 717-825-1135, or Donald Cawley, 717-821-5223, both of Mercom/ (MERO CTEX) CO: Mercom, Inc.; C-TEC Corporation ST: Pennsylvania IN: SU: ERP
CC-MK -- PH016 -- 0966 01/17/92 12:00 EST
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|Date:||Jan 17, 1992|
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