MERCOM REPORTS SECOND QUARTER RESULTS
MERCOM REPORTS SECOND QUARTER RESULTS WILKES-BARRE, Pa., July 21 /PRNewswire/ -- Mercom, Inc.
(OTC Bulletin Board: MEROC) today reported a loss before income tax benefits of $601,000 for the second quarter of 1992 as compared to a loss of $811,000 for the same period in 1991.
This improvement was due to increased subscribers, improved operating cost control, and lower interest rates. Mercom had sales of $2,917,000 and a loss from continuing operations of $601,000 for the three months ended June 30, 1992, as compared to sales of $2,732,000 and a loss from continuing operations of $586,000 for the three months ended June 30, 1991. The company recorded income tax benefits of $225,000 during the second quarter of 1991; however, similar benefits have not been recorded in 1992 due to uncertainty of realization. Earnings per average common share from continuing operations reflect a loss of $.25 for both the second quarter of 1992, and the second quarter of 1991. The company's liabilities exceed the book value of its assets by approximately $12,277,000 at June 30, 1992. During June 1992, the company was reincorporated in Delaware in accordance with the plan approved by its shareholders at the last annual meeting, to enable it to take advantage of the flexibility and predictability afforded by Delaware General Corporation Law with respect to its corporate legal affairs. The company said it believes that, as a result, it will gain flexibility in its ability to obtain and raise the capital necessary to improve the company's financial position. Mercom provides cable television services to subscribers in southern Michigan and Port St. Lucie, Fla. Since December 1991, the company has been operating under the management of C-TEC Corporation (NASDAQ: CTEX), a diversified telecommunications company headquartered in Wilkes-Barre. Mercom is traded on NASD's Electronic Over-the-Counter Bulletin Board under the symbol MEROC. MERCOM, INC. Consolidated Financial Data (Unaudited) Three months ended June 30 1992 1991 Sales $2,917,000 $2,732,000 (Benefit) for income taxes --- 225,000 Net (loss) (601,000) (586,000) Net loss per average common share outstanding $(.25) $(.25) Average common shares outstanding 2,393,530 2,393,530 Six months ended June 30 1992 1991 Sales $5,793,000 $5,410,000 (Benefit) for income taxes --- 508,000 Net (loss) (1,119,000) (1,163,000) Net loss per average common share outstanding $(.47) $(.49) Average common shares outstanding 2,393,530 2,393,530 -0- 7/21/92 /CONTACT: Ralph Hromisin (finance), 717-825-1175, or Carrie Thorpe, 717-825-1177, both of Mercom/ (MEROC CTEX) CO: Mercom, Inc.; C-TEC Corporation ST: Michigan, Florida, Pennsylvania IN: ENT SU: ERN
JS-MK -- PH037 -- 1472 07/21/92 15:45 EDT
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|Date:||Jul 21, 1992|
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