Printer Friendly

MLX CORP. ANNOUNCES 2ND QUARTER PROFITS AND REDUCED DEBT LEVEL

 NORCROSS, Ga., Aug. 9 /PRNewswire/ -- MLX Corp. today announced its financial results for the quarter and six months ended June 30.
 Sales for the quarter were $14.1 million which resulted in operating earnings of $1.5 million and net earnings of $4.2 million. Included in net earnings is the effect of an extraordinary gain from the early retirement of debt of $3.6 million. These results compare to 1992 second quarter sales of $13.9 million, operating earnings of $1.6 million and net earnings of $349,000.
 For the six month period ended June 30, sales totaled $28.6 million, operating earnings were $3.0 million and net earnings were $4.6 million. This compares to the comparable 1992 period when sales were $26.3 million, operating earnings were $2.5 million and net earnings were $313,000.
 Earnings per share applicable to common stock amounted to $1.50 per common share for the quarter ended June 30 and $1.58 per common share for the six months then ended. For the comparable periods in 1992, earnings per common share amounted to $0.14 and $0.12, respectively. The earnings per share data for both 1992 and 1993 have been adjusted for the one-for-10 reverse stock split implemented June 25, 1993.
 The extraordinary gain from early retirement of debt was the result of the exchange in April 1993 of newly issued shares of Series A Preferred Stock and Variable Rate Notes due in 2002 for outstanding Zero Coupon Bonds. This exchange represents the completion of the Zero Coupon Bond exchange program which had resulted in a similar extraordinary gain reported in the year ended Dec. 31, 1992. This gain, coupled with the positive operating performance of the company, has increased the company's consolidated shareholders' equity to $6.2 million at June 30.
 The sales increase of $200,000 for the quarter and $2.3 million for the six months ended June 30 resulted from an increase in revenues in both original equipment and after-market products, although this was offset partially by a sluggish demand in aircraft components. This decline in aircraft component demand also served to reduce the gross margin performance in the second quarter.
 In commenting on the company's operations, Brian R. Esher, chairman and chief executive officer of MLX, stated: "We are pleased to report the continued favorable financial performance of MLX and its S.K. Wellman subsidiary. However, we are experiencing a slowing of orders due to the sluggish economy and in aircraft components due to problems in the airline
industry. We continue to reinvest earnings into our manufacturing, research and development capabilities as well as to pay down our debt levels. In fact, our long-term debt of $17.3 million at June 30 is at its lowest level since the company began active operations in 1986."
 In addition, Esher stated: "We are also pleased to be able to report the completion of the reduction and exchange of certain debt for Series A Preferred Stock and other debt instruments with more favorable terms. This has resulted in a quarter ending shareholders' equity level of $6.2 million and should enable us to regain our NASDAQ listing in the near term."
 MLX Corp., through its S.K. Wellman subsidiary, is a leading global manufacturer of high energy friction products and components used in aircraft brakes, truck and equipment clutches, brakes and transmissions. The S.K. Wellman subsidiary serves equipment manufacturers around the world from principal operating facilities located in LaVergne, Tenn.; Brook Park and Solon, Ohio; Concord, Ontario, and Orzinuovi, Italy.
 MLX CORP. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations (Unaudited)
 (In thousands, except per share data)
 Qtr. ended 6 mos. ended
 Results of operations: 6/30/93 6/30/92 6/30/93 6/30/92
 Net sales $ 14,143 $ 13,923 $ 28,571 $ 26,308
 Operating earnings 1,452 1,557 2,986 2,515
 Interest expense (462) (640) (1,198) (1,368)
 Other expense (22) (102) (71) (214)
 Earnings before income taxes,
 minority interests and
 extraordinary item 968 815 1,717 933
 Federal taxes due and payable (20) --- (20) ---
 Charge in lieu of federal
 income taxes (191) (236) (441) (300)
 Provision for foreign, state
 and local income taxes (163) (124) (287) (182)
 Minority interests --- (106) --- (138)
 Earnings before extraordinary
 item 594 349 969 313
 Extraordinary gain on early
 extinguishment of debt (net
 of charge in lieu of federal
 income taxes of $1,869) 3,627 --- 3,627 ---
 Net earnings $ 4,221 $ 349 $ 4,596 $ 313
 Earnings applicable to
 common stock $ 3,982 $ 349 $ 4,177 $ 313
 Earnings per share:
 Earnings before extraordinary
 item $0.13 $0.14 $0.21 $0.12
 Extraordinary gain 1.37 --- 1.37 ---
 Earnings applicable to
 common stock $1.50 $0.14 $1.68 $0.12
 Avg. outstanding common
 shares 2,646 2,541 2,636 2,541
 SUPPLEMENTAL INFORMATION
 Federal income taxes are not accruable or payable because earnings that otherwise would be taxable are offset by pre- reorganization tax loss carryforwards. Accordingly, the following information is provided:
 Net earnings applicable to
 common stock $ 3,982 $ 349 $ 4,177 $ 313
 Charge in lieu of federal
 income taxes which are not
 accruable or payable 2,060 236 2,310 300
 Total earnings $ 6,042 $ 585 $ 6,487 $ 613
 Total earnings per common
 share $2.28 $0.23 $2.46 $0.24
 Financial Condition: June 30, 1993 June 30, 1992
 Current assets $ 18,292 $ 19,718
 Property, plant & equipment, net 12,162 13,162
 Intangible assets, net 3,163 3,048
 Other assets 553 83
 Total assets $ 34,170 $ 36,009
 Current liabilities $ 8,525 $ 13,202
 Long-term debt 17,251 32,454
 Other long-term liabilities 2,219 1,840
 Minority interests --- 2,179
 Shareholders' equity 6,175 (13,666)
 Total liabilities, minority interests
 & shareholders' equity $ 34,170 $ 36,009
 -0- 8/9/93
 /CONTACT: Thomas C. Waggoner, vice president and chief financial officer of MLX Corp., 404-798-0677/


CO: MLX Corporation ST: Georgia IN: SU: ERN

RA-BN -- AT014 -- 0865 08/09/93 16:01 EDT
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:Aug 9, 1993
Words:1006
Previous Article:JERRY J. SCHWEINER APPOINTED PRESIDENT OF SNAPPER POWER EQUIPMENT
Next Article:AVONDALE INDUSTRIES REPORTS SECOND QUARTER INCOME
Topics:

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