NEW KEY TRONIC MANAGEMENT REPORTS FISCAL YEAR RESULTS
NEW KEY TRONIC MANAGEMENT REPORTS FISCAL YEAR RESULTS SPOKANE, Wash., Aug. 17 /PRNewswire/ -- Key Tronic Corp.
(NASDAQ: KTCC), Spokane-based manufacturer of computer keyboards and other input devices, today reported a series of restructuring decisions that provided for non-recurring charges of $6.2 million in the fourth quarter of the fiscal year ended July 4, 1992. Excluding the special charges, the fourth quarter was the company's third consecutive quarter of positive operating income, amounting to $802,000. The quarter's net loss of $5.2 million, or 67 cents per share, was an improvement over the net loss of $7.6 million, or 98 cents per share, in the same quarter of 1991. Fourth-quarter sales were up from $28.7 million in 1991 to $31.9 million in 1992.
For the full fiscal year, Key Tronic reported a net loss of $7.5 million, or 96 cents per share, on net sales of $124 million, compared to a loss of $7.7 million, or $1.00 per share, on sales of $141 million for the previous year. The fourth quarter's $6.2-million charges consisted of $2.8 million for manufacturing restructuring, $1.9 million for a discontinued assembly operation in Taiwan, $800,000 for a discontinued business line and $700,000 as a non-operating expense provision. The last quarter of 1991 contained a non-recurring $4.7-million charge for restructuring the company's discontinuing notebook computer operations and the write-down of an investment, plus a gain of $597,000 on the sale of an idle manufacturing facility. Announcement of fiscal 1992 results was made after the company's first five months under the management group headed by Chief Executive Officer Stanley Hiller. Hiller said the 1992 restructuring provisions were mainly related to management's program of reducing the level of vertical integration in manufacturing, and improving production cost efficiencies. "The strictly conservative accounting practices that we are following require that such costs must be provided for when restructuring decisions are made," he said. "We are pleased that sales and operating incomes, excluding the one-time charges, are both improved over the comparable quarter for the first time this year. It is also significant that we are starting fiscal 1993 with a strong balance sheet and minimal long-term debt." Last week, Key Tronic announced the election of three new outside directors, as part of a plan to strengthen the company's board with active members who have relevant experience. The recent additions are Michael R. Hallman, former president and chief operating officer of Microsoft Corp.; Clarence W. Spangle, former chairman of Memorex and former president of Honeywell Information Systems; and William E. Terry, executive vice president and director of Hewlett-Packard Co. They joined four other new directors elected in March with the change in management. In addition to Hiller, they are Royce G. Pearson, a Hiller associate in other corporate turnarounds and now Key Tronic's president and chief operating officer; Kenneth F. Holtby, former senior vice president of The Boeing Co.; and Dale F. Pilz, former chief executive officer and president of GTE Sprint Communications. Three original Key Tronic directors continue on the board: Chairman Wendell J. Satre; Lewis G. Zirkle, company founder and former chief executive officer; and Dr. Yacov A. Shamash, dean of the College of Engineering and Applied Sciences, State University of New York at Stoneybrook. KEY TRONIC CORP. Financial Highlights (In thousands, except per-share amounts) Fourth Quarter Ended Fiscal Year Ended 7/4/92 6/30/91 7/4/92 6/30/92 Net sales $ 31,886 $ 28,736 $123,983 $140,979 Gross Profit 6,466 2,115 22,457 24,074 Operating income(loss) (excluding restructure provision) 802 (3,665) (346) (3,305) Net income (loss) (5,199) (7,590) (7,461) (7,703) Per share (loss) $ (0.67) $ (0.98) $ (0.96) $ (1.00) Weighted average shares outstanding 7,751 7,736 7,740 7,736 -0- 8/17/92 /CONTACT: Steven Benner of Key Tronic, 509-928-8000/ (KTCC) CO: Key Tronic Corp. ST: Washington IN: CPR SU: ERN
SC-JH -- SE006 -- 0715 08/17/92 18:14 EDT
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|Date:||Aug 17, 1992|
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