NUMEX CORP. REPORTS FISCAL 1992 RESULTS
NUMEX CORP. REPORTS FISCAL 1992 RESULTS BEVERLY HILLS, Calif., Aug. 19 /PRNewswire/ -- Numex Corp.
(OTC Bulletin Board: NUMX) today reported revenue exceeding $11,000,000 in its first full year of operation as a product development and marketing company.
Numex recorded revenue of $11,125,631 for the fiscal year ended March 31, 1992, compared with revenue of $72,163 in the year ended March 31, 1991. Net income was $184,976, or $0.06 per share, vs. a net loss of $294,093, or $0.11 per share, in the 1991 period. Net income from operations and before taxes, however, equaled $1,085,755 before an extraordinary one-time charge of $875,627, amounting to $0.25 a share, resulting from a settlement agreement. The agreement, which Numex assumed at the time it acquired the assets of Delux Distributions International (DDI), called for payments of a minimum of 9 percent and a maximum of 14 percent on all gross revenue generated by Numex, of whatever type and from whatever source, in perpetuity. Gerald A. Bagg, Numex president, said that for the fiscal year ending March 31, 1992, those payments would have exceeded $1,000,000, and in the future they could have amounted to many millions of dollars. The final settlement agreement canceled the previous agreement. "The benefits of this one-time settlement offer Numex a great opportunity for saving substantial amounts of money while we are expanding our marketing of our initial product, Therapy Plus, into major distribution channels and international markets," Bagg said. Therapy Plus, acquired from DDI under the original agreement, is a hand-held mechanical cutaneous nerve stimulator for the relief of pain. It has been marketed principally through half-hour "infomercials" aired in the top 210 U.S. television markets. Numex Business Plan Bagg said that in fiscal 1993, Numex will continue to implement a three-phase business plan that will both expand its markets and increase its sources of revenue. "First, we will continue direct marketing of Therapy Plus through infomercials in major U.S. television markets," he said. "In addition, we intend to develop traditional retail markets, initially through supplier agreements with major drugstore chains. We recently began supplying our first drugstore wholesaler, one of the largest drug distributors in the United States. "We also are developing relations with potential distributors in Japan, the Philippines and other parts of the world, who intend to launch the product in their countries," Bagg said. Selling Services "The second phase of our plan is to sell our fulfillment, media buying and commercial production services to other television direct marketers, and to product developers who would like to expand into direct marketing," Bagg said. "Numex has developed an advanced proprietary computer-based fulfillment system that ensures prompt, reliable product-delivery service. We also offer an outstanding media department that uses scientific media analysis techniques and we have a proved track record in producing high-impact, sales- generating commercials." He said that Numex has signed its first client for fulfillment and media buying services and is negotiating with another product developer to provide these services and produce the product infomercials. "The third phase of our plan is to acquire additional products to develop and market, either by acquiring rights to the products or by acquiring the companies that possess products having the potential for outstanding growth with the application of our marketing techniques," he said. He noted that cash flow from operations is expected to fund the company's future operations and growth, but that additional financing may be required for planned acquisitions. Cutting Edge Products "Numex is looking for cutting-edge products to launch, develop and carry through the complete marketing cycle to maturity, utilizing direct marketing and wholesale and retail marketing distribution channels," Bagg said. Numex Corp. is a retail product development and marketing company headquartered in Beverly Hills, with its operating divisions located in Cerritos, Calif. Its common shares are traded over the counter, under the symbol NUMX. NUMEX CORP. AND SUBSIDIARY Summary of Operations Years Ended March 31, 1991 1990 Net Sales $11,125,631 $72,163 Cost of sales and operating expenses 10,008,501 258,697 Income (loss) from operations 1,117,130 (186,534) Interest expense (31,375) (107,559) One-time nonrecurring expense (875,627)(a) --- Income (loss) before income taxes and extraordinary item 210,128 (294,093) Provision for income taxes 111,691 --- Net income (loss) before extraordinary item 98,437 (294,093) Extraordinary tax benefit 86,539 --- Net income (loss) $184,976 ($294,093) Per share of common stock: Income (loss) before extraordinary item $0.03 ($0.11) Extraordinary tax benefit 0.03 --- Net income (loss) $0.06 ($0.11) Weighted average common shares outstanding 3,345,877 2,546,503 (a) Settlement agreement expense. -0- 8/19/92 /CONTACT: Gerald A. Bagg, president of Numex, 310-865-4755; or Thomas O. Wick of Financial Relations Board, 818-783-2400, for Numex/ (NUMX) CO: Numex Corp. ST: California IN: REA SU: ERN
EH-AL -- LA013 -- 1305 08/19/92 11:16 EDT
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|Date:||Aug 19, 1992|
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