OAK INDUSTRIES ANNOUNCES THIRD-QUARTER RESULTS
OAK INDUSTRIES ANNOUNCES THIRD-QUARTER RESULTS WALTHAM, Mass., Oct. 28 /PRNewswire/ -- Oak Industries Inc.
(NYSE: OAK) today reported third-quarter operating income of $1.2 million, a 14 percent increase over 1991 levels. Net sales for the three months ended September 30, 1992, increased 12 percent to $33.2 million, from $29.6 million for the third quarter of 1991. For the quarter ended September 30, 1992, net income was $1.7 million, or $0.02 per share, compared with $4.3 million, or $0.05 per share, for the same period in 1991.
This year's third-quarter net income includes a non-recurring gain of $0.5 million from a payment received on the final purchase price of the Oak Communications Inc., operation sold in August 1990. Last year's third-quarter net income included a non-recurring gain of $3.3 million, resulting from the favorable resolution of an income tax issue. "Our performance during the past three months makes this Oak's eleventh consecutive quarter of year-over-year improved operating profits," said William S. Antle III, president and chief executive officer. "We are particularly pleased with the company's continued steady sales growth, which reflects the success of our strategy to grow market positions -- in spite of a recessive economy -- through new-product development and expansion of our customer base. "In particular," added Antle, "both Harper-Wyman, our gas-appliance controls business and Nordco, our railroad maintenance-of-way equipment line, increased their sales. Since our acquisition of H.E.S. International was only completed in September, its results had little effect on Oak's quarter." Antle continued, "While Oak's operating profits increased over 1991's levels, slightly lower margins resulted primarily from a change in our sales mix. Additionally, some of our businesses, transitioning from military to commercial markets, were affected by lower sales volumes and profit margins." Antle concluded, "Our balance sheet remains strong. As of September 30, 1992, Oak had $34 million in cash, total debt of $7.4 million and a debt-to-equity ratio of eight percent. We are well positioned to continue our plans to grow aggressively through market penetration and acquisitions." For the nine months ended September 30, 1992, Oak reported operating income of $6.1 million, up 162 percent from 1991 levels. Net sales for the first nine months of 1992 increased 16 percent to $107.4 million, from $92.9 million for the same period of 1991. Net income was $10.1 million, or $0.12 per share, a 208 percent increase over 1991's nine- month levels of $3.3 million, or $0.04 per share. This year's results include a tax benefit of $3.5 million, or $0.04 per share, reflecting the adoption by the company in the first quarter of FAS 109 - "Accounting for Income Taxes." Last year's results included net non-recurring income of $1 million. Oak Industries Inc., provides components and controls for leading manufacturers in a range of industries, including consumer appliances, electronics, medical testing equipment, military, telecommunications and transportation. The company is pursuing a strategy for growth through new-product introductions, ongoing productivity enhancements and acquisitions. A consolidated statement of operations for the company is attached. OAK INDUSTRIES INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1992 AND 1991 (Unaudited) (In thousands, except per share data) For the three months For the nine months ended September 30 ended September 30 1992 1991 1992 1991 Net sales $33,242 $29,552 $107,429 $92,904 Costs and expenses 32,056 28,515 101,333 90,578 Income from continuing operations before non-recurring items 1,186 1,037 6,096 2,326 Non-recurring income 0 3,300 0 660 Income from continuing operations 1,186 4,337 6,096 2,986 Income from discontinued operations 550 0 550 305 Effect of change in accounting principle 0 0 3,500 0 Net income $1,736 $4,337 $10,146 $3,291 Income per common share (Primary and fully diluted) Continuing operations $0.01 $0.05 $0.07 $0.04 Discontinued operations 0.01 0 0.01 0 Effect of change in accounting principle 0 0 0.04 0 Net income per common share $0.02 $0.05 $0.12 $0.04 Weighted average common shares outstanding 82,559 82,527 82,548 82,527 -0- 10/28/92 /CONTACT: William C. Weaver, chief financial officer for Oak, 617- 890-0400; or Jean M. Devine, of Sharon Merrill Associates, Inc., 617-262-1800, for Oak/ (OAK) CO: Oak Industries, Inc. ST: Massachusetts IN: SU: ERN
DH -- NE003 -- 5796 10/28/92 08:59 EST
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|Date:||Oct 28, 1992|
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