OAK INDUSTRIES REPORTS THIRD-QUARTER RESULTS;
COMPANY'S TURNAROUND CONTINUES
WALTHAM, Mass., Nov. 13 /PRNewswire/ -- Oak Industries Inc. (NYSE: OAK) today reported net income of $4.3 million, or 5 cents per share, for the third quarter ended Sept. 30, 1991, compared with net income of $7.9 million, or 10 cents per share, for the same period in 1990. This year's third-quarter net income includes a non-recurring gain of $3.5 million, resulting from the favorable resolution of an income tax issue for which a reserve had been previously established, and a non-recurring charge of $0.2 million for litigation costs. Last year's third-quarter net income included income from discontinued operations of $7.3 million. Third-quarter 1991 sales were $29.6 million, compared with $33.1 million for the third quarter of 1990.
For the nine months ended Sept. 30, 1991, Oak reported net income of $3.3 million, or 4 cents per share. This includes non-recurring income of $0.7 million and income from discontinued operations of $0.3 million. Last year's comparable nine-month net income was $10.2 million or 12 cents per share, including non-recurring income of $1.1 million and income from discontinued operations of $8.0 million. Sales for the first nine months of 1991 were $92.9 million, compared with $108.9 million for the same period in 1990.
"We are generally pleased with Oak's progress in a tough economic environment," said William S. Antle III, president and chief executive officer. "Although sales for this quarter were $3.5 million less than year-ago levels, $3.4 million of that decline is related to product lines that were discontinued in late 1990. Additional sales from market-share gains and the acquisition of Standard Grigsby Inc. earlier this year were offset by lower volume in other areas resulting from the slow economic environment.
"On a quarter-to-quarter basis," said Antle, "operating income is benefitting from aggressive control of expenses and prudent reduction of costs. Despite the low sales volumes, operating income this quarter was at its highest level in 10 years. Furthermore, this is the 7th consecutive quarter of improved operating profit over its comparable quarter in the previous year. When the recession abates, Oak should be in a good position to maximize profits."
Antle continued, "Our balance sheet is very strong, and improved even further during the third quarter. Operations generated cash of $4.1 million, due in part to inventory reductions of $2.6 million during this three-month period. As of Sept. 30, 1991, we had $34.4 million in cash, our debt-to-equity ratio decreased from 21 to 14 percent, and our current ratio increased to 3.9 from 3.2. We now are better positioned than ever to make an acqusition, which is our first priority for the coming months."
Oak Industries, Inc., headquartered in Waltham, Mass., is a 59-year- old manufacturer of components and controls. The company is pursuing a strategy for growth in the appliance, electronics and electrical industries through new-product introductions, ongoing productivity enhancements and strategic acquisitions.
OAK INDUSTRIES INC.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
For the three months For the nine months
ended Sept. 30 ended Sept. 30
1991 1990 1991 1990
Net sales $29,552 $33,089 $92,904 $108,919
Costs and expenses 28,515 32,521 90,578 107,823
Income from continuing
non-recurring items 1,037 568 2,326 1,096
Non-recurring income 3,300 0 660 1,125
Income from continuing
operations 4,337 568 2,986 2,221
Income from discontinued
operations 0 7,282 305 7,980
Net income $4,337 $7,850 $3,291 $10,201
Income per common
(Primary & fully diluted):
Continuing operations 5 cents 1 cent 4 cents 3 cents
Discontinued operations 0 9 cents 0 9 cents
Net income per common share 5 cents 10 cents 4 cents 12 cents
NOTE (a)-Primary and fully diluted per share amounts are based on the weighted average number of shares of common stock outstanding of 82,526,762 and 82,525,165 during the quarters ended Sept. 30, 1991, and 1990, respectively, and 82,527,411 and 82,524,221 for the nine months ended Sept. 30, 1991 and 1990, respectively.
/CONTACT: William S. Antle, III, chief executive officer, or William C. Weaver, chief financial officer, both of Oak Industries, Inc., 617-890-0400/
(OAK) CO: Oak Industries, Inc. ST: Massachusetts IN: CPR SU: ERN DD-SD -- NE001 -- 3790 11/13/91 09:16 EST