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PACIFIC INTERNATIONAL SERVICES CORP. BUCKS THE TREND; CHARTS SALES, EARNINGS GROWTH

 PACIFIC INTERNATIONAL SERVICES CORP. BUCKS THE TREND;
 CHARTS SALES, EARNINGS GROWTH
 HONOLULU, Aug. 3 /PRNewswire/ -- Bucking the current softness in both tourism and retail auto sales, Pacific International Services Corp. (NASDAQ: PISC), the Honolulu-based licensee for Dollar Rent-A- Car and owner of two car dealerships, announced earnings for the quarter ended June 30 of $51,232 on revenues of $19,126,522. This compares with second quarter profits last year of $259,976 on revenues of $17,531,699.
 The positive results of the second quarter, a traditionally slow period for both the company's tourism-driven rent-a-car agency and for its retail auto dealerships, indicate solid gains the company has made in cutting costs and increasing market share.
 For the 1992 first half, net income was $431,913 and revenues totaled $38,110,822. This was up significantly from comparable 1991 results, when the Honolulu retail and service company reported a $1,669,533 net loss on revenues of $32,771,461.
 Commenting on the financial results, Alan M. Robin, Pacific International's president and chief executive officer, said the year- to-date figures "are highly satisfying, given the currently weak conditions in the Hawaii tourism market and the general softness this has caused in the state's economy." Robin further stated that, "The company has been profitable in four out of the last five quarters and is looking forward to a very profitable summer quarter."
 The company's Dollar Rent-A-Car franchise, which operates in Hawaii, now has more than 20 percent of the entire Hawaii car rental market, making it the second-largest agency in the state. This has been accomplished, Robin said, despite a reduction in fleet size to adjust to the slower tourism market, concurrent cuts in overhead, and absorption of a $3.5 million increase in fleet costs because of the manufacturers' price increases to rent-a-car companies.
 Pacific International's retail car sales operations, which during the last year have consisted only of the Honolulu South Seas Jeep- Eagle dealership, have strengthened despite a severe recession-caused downturn in new car sales in Hawaii and across the country.
 The company's retail operations will expand with the addition of a Chrysler-Plymouth-Jeep-Eagle dealership in the burgeoning community of Waipahu. This operation will open in August. The company also finalized a long-term lease on a dealership site on the windward side of Oahu last week. It was formerly a Mazda-Chevrolet franchise.
 Robin said that seizing opportunities with limited risk in a weak market is a key part of Pacific International's growth strategy; it is enabled by moves made in the past year to strengthen management at all levels and to significantly improve the company's balance sheet through its successful exchange offer which retired $12 million of debt.
 Day-to-day operations are now handled entirely by a management team made up of both veteran employees and new additions. Leading the operational team at Dollar Rent-A-Car is Sirio Maggiacomo, recently promoted to executive vice president and chief operating officer of the division. Sales and marketing for Dollar Rent-A-Car is directed by Rob Solomon. Larry Trachtenberg is vice president of finance and chief financial officer for PISC.
 The retail auto dealership team is guided by General Manager Steve Robin, and new expansions are directed by Vice President of Development Jim Freund, a well-known executive in Hawaii's automotive industry.
 The restructuring leaves Alan Robin free to concentrate on expanding overall operations. "We now have an excellent management team in place, and the solid performance this year, despite the trying economic conditions, is a reflection of their skill," said Alan Robin.
 "We will continue to use our financial and management strength to overcome today's weak market conditions by consolidating and continuing to expand our share of the rental car and retail car markets in Hawaii, so that we will be well positioned to make the most of the state's economic recovery," he said.
 Alan Robin said he believes Hawaii's slowdown in tourism growth is temporary and reflects weakened economic conditions worldwide. Even so, Hawaii has demonstrated its strength as a visitor attraction by holding its own far better than competing destinations in the face of the slump. When economic conditions improve, so will tourism and with it Hawaii's economy, which, Alan Robin noted, still leads the nation in economic growth and employment figures.
 "We have always felt that Hawaii is an excellent place to do business," he declared. "It gets the best of business conditions in both East and West, and avoids most of the problems. The state's performance in recent years has demonstrated this strength, but it can do better, and I believe it will."
 How does Alan Robin envision maintaining the company's market leadership in the future? "In rent-a-car, the challenge is to do effective value-added destination marketing rather than relying on deals and price. In retail, the key has always been 'location,' and we have obtained several of the prime locations in Hawaii. We are focused on adding more innovative personalized services and team- selling approaches and creating great marketing partnerships."
 In a separate development, Alan Robin disclosed that he and Maggiacomo had recently purchased more than 300,000 shares of PISC common stock. This purchase raises Alan Robin's ownership interest to more than 1,000,000 shares of the company's common stock.
 PACIFIC INTERNATIONAL SERVICES CORP.
 Condensed Consolidated Statement of Operations
 (Unaudited)
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues $19,126,522 $17,531,699 $38,110,822 $32,771,461
 Operating
 expenses 18,857,465 16,883,061 37,269,515 33,661,872
 Income (loss)
 from operations 269,057 648,638 841,307 (890,411)
 Other, net (217,825) (388,662) (409,394) (779,122)
 Income (loss)
 before income
 taxes and
 extraordinary
 item 51,232 259,976 431,913 (1,669,533)
 Income tax
 expense 34,000 116,900 178,500 ---
 Income (loss)
 before
 extraordinary
 item 17,232 143,076 253,413 (1,669,533)
 Extraordinary
 item -- credit
 from utilization
 of net operating
 loss carryforward 34,000 116,900 178,500 ---
 Net income (loss) $51,232 $259,976 $431,913 ($1,669,533)
 Weighted average
 common shares
 outstanding 9,009,300 6,093,300 9,009,300 6,093,300
 Earnings (loss)
 per common share:
 Income (loss)
 before
 extraordinary --- $0.02 $0.03 ($0.27)
 Extraordinary
 item 0.01 0.02 0.02 ---
 Net income (loss) $0.01 $0.04 $0.05 ($0.27)
 -0- 8/3/92
 /CONTACT: Sheila Donnelly or Sweetie Aiwohi of Sheila Donnelly & Associates, 808-949-4131, for Pacific International Services/
 (PISC) CO: Pacific International Services Corp. ST: Hawaii IN: REA AUT SU: ERN


JL-EH -- LA011 -- 5965 08/03/92 08:02 EDT
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Date:Aug 3, 1992
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