Printer Friendly

PCC GROUP INC. ANNOUNCES FOURTH QUARTER AND FISCAL 1993 RESULTS

 BREA, Calif., Dec. 30 /PRNewswire/ -- PCC Group Inc. (NASDAQ: PCCG) reported its results today for the fourth quarter and fiscal year ended Sept. 30, 1993. Revenue for fiscal 1993 was $75.1 million, an 18.2 percent decrease from the $91.8 reported for fiscal 1992. Revenue for the fourth quarter of fiscal 1993 was $13 million, a 42.6 percent decrease from the $22.7 million reported for the comparable fiscal 1992 quarter. The decrease in fourth quarter revenues was due to the combined effects of a $2.2 million armed robbery that took place early in the year, fierce pricing competition and corporate downsizing.
 The company reported net income of $137,000 ($0.01 per share) for fiscal 1993, compared to net income of $1.4 million ($0.53 per share) for fiscal 1992. For the fourth quarter of fiscal 1993, the company reported a net loss of $256,000 ($0.13 per share) as compared to net income of $162,000 ($0.05 per share) for the same quarter last year. Net income reduction for the fourth quarter was the result of lower sales volume, downward pressures on gross margins, fixed payroll and overhead costs, which were ultimately eliminated by the closure of certain branches, and high interest costs due to unplanned borrowing needs. A brief explanation of fiscal 1993 results appears below.
 "This past year has been a challenging one for PCCG. We had to make many difficult decisions. These decisions were necessary in view of the challenges placed on the company by the unpaid robbery insurance claim, cutthroat pricing and corporate downsizing," said Jack Wen, chairman, president and chief executive officer. "Specifically, the following challenges required prompt action which ultimately led to the re- engineering of the company: (a) PCCG was the victim of a robbery in February 1993. The company estimates that it lost as much as $20 million of net sales and $1.7 million of gross profit during the last eight months of fiscal 1993 due to its inability to promptly replace lost inventory; and (b) The fierce price cutting prevailing within the industry, adversely impacted the company's pricing and therefore its gross margins. As a result of the above mentioned situations, the company announced in June 1993 its plans to gradually downsize distribution activities and to pursue higher margin business opportunities. Downsizing included the closure of three regional branches located in Des Plaines, Ill., Fremont, Calif. and Redmond, Wash. It also included the sale of two branches located in Chantilly, Va. and Piscataway, N.J. The company's remaining two regional distribution centers are located in Brea, Calif. and Richardson, Texas. Downsizing eliminated approximately 56 full-time employment positions," said Wen.
 New Business Ventures
 Wen continued, "Under the Media Resources label, we recently released our first interactive multimedia storybook on CD-ROM for both Macintosh and MPC/Windows platforms. The `TJ Finds a Friend' title is a compelling way for children to learn important social and personal safety lessons.
 "PCCG is developing with a local partner a scrap tire recycling plant in the Province of Lio Lin, Peoples Republic of China. The plant will recycle scrap tires into usable by-products such as fuel, carbon black, steel and synthetic gas. PCCG has also arranged to acquire the related technology for an innovative method that converts, through a vacuum distillation process, tire waste into those by-products. Furthermore, the company is negotiating to acquire the exclusive manufacturing, distribution and marketing rights in Asia of certain coating products. The company intends to pursue other business opportunities in Asia, with an emphasis on the burgeoning market developing in the PRC."
 PCCG is principally engaged in the wholesale distribution of microcomputer products. The company also manufactures and markets PC Craft brand personal computers as well as multimedia hardware and software products under the Media Resources and MediaKit labels. PCCG is also pursuing investment opportunities in the environmental resources and coating products industries.
 PCC GROUP INC.
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 Three Months Ended 12 Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales $13,053 $22,733 $75,087 $91,769
 Cost of sales 11,947 20,215 68,747 83,243
 Gross profit 1,106 2,518 6,340 8,526
 Selling, general
 & administrative 1,303 1,640 5,865 6,287
 Income (loss) from
 operations (197) 878 475 2,239
 Other income (expenses) (168) (312) (332) (315)
 Income (loss) before
 income taxes (365) 566 143 1,924
 Income taxes (benefit) (109) 404 6 517
 Net income ($256) $162 $137 $1,407
 Net income per share
 (after deducting
 preferred stock
 dividends ($0.13) $0.05 $0.01 $0.53
 Average weighted number
 of common shares 2,208,000 2,167,375 2,208,000 2,187,375
 PCC GROUP INC.
 Balance Sheet Highlights
 (In thousands)
 As of Sept. 30,
 1993 1992
 Assets
 Cash and cash equivalents $1,665 $1,759
 Current assets 12,930 13,426
 Total assets 14,306 14,532
 Liabilities and
 Shareholders' Equity
 Current liabilities 11,657 12,119
 Shareholders equity 2,649 2,413
 Total liabilities and
 shareholders equity $14,306 $14,532
 -0- 12/30/93
 /CONTACT: J. Lauro Valdovinos, VP-Finance and CFO, 714-256-5000/
 (PCCG)


CO: PCC Group Inc. ST: California IN: CPR SU: ERN

JM-EH -- LA026 -- 8214 12/30/93 21:53 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 30, 1993
Words:888
Previous Article:CROSS COUNTRY SKI CONDITIONS ANNOUNCED
Next Article:KILLEARN PROPERTIES SELLS DEVELOPED LOTS IN TALLAHASSE, FLA.
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters