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PIONEER-STANDARD HAS RECORD PROFIT, UP 48 PERCENT IN THIRD QUARTER

 CLEVELAND, Jan. 17 /PRNewswire/ -- Pioneer-Standard Electronics, Inc. (NASDAQ: PIOS), with fiscal third quarter net income up 48 percent, today reported its seventh consecutive period of comparative quarterly sales and earnings records.
 Net income of the Cleveland-based industrial electronics distributor for the three months ended December 31 was a single-quarter record $4,887,000, up from the year earlier $3,299,000, the previous third quarter high. Earnings per share were 48 cents, up from the 33 cents of a year ago. Pioneer-Standard sales were a quarterly record $149,814,000, up 37 percent from the $109,706,000 of the fiscal 1993 third quarter.
 Nine-month sales and earnings also were records. Net income rose to $14,146,000, 53 percent above last year's $9,262,000, the previous all- time high. Nine-months earnings per share were $1.41, 45 percent above the 97 cents per share fully diluted of a year earlier. Prior year earnings per share amounts have been restated to reflect a 3-for-2 share split effective March 15, 1993. Pioneer-Standard sales for the nine months were $421,601,000, up 35 percent from the $311,933,000 last year.
 Combined sales of Pioneer-Standard and its 50-percent owned affiliate, Pioneer/Technologies Group, Inc., for the third quarter were $253,251,000, 43 percent higher than the $177,763,000 of last year's third quarter. Nine-months combined sales were a record $751,009,000, up 45 percent from the $518,183,000 of a year earlier. While sales of Pioneer-Standard and its affiliate are not consolidated for financial reporting purposes, they are combined for industry rankings. Combined sales rank third among the approximately 1,500 industrial electronics distributors in the United states.
 Pioneer said that the sales gains reflected continuing strong demand for electronic components and computer systems, particularly microprocessors, and increased market share, partially attributable to a marked strengthening of Pioneer's position in the important California market.
 The earnings gains, the company said, resulted from sales increases. New systems and processes Pioneer put in place under its FutureStart total quality initiative permitted the handling of the strong demand effectively, the company said.
 Pioneer-Standard's share of its affiliate's earnings amounted to $2,350,000 for the nine months this year, up from $2,016,000 last year. The third quarter contribution was $404,000 and compared to $658,000 last year. The third quarter decline was attributed to product mix.
 Pioneer-Standard and its 50-percent-owned affiliate serve most of the nation's major markets from 40 locations, supplying technical support and electronic components and computer products. Pioneer- Standard is International Organization for Standardization (ISO) certified and has an ISO-9002 registration for its sales department, product management operations and commercial and military warehouses.
 PIONEER-STANDARD ELECTRONICS, INC.
 (Dollars in thousands except per share amounts, unaudited)
 SALES AND EARNINGS
 THREE MONTHS
 Period ended Dec. 31 1993 1992
 Combined sales (A) $253,251 $177,763
 Net sales $149,814 $109,706
 Cost of sales 120,807 86,141
 Operating expenses 20,627 18,502
 Operating profit 8,380 5,063
 Interest expense 662 628
 Equity earnings (A) 404 658
 Income before taxes 8,122 5,093
 Taxes 3,235 1,794
 Net income $ 4,887 $ 3,299
 Earnings per share:
 Primary $.48 $.33
 Fully diluted -- --
 Dividends per share $.035 $.027
 Equity per share -- --
 Average shares outstanding:
 Primary 10,100,355 9,944,115
 Fully diluted --- ---
 Shares outstanding, end of period (B) 9,814,449 9,773,317
 NINE MONTHS
 Period ended Dec. 31 1993 1992
 Combined sales (A) $751,009 $518,183
 Net sales $421,601 $311,933
 Cost of sales 337,159 244,250
 Operating expenses 62,067 52,560
 Operating profit 22,375 15,123
 Interest expense 2,013 2,947
 Equity earnings (A) 2,350 2,016
 Income before taxes 22,712 14,192
 Taxes 8,566 4,930
 Net income $ 14,146 $ 9,262
 Earnings per share:
 Primary $1.41 $1.04
 Fully diluted -- .97
 Dividends per share $ .095 $ .08
 Equity per share $9.94 $8.24
 Average shares outstanding:
 Primary 10,056,548 8,928,148
 Fully diluted --- 9,970,363
 Shares outstanding, end of period (B) 9,814,449 9,773,317
 CONDENSED BALANCE SHEETS
 Dec. 31, 1993 and 1992
 Assets 1993 1992
 Current assets
 Cash $ 1,863 $ 131
 Receivables 76,240 61,397
 Inventory 84,437 65,331
 Other 5,282 3,286
 Total $167,822 $130,145
 Net fixed assets 23,769 22,746
 Equity investment 13,813 10,974
 Other 1,711 1,581
 Total $207,115 $165,446
 Liabilities & Equity 1993 1992
 Current liabilities
 Current debt $ 5,000 $ 3,000
 Accounts payable 54,623 47,093
 Other 16,871 11,875
 Total $ 76,494 $ 61,968
 Long-term debt 31,135 21,331
 Deferred taxes 1,977 1,578
 Equity 97,509 80,569
 Total $207,115 $165,446
 (A) -- Sales of Pioneer-Standard Electronics, Inc. and its 50 percent owned affiliate, Pioneer/Technologies Group, Inc. are not consolidated for financial reporting purposes. Combined sales of the two organizations are shown for informational purposes. The company records 50 percent of the affiliate's net income on the equity method.
 (B) -- During the second fiscal quarter ended Sept. 30, 1992, a total of 1,538,451 common shares plus cash of $916,000 was issued for the retirement of all of the company's 9 percent subordinated convertible debentures. Per share figures and shares outstanding are adjusted to reflect the March 15, 1993, 3-for-2 share split.
 -0- 1/17/94
 /CONTACT: John V. Goodger of Pioneer-Standard Electronics, Inc., 216-587-3600/
 (PIOS)


CO: Pioneer-Standard Electronics, Inc. ST: Ohio IN: CPR SU: ERN

CM-BM -- CL014 -- 1275 01/17/94 11:03 EST
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