PRECISION AEROTECH REPORTS SECOND QUARTER RESULTS
PRECISION AEROTECH REPORTS SECOND QUARTER RESULTS LA JOLLA, Calif., Dec. 17 /PRNewswire/ -- Precision Aerotech Inc.
(AMEX: PAR) today announced net sales from continuing operations for the second fiscal quarter ending Oct. 31, 1991, decreased to $13.0 million from $15.7 million for the same period one year earlier. The decrease is in large part related to lower sales at Speedring Inc. ("Speedring"). This will be the last subsidiary to complete a program to broaden its business base by diversifying the industries, markets, customers and programs it serves. During this transition period, which started over a year ago, lower sales at Speedring are expected.
The loss from continuing operations for the second quarter was $370,000 compared with income of $537,000 for the comparable period one year earlier. The variance between the two periods is attributable to unusually high manufacturing gross margins experienced during the second quarter of the prior fiscal year and the lower Speedring sales in the comparable quarter of the current year. Significant improvements in income performance at the Coast Aerotech Inc. ("Coast") and Speedring Systems Inc. ("Systems") businesses, partially offset the reductions mentioned above. The net loss for the quarter ended Oct. 31, 1991, including the impact of Micronics International Inc. and Aero Technologies Inc. discontinued operations was $370,000 compared with net income of $139,000 a year earlier. For the first six months ending Oct. 31, 1991, sales of $26.3 million were $5.5 million lower than the $31.8 million during the comparable period one year earlier. The majority of the difference in sales between the two periods is associated with the Speedring business transition previously discussed. The remaining reduction in sales for the six months ending Oct. 31, 1991 is the result of higher prior year sales from the shipment of delinquent and unprofitable Coast backlog. Gross profit of $6.5 million for the six months ending Oct. 31, 1991, was $1.1 million less than the comparable period one year earlier. The decrease in gross profit associated with the Speedring sales reduction mentioned above more than fully accounts for the total $1.1 million year-to-year variance. Selling, general and administrative expense for the six months period ending Oct. 31, 1991, decreased 11 percent or $495,000 to $4.0 million from the comparable period a year earlier. Interest expense during the first two quarters of the current fiscal year was $164,000 lower than the comparable period a year earlier, due to reductions in long-term indebtedness and lower effective interest rates. The loss from continuing operations for the six months ending Oct. 31, 1991 was $337,000 compared with a loss of $48,000 for the same six month period a year earlier. The net loss, including the impact of discontinued operations, was $337,000 for the six months ended Oct. 31, 1991, compared to a net loss of $597,000 for the six months ended Oct. 31, 1990. Had sales at Speedring for the second quarter ending Oct. 31, 1991 maintained the same levels as the comparable quarter one year earlier, the corporation would have reported a significant improvement in net income for the first six months of the current fiscal year compared to the same period one year earlier. The recent modification of lending agreements was planned to assure the necessary financial flexibility to complete both the Speedring business transition and a recently initiated financial restructuring program. PRECISION AEROTECH INC. Financial Highlights (In thousands, except shares and per share data) (Unaudited) Three Months Ended Six Months Ended Oct. 31, Oct. 31, 1991 1990 1991 1990 (a) (a) Net sales $12,995 $15,661 $26,288 $31,834 Income (loss) from continuing operations before income taxes (322) 639 (290) 72 Income tax expense 48 102 47 120 Income (loss) from continuing operations (370) 537 (337) (48) Discontinued operation: Loss on disposal of Micronics --- (15) --- (20) Loss from operations of Aero --- (383) --- (529) Total --- (398) --- (549) Net income (loss) ($370) $139 ($337) ($597) Income (loss) per share: From continuing operations ($.12) $.11 ($.13) ($.05) From discontinued operations --- (.09) --- ($.16) Total ($.12) $.02 ($.13) ($.21) Number of shares used in calculation 3,452,953 4,379,432 3,452,953 3,451,129 (a): The statement of operations for the periods ending Oct. 31, 1990 have been restated to reflect Aero Technologies Inc. as a discontinued operation. -0- 12/17/91 /CONTACT: R.W. Detweiler or S.R. Greene, both of Precision Aerotech Inc., 619-456-2992/ (PAR) CO: Precision Aerotech Inc. ST: California IN: ARO SU: ERN
DM-EH -- SD002 -- 2827 12/17/91 09:02 EST
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|Date:||Dec 17, 1991|
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