PRECISION AEROTECH REPORTS SECOND QUARTER RESULTS
PRECISION AEROTECH REPORTS SECOND QUARTER RESULTS LA JOLLA, Calif., March 18 /PRNewswire/ -- Precision Aerotech Inc.
(AMEX: PAR) today announced net sales of $11.6 million for the quarter ended Jan. 31, 1992, compared to $15.5 million for the same period one year ago. The loss from continuing operations was $954,000 for the quarter compared to a loss of $923,000 for the same period one year earlier. After including the impact of discontinued operations, the $954,000 loss for the period ended Jan. 31, 1992, compares to a loss of $1.3 million for the quarter ended Jan. 31, 1991.
Sales for the nine months ended Jan. 31, 1992 were $37.9 million compared with $47.3 million for the same period one year earlier. The loss from continuing operations was $1.3 million for the nine months ended Jan. 31, 1992 compared to a loss of $1.0 million for the same period one year earlier. After including the impact of discontinued operations, the loss of $1.3 million for the nine months ended Jan. 31, 1992 compares to a loss of $1.9 million for the same period one year ago. The primary reasons for the decrease in sales for both the three months and nine months ended Jan. 31, 1992, compared to the same period one year earlier is associated with intentional downsizing and refocusing of the Coast Aerotech Inc. ("Coast") business and the transition from certain mature defense programs to new markets, customers and programs at Speedring Inc. ("Speedring") mentioned during previous reporting periods. The transition at Speedring is progressing, with over one-third of the forecasted backlog at April 30, 1992 targeted from specific markets, customers and programs not a part of their backlog 12 months ago. Progress is especially encouraging due to the softness in aerospace, defense and almost all other industry business sectors. Consolidated gross margin dollars for all subsidiaries was $9.0 million for the nine months ended Jan. 31, 1992, compared to $10.5 million for the same period last year as a result of the reduced sales volume and business transition at Speedring. However, in spite of the adverse Speedring impact, gross margin percent performance improved to 23.8 percent for the nine months ended Jan. 31, 1992, contrasted to 22.5 percent for the comparable period one year earlier. The combined gross margin for the Speedring Systems Inc. ("Systems"), L & S Aerotech Inc. ("L & S") and Coast for the first nine months of the current year increased nearly $600,000 from the prior year, in spite of a sales decline of approximately $2.5 million. Combined gross margin percent for these three subsidiaries increased to 23 percent for the first nine months of the current reporting period compared to 18.6 percent for the same period one year earlier. The most significant improvement was realized at the Coast subsidiary were the gross margin percentage of sales increased by 125 percent over the same period of performance last year. Selling, general and administrative expenses for the nine months ended Jan. 31, 1992 were reduced by more than $500,000, including $39,000 in the current three-month reporting period to $6.2 million compared to the same period one year earlier. Increases to support continued business growth at Systems and new customer and business development initiatives at Speedring were offset by reductions at L & S and Coast. Continued aggressive downsizing and cost reduction actions at Coast supported a 40 percent decrease in SG&A for the nine months ended Jan. 31, 1992 compared to the same period one year earlier. The combined operating income for the first nine months of the current year for the combination of the Systems, L & S and Coast subsidiaries improved $1.2 million from the comparable period one year earlier. The lower sales at Speedring associated with the business transition more than offset the continued improvements in the other subsidiaries and the further reductions in corporate expense, resulting in a decrease in operating income for the nine months ended Jan. 31, 1992 to $2.9 million compared to $3.8 million for the same period one year earlier. Other expense including interest for the nine months ended Jan. 31, 1992 is approximately 10 percent lower than the comparable period last year. The decrease is attributable to reductions in senior term debt and lower interest rates on all senior debt. If sales and income from Speedring for the first nine months ended Jan. 31, 1992 equaled those of the comparable period one year earlier, or any previous comparable period since the business was acquired in 1988, positive consolidated corporate income for the current nine-month reporting period would have been achieved. With internal operations (those things which the subsidiaries and the corporation can control) significantly improved, priority attention throughout the corporation and most importantly at Speedring has been focused on new business development. Continuing work addressed at financially restructuring is of equal importance and priority. The general economic sluggishness and specific industry softness creates a very challenging new business development environment. PRECISION AEROTECH INC. Consolidated Condensed Statements of Operations (Unaudited) (in thousands, except shares and per share data) Three Months Ended Nine Months Ended Jan. 31, Jan. 31, 1992 1991(a) 1992 1991(a) Net sales $11,630 $15,456 37,918 $47,290 Loss from continuing operations before income taxes (923) (844) (1,213) (772) Income tax expense 31 79 78 199 Loss from continuing operations (954) (923) (1,291) (971) Discontinued operation: Loss on disposal of Micronics --- (11) --- (31) Loss from operations of Aero --- (355) --- (884) Total --- (366) --- (915) Net Loss $ (954) $(1,289) $(1,291) $(1,886) Loss per share: From continuing operations $ (.29) $ (.28) $ (.43) $(.33) From discontinued operations --- (.11) --- (.27) Net Loss per share $(.29) $ (.39) $ (.43) $ (.60) Number of shares used in calculation 3,452,953 3,453,402 3,452,953 3,451,887 (a) The Statement of Operations for the period ending Jan. 31, 1991, have been restated to reflect Aero Technologies, Inc. as a discontinued operation. -0- 3/18/92 /CONTACT: R.W. Detweiler or S.R. Greene of Precision Aerotech, 619-456-2992/ (PAR) CO: Precision Aerotech Inc. ST: California IN: ARO SU: ERN
KJ -- SD003 -- 9243 03/18/92 12:36 EST
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|Date:||Mar 18, 1992|
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