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PRECISION AEROTECH REPORTS THIRD QUARTER RESULTS

 LA JOLLA, Calif., March 19 /PRNewswire/ -- Precision Aerotech Inc. (AMEX: PAR) today announced sales of $10.9 million for the third fiscal quarter ended Jan. 31, 1993, compared with $11.6 million for the comparable three-month period one year earlier. Sales for the nine months ended Jan. 31, 1993, were $34.1 million, compared with $37.9 million for the same period one year ago. Reduced sales between the two periods result from the continued downsizing and refocusing of the Coast Aerotech Inc. ("Coast") subsidiary; reduced military spare parts and components sales related to pre- and post- election spending priority uncertainties; and continuing reductions in commercial aircraft production rates. These reductions were partially offset by shipments to new customers and markets aggressively developed over the past two years.
 The net loss of $1.3 million, or $.39 per share, after adjusting for the effect of preferred stock dividends, compares with a loss of $1.0 million, or $.29 per share, reported for the nine-month period ended Jan. 31, 1992. The net loss for the nine months ended Jan. 31, 1993, of $2.4 million, or $.76 per share, compares to a loss of $1.3 million, or $.43 a share for the same period one year earlier. The increased loss in the reporting period compared to the same quarter last year is related to the lower military and commercial aircraft market sales and reduced margins at L&S Aerotech Inc. ("L&S") associated with excess costs of new program start-ups. Reduced sales volume, increased new business development initiatives at Speedring Inc. ("Speedring") and higher new product and program development costs at Speedring Systems Inc. ("Systems") were responsible for the increased year-to-date losses when compared to the nine months ended Jan. 31, 1992.
 All subsidiaries continue to make excellent progress in achieving preferred supplier status with all key customers. This becomes critically important during periods of soft market conditions. Continued aggressive organization and product cost reduction activities continue throughout the corporation.
 The company has been negotiating with its lenders to effect a financial restructuring that would reduce debt obligations and cure the current defaults under its credit agreements. With the sale by the Resolution Trust Corp. of the senior debt position in February to Business Asset Trust I and its subsequent resale to The Foothill Group Inc. on March 8, 1993, restructuring activities have been interrupted.
 It is expected the restructuring discussions will resume shortly. Until such time as the restructuring is completed, the company will remain in default of its credit agreements, long-term debt will remain classified as a current liability, and the lenders, at their discretion, have the option of accelerating their respective debt. If this were to occur, the company would not be able to meet its obligations and would be forced to file for protection under Chapter 11 of the Bankruptcy Code.
 Since the company does not currently meet all requirements for continued listing on the American Stock Exchange, it is subject to possible delisting. A meeting with the exchange has been scheduled to discuss future listing status.
 PRECISION AEROTECH INC.
 Financial Highlights
 (Unaudited)
 (In thousands except shares and per share data)
 Three Months Ended Nine Months Ended
 Jan. 31, Jan. 31,
 1993 1992 1993 1992
 Net sales $10,867 $11,630 $34,133 $37,918
 Loss from continuing
 operations before
 income taxes (1,268) (923) (2,351) (1,213)
 Income tax expense 31 31 92 78
 Loss from continuing
 operations ($1,299) ($954) ($2,443) ($1,291)
 (Loss) per share ($.39) ($.29) ($.76) ($.43)
 Weighted average
 number of common
 shares
 outstanding 3,448,253 3,452,953 3,448,253 3,452,953
 -0- 3/19/93
 /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

JL-LS -- SD004 -- 8124 03/19/93 18:58 EST
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Publication:PR Newswire
Date:Mar 19, 1993
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