PRECISION AEROTECH REPORTS YEAR-END RESULTS
PRECISION AEROTECH REPORTS YEAR-END RESULTS LA JOLLA, Calif., July 31 /PRNewswire/ -- Precision Aerotech Inc.
(AMEX: PAR) today announced sales of $51.0 million for the year ended April 30, 1992, compared with $64.4 million the prior year. The company reported a net loss of $2.2 million, or $.71 per share, after adjusting for the effect of preferred stock dividends, compared with a net loss of $3.2 million, or $1.00 per share, the previous fiscal year. The loss from continuing operations was also $2.2 million, or $.71 a share, compared with a loss of $.9 million, or $.34 a share, during the previous 12-month period. Backlog at June 30, 1992, was $46.6 million contrasted to $47.3 million at June 30, 1991.
The $13.4 million, or 21 percent, decrease in sales for the 12-month period ended April 30, 1992, compared to the previous 12 months is attributable to a reduction in defense-related sales at Speedring Inc. ("Speedring") and the higher levels of shipment of delinquent, low margin backlog during the prior year at the Coast Aerotech Inc. ("Coast") subsidiary. Expanded sales development activities under way at Speedring during the last two years are targeted towards replacement of maturing or terminated defense programs with a combination of specific new high priority defense programs and an increased volume and mix of more diverse non-defense business. Efforts are also under way to cautiously and selectively build profitable backlog levels at Coast. As a result of the improved profitability at Coast, all operating subsidiaries were profitable, before corporate allocations, for the first fiscal year since 1987. Improved manufacturing gross margin percentage performance and increased levels of operating income were achieved at all subsidiaries except Speedring, during the reporting period. These improvements were most significant at Coast and Speedring Systems Inc. ("Systems"). Selling and general and administration expenses were reduced approximately $500,000 during the year, which includes the impact of a combined reduction of $900,000 at Coast and corporate, partially offset by investments in more aggressive sales and marketing activities at Speedring and costs to support continued growth at Systems. While corporate interest expense was reduced $900,000 during the reporting period as the result of reduced borrowings and favorable interest rates. The company still faces high debt service costs of approximately $5 million per year which are primarily responsible for its net losses. With most of the internal operating problems significantly improved, priority attention is being addressed towards two very important areas. Continuing, difficult defense and aerospace industry market conditions, responsible for significant sales increases during the reporting period, require aggressive and creative market development and sales initiatives throughout the corporation. Second, operating improvements experienced over the past two years and those that might be reasonably expected in the near-term will not be sufficient to assure a sound financial base for future operations, without a significant change in the capital structure of the company. The company is in the process of working with its senior and subordinated lenders to accomplish such a restructuring, which may result in a conversion of debt to equity and a significant dilution to the current shareholders. PRECISION AEROTECH INC. Financial Highlights (Unaudited) (In thousands except shares and per share data) Three Months Ended Year Ended April 30, April 30, 1992 1991 1992 1991 (Note) (Note) Net sales $13,097 $17,144 $51,015 $64,434 Loss from continuing operations, before income taxes (987) 55 (2,201) (717) Income tax expense (benefit) (68) 26 9 225 Loss from continuing operations (919) 29 (2,210) (942) Discontinued operation: Loss on disposal of Micronics --- (105) --- (136) Loss from operations of Aero --- (1,256) --- (2,140) Total --- (1,361) --- (2,276) Net loss ($919) ($1,332) ($2,210) ($3,218) Loss per share: From continuing operations ($.28) ($.01) ($.71) ($.34) From discontinued operation --- (.39) --- (.66) Net loss share ($.28) ($.40) ($.71) ($1.00) Weighted average number of common shares outstanding 3,448,253 3,452,953 3,450,986 3,452,134 Note: The Statement of Operations for the period ended April 30, 1991, has been restated to reflect Aero Technologies Inc. as a discontinued operation. -0- 7/31/92 /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
CH-KJ -- SD006 -- 5724 07/31/92 15:36 EDT
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|Date:||Jul 31, 1992|
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