RESOURCE RECYCLING REPORTS THIRD QUARTER/NINE MONTHS RESULTS
BINGHAMTON, N.Y., Nov. 1 /PRNewswire/ -- Resource Recycling Technologies, Inc. (AMEX: RRT), diversified waste recycling company, today reported results for the third quarter and nine months ended Sept. 30, 1991.
Third quarter revenues rose 10 percent to $12,444,000 from $11,317,000 for the same period last year. After an extraordinary charge of $104,000 or four cents per share, there was a net loss of $299,000 or 11 cents per share. Net income for the prior year's comparable three month period was $328,000 or 12 cents per share, including $123,000 or five cents per share from an extraordinary credit. The prior year's third quarter results benefited from an $89,000 net gain on securities and other investments compared to a $193,000 net gain primarily from loan recoveries during the current year's third quarter.
For the nine months ended Sept. 30, 1991, revenues were $35,154,000, up 53 percent compared to $22,953,000 for the year ago period. After an extraordinary credit of $20,000 or one cent per share, net income for the period was $61,000 or two cents per share compared to net income of $497,000 or 20 cents per share after an extraordinary credit of $173,000 or seven cents per share. Gains on securities and other investments totaled $904,000 for the first nine months of the prior year and $242,000 from similar activities and loan recoveries for the first nine months of 1991.
Lawrence J. Schorr, president of RRT said, "The net loss for the third quarter primarily reflects a severe deterioration in performance of our plastics division in July and August caused by poor gross margins, a write down of accounts receivable and certain non-recurring overhead expenses. In addition, continuing general weakness in commodity prices and lower than expected volumes at our curbside recycling facilities also adversely affected performance in that division.
"However, September showed improved performance in all divisions, as costs fell more in line with sales activity. Our design division continues to perform well, as it completes its backlog," he added.
"We remain concerned about the weakness in the economy which continues to dampen demand for new recycling facilities and to depress prices for commodities," Schorr concluded.
RESOURCE RECYCLING TECHNOLOGIES, INC.
Condensed Consolidated Statement of Operations
Periods ended Three Months Nine Months
Sept. 30; 1991 1990 1991 1990
Revenues $12,444,000 $11,317,000 $35,154,000 $22,953,000
Costs & expenses 12,982,000 11,174,000 35,460,000 23,620,000
Interest & other
income, net (239,000) (203,000) (379,000) (1,161,000)
before income taxes (299,000) 346,000 73,000 494,000
income taxes (104,000) 139,000 40,000 198,000
Total (195,000) 207,000 33,000 296,000
Equity in net
earnings of affiliate -- (2,000) 8,000 28,000
Extraordinary item, NOL
tax credit (charge) (104,000)(A) 123,000 20,000(A) 173,000
Net income (loss) (299,000) 328,000 61,000 497,000
preferred stock 5,000 5,000 15,000 15,000
Earnings Per Common & Equivalent Share:
extraordinary item (.07) .07 .01 .13
credit (charge) (.04) .05 .01 .07
Net income (loss) (.11) .12 .02 .20
shares outstanding 2,720,600 2,517,700 2,716,600 2,353,600
(A) -- Third quarter reversal of previously recognized net operating loss benefit.
/CONTACT: Thomas R. Recny, CFO of Resource Recycling, 315-455-7080/
(RRT) CO: Resource Recycling Technologies, Inc. ST: New York IN: SU: ERN KD-JK -- NY078 -- 0441 11/01/91 17:43 EST