SHEFFIELD INDUSTRIES ANNOUNCES 100 PERCENT INCREASE IN EARNINGS PER
SHARE BEFORE EXTRAORDINARY ITEM IN FISCAL FIRST QUARTER
MIAMI, Nov. 19 /PRNewswire/ -- Sheffield Industries, Inc. (NASDAQ: HOSE), announced today an increase in earnings per share of 100 percent before an extraordinary item for the 13 weeks ended Sept. 27, 1991 compared with the 13 weeks ended Sept. 28, 1990. In the current 13 week period, sales were $6,917,813 compared with $7,151,580 last year. Net income, which included a tax benefit from loss carryforwards of $23,328, was $211,788 in the first 13 weeks of 1991 compared with net income of $75,759 in the first 13 weeks of 1990. Earnings per share, on 1,366,014 weighted average shares outstanding in the 1991 period, were $.14 before the tax benefit and $.16 after this extraordinary item. This compares with earnings per share of $.07 in the prior year on 1,019,500 shares.
Mitchell A. Hammer, president and chairman of the board, said, "The increase in earnings was due primarily to an increase in profit margins resulting from greater efficiencies created by new manufacturing equipment installed this year. The benefits of the new equipment more than offset associated expenses including greater depreciation and interest charges, and certain costs involved with the installation."
Hammer continued, "Sheffield's modernization program, which should be largely completed by early January 1992, will give the company capacity to generate annual revenues in excess of $60 million.
"Last month Sheffield reported sales of $29 million for the year ended June 29, 1991 and also announced the acquisition of certain assets from Chic Hosiery Corp. Chic has reported approximately $13 million in revenues for its fiscal year ended Sept. 30, 1991."
Sheffield manufactures more than 60 styles of ladies' hosiery including plain and textured pantyhose, knee-highs and tights primarily under the private labels of its customers which include K-Mart, Wal- Mart, Rite-Aid, Woolworth, Payless Shoe Source and Sears. Sheffield also manufactures and markets "Fruit of the Loom" pantyhose, knee-highs and children's tights.
SHEFFIELD INDUSTRIES, INC.
Statement of Income
Thirteen weeks ended 9/27/91 9/28/90
Net sales $6,917,813 $7,151,580
Income before extraordinary item 188,460 75,759
Extraordinary item - tax benefit
from loss carryforward 23,328 --
Net income $ 211,788 $ 75,759
Income per common share:
Before extraordinary item $.14 $.07
Extraordinary item .02 --
Income per share $.16 $.07
Weighted average shares outstanding 1,366,014 1,019,500
/CONTACT: Mitchell A. Hammer, president of Sheffield, 305-624-8493; or the Wall Street Group, 212-888-4848, for Sheffield/
(HOSE) CO: Sheffield Industries, Inc. ST: Florida IN: REA SU: ERN GK-OS -- NY026 -- 4881 11/19/91 10:55 EST