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SPECIALTY CHEMICAL RESOURCES REPORTS 1992 RESULTS

 CLEVELAND, March 3 /PRNewswire/ -- Specialty Chemic ?Resources, Inc. (AMEX: CHM) today said that a Dec. 13, 1992 fire which severely damaged one of its two major production facilities impacted fourth quarter and full year results. Net sales for the year ended Dec. 31 were $47,927,000, up nine percent from the $43,937,000 of 1991. Net income for 1992 was $553,000 compared to $72,000 in 1991. Net earnings per share, based on 3,442,000 weighted average shares outstanding, were $0.16 compared to seven cents on 1,008,000 average shares outstanding in 1991.
 During 1992, the company retired all of its prior indebtedness and incurred non-cash, non-recurring charges associated with debt retirement of $945,000 for deferred financing costs and $191,000 for an original issue discount. On a pro forma basis, excluding the non-cash, non- recurring charges, the company's net income for 1992 was $1,300,000 or $0.38 per share, based on 3,442,000 average weighted shares outstanding.
 For the fourth quarter ended Dec. 31, 1992, the company had net sales of $10,579,000 and a net loss of $135,000 reflecting the effect of the non-chemical fire at the company's Macedonia, Ohio plant. Edwin M. Roth, chairman and chief executive officer stated, "Had it not been for the fire in the fourth quarter, the company would have achieved its earlier pro forma earnings projection of between $0.55 and $0.60 per share." Roth went on to say that the company is making steady progress in restoring its damaged facility with new "state of the art" production lines, and is fully insured to cover the restoration as well as business interruption losses.
 Roth noted that the company has been successful in retaining its customer base by expanding the production capacity of its plant in Twinsburg, Ohio and by temporarily utilizing alternative production sources. Although this has been an expensive process and has resulted in lower margins, it has preserved the company's customer relationships.
 Commenting on the outlook for 1993, Roth indicated that the first half of the year will necessarily be affected by the post-fire rebuilding process. The installation of new equipment, coupled with operator training, will likely limit the company's ability to ship from its Macedonia plant during the first and second quarters. By the third quarter, however, the company expects to be operating on a normal basis with increased capacity and greater efficiencies.
 The company reported a strong financial position. Current assets as of Dec. 31, 1992 were $12,258,000, 3.0 times current liabilities. Working capital amounted to $8,125,000. Shareholders' equity as of Dec. 31, 1992 was $29,533,000 compared to $4,209,000 a year earlier. Long- term debt at 1992 year-end was $6,055,000, down from $29,924,000 at the end of 1991. In the 1992 first quarter, Specialty Chemical sold 2,760,000 shares in a public offering, utilizing proceeds to retire prior debt.
 Specialty Chemical Resources is a leading formulator and packager of aerosol products primarily for industrial maintenance and automotive service professionals. The company's aerosol products include: cleaners, sealants, gasket compounds, waxes, lubricants, adhesives, paints, coatings, degreasers, polishes, anti-statics and tire inflators.
 SPECIALTY CHEMICAL RESOURCES, INC.
 Statements of Operations (Audited)
 (Amounts in thousands except per share amounts)
 Three Months
 Periods ended December 31 1992 1991(A)
 Net sales $10,579 $11,795
 Gross Profit 2,090 2,544
 Operating profit (66) 1,051
 Interest expense 81 957
 Other (income) expenses:
 Write-off of original issue
 discount(B) -- --
 Write-off of deferred financing
 costs(B) -- --
 Other (income) (44) --
 Income (loss) before taxes (103) 94
 Taxes 32 (11)
 Net income (loss) $(135) $105
 Earnings (loss) per share $(.04) $.10
 Weighted average shares
 outstanding (C) 3,768 1,008
 PROFORMA (excludes the write-off of
 original issue discount and deferred
 financing costs):
 Net income (loss) $(135) $105
 Earnings (loss) per share $(.04) $.10
 Weighted average shares
 outstanding (C) 3,768 1,008
 Year-to-Date
 Periods ended December 31 1992 1991(A)
 Net sales $47,927 $43,937
 Gross Profit est expense 1


,0
 4,016
 Other (income) expenses:
 Write-off of original issue
 discount(B) 191 --
 Write-off of deferred financing
 costs(B) 945 --
 Other (income) (69) (2)
 Income (loss) before taxes 943 103
 Taxes 390 31
 Net income (loss) $ 553 $ 72
 Earnings (loss) per share $ .16 $.07
 Weighted average shares
 outstanding (C) 3,442 1,008
 PROFORMA (excludes the write-off of
 original issue discount and deferred
 financing costs):
 Net income (loss) $1,300 $ 72
 Earnings (loss) per share $ .38 $.07
 Weighted average shares
 outstanding (C) 3,442 1,008
 NOTE A: Financial information excludes data related to operations discontinued in 1991.
 NOTE B: Non-recurring, non-cash write-off of original issue discount and deferred financing costs related to retirement of debt with common stock offering proceeds.
 NOTE C: Weighted average shares outstanding include common stock equivalents except in loss periods whereby they would be anti-dilutive.
 CONSOLIDATED BALANCE SHEETS (Audited)
 Dec. 31 Dec. 31
 Assets 1992 1991
 Current Assets
 Cash $ 79 $ 293
 Receivables 6,785 6,294
 Inventory 5,265 5,160
 Other 129 224
 Total $12,258 $11,971
 Net fixed assets 3,775 3,760
 Other $23,688 $26,088
 Total Assets $39,721 $41,819
 Liabilities
 Current Liabilities
 Current debt -- $ 1,573
 Accounts payable 3,192 5,348
 Other 941 765
 Total $ 4,133 $ 7,686
 Long-term debt 6,055 29,924
 Shareholders' equity $29,533 4,209
 Total liabilities and
 shareholders' equity $39,721 $41,819
 -0- 3/3/93
 /CONTACT: Corey Roth of Specialty Chemical Resources, Inc., 216-468-1380/


CO: Specialty Chemical Resources, Inc. ST: Ohio IN: CHM SU: ERN

KK -- CL013 -- 2635 03/03/93 16:54 EST
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Date:Mar 3, 1993
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