STUART ENTERTAINMENT NET ROSE 44 PERCENT ON 29 PERCENT SALES GAIN IN FIRST QUARTER; COMPANY FORECASTS 1992 WILL BE 'SUPER YEAR'
STUART ENTERTAINMENT NET ROSE 44 PERCENT ON 29 PERCENT SALES GAIN IN FIRST QUARTER; COMPANY FORECASTS 1992 WILL BE 'SUPER YEAR' LITTLETON, Colo., May 12 /PRNewswire/ -- Stuart Entertainment Inc. (NASDAQ: STUA), formerly Bingo King Company Inc., today reported record first quarter sales, net income and earnings per share in the period ended March 31, 1992. Net income rose 44 percent on a sales gain of 29 percent from the like period of the prior year. In the quarter ended March 31, 1992, the company earned record first quarter net income of $629,000, or 18 cents per share, on record sales of $12,371,000. This compares with net income of $436,000, or 13 cents per share, on sales of $9,613,000 the year before. Leonard A. Stuart, chairman and chief executive officer of Stuart Entertainment, stated that he was "elated" with the company's excellent gains during the quarter, and added that he expected 1992 would be a "super year" for the company in both sales and earnings. He stated that the company's growth "reflects not only the continuing growth of the Bingo industry, but also the company's success in increasing its market share." He stated that all major product lines contributed to the strong sales increases, and he added that the newly-initiated operations in Mexico made no contribution to the quarter's results. In fact, he said, considerable organizational and start-up expenses were incurred during the quarter in connection with the Mexico operations. Stuart stated that the company has achieved record results for the past three years. Since 1988, he said, net income has increased 162 percent and earnings per share have risen 67 percent. In 1991, the company earned 55 cents per share on sales of $40.9 million as compared with 46 cents per share and sales of $37.2 million the year before. New Operations Regarding the new Mexican facility in Reynosa, Mexico, Stuart stated that "the expansion of the manufacturing operations is proceeding on schedule." The new facility, which is operated under the joint ownership of Stuart Entertainment and Bingo Press & Specialty Ltd., initiated the production of Bingo paper products in April 1992 and is expected to be operating at near capacity by the end of the third quarter. Stuart added that the additional capacity will help the company meet the growing demand for its paper products, and will enable the company to increase its market share as well as improve its margins. Stuart Entertainment has developed several Video Lottery Terminal (VLT) machines and is currently exploring the possibility of entering into the rapidly-expanding VLT market, Stuart said. A new subsidiary, Video King Gaming Systems Inc., has been formed to develop the machines, including video bingo and video break-open ticket machines, primarily for the Bingo market. The subsidiary is now testing its first prototype machines and evaluating market potential. Looking Ahead Looking to the future, Stuart expressed confidence that "the company can continue to sustain a strong growth rate." He added, "Our basic market is expanding in many directions and we see many new growth opportunities ahead. Over the past 2-3 years, we have broadened our product lines, we have assembled the most comprehensive distribution network in the industry, and we have considerably expanded our production capacity and improved our manufacturing productivity." He stated that the company "will continue to emphasize long-term growth and will not sacrifice this goal to achieve short- term goals." The leader in its industry, Stuart Entertainment manufactures and distributes a complete line of fund-raising products, primarily associated with the game of Bingo, as well as other products for leisure and entertainment. STUART ENTERTAINMENT INC. Condensed Consolidated Summary of Income First Quarter Ended March 31, 1992 1991 Net sales $12,371,000 $9,613,000 Net income $629,000 $436,000 Earnings per share $.18 $.13 Average shares outstanding 3,492,000 3,339,000 Condensed Consolidated Balance Sheets March 31, Dec. 31, 1992 1991 Assets Current Assets $15,584,000 $14,221,000 Property, plant & equipment-net 10,573,000 10,190,000 Other assets 3,549,000 3,590,000 Total $29,706,000 $28,001,000 Liabilities and Stockholders' Equity Current liabilities $11,368,000 $10,274,000 Long-term debt (less current portion) 4,333,000 4,433,000 Other liabilities 1,077,000 1,088,000 Stockholders' equity 12,928,000 12,206,000 Total $29,706,000 $28,001,000 Unaudited and subject to year-end adjustments. -0- 5/12/92 /NOTE TO EDITORS: Stuart Entertainment's major manufacturing facilities are located in: Littleton, Colo.; Carson, Calif.; and Council Bluffs, Iowa. /CONTACT: Richard H. Ellison of Stuart Entertainment, 303-795-2625/ (STUA) CO: Stuart Entertainment Inc. ST: Colorado IN: LEI SU: ERN
MC -- DV005 -- 9048 05/12/92 10:54 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||May 12, 1992|
|Previous Article:||CATERPILLAR ANNOUNCES AGREEMENT WITH ZiL, RUSSIAN TRUCK MANUFACTURER|
|Next Article:||NAB ASSET CORPORATION ANNOUNCES FIRST QUARTER 1992 RESULTS AND ORGANIZATION OF $25 MILLION PARTNERSHIP|