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STUART ENTERTAINMENT REPORTS RECORD QUARTER, SIX MONTHS; EARNINGS ROSE 25 PERCENT ON 28 PERCENT SALES GAIN IN FIRST HALF

 STUART ENTERTAINMENT REPORTS RECORD QUARTER, SIX MONTHS;
 EARNINGS ROSE 25 PERCENT ON 28 PERCENT SALES GAIN IN FIRST HALF
 Company Cites "Continuing Strong Growth Pattern;"
 Says Sales and Earnings Prospects "Have Never Looked Better"
 LITTLETON, Colo., Aug. 18 /PRNewswire/ -- Stuart Entertainment, Inc. (NASDAQ: STUA), formerly Bingo King Company, today reported record sales and earnings in both the second quarter and six month periods ended June 30, 1992. Net income for the first half rose 25 percent on a 28 percent increase in sales over the prior year's results.
 Leonard A. Stuart, chairman of the board and chief executive officer, stated that the record sales results "clearly demonstrate the company's continuing strong growth pattern," which he attributed to the growth of the overall Bingo market, the company's increasing share of that market, product innovation and the strengthening of Stuart's distribution network.
 Sales have increased over 28 percent in each of the first two quarters of 1992, Mr. Stuart said, and he noted that "demand continues strong in each of the company's major product lines." He added, "We see excellent opportunities for growth both here and abroad. In short, the company's sales and earnings prospects have never looked better."
 Operating Results
 In the six months ended June 30, 1992, the company earned record net income of $1,185,000, or $.34 per share, on record sales of $25,683,000. This compares with net income of $946,000, or $.28 per share, on sales of $19,980,000 during the same period of the prior year.
 For the quarter ended June 30, 1992, Stuart Entertainment earned record second quarter net income of $556,000, or $.16 per share on record quarter sales of $13,312,000. This compares with net income of $510,000, or $.15 per share, on sales of $10,367,000 during the same period last year.
 Mr. Stuart stated that profit margins and earnings in the second quarter were adversely affected by significant unusual expenses related to the start-up of the new Mexican manufacturing facility; research and development expenses associated with the company's new VLT (video lottery terminal) operations; and the company's short-term need to purchase Bingo paper from outside sources. The outside purchases were required to meet temporary product shortages pending expansion of the Mexican facility.
 Mr. Stuart indicated that the Mexican plant is now producing sufficient Bingo paper to meet current sales demand, thus eliminating the need for any further significant outside purchases. He added that "our Mexican facility will be operating efficiently and productively by the end of the third quarter, enabling Stuart Entertainment to enjoy improved margins and earnings on its sales gains."
 VLT Operations
 Mr. Stuart announced that the company's wholly owned VLT subsidiary, Video King Gaming Systems, Inc., has received some initial orders to supply video Bingo terminals and systems late this fall.
 The subsidiary, which was established in January 1992 to enable Stuart to take advantage of the rapidly growing VLT market, continues to develop prototype machines and explore market potential. The equipment under development, which includes video Bingo and video break-open ticket machines, is being targeted primarily at the company's Bingo markets.
 Mexican Facility Near Completion
 Discussing the new Reynosa, Mexico facility, Mr. Stuart noted that "while expansion efforts are proceeding on schedule, considerable organizational, start-up and training costs have been incurred. As a result, the Mexican operation has not yet contributed to the company's bottom line during the first half of 1992." He added that, as the plant nears full capacity in the third quarter, it will begin making a positive contribution to the company's earnings.
 Mr. Stuart reiterated that the additional capacity generated by the Mexican facility will give the company sufficient manufacturing capacity to meet the rising demand for its products. The Mexican facility is operated under the joint ownership of Stuart Entertainment and Bingo Press & Specialty, Ltd., a Canadian corporation of which Mr. Stuart is the majority owner.
 Stuart Entertainment manufactures and distributes a broad line of fund-raising products associated primarily with the Bingo, electronic gaming and lottery industries.
 Condensed Consolidated Summary Of Income
 Three Months Ended June 30 1992 1991
 Net Sales $13,312,000 $10,367,000
 Net Income $ 556,000 $ 510,000
 Earnings Per Share $ .16 $ .15
 Average Shares Outstanding 3,501,000 3,422,000
 Six Months Ended June 30 1992 1991
 Net Sales $25,683,000 $19,980,000
 Net Income $ 1,185,000 $ 946,000
 Earnings Per Share $ .34 $ .28
 Average Shares Outstanding 3,496,000 3,380,000
 Condensed Consolidated Balance Sheets
 June 30 December 31
 Assets 1992 1991
 Current Assets $16,161,000 $14,221,000
 Property, Plant & Equipment-Net 11,498,000 10,190,000
 Other Assets 3,867,000 3,590,000
 Total $31,526,000 $28,001,000
 Liabilities and Stockholders' Equity
 Current Liabilities $12,139,000 $10,274,000
 Long-term Debt (less
 current portion) 4,799,000 4,433,000
 Other Liabilities 1,066,000 1,088,000
 Stockholders' Equity 13,522,000 12,206,000
 Total $31,526,000 $28,001,000
 Unaudited and Subject to Year-End Adjustments
 -0- 8/18/92
 /EDITOR NOTE: Stuart Entertainment's major manufacturing facilities are located in Littleton, Colo., Carson, Calif. and Council Bluffs, Iowa/
 /CONTACT: Richard H. Ellison of Stuart Entertainment, Inc., 303-795-2625/
 (STUA) CO: Stuart Entertainment, Inc. ST: Colorado IN: LEI SU: ERN


KK -- DV005 -- 0959 08/18/92 12:33 EDT
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Date:Aug 18, 1992
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