SUBSTANTIAL PROFIT REPORTED BY TIE/COMMUNICATIONS, INC.
SUBSTANTIAL PROFIT REPORTED BY TIE/COMMUNICATIONS, INC. SEYMOUR, Conn., Nov. 4 /PRNewswire/ -- TIE/communications, Inc.
(AMEX: TIE), today reported third quarter pretax income of $1,472,000 or 37 cents per share on sales of $26,673,000 and a net income of $1,082,000 or 27 cents per share. Third quarter net income improved by 21 cents a share from the previous quarter. The improvement from the third quarter of 1991 in pretax earnings per share is 39 cents and 36 cents on net income. Sales results in the last period are slightly higher than the same period of 1991. Third quarter earnings for TIE are the highest in over seven years, other than non-recurring gains.
For the first nine months of the year, TIE, a major marketer of business communications products and services, reported a net income of $799,000 or 20 cents per share on $75,730,000 in sales. TIE reorganized and emerged from a pre-packaged Chapter 11 bankruptcy proceeding on July 1, 1991. As a result of the implementation of Fresh Start Reporting, no comparison with results from the prior period to July 1991 is valid. Mark D. Amatrudo, chief financial officer, said, "During the quarter the company recorded a charge in lieu of income taxes of $347,000 or 9 cents per share. This charge is required by a company adopting Fresh Start Reporting practices in accordance with AICPA Statement of Position 90-7, paragraph 38. The charge in lieu of income taxes represents the domestic and foreign income taxes for which payment would have been required in the absence of operating loss carryforwards from prior periods. Since the loss carryforwards are predecessor company losses, the successor company is unable to realize the benefit for accounting purposes, and accordingly, intangible assets have been reduced by the amount of the charge to operations for which taxes will not have to be paid." Amatrudo further stated, "The result is no cash effect to the company, and TIE has substantial loss carryforwards from the predecessor company, which under this rule, will further strengthen TIE's balance sheet." George Benjamin, president and CEO, said, "The two major factors contributing to the great results have been the aggressive approach to cost reduction and the meaningful financial controls resulting in third quarter operating expenses that are $1,634,000 lower than the same period of 1991. Secondly, the change to a business communications products and services company instead of just selling and servicing key systems provides an improved higher quality, longer-term revenue stream for our North American operations." Benjamin further commented, "The $1,542,000 improvement in pretax income between third quarter 1991 and third quarter 1992 leads us to believe that any uptick in the economy may result in TIE's solid performance for its shareholders. The men and women of TIE North America are very proud of the results they have achieved in turning this company around despite the troubled economic times." TIE is based in Seymour, and its shares are traded on the American Stock Exchange. TIE/telecommunications Canada Limited, a 63 percent owned subsidiary, is based in Markham, Ont., and its shares are traded on the Toronto and Montreal Stock Exchanges. TIE is a member of the Marmon Group of companies, an international association of more than 60 autonomous manufacturing and service companies with annual sales of nearly $4 billion. TIE/COMMUNICATIONS, INC. First Nine Third Quarter Months (A) 1992 1991 1992 Dollars EPS Dollars EPS Dollars EPS Net revenue $26,673,000 $26,434,000 $75,730,000 Oper. income (loss) 1,195,000 (462,000) 432,000 Royalties and other income, net 277,000 392,000 983,000 Pretax income (loss) 1,472,000 $.37 (70,000) $(.02) 1,415,000 $.35 Taxes & minority interest (88,000) (.02) (268,000) (.07) (256,000)(.06) Charge in lieu of taxes (net of minority int.) (347,000) (.09) -- -- (347,000)(.09) Net inc. (loss) from cont. operations 1,037,000 .26 (338,000) (.09) 812,000 .20 Net inc. (loss) from discont. operations 45,000 .01 (3,000) -- (13,000) -- Net income $ 1,082,000 .27 $ (341,000) (.09) $ 799,000 .20 Average shrs. 3,981,338 3,988,392 3,981,338 (A) -- Because of Fresh Start Reporting, figures are not comparable with periods prior to July 1, 1991. -0- 11/4/92 /CONTACT: George N. Benjamin III of TIE, 203-888-8001/ (TIE) CO: TIE/communications, Inc. ST: Connecticut IN: TLS SU: ERN
GK-PS -- NY025 -- 2431 11/04/92 11:24 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 4, 1992|
|Previous Article:||RYDER/XATA SIGN DISTRIBUTION AGREEMENT|
|Next Article:||INGERSOLL-RAND DECLARES REGULAR QUARTERLY DIVIDEND|