SUN ELECTRIC ANNOUNCES THIRD QUARTER RESULTS
SUN ELECTRIC ANNOUNCES THIRD QUARTER RESULTS CRYSTAL LAKE, Ill., Nov. 5 /PRNewswire/ -- Sun Electric Corp.
(NYSE: SE) announced today that sales for its third quarter ended Sept. 30, 1991, were $54,239,000 compared to $57,820,000 for the quarter ended Sept. 30, 1990. For the quarter ended Sept. 30, 1991, the company reported a net loss of $1,292,000, or a loss of $.14 per share, compared to a net loss of $116,000, or a loss of $.01 per share, for the comparable 1990 period. The results for 1990 included losses of $1,288,000, or $.14 per share, related to discontinued operations.
For the nine months ended Sept. 30, 1991, the company reported net sales from continuing operations of $162,132,000 compared to net sales of $181,789,000 for the comparable period in 1990. For the nine months ended Sept. 30, 1991, the company reported a net loss of $8,879,000, or a loss of $.94 per share, compared to net earnings of $6,525,000, or $.77 per share, for the comparable 1990 period. Included in net earnings for the nine months ended Sept. 30, 1990, was an extraordinary credit of $1,209,000, or $.15 per share, representing utilization of the company's net operating loss carryforward in the United States and a loss of $1,568,000, or $.18 per share, related to discontinued operations. Gerald A. Kien, chairman, president and chief executive officer, stated, "Results in our international division remained strong during the third quarter of 1991 and, as compared to the third quarter of 1990, reflect strong core business growth in Germany and increased sales in the United Kingdom related to a vehicle emissions testing program. "Results reported by the company's North American division in this year's third quarter were behind those of the 1990 third quarter as the 1990 third quarter included $15.6 million in U.S. sales of emission analyzers for use in newly implemented state vehicle emission inspection programs. As expected, the magnitude of the selling opportunities resulting from these start-up programs did not, however, carry over into 1991 as evidenced by the fact that, in the 1991 third quarter, these sales were only $3.4 million and, for the nine months ended Sept. 30, 1990, the sales of emission analyzers in the U.S. were $46.3 million compared to only $15.0 million during the same period this year. "Operating costs in the United States continue to decrease in line with a previously announced restructuring plan and continued reduction in working capital has allowed further debt reductions during the quarter." Sun Electric Corp. is primarily engaged in the design, manufacture, marketing and service of diagnostic, test and service equipment for the motor vehicle service industry and motor vehicle manufacturers in more than 100 countries. Sun Electric Corp. shares are traded on the New York Stock Exchange (Symbol SE). Annual Stockholders' Meeting: May 5, 1992. SUN ELECTRIC CORP. CONSOLIDATED CONDENSED BALANCE SHEET (In thousands) 9/30/91 12/31/90 Cash & equivalents $ 4,461 $ 3,143 Receivables, net 49,096 63,107 Inventories 68,853 79,690 TOTAL CURRENT ASSETS 122,410 145,940 Investments & advances - unconsolidated affiliates 1,280 1,311 Prepaid expenses and other assets 10,686 8,018 Fixed assets, net 24,827 27,208 TOTAL ASSETS $159,203 $182,477 Notes payable $ 11,725 $ 8,574 Accounts payable 14,024 14,426 Accrued expenses 30,651 29,560 Income taxes 5,242 2,982 TOTAL CURRENT LIABILITIES 61,642 55,542 Long-term debt (A) 6,783 23,504 Other non-current liabilities 1,672 1,538 Shareholders' equity 89,106 101,893 TOTAL LIABILITIES AND EQUITY $159,203 $182,477 Reference should be made to the 1990 annual report to shareholders for a description of the company's accounting policies and other financial disclosures. SUN ELECTRIC CORP. CONSOLIDATED STATEMENT OF OPERATIONS (In thousands except per-share data) Periods Ended Three Months Nine Months Sept. 30 1991 1990 1991 1990 Net sales $54,239 $57,820 $162,132 $181,789 Cost of sales 32,226 31,854 96,765 99,952 Gross income 22,013 25,966 65,367 81,837 Selling, general and administrative expenses (B) 20,482 23,122 66,629 68,576 Income (loss) from operations 1,531 2,844 (1,262) 13,261 Other (income) expense: Interest (income) expense, net 390 248 1,488 (1,765) Foreign currency losses 252 320 779 1,870 Net earnings of unconsolidated affiliates (289) (296) (869) (904) Other(income) expense,net (C) 43 (177) 166 617 Total $ 396 $ 95 $ 1,564 $ (182) Earnings (loss) from continuing operations before provision for income taxes 1,135 2,749 (2,826) 13,443 Provision for income taxes 2,427 1,564 6,053 6,559 Earnings (loss) from continuing operations (1,292) 1,185 (8,879) 6,884 Loss from discontinued operations - (87) - (367) Loss on disposal of segment - (1,201) - (1,201) Extraord. credit (charge) - (13) - 1,209 Net earnings (loss) $ (1,292) $ (116) $(8,879) 6,525 EARNINGS (LOSS) per common share: Continuing operations $ (.14) $ .13 $ (.94) $ .80 Discontinued operations - (.01) - (.05) Loss on disposal of segment - (.13) - (.13) Extraordinary credit - - - .15 Net earnings (loss) $ (.14) $ (.01) $ (.94) $ .77 Shares used to calculate Earnings (loss) per common share 9,469 9,437 9,463 8,837 Reference should be made to the 1990 annual report to shareholders for a description of the company's accounting policies and other financial disclosures. SUN ELECTRIC CORP. NOTES TO FINANCIAL STATEMENTS (In thousands) (A) -- At Sept. 30, 1991, the company had borrowings outstanding of $8,000 under its United States revolving credit agreement which expires June 30, 1992. The company is currently negotiating a new credit agreement with another lender and expects to finalize such agreement during the fourth quarter of 1991. The $8,000 outstanding under the existing credit agreement at Sept. 30, 1991, has been classified as a current liability and is included in notes payable. (B) -- Included in selling, general and administrative expenses for the nine months ended Sept. 30, 1990, is a $500 charge for severance and other costs associated with certain changes in management. (C) -- Included in other (income) expense, net for the nine months ended Sept. 30, 1990, are $300 of expenses for legal and investment banking fees related to the investigation of a potential acquisition by the company. Included in other (income) expense, net for the nine months ended Sept. 30, 1990, are $435 of expenses associated with the call of the company's 8 percent Convertible Subordinated Debentures and the and the associated standby agreement. -0- 11/5/91 /CONTACT: Martin Ellen of Sun Electric, 815-459-7700/ (SE) CO: Sun Electric Corp. ST: Illinois IN: AUT SU: ERN PS -- NY089 -- 1460 11/05/91 18:25 EST
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|Date:||Nov 5, 1991|
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