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SUN ELECTRIC CORP. ANNOUNCES FULL YEAR RESULTS

              SUN ELECTRIC CORP. ANNOUNCES FULL YEAR RESULTS
    CRYSTAL LAKE, Ill., Feb. 11 -- Sun Electric Corp.(NYSE: SE)


announced today the following financial results for the fourth quarter and full year of 1991:
                            SUN ELECTRIC CORP.
            (Dollars in thousands except per share amounts)
                                      Quarter Ended Dec. 31,
                                        1991          1990
   Sales                              $58,302       $60,180
   Operating income (loss)                589        (2,486) (A)
   Net income (loss)                   (1,762)       (4,813) (A,B)
   Net income (loss) per
   common share                         ($.19)        ($.51) (A,B)
                                      Year Ended Dec. 31,
                                        1991          1990
   Sales                             $220,434       $241,969
   Operating income (loss)               (673)        10,775 (A)
   Net income (loss)                  (10,641)         1,712 (A,C)
   Net income (loss) per
   common share                        ($1.12)          $.19 (A,C)
   (A) After $2,213, or $.23 per share, of restructuring costs in 1990.
   (B) After $1,209, or $.13 per share, of extraordinary tax charges in
       1990.
   (C) After charges of $1,568, or $.17 per share, related to
       discontinued operations in 1990.
    Gerald A. Kien, chairman, president and chief executive officer, stated, "Record results, in both sales and earnings, by our international division were achieved in the fourth quarter and for the full year of 1991.  International division sales in the 1991 fourth quarter were $8.6 million ahead of the prior year's due primarily to continued strength in our business in Germany and sales of equipment in the United Kingdom related to a vehicle emission testing program.
    "The operating loss reported by the company's North American division in the fourth quarter was $1.9 million greater than reported in the prior year's quarter, exclusive of the $2.2 million of restructuring costs provided for in the 1990 fourth quarter.  Contributing substantially to this increased operating loss was a $10.4 million reduction in sales and service revenues as a result of lower sales of emissions testing equipment as no significant state-mandated vehicle emission testing programs were implemented in the fourth quarter of 1991.
    "The effect of the company's North American division's restructuring efforts reduced full year 1991 general and administrative expenses and manufacturing overhead by a total of $6.8 million compared to 1990, although lower production levels in 1991 mitigated much of this benefit.
    "Our debt to total capitalization at Dec. 31, 1991, was 17.7 percent compared to 23.9 percent at Dec. 31, 1990.  Significant reductions in working capital enabled the company to lower its total debt by $12.5 million during 1991.
    "Improving U.S. product line profitability continues to be a major area of emphasis.  I am pleased to report that, in the first quarter of 1992, we will introduce into the U.S. market a new, lower cost PC based diagnostic engine analyzer, a new, lower cost engine analyzer and three new products aimed at capturing the opportunity in automotive freon recovery and recycling.  The lower cost design of our new diagnostic and engine analyzers will allow our customers more affordability.  The further lowering of operating and manufacturing expenses will continue to be a significant priority in 1992.  We believe these important actions will contribute significant improvements to the results of our North American division in 1992, although the poor economic conditions now being experienced in the U.S. will make this an even greater challenge."
    Sun Electric Corp. is primarily engaged in the design, manufacture, marketing and service of diagnostic, test and service equipment, together with information and management systems, for the motor vehicle industry and motor vehicle manufacturers in more than 100 countries.
          SUN ELECTRIC CORP. CONSOLIDATED CONDENSED BALANCE SHEET
    In thousands                    12-31-91     12-31-90
    Cash & equivalents              $  5,058    $  3,143
    Receivables, net                  52,014      63,107
    Inventories                       72,850      79,690
    Total Current Assets             129,922     145,940
    Investments & advances -
    unconsolidated affiliates          1,154       1,311
    Prepaid expenses and other assets  8,318       8,018
    Fixed assets, net                 24,180      27,208
    Total Assets                    $163,574    $182,477
    Notes payable (A)               $ 11,849    $  8,574
    Accounts payable                  16,658      14,426
    Accrued expenses                  29,902      29,560
    Income taxes                       7,495       2,982
    Total Current Liabilities         65,904      55,542
    Long-term debt(A)                  7,192      23,504
    Other non-current liabilities (A)  1,937       1,538
    Shareholders' equity              88,541     101,893
    Total Liabilities and Equity    $163,574    $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
                           3 MONTHS ENDED 12-31   12 MONTHS ENDED 12-31
                                   1991    1990       1991    1990
    Net sales                     $58,302  $60,180  $220,434 $241,969
    Cost of sales                  35,140   35,658   131,905  135,610
    Gross income                   23,162   24,522    88,529  106,359
    Selling, general and
    administrative expenses (B)    22,573   27,008    89,202   95,584
    Income (loss) from operations     589   (2,486)     (673)  10,775
    Other (income) expense:
    Interest (income) expense, net    203     (119)    1,691   (1,884)
    Foreign currency losses           335      324     1,114    2,194
    Net earnings of unconsolidated
    affiliates                       (174)    (219)   (1,043)   (1,123)
    Other (income) expense,net (C)   (228)      71       (62)      688
                                  $   136   $   57   $ 1,700    $ (125)
    Earnings (loss) from continuing
    operations before provision
    for income taxes                   453   (2,543)   (2,373)  10,900
    Provision for income taxes       2,215    1,061     8,268    7,620
    Earnings (loss) from continuing
    operations before extra-
    ordinary charge                 (1,762)  (3,604)  (10,641)   3,280
    Earnings (loss) from discontinued
    operations (D)                   -        -        -          (367)
    Loss on disposal of
    segment (D)                      -        -        -        (1,201)
    Earnings (loss) before
    extraordinary charge            (1,762)  (3,604)  (10,641)   1,712
    Extraordinary charge-reversal
    of benefit of net operating
    loss carryforward (E)            -       (1,209)   -          -
    Net earnings (loss)           $ (1,762) $(4,813) $(10,641) $ 1,712
    Earnings (loss) per common share:
    Continuing operations
    before extraord. charge       $ (.19)  $  (.38)  $ (1.12)    $  .36
    Discontinued operations          -        -        -           (.04)
    Loss on disposal of segment      -        -        -           (.13)
    Extraordinary charge             -        (.13)    -           -
    Net earnings (loss)           $ (.19)    $ (.51)  $ (1.12)    $ .19
    Shares used to calculate
    earnings (loss)
    per common share               9,481      9,455     9,468      8,990
    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
    (Dollar Amounts In Thousands)
    NOTE A:  At Dec. 31, 1991, the company had borrowings outstanding of $4,000 under its United States revolving credit agreement which expires June 30, 1992.  The company is currently negotiating a replacement credit agreement and expects to finalize such agreement during the first quarter of 1992.  The $4,000 outstanding under the existing credit agreement at Dec. 31, 1991, is included in notes payable.
    NOTE B:  Selling, general and administrative expenses for the three and twelve months ended Dec. 31, 1990, includes charges of $2,213 associated with restructuring of manufacturing and distribution operations in the United States.  Selling, general and administrative expenses for the twelve months ended Dec. 31, 1990, includes a $500 charge associated with certain changes in management.
    NOTE C:  Included in other expense, net for the twelve months ended Dec. 31, 1991, are $300 of expenses for legal and investment banking fees related to the investigation of a potential acquisition by the company.
    Other (income) expense, net for the twelve months ended Dec. 31, 1990, includes expenses of $435 associated with the call of the company's debentures and a related standby agreement.
    NOTE D:  In September 1990 the company sold the assets of its Service Station Management Equipment segment.  The company recorded a loss of $1,201, net of tax benefits, on the sale during the third quarter of 1990.  The income (loss) from operations of the segment are reported separately, after interest allocation and net of tax benefits. Prior year amounts have been restated to conform to the current presentation.
    NOTE E: The extraordinary charge recorded by the company for the three months ended Dec. 31, 1990, reflects the reversal of the utilization of tax loss carryforwards recognized in previous 1990 quarters.
    -0-                        2/11/92
    /CONTACT: Martin K. Ellen of Sun Electric, 815-459-7700/
    (SE) CO:  Sun Electric Corp. ST:  Illinois IN: SU:  ERN AH -- NY069 -- 8986 02/11/92 17:26 EST
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