TELECOM CORPORATION ANNOUNCES FIRST QUARTER RESULTS
TELECOM CORPORATION ANNOUNCES FIRST QUARTER RESULTS DALLAS, April 29 /PRNewswire/ -- TeleCom Corporation (NYSE: TEL)
today reported a net loss of $303,000 ($0.08 per share) on revenues of $11.9 million for the first quarter ended March 31, 1992, as compared to net income of $522,000 ($0.14 per share) with revenues of $12.8 million for the first quarter ended March 31, 1991. The results for 1991 reflect the following items: (1) income before extraordinary item of $118,000 ($0.03 per share); and (2) an extraordinary gain, net of tax, on forgiveness of debt of $404,000 ($0.11) per share).
Factors contributing to the $900,000 decrease in revenue, when compared to 1991 are (1) loss of $1.4 million in revenue from Meyer Conveyair which was sold in 1991, (2) a decline in sales at Meyer Machine and Meyer Vi-Tech due to the continuing recession and (3) a decline in revenue at Allen-Lewis resulting from delays in shipments from suppliers. These decreases were offset by (1) a $1.6 million increase in revenue at Comfort Supply due to a strong sales effort and general improvement in Comfort Supply's market and (2) an increase at Meyer Tempco due to improved market acceptance of its product line. Management does not expect the decline in revenue at Meyer Machine, Meyer Vi-Tech and Allen-Lewis to be indicative of expected results for the balance of 1992 as backlogs and bookings as of March 31, 1992 were up significantly when compared to the amounts at March 31, 1991. The loss recorded for the first quarter of 1992, as compared to income before extraordinary item in 1991, is primarily the result of lower gross profit due to the decline in sales mentioned above, a lower gross profit margin due to a change in the sales mix and an additional loss on the sale of Meyer Conveyair of $100,000 resulting from the resolution of a dispute over certain purchase price adjustments. TeleCom Corporation has interests in the manufacture of specialized conveying and processing equipment primarily for the food, pharmaceutical and chemical industries and in the wholesale distribution of air conditioning and heating products, as well as souvenir, novelty and gift items. TELECOM CORPORATION AND SUBSIDIARIES Summary of Operations (In thousands, except per share amounts - Unaudited) Three Months ended March 31; 1992 1991 Revenues $ 11,871 $ 12,797 Income (loss) before extraordinary item $ (303) $ 118 Extraordinary item: Gain on forgiveness of debt net of the effect of income taxes of $208 -- 404 Net income (loss) $ (303) $ 522 Weighted average number of common shares outstanding 3,699 3,699 Earnings (loss) per share: Before extraordinary item $ (.08) $ .03 Extraordinary item -- .11 Net income (loss) $ (.08) $ .14 -0- 4/29/92 /CONTACT: Larry T. Marek of TeleCom Corporation, 214/638-0638/ (TEL) CO: TeleCom Corporation ST: Texas IN: SU: ERN
LR -- NY090 -- 4634 04/29/92 17:49 EDT