TELECOM REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
TELECOM REPORTS THIRD QUARTER AND NINE MONTHS RESULTS DALLAS, Nov. 5 /PRNewswire/ -- TeleCom Corporation (NYSE: TEL) today
reported a net loss of $732,000 ($0.20 per share) with revenues of $12.8 million for the third quarter ended Sept. 30, 1991 compared to a net loss of $297,000 ($0.08 per share) with revenues of $13.3 million for the third quarter ended Sept. 30, 1990.
For the nine months ended Sept. 30, 1991, TeleCom Corporation reported net income of $6,000 ($0.00 per share) with revenues of $40.8 million compared to net income of $398,000 ($0.11 per share) with revenues of $41.6 million for the same period in 1990. The results for 1991 reflect the following items: (1) loss before an extraordinary item of $398,000 ($0.11 per share); and (2) an extraordinary gain, net of tax, on forgiveness of debt of $404,000 ($0.11 per share). Included in the results for the three months and nine months ended Sept. 30, 1991 is an allowance of approximately $838,000 for the previously disclosed loss incurred on the sale of Meyer Conveyair, Inc., on Oct. 11, 1991. TeleCom also reported that the operating results for the year have been adversely impacted by the continuing weak economy. As a result, revenues as well as gross profit margins and dollars remain below the prior year's levels. Management reported that it continues to be concerned about the weak economy and the negative impact it has had on the company's operations. During the third quarter, management began a complete re-evaluation of its operations to determine what steps can be taken to improve the operating results of the company and how to best maximize the value of TeleCom's stock for its shareholders. Until such steps can be completed and in response to the results incurred to date, certain expense reductions have been made in parent company overhead which are expected to result in annualized savings of approximately $262,000. These reductions include an average 12.5 percent reduction in the base compensation of the company's executive officers. TeleCom Corporation has interests in the manufacture of specialized conveying and processing equipment for the food industry and the wholesale distribution of air conditioning and heating products, as well as souvenir, novelty and gift items. TELECOM CORPORATION AND SUBSIDIARIES Summary of Results (Unaudited) (In Thousands, except per share amounts) Period ended Three Months Nine Months Sept. 30; 1991 1990 1991 1990 Revenue $12,785 $13,253 $40,774 $41,612 Income (loss) before extraordinary item (A) $ (732) $ (297) $ (398) $ 398 Extraordinary item: Gain on forgiveness of debt, net of the effect of income taxes of $ 208 -- -- 404 -- Net Income (loss) $ (732) $ (297) $ 6 $ 398 Weighted average number of common shares 3,699 3,699 3,699 3,699 Earnings per share: Before extraordinary item $ (.20) $ (.08) $ (.11) $ .11 Extraordinary item -- -- .11 -- Net income (loss) $ (.20) $ (.08) $ -- $ .11 (A) -- Includes an allowance for a loss of approximately $838,000 incurred on the sale of subsidiary in 1991. -0- 11/5/91 /CONTACT: Larry Marek of TeleCom, 214-638-0638/ (TEL) CO: TeleCom Corporation ST: Texas IN: HOU SU: ERN FC -- NY079 -- 1430 11/05/91 17:17 EST
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|Date:||Nov 5, 1991|
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