THE GNI GROUP REPORTS BEST EVER SECOND QUARTER RESULTS
THE GNI GROUP REPORTS BEST EVER SECOND QUARTER RESULTS HOUSTON, Texas, Jan. 21 /PRNewswire/ -- The GNI Group, Inc.
(NASDAQ: GNUC), today reported that cost containment measures, an improved pricing structure for services, and increased market penetration resulted in significantly better operating results for the quarter ended Dec. 31, 1991, compared to the previous year's quarter. Revenues for the period were the second highest in the company's history and the best ever reported for a December quarter.
Revenues of $4,863,716 for the quarter ended Dec. 31, 1991, were only 3 percent higher than revenues of $4,715,309 for the comparable quarter in 1990, but levels of profitability were up substantially. Gross margins in the most recent quarter climbed to 39 percent from 32 percent in the comparable quarter last year. Operating income of $464,748 in the most recent period was 95 percent higher than operating income of $238,739 the previous year and resulted in net income of $130,355 or $.03 per share for the quarter ended Dec. 31, 1991, compared to a loss of $71,591 or a loss of $.02 per share for the year-ago quarter. Contributions to revenues from GNI's environmental services operation strengthened in the most recent quarter, primarily as the result of successful target marketing for treatment and disposal services. A strategic marketing program is also attracting new customers in the Gulf Coast area and broadening the company's reach outside the area for all of GNI's environmental services. Carl V Rush Jr., president and chief executive officer, said, "We are pleased with the financial results achieved in the second quarter and with the success the management team has achieved in meeting the high goals set for them this year. One area in which particular success has been achieved is the development and processing of a line of chemical products for GNI's own account. We now have the required inventory levels of selected products on hand to capture the large volume end user's long-term account. We believe that strategically, this approach is financially and operationally more advantageous than selling our products in the spot market. Therefore, we have, to date, limited product sales; however, the imminent sale of these products to large volume customers will soon begin generating revenues and profits for GNI." Rush also said, "We have proceeded with the construction of additional process equipment that takes advantage of the flexibility that was originally engineered into the chemical processing plant. This expansion will allow us to develop additional products for GNI's own account, while at the same time freeing up capacity in the plant for customer processing." GNI's financial results for the six months ended Dec. 31, 1991, benefited from the improvements in the second quarter following the recession-impacted soft first quarter. Net income for the most recent six months was $92,004 or $.02 per share on revenues of $8,540,867 compared to net income of $16,157 or $.00 per share on revenues of $9,427,432 for the six months the previous year. The GNI Group, headquartered in Deer Park, Texas, provides a broad range of integrated hazardous waste management services and custom chemical processing for over 300 major industrial customers across the United States. THE GNI GROUP INCORPORATED Consolidated Statements of Operations (Unaudited) Three months ended Dec. 31 1991 1990 Net revenues $4,863,716 $4,715,309 Operating income 464,748 238,739 Income (loss) before tax 216,733 (120,280) Net income (loss) 130,355 (71,591) Net income (loss) per share $ .03 $ (.02) Weighted average shares 4,440,172 4,498,855 Six months ended Dec. 31 1991 1990 Net revenues $8,540,867 $9,427,432 Operating income 648,977 656,316 Income before tax 158,627 31,071 Net income 92,004 16,157 Net income per share $ .02 $ -- Weighted average shares 4,434,988 4,557,932 NOTE: As reported on Aug. 13, 1991, results for the three- and six-month periods ended Dec. 31, 1990, have been restated to expense deferred costs relating to a public offering of securities which management elected not to pursue. -0- 1/21/92 /CONTACT: Titus H. Harris III, executive vice president and CFO of the GNI Group, 713-930-0350; or Pat Hoyt of Hoyt & Associates, 713-665-2549, for the GNI Group/ (GNUC) CO: The GNI Group, Inc. ST: Texas IN: SU: ERN
GK -- NY021 -- 1734 01/21/92 10:48 EST
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|Date:||Jan 21, 1992|
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