THE LVI GROUP REPORTS LOSS FOR THIRD QUARTER 1991
THE LVI GROUP REPORTS LOSS FOR THIRD QUARTER 1991 NEW YORK, Nov. 15 /PRNewswire/ -- The LVI Group Inc. (NYSE: LVI)
reported a net loss applicable to common stock for the third quarter ended Sept. 30, 1991 of $43,107,000, as compared to a loss of $18,783,000 for the similar period in 1990. Over $42.0 million of the loss was due to the discontinuance of the company's interior construction business and the reduction of the carrying value of the plant of the company's Energy Recovery facility to zero.
The company incurred a third quarter operating loss of $35,000 as compared to an operating loss of $624,000 in the third quarter of 1990 and a loss from continuing operations before extraordinary item of $1,012,000 compared to a loss of $5,931,000 for a similar period in 1990. The gross profits of the company's asbestos abatement and electrical distribution business segments increased in the third quarter of 1991 as compared to the third quarter of 1990. Revenues for the quarter ended Sept. 30, 1991 were $10,779,000 as compared to $14,528,000 for the same quarter ended Sept. 30, 1990. For the first nine months of 1991, the net loss applicable to common stock was $32,786,000 on revenues of $30,323,000, as compared to a net loss applicable to common stock of $22,587,000 on revenues of $36,555,000 for the same period in 1990. The loss for the nine months of 1991 translated to $.116 per share applicable to common stock on a weighted average of 281,738,000 common shares outstanding, compared to a loss of $1.055 per share applicable to common stock on a weighted average of 21,409,000 common shares outstanding for the comparable period in 1990. As previously reported, the decision to discontinue the company's interior construction business was prompted by the effect of the general economic slowdown and adverse publicity regarding the company's financial condition prior to the company's debt restructuring in March 1991, which affected its ability to attract significant new construction business. In the third quarter of 1991, the company wrote-off its remaining carrying value of its Energy Recovery facility which, together with the write-off relating to the interior construction business, resulted in a loss from discontinued operations of over $42.0 million. The company's efforts will now be directed to increasing the profitability of its two remaining business segments by increasing their market share while creating a financial and working capital structure to achieve that goal. LVI GROUP, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (dollars in thousands, except per share amounts -- unaudited) Period ended Three months Nine months Sept. 30 1991 1990 1991 1990 Revenue earned $10,779 $14,528 $30,323 $36,555 Loss from cont. opers. before extraord. item (1,012) (5,931) (5,455) (13,007) Income (loss) from discont. opers. (42,095) (12,852) (48,021) (11,304) Loss before extraord. item (43,107) (18,783) (53,476) (24,311) Extraord. item: Gain on early extinguishment of debt -- -- 20,690 1,724 Net income (loss) applicable to common stock (43,107) (18,783) (32,786) (22,587) Net income (loss) per common share: From cont. opers. bef. extraord. item $(.002) $(.276) $(.019) $(.608) From discont. opers. (.110) (.599) (.170) (.528) Extraord. item -- -- .073 .081 Net income (loss) per common share $(.112) $(.875) $(.116) $(1.055) Wtd. avg. no. of comm. shrs. outstanding (000) 383,441 21,463 281,738 21,409 Net income (loss) per common share is calculated by dividing net income (loss) applicable to common stock by the weighted average number of common shares outstanding during the periods. Fully diluted earnings pea?re is not shown since the effect would be insignificant for each of the periods. -0- 11/15/91 /CONTACT: Burton T. Fried, president of The LVI Group, 212-951-3660/ (LVI) CO: The LVI Group, Inc. ST: New York IN: SU: ERN SH-OS -- NY065 -- 1617 11/15/91 14:28 EST
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|Date:||Nov 15, 1991|
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