Printer Friendly

THE RIGHT START INC. REPORTS THIRD QUARTER RESULTS

 THE RIGHT START INC. REPORTS THIRD QUARTER RESULTS
 WESTLAKE VILLAGE, Calif., March 12 /PRNewswire/ -- The Right Start


Inc. (NASDAQ: RTST), announced today that for the third fiscal quarter ended Feb. 26, 1992, a net loss of $60,000, or $.01 per share, was incurred, as compared with net income of $294,000, or $.07 per share, a year ago. Revenues for the three-month period rose 7 percent to $5,459,000 from $5,104,000. As announced in January, income was impacted by poor response rates for its 1991 holiday catalog as a result of the recession.
 For the year-to-date period, the company reported revenues advanced to $20,462,000 from $14,703,000 a year ago. Net income amounted to $625,000, equal to $.12 per share, from $915,000, or $.23 per share, for the comparable prior year period.
 Earnings per share amounts were calculated on 65 percent more shares outstanding for the most recent three-month period and 35 percent more shares for the nine-month period due to completion of the company's initial public offering in October 1991.
 Lenny Targon, chief executive officer, said, "While it is unfortunate that our profitability is being adversely affected by the recession, as well as the recent postal and United Parcel increases which continue to depress margins, we are aggressively pursuing opportunities to take advantage of the current economic climate. Accordingly, we believe The Right Start catalog will be staged for growth when the economy begins its recovery and catalog response rates return to pre-recession levels."
 The company's first retail store, opened in November 1991 adjacent to its Westlake Village headquarters, has begun to operate profitably. The company previously announced its intention to test this concept with a major department store chain. "We are very excited about this prospect and hope to conclude negotiations prior to the end of our fiscal year," said Targon.
 Founded in 1985, The Right Start is a leading U.S. mail order catalog company, offering products for infants and children up to age four.
 THE RIGHT START INC.
 Statement of Income
 (In thousands except per share data)
 (Unaudited)
 13 weeks ended 39 weeks ended
 Feb. 26, Feb. 27, Feb. 26, Feb. 27,
 1992 1991 1992 1991
 Net sales and
 other revenues:
 Net sales $5,267 $5,029 $19,824 $14,375
 Other revenues 192 75 638 328
 Total 5,459 5,104 20,462 14,703
 Costs and expenses:
 Product and delivery
 costs 3,126 2,680 11,678 7,927
 Catalog production and
 distribution expense 1,323 941 4,161 2,395
 Other selling expense 931 700 2,902 1,979
 General and administrative
 expense 290 346 964 1,002
 Total 5,670 4,667 19,705 13,303
 Operating income (loss) (211) 437 757 1,400
 Interest and other income 117 22 223 36
 Interest expense --- --- --- (11)
 Income (loss) before
 provision for income taxes (94) 459 980 1,425
 Provision for income taxes 34 (165) (355) (510)
 Net income (loss) ($60) $294 $625 $915
 Earnings (loss) per share ($.01) $.07 $.12 $.23
 Weighted average shares
 outstanding 6,583,333 4,000,000 5,404,960 4,000,000
 -0- 3/12/92
 /CONTACT: Stan Fridstein or Lenny Targon of The Right Start Inc., 818-707-7100; or Elizabeth Gard or Roger S. Pondel of Rifkind Pondel & Parsons, 310-207-9300, for The Right Start/
 (RTST) CO: The Right Start Inc. ST: California IN: REA SU: ERN


EH-JL -- LA023 -- 7529 03/12/92 16:19 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 12, 1992
Words:576
Previous Article:LAMCOR RETAINS INVESTMENT BANKER
Next Article:LTV RECEIVES $42.7 MILLION FOR MLRS ROCKET PRODUCTION
Topics:


Related Articles
AMERICAN RECREATION CENTERS REPORTS RESULTS
AMERICAN RECREATION CENTERS INC. ANNOUNCES THIRD QUARTER RESULTS
THE RIGHT START INC. REPORTS RESULTS
THE RIGHT START INC. ANNOUNCES IMPROVEMENT IN EARNINGS AND REVENUES
THE RIGHT START INC. REPORTS HIGHER
THE RIGHT START INC. REPORTS THIRD QUARTER RESULTS
THE RIGHT START, INC. REPORTS THIRD QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters