UNIVERSAL INTERNATIONAL ANNOUNCES SECOND QUARTER RESULTS
UNIVERSAL INTERNATIONAL ANNOUNCES SECOND QUARTER RESULTS MINNEAPOLIS, July 31 /PRNewswire/ -- Universal International, Inc.
(NASDAQ-NMS: UNIV) today announced financial results for its second quarter ended June 30, 1992. The company reported revenues of $15,954,465 for the quarter, with a net loss of $247,822 or $.05 per share. This compares with revenues of $13,982,549 and net income of $386,285 or $.12 per share in the second quarter of 1991. For the six months ended June 30, 1992, Universal had revenues of $31,658,451, with a net loss of $497,107 or $.10 per share. In the first six months of 1991, the company had revenues of $29,691,102, with net income of $1,026,928 or $.31 per share.
Revenues during the second quarter included wholesale volumes increasing slightly over the same quarter of 1991, and the addition of retail revenues which were not present in 1991. Gross margins were consistent with 1991, representing a decline in gross margins in the wholesale business offset by higher gross margins attributable to retail operations. Expenses increased compared to the 1991 quarter due to the costs of establishing a retail infrastructure and the generally higher cost ratios of operating the retail business versus a wholesale business. Also, expenses in the wholesale business were at a higher overall level than 1991, in part due to an increase of $275,000 in the allowance for doubtful accounts receivable. In addition, Universal International announced the opening of its 10th and 11th Only Deals stores in the Ridgedale Shopping Center in Minnetonka, Minn., and the Signal Hills Shopping Center in West St. Paul, Minn. An opening is scheduled in early August for the 12th store in St. Cloud, Minn. The company is still working towards the goal of having between 22 to 32 stores open by the Christmas season this year and significant progress was made in improving both the operating and merchandising of the Only Deals stores during the quarter. Mark Ravich, chief executive officer, commented: "We are disappointed with our second quarter, and have implemented many steps in an effort to control expenses going forward. The continued weakness of the overall economy continues to impact our wholesale gross margins and our accounts receivable as shown by the bankruptcy filings of two customers owing us $215,000 during the quarter. Our stores are performing better than during the first quarter and although performance is not yet where it needs to be, we are optimistic about the long term effect of the improvements to date. A decision to begin implementing point of sale technology into the stores during the next six months will build a stronger base of information to help us maximize store performance over both the short and long term." Universal International, Inc. buys and sells quality "close-out" merchandise in its traditional wholesale business and is developing a chain of Only Deals retail stores that offer merchandise priced from $1 to $10. Universal's shares are traded on the NASDAQ National Market System under the symbol UNIV. UNIVERSAL INTERNATIONAL, INC. Selected Consolidated Income Statement and Consolidated Balance Sheet Information (In thousands, except per share amounts) Three Months Ended Six Months Ended 6/30/92 6/30/91 6/30/92 6/30/91 Revenues $15,954 $13,983 $31,658 $26,691 Gross margin 3,803 2,696 5,978 5,628 Net income (loss) $(248) $386 $(497) $1,027 Earnings (loss) per share $(.05) $.12 $(.10) $.31 Weighted average shares outstanding 4,893 3,294 4,750 3,288 6/30/92 6/30/91 Working capital $28,958 $8,546 Total assets 36,301 $24,862 Shareholders' equity 27,262 9,246 -0- 7/31/92 /CONTACT: Mark Bartholomay of Universal International, 612-533-1169/ (UNIV) CO: Universal International, Inc. ST: Minnesota IN: REA SU: ERN
AL -- MN010 -- 5732 07/31/92 15:52 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 31, 1992|
|Previous Article:||NATIONAL COMMERCIAL BANK REACHES AGREEMENT FOR AMENDED PLAN FOR VOLUNTARY LIQUIDATION OF NEW YORK CITY BRANCH OFFICE|
|Next Article:||AMERICAN BANK NOTE HOLOGRAPHICS EMPLOYS TECHNOLOGY USED SUCCESSFULLY AT DEMOCRATIC CONVENTION IN NEW YORK|