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VIDEO DISPLAY CORPORATION REPORTS FOURTH QUARTER AND FISCAL 1993 RESULTS

 ATLANTA, June 1 /PRNewswire/ -- Video Display Corporation (NASDAQ-NMS: VIDE) today reported net sales for the fiscal year ended Feb. 28 of $61.0 million, a 12 percent increase over full-year net sales of $54.5 million reported last year.
 The company reported a net loss of $796,000 or a loss of $0.19 per share vs. net income of $1.7 million or $0.41 per share for the comparable period a year ago. The results reflected a one-time charge of $2.1 million relating to the company's restructuring and reorganization of its electron gun division.
 Net sales for the fourth quarter ended Feb. 28 were $14.1 million, compared with $14.6 million the same fiscal quarter a year ago. The company reported a net loss of $1.7 million or a loss of $0.41 per share, compared with net income of $222,000 or $0.05 per share the same period last year, again reflecting the effect of a one-time restructuring and reorganization charge of $2.1 million.
 While sales for the full year increased, full-year results were negatively influenced by a fourth quarter restructuring and reorganization charge of approximately $2.1 million during the fourth quarter and a third quarter write down (realized loss) on an equity investment in the amount of $820,000. Management noted the restructuring and reorganization charge of $2.1 million during the fourth quarter primarily represented write-offs of intercompany receivables, inventory, and estimated charges for restructuring the electron gun division. The division's emphasis on transferring the manufacturing of low-priced electron guns to Mexico has been re- evaluated and the write-offs reflect a reduced value for certain assets. Excluding the restructuring and reorganization charge, fiscal 1993 net income was $537,000 or $0.13 per share.
 Another factor contributing to reduced earnings was the start-up expenses for the company's Monterrey, Mexico, recycling facility. These expenses totaled approximately $713,000 and were not tax deductible; therefore, they represented a loss of $0.17 for the full year.
 "We were pleased with the increased sales, but net income results, however, were disappointing," said Ronald D. Ordway, chairman and chief executive. "Focusing on some of the more favorable events during fiscal 1993, Video Display significantly decreased its interest expense by entering into a loan refinancing arrangement with SouthTrust Bank; the United States Air Force selected the company to refurbish CRTs (cathode ray tubes) for use in the AWACS display monitors; Vanco established a relationship with a national retailer to ship small consumer electronic accessories to stores throughout the Southeast; Fox International completed the installation of a centralized computer system which will allow for decreased overhead expenses and more efficient inventory control; and Video was honored by NCR as one of its leading suppliers. In view of these developments, we expect that fiscal 1994 will be a year in which we report more favorable results."
 Ordway added: "During the fourth quarter, Video Display entered into an agreement with NEC Technologies, Inc. Service Department wherein the company will supply recycled and new projection CRTs for the entire consumer electronics division requirements in television receivers. We are pursuing similar programs in this area with other major projection television receivers and color monitors."
 Atlanta-based Video Display Corporation, with CRT remanufacturing and component parts manufacturing facilities in seven U.S. locations, two in Mexico, one in the United Kingdom, and one in India, is the world's leader in its industry. The combination of Fox International and Vanco, divisions of Video Display Corporation, makes this segment of the company one of the largest domestic distributors of consumer electronic parts and accessories.
 VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 3 mos. ended 12 mos. ended
 2/28/93 2/29/92 2/28/93 2/29/92
 Net sales $14,074,000 $14,585,000 $61,017,000 $54,509,000
 Cost of goods sold 10,430,000 10,000,000 41,091,000 35,432,000
 Gross profit 3,644,000 4,585,000 19,926,000 19,077,000
 Operating expenses:
 Selling and delivery 1,353,000 1,788,000 5,366,000 5,041,000
 General and admin. 2,229,000 2,004,000 10,517,000 9,897,000
 Restructuring and
 reorganization chg. 2,066,000 --- 2,066,000 ---
 Total 5,648,000 3,792,000 17,949,000 14,938,000
 Operating profit (2,004,000) 793,000 1,977,000 4,139,000
 Other income (expense):
 Interest expense (270,000) (330,000) (1,366,000) (1,714,000)
 Equity in net earnings
 (losses) of
 affiliates (130,000) 63,000 (130,000) 273,000
 Loss on investment
 in affiliate --- --- (820,000) ---
 Other, net (27,000) (11,000) 5,000 66,000
 Total (427,000) (278,000) (2,311,000) (1,375,000)
 Income (loss) before
 minority interest and
 income taxes (2,431,000) 515,000 (334,000) 2,764,000
 Minority interest 1,000 11,000 (3,000) 2,000
 Income (loss) before
 income taxes 2,430,000 526,000 (331,000) 2,762,000
 Income taxes (734,000) 304,000 465,000 1,074,000
 Net income (loss) $(1,696,000) $ 222,000 $ (796,000) $1,688,000
 Earnings (loss) per
 share of common stk. $(.41) $0.05 $(.19) $0.41
 Wtd. average number
 of shares 4,120,000 4,121,000 4,120,000 4,121,000
 -0- 6/1/93
 /CONTACT: Ronald D. Ordway, chairman and chief executive of Video Display, 404-938-2080, or Janice J. Kuntz of A. Brown-Olmstead Associates, 404-659-0919, for Video Display/
 (VIDE)


CO: Video Display Corporation ST: Georgia IN: CPR SU: ERN

BR-BN -- AT013 -- 4168 06/01/93 17:47 EDT
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Date:Jun 1, 1993
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