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WAXMAN INDUSTRIES REPORTS FOURTH QUARTER AND FISCAL YEAR 1992 RESULTS; DECLARES QUARTERLY DIVIDEND

 WAXMAN INDUSTRIES REPORTS FOURTH QUARTER AND FISCAL YEAR
 1992 RESULTS; DECLARES QUARTERLY DIVIDEND
 BEDFORD HEIGHTS, Ohio, Sept. 8 /PRNewswire/ -- Waxman Industries, Inc. (NYSE: WAX), a leading supplier to the home repair and remodeling market throughout the United States and Canada, today reported results for the fourth quarter and fiscal year ended June 30, 1992.
 Sales for fiscal 1992 totaled $379,042,000 compared with $384,296,000 in the prior year, a decrease of 1.4 percent. The Company's sales in the U.S. increased by 6.1 percent for the year, primarily as a result of the continued growth of its mail order operations. This increase was offset by an 8.4 percent drop in sales at the Company's operations in Canada as a result of the continuing recession in that country.
 Operating income for the year was $28,526,000 versus $30,360,000 last year. Interest expense for the year totaled $25,788,000 compared with $25,438,000 in the prior year.
 The Company's results for fiscal 1992 were affected by nonrecurring charges of $5,100,000 recorded in the fourth quarter. These charges include $1,200,000 related to the Company's restructuring of its Canadian operations. The remaining charge of $3,900,000 represents a capital loss realized upon the sale of the Company's portfolio of debt securities held for investment purposes. The proceeds from the sale of these securities were used by the Company to reduce outstanding indebtedness.
 As a result of these nonrecurring charges, which are primarily non-cash charges, the Company incurred a loss before extraordinary charge for fiscal 1992 of $3,212,000, equal to 33 cents per share, compared with income for fiscal 1991 of $2,228,000, equal to 23 cents per share, on a fully diluted basis. Results for fiscal 1992 were also affected by an extraordinary charge of $1,186,000 (net of tax), equal to 12 cents per share, incurred in the fourth quarter resulting from the early repayment of debt, including the market premium paid for certain of the Company's public debt securities and the accelerated amortization of unamortized discount and debt issuance costs.
 As a result of the nonrecurring charges and the extraordinary charge, the Company incurred a net loss for fiscal 1992 of $4,398,000, equal to 45 cents per share, compared with net income of $2,228,000, equal to 23 cents per share, for fiscal 1991, on a fully diluted basis.
 Sales for the quarter ended June 30, 1992 totaled $98,120,000 compared with $93,038,000 in the fourth quarter of fiscal 1991, a 5.5 percent increase. Fourth quarter sales in the United States were up 17.4 percent over the prior year period, while sales attributable to the Company's operations in Canada were down 6.3 percent.
 Operating income for the quarter totaled $6,970,000, an 18.3 percent increase over the $5,892,000 recorded in the prior year fourth quarter. Interest expense was $6,464,000 for the quarter compared with $5,939,000 in the prior year. As a result of the nonrecurring charges and the extraordinary charge referred to above, the Company incurred a net loss for the fourth quarter of $5,754,000, equal to 54 cents per share, compared with a net loss in the prior year fourth quarter of $893,000, equal to 9 cents per share, on a fully diluted basis.
 Commenting on the year, Armond Waxman, President and Co-Chief Executive Officer, said, "Fiscal year 1992 was a difficult period for the Company, especially in Canada where our operations continued to be affected by the ongoing recession. However, we are encouraged by our results in the United States, especially at our mail order operations, which have continued their steady growth. In addition, we strengthened our financial position during the fourth quarter by completing a public offering of 2,198,900 shares of common stock. As previously announced, the proceeds of the offering were used to repurchase a portion of our 12.25 percent Senior Secured Notes due Sept. 1, 1998.
 "The net loss for the year was a result of taking certain steps which we believe will benefit the Company in the long run, although they resulted in significant nonrecurring charges. We instituted additional reductions in the size of our Canadian operations to maintain that unit's profitability and to better position the Company to take advantage of improvements in the Canadian economy. In addition, we took advantage of an opportunity presented to us to sell our portfolio of investment securities to provide cash for additional repurchases of outstanding indebtedness. Although this transaction resulted in a non- cash charge against earnings, we believe it was an important step in our continuing efforts to reduce the Company's leverage. In total, we repurchased $10,850,000 principal amount of our 12.25 percent Senior Secured Notes and $1,250,000 principal amount of our 13.75 percent Senior Subordinated Notes due June 1, 1999. Although we are disappointed to report a loss for the year, we believe these steps will improve the Company's cash flow and operating results and lead to improved bottom-line results in the future," he concluded.
 Separately, the Company announced that the Board of Directors has declared a quarterly cash dividend of 2 cents per common share, an indicated annual rate of 8 cents per share, payable Sept. 25, 1992 to shareholders of record on Sept. 18, 1992. The company's annual dividend rate had previously been 12 cents per share.
 Waxman Industries, Inc. is a leading supplier to the home repair and remodeling market in the United States and Canada. In the U.S., the Company's plumbing, electrical and hardware products are sold primarily to home improvement centers, warehouse home centers, mass merchandisers, hardware stores, lumber yards and, through its mail order and telemarketing operations, to approximately 30,000 independent retailers, contractors and locksmiths. The Company assembles, packages and markets many of these products under its proprietary trade names. In Canada, the Company is one of the largest suppliers of plumbing and heating products, serving approximately 10,000 customers across Canada, including repair and remodeling contractors, residential and commercial construction contractors and retailers.
 Waxman Industries, Inc.
 Consolidated Income Statements
 Year Ended June 30,
 1992 1991(1)
 (In Thousands, Except Per Share Amounts)
 Net Sales $379,042 $384,296
 Cost of Sales 262,843 269,579
 Gross Profit 116,199 114,717
 Operating Expenses 87,673 84,357
 Operating Income 28,526 30,360
 Interest Expense, net 25,788 25,438
 Nonrecurring Charges 5,100 1,300
 Income (Loss) Before Income Taxes
 and Extraordinary Charge (2,362) 3,622
 Income Taxes 850 1,394
 Net Income (Loss) Before
 Extraordinary Charge (3,212) 2,228
 Extraordinary Charge, Early
 Repayment of Debt 1,186 0
 Net Income (Loss) $ (4,398) $ 2,228
 Primary Earnings Per Share:
 Before Extraordinary Charge $ (.33) $ .23
 Extraordinary Charge $ (.12) $ 0
 After Extraordinary Charge $ (.45) $ .23
 Fully Diluted Earnings Per Share:
 Before Extraordinary Charge $ (.33) $ .23
 Extraordinary Charge $ (.12) $ 0
 After Extraordinary Charge $ (.45) $ .23
 Average Shares Outstanding (2):
 Primary 9,794 9,570
 Fully Diluted 9,794 9,863
 (1) Certain prior year amounts have been reclassified to conform with the June 30, 1992 presentation.
 (2) Average shares outstanding reflect the issuance of approximately 2.2 million shares in May 1992.
 Waxman Industries, Inc.
 Consolidated Income Statements
 Three Months Ended June 30,
 1992 1991(1)
 (In Thousands, Except Per Share Amounts)
 Net Sales $ 98,120 $ 93,038
 Cost of Sales 67,457 65,640
 Gross Profit 30,663 27,398
 Operating Expenses 23,693 21,506
 Operating Income 6,970 5,892
 Interest Expense, net 6,464 5,939
 Nonrecurring Charges 5,100 1,300
 Income (Loss) Before Income Taxes
 and Extraordinary Charge (4,594) (1,347)
 Income Taxes (26) (454)
 Net Income (Loss) Before
 Extraordinary Charge (4,568) (893)
 Extraordinary Charge, Early
 Repayment of Debt 1,186 0
 Net Income (Loss) $ (5,754) $ (893)
 Primary Earnings Per Share:
 Before Extraordinary Charge $ (.43) $ (.09)
 Extraordinary Charge $ (.11) $ 0
 After Extraordinary Charge $ (.54) $ (.09)
 Fully Diluted Earnings Per Share:
 Before Extraordinary Charge $ (.43) $ (.09)
 Extraordinary Charge $ (.11) $ 0
 After Extraordinary Charge $ (.54) $ (.09)
 Average Shares Outstanding (2):
 Primary 10,578 9,459
 Fully Diluted 10,518 9,752
 (1) Certain prior year amounts have been reclassified to conform with the June 30, 1992 presentation.
 (2) Average shares outstanding reflect the issuance of approximately 2.2 million shares in May 1992.
 -0- 9/8/92
 /Contact: Armond Waxman or Jerome Jacques of Waxman Industries, Inc., 216-439-1830; or Patrick Gallagher of Edward Howard & Co., 216-781-2400, for Waxman Industries, Inc./
 (WAX) CO: Waxman Industries, Inc. ST: Ohio IN: SU: ERN


KK -- CL003 -- 6824 09/08/92 08:36 EDT
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Date:Sep 8, 1992
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