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WELLS-GARDNER EARNINGS UP 36 PERCENT FOR THE SECOND QUARTER; MAJOR CUSTOMER ANNOUNCES EXPANSION INTO AUSTRALIAN & CANADIAN VLT MARKETS

     WELLS-GARDNER EARNINGS UP 36 PERCENT FOR THE SECOND QUARTER; MAJOR
     CUSTOMER ANNOUNCES EXPANSION INTO AUSTRALIAN & CANADIAN VLT MARKETS
    CHICAGO, Aug.7 /PRNewswire/ -- Wells-Gardner (ASE: WGA) today reported a 36 percent jump in net earnings for its second quarter ended June 30, 1992.  Net earnings increased to $ 970,000, or $0.25 a share, from $ 710,000, or $0.19 a share, in the year earlier quarter.  Sales rose 13 percent to $14,486,000 from $12,828,000 in the same three months a year ago.  These results confirm previously disclosed estimates.
    For the six months, net earnings grew to $1,044,000, or $0.27 a share, from $40,000, or $0.01 a share, during the first half of 1991. Sales increased 22 percent to $25,075,000 from $20,537,000 during the year-ago period.
    The company had 3,895,005 weighted average common and common equivalent shares outstanding in the recent quarter and 3,912,064 for the six months.  There were 3,766,195 and 3,766,231 average common and common equivalent shares in the 1991 quarter and six months, respectively.
    "Our improved profitability was due to two factors: First, our previously announced restructuring was fully implemented by mid-second quarter and accounted for more than half of the earnings increase. Three-and-a-half cents of the six cents earnings increase was a direct benefit of this program," stated Frank J. Myers, chairman and chief executive officer.
    "The balance of the increased earnings was a result of higher sales. The higher sales reflect strengthening across all our product lines. The greatest year-to-year increase was in the highly-profiled video lottery terminal (VLT) market.  Sales of video monitors to this market were about three times greater this quarter than the second quarter 1991 and accounted for almost 18 percent of total corporate sales for the quarter,"  Myers noted.
    "VLTs continue to offer exciting growth potential.  During this past week one of our major customers, Video Lottery Technologies, Inc. (VLTS), announced that it had received approval from the Victorian Gaming Commission in Melbourne, Australia to market and distribute its terminals in the state of Victoria.  In July, this same customer announced that it was one of two venders chosen for the Alberta, Canada video lottery.  Also in late July, Rhode Island became the fifth state to approve video lottery in this country.  Continuing revenue shortfalls in governmental jurisdictions units worldwide present a compelling case for expansion of this proven revenue producer.
    "Exports grew 50 percent from a year-ago and accounted for 20 percent of total sales.  This increased international business resulted from higher demand for video monitors from both the coin-operated and VLT markets.
    "Of particular note is the increased demand from our automotive diagnostic equipment customers.  After several soft quarters, sales are up more than 18 percent in this quarter from the year-ago second quarter," Myers added.
    "The financial strength of the company remains solid.  The current ratio is 3.12 to 1.00; shareholders equity is $ 3.39 per share, and we have no long term debt,"  Myers said.
    "We are encouraged by the indicators we are witnessing.  The VLT market continues to gain attention, domestically and internationally; there are several promising new coin-operated video games being readied for market, and the automotive after-market we serve continues to firm. These ingredients, combined with our strong financial capabilities, encourage us to be optimistic about the future growth potential for the markets we serve and our ability to capitalize on those opportunities," Myers concluded.
    Wells-Gardner Electronics Corporation is a video products company. It designs and manufactures color and monochrome video monitors for sale to the business and industrial markets.  It has a customer base that is growing both domestically and internationally.
                 WELLS-GARDNER ELECTRONICS CORPORATION
               Condensed Statement of Income (Unaudited)
    Period Ended June 30     Three Months          Six Months
                           1992          1991    1992       1991
    Net Sales        $14,486,000  $12,828,000 $25,075,000  $20,537,000
    Cost of sales     12,323,000   10,827,000  21,844,000   18,316,000
    Selling and
     admin. exp.       1,192,000    1,266,000   2,204,000    2,239,000
    Other exp.
     (income) net          1,000      (45,000)    (17,000)     (71,000)
    Total costs, exp.
     and other income
     and exp., net    13,516,000   12,048,000   24,031,000  20,484,000
    Earnings before
     inc. taxes          970,000      780,000    1,044,000      53,000
    Income taxes         391,000       70,000      403,000      13,000
    Net earns from
     cont. opers         579,000      710,000      641,000      40,000
    Net earns from
     extraord item-tax
     loss carryfwd       391,000         --         403,000        --
    Net Earnings     $   970,000  $   710,000   $ 1,044,000  $  40,000
    Earns per share from
     cont. opers     $       .15  $       .19   $       .17   $    .01
    Earnings per share from
     extraord item --
     tax loss carryfwd       .10         --             .10        --
    Earnings per share    $  .25     $    .19    $      .27    $   .01
    Weighted avg. common
     and common equiv.
     shares outstdg.   3,895,005    3,766,195     3,912,064  3,766,231
                     WELLS-GARDNER ELECTRONICS CORPORATION
                              Condensed Balance Sheet
                                  June 30, 1992       December 31, 1991
                                    (Unaudited)            (Audited)
    Assets:
    Cash and Short Term
     Investments                   $    323,000        $    423,000
    Refundable Income Taxes             192,000             265,000
    Accounts Receivable               7,954,000           5,716,000
    Inventory                         7,812,000           7,839,000
    Other Current Assets                256,000             309,000
    Total Current Assets             16,537,000          14,552,000
    Long Term Bond                       25,000              25,000
    Net Properties and Equipment      2,188,000           1,970,000
    Total Assets                   $ 18,750,000        $ 16,547,000
    Liabilities and Shareholders'
     Equity:
    Current Liabilities            $  5,306,000        $  4,188,000
    Deferred Taxes                      217,000             217,000
    Shareholders' Equity             13,227,000          12,142,000
    Total Liabilities and
     Shareholders' Equity           $ 18,750,000        $ 16,547,000
    -0-                         8/7/92
    /CONTACT:  Rick Conquest, chief financial officer, 312-252-8220, or Bruce Marcus, New York 212-580-0703, or Largent Parks, Dallas 214-387-4520, or Earle Brown, Ohio 813-796-1452, or Tim King, Los Angeles 213-541-4415, all of Wells-Gardner, or Gale Strenger of The Investor Relations Company, 708-564-5610, for Wells Gardner/
    (WGA) CO:  Wells Gardner ST:  Illinios IN:  CPR SU:  ERN LD -- NY003 -- 7894 08/07/92 09:01 EDT
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Date:Aug 7, 1992
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