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
admin. exp. 1,192,000 1,266,000 2,204,000 2,239,000
(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
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
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
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'
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
/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