Printer Friendly

WILLCOX & GIBBS' 1991 RESULTS DECLINE

 WILLCOX & GIBBS' 1991 RESULTS DECLINE
 NEW YORK, March 17 /PRNewswire/ -- John K. Ziegler, chairman of


Willcox & Gibbs, Inc. (NYSE: WG), today announced that 1991 sales increased by approximately 6 percent to $599.7 million compared with $568.1 million a year ago. The 1991 results include a full year's sales for Filix Lastex SA ("Filix"), a French manufacturer of covered yarn acquired in August 1990. Sales declined 4 percent, excluding the effects of the Filix acquisition, reflecting the continued weakness in the U.S. economy.
 The company reported 1991 net income of $.2 million, down from $5.5 million in 1990. Earnings per share were $.02 compared with $.40 in 1990. Net income in 1991 included an after-tax extraordinary charge of $1.4 million resulting from the company's previously announced redemption on Aug. 16, 1991 of its outstanding 13 percent senior subordinated notes due April 15, 1997 and includes the write-off of unamortized discount and expense of these notes. The 1991 results also include $6.4 million in charges related to certain restructuring actions initiated by the company, including the disposal of certain operations that do not match the potential of the company's core businesses. These operations, consisting principally of two apparel-related units and two data communications subsidiaries, had sales of $27.3 million and a $4.0 million operating loss in 1991.
 Excluding 1991 and 1990 ($2.8 million) restructuring charges and the extraordinary charge in connection with the redemption of the 13 percent bonds, earnings per share were $.45 in 1991 compared with $.53 in the prior year.
 The quarter ended Dec. 31, 1991, had sales of $152.8 million compared with $144.8 million a year ago. The net loss for both quarters was $2.7 million.
 Excluding the previously mentioned restructuring charge, fourth quarter net income was $1.8 million, or $.13 per share, compared with a net loss of $2.7 million, or $.20 per share, in the prior year. The fourth quarter 1990 results included $4.0 million of charges, net of taxes, principally for provisions for certain allowance accounts and other adjustments. Increases in sales and operating profits during the fourth quarter over 1991 were reported in the covered yarn and apparel parts and supplies divisions. However, the electrical distribution division continued to report sales and operating profits below the prior year.
 The company's board of directors has determined to suspend its past practice of paying a cash dividend on its common stock, until the economy improves.
 Willcox & Gibbs is a distributor of industrial parts and supplies and a specialty manufacturer of covered yarn.
 WILLCOX & GIBBS, INC., AND SUBSIDIARIES
 (000s omitted)
 Periods ended Year Three Months
 Dec. 31 1991 1990 1991 1990
 Net sales $599,686 $568,094 $152,799 $144,759
 Income (loss) before
 income taxes and
 extraordinary charge 4,508 8,770 (2,850) (3,678)
 Provision (benefit)
 for income taxes 2,824 3,256 (266) (976)
 Income (loss) before
 extraordinary charge 1,684 5,514 (2,584) (2,702)
 Extraordinary charge, net 1,436 -- 143 --
 Net income $ 248 $ 5,514 $ (2,727) $ (2,702)
 Income (loss) per common
 and common equiv. shares:
 Income (loss) before
 extraordinary charge $.12 $.40 $(.19) $(.20)
 Extraordinary charge, net .10 -- .01 --
 Net income (loss) $.02 $.40 $(.20) $ .20
 Average number of common
 and common equiv. shares 13,711 13,727 13,710 13,614
 -0- 3/17/92
 /CONTACT: Richard J. Mackey, president of Willcox & Gibbs, 212-869-1800/
 (WG) CO: Willcox & Gibbs, Inc. ST: New York IN: TEX SU: ERN


GK-OS -- NY012 -- 8683 03/17/92 09:57 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 17, 1992
Words:593
Previous Article:/C O R R E C T I O N -- CSP INC./
Next Article:INTELLIGENT ELECTRONICS ANNOUNCES NEW EXECUTIVE VICE PRESIDENT
Topics:


Related Articles
WILLCOX & GIBBS ANNOUNCES SPIN-OFF OF COVERED YARN DIVISION AND SALE OF STOCK
WILLCOX & GIBBS POSTS 58 PERCENT GAIN IN FIRST QUARTER PROFITS
WILLCOX & GIBBS POSTS 100 PERCENT GAIN IN SECOND QUARTER PROFITS
WILLCOX & GIBBS REPORTS THIRD QUARTER RESULTS
WILLCOX & GIBBS DECLARES SPIN-OFF OF COVERED YARN DIVISION AND CONSUMMATES SALE OF STOCK
WILLCOX & GIBBS AGREES TO ACQUIRE SACKS ELECTRICAL SUPPLY
WILLCOX & GIBBS 1992 RESULTS DECLINE
WORLDTEX, INC. REPORTS FOURTH QUARTER RESULTS
WORLDTEX, INC. ELECTS NEW CEO
Willcox & Gibbs Reports 1997 Results

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters