WTC INDUSTRIES, INC. REPORTS THIRD QUARTER RESULTS
WTC INDUSTRIES, INC. REPORTS THIRD QUARTER RESULTS MINNEAPOLIS, Nov. 13 /PRNewswire/ -- WTC Industries, Inc.
(NASDAQ: WTCO) reported today the results of the third quarter. Net sales for the third quarter ended Sept. 30, 1992 were $661,468 compared to $1,845,807 for the same quarter last year. Such comparison to the year-ago period reflects the effect of a $1.5 million non-recurring sale made to a single customer in the third quarter last year.
The net loss for the third quarter this year was $164,781, or $0.09 per share, compared to net income of $499,239, or $.40 per share, in the same quarter last year. The net loss primarily resulted from the decline in net sales, as well as increased selling, general, and administrative expenses. The increase in selling, general, and administrative expenses reflects increased travel and trade show expenses, legal fees, outside selling commissions, and higher expenses related to public relations and the preparation of new marketing materials and product brochures. Gross profit declined to $361,244 in the third quarter this year from $882,635 in the comparable quarter last year. Gross profit margin as a percentage of net sales, however, increased to 54.6 percent during the third quarter this year, compared to 47.8 percent last year. WTC Industries, Inc. holds the exclusive rights to manufacture and market the patented PentaPure(R) resin worldwide. The company supplies water purification devices for consumer, industrial, and OEM applications. WTC INDUSTRIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Sept. 30 1992 1991 Net Sales $661,468 $1,845,807 Cost of Goods Sold 300,224 963,172 Gross Profit 361,244 882,635 Expenses Research and development 23,090 2,686 Selling, general, and administrative 511,680 366,155 -- 534,770 368,841 Income (Loss) from Operations (173,526) 513,794 Other Income 11,139 3,445 Net Income (Loss) Before Income Taxes (162,387) 517,239 Income Taxes (2,394) (155,700) Income (Loss) Before Extraordinary Item (164,781) 361,539 Extraordinary Item - Utilization of Operating Loss Carryforward 0 137,700 Net Income (Loss) $(164,781) $499,239 Net Income (Loss) per Common Share Primary Income (loss) before extraordinary item $(0.09) $0.29 Extraordinary item 0.00 0.11 Net income (loss) $(0.09) $0.40 Fully diluted Income (loss) before extraordinary item $(0.09) $0.27 Extraordinary item 0.00 0.10 Net income (loss) $(0.09) $0.37 Weighted Average Number of Shares Outstanding Primary 2,143,060 1,236,562 Fully diluted 2,143,060 1,387,122 -0- 11/13/92 /CONTACT: Sheldon A. Vermes, Chairman & CEO of WTC Industries, 612-473-1625; or Tom de Petra or Adrienne Griffith of de Petra & Associates, Inc., 612-338-7630, for WTC Industries, Inc./ (WTCO) CO: WTC Industries, Inc. ST: Minnesota IN: SU: ERN
AL -- MN012 -- 0734 11/13/92 13:38 EST
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|Date:||Nov 13, 1992|
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