If anyone else is still watching (some info here sounds real good to me, though they came in .02 cents less than est. .09 vs .11):
HAUPPAUGE, N.Y., May 1 /PRNewswire/ -- Graham-Field Health Products, Inc.
(NYSE: GFI), a manufacturer and supplier of healthcare products, today
reported record revenues and results for the first quarter ended March 31,
1997. Revenues for the first quarter, which included the Company's first full
quarter of results for Everest & Jennings, were $51,332,000, as compared to
$27,348,000 for the same period last year, a 88% increase. Income before
income taxes was $3,554,000 for the quarter, as compared to $928,000 for the
same period last year, a 283% increase. Net income for the quarter was
$2,084,000 or $.09 per share on 24,181,000 weighted average shares
outstanding, as compared to $510,000 or $.03 per share (excluding $.01 per
share attributable to the gain on the sale in March 1996 of the Company's
Gentle Expressions breast pump product line) on 14,182,000 weighted average
shares outstanding, for the same period last year.
Revenues for the first quarter included approximately $11.8 million
attributable to Everest & Jennings. Revenues, without Everest & Jennings,
increased in excess of 44% from the same period in the prior year. The
increase in revenues, excluding Everest & Jennings' revenues, was attributable
to the continued roll-out of the Company's innovative "GF Express" program,
the expansion of our Consolidated Advantage Program (C.A.P.), and the
introduction of new product lines.
The increase in net income is due to increased revenues, an increase in
the gross profit margin, and a decrease in selling, general and administrative
expenses, as a percentage of operating revenue. Selling, general and
administrative expenses declined as a percentage of operating revenue to 24%
from 27%. The Company's gross profit margin increased to 32% as compared to
31% for the same period in the prior year. The increase in the gross profit
margin was primarily attributable to the improved operational efficiencies
associated with the manufacture and distribution of the Company's product
lines, and improved purchasing activities.
BIL (Far East Holdings) Limited, an affiliate of Brierley Investments
Limited, a New Zealand investment holdings company with assets of
approximately $10 billion, has informed the Company that it intends to
purchase additional shares of common stock of the Company in the open market,
from time to time, subject to market conditions, in an amount such that BIL's
total holdings do not exceed 49% of the voting power of the Company's
outstanding stock. Currently, BIL owns shares of common stock representing
21% of the issued and outstanding shares of common stock, and combined with
BIL's preferred stock, approximately 34% of the voting power of all
outstanding shares of the Company's capital stock. In order to facilitate
BIL's open market purchases, the Board of Directors has approved an amendment
to the Company's Stockholder Agreement with BIL, to enable BIL to purchase
additional shares in the open market.
Rodney F. Price, an executive managing director of BIL and a director of
the Company, stated, "BIL believes that the current market price of the
Company's stock is undervalued and does not reflect the intrinsic value of the
Company. BIL is committed to enhancing the future growth of Graham-Field."
Irwin Selinger, Chairman of the Board and Chief Executive Officer stated,
"the Company posted internal revenue growth in excess of 44% for the quarter.
We are confident that revenue will continue to improve throughout the year.
During March and April, we concluded a number of contracts with major national
and regional accounts such as General Medical, a division of McKesson and
Robbins, Owens and Minor, Sysco Corporation and Physician Sales and Services,
Inc. In April, we signed a new strategic distribution agreement with Baxter
Healthcare Corporation and Allegiance Healthcare Corporation, which will
contribute to increased revenue growth. Two new "GF Express" facilities will
be opened in Baltimore, Maryland and Cleveland, Ohio during the second quarter
of 1997. Our Everest & Jennings acquisition has successfully been integrated
in Graham-Field and in March, we began to see revenues in Everest & Jennings
begin to grow. We are confident that Everest & Jennings' revenues will grow
significantly in 1997. On another note, we are delighted that BIL has
reaffirmed its commitment as a major stockholder of the Company and its
intention to purchase additional shares in the open market. We believe that
our strategic partnership with BIL will significantly contribute to the world-
wide growth of the Company through BIL's alliances, knowledge of, and presence
in the European and Far Eastern markets."
Graham-Field maintains distribution and manufacturing facilities
throughout the United States, Canada, Mexico and Puerto Rico. Graham-Field
manufactures, markets and distributes more than 23,000 healthcare and
rehabilitation products for hospital, physician and home use to approximately
18,500 home healthcare, physician, hospital supply and pharmaceutical
distributors, retailers and wholesalers.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This press release contains forward-
looking statements based on current expectations that could be affected by the
risks and uncertainties involved in Graham-Field's business. These risks and
uncertainties include, but are not limited to, the effect of economic and
market conditions, the impact of the consolidation of health care
practitioners, the impact of health care reform, opportunities for
acquisitions and Graham-Field's ability to effectively integrate acquired
companies, the acceptance and quality of software products, acceptance and
ability to manage operations in foreign markets, possible disruptions in
Graham-Field's computer systems or telephone systems, possible increases in
shipping rates or interruptions in shipping service, the level and volatility
of interest rates and currency values, the impact of current or pending
legislation and regulation, as well as the risks described from time to time
in Graham-Field's reports to the Securities and Exchange Commission, which
include Graham-Field's Annual Report on Form 10-K for the year ended December
31, 1996 and Graham-Field's Registration Statement on Form S-4 dated as of
October 18, 1996. Subsequent written or oral statements attributable to
Graham-Field or persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements in this press release and those in
Graham-Field's reports previously filed with the Securities and Exchange
Commission.
SOURCE Graham-Field Health Products, Inc.
CONTACT: Gary M. Jacobs, Vice President, Finance, Chief Financial
Officer, 516-582-5900; or Mark Kesselmen of Euromedia, Inc., 212-628-9866 CONSOLIDATED CONDENSED BALANCE SHEETS GRAHAM-FIELD HEALTH PRODUCTS,
INC. AND SUBSIDIARIES
March 31, December 31,
ASSETS 1997 1996
(unaudited) (audited)
CURRENT ASSETS:
Cash and cash equivalents $2,141,000 $1,552,000
Accounts receivable - net 50,922,000 43,651,000
Inventories 49,625,000 45,810,000
Other current assets 3,649,000 3,001,000
Recoverable and prepaid income taxes 256,000 256,000
TOTAL CURRENT ASSETS 106,593,000 94,270,000
PROPERTY, PLANT AND EQUIPMENT - net 11,555,000 10,771,000
EXCESS OF COST OVER NET ASSETS ACQUIRED - net 93,299,000 91,412,000
OTHER ASSETS 4,950,000 5,112,000
DEFERRED TAX ASSET 678,000 911,000
TOTAL ASSETS $217,075,000 $202,476,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable to bank $33,469,000 $13,985,000
Current maturities of long-term debt 2,569,000 2,016,000
Accounts payable 17,181,000 20,781,000
Acceptances payable 14,800,000 19,800,000
Accrued expenses 22,226,000 25,283,000
TOTAL CURRENT LIABILITIES 90,245,000 81,865,000
LONG-TERM DEBT 6,550,000 6,057,000
OTHER LONG-TERM LIABILITIES 1,522,000 1,752,000
TOTAL LIABILITIES 98,317,000 89,674,000
STOCKHOLDERS' EQUITY:
Series A preferred stock -- --
Series B preferred stock 28,200,000 28,200,000
Series C preferred stock 3,400,000 3,400,000
Common stock 475,000 467,000
Additional paid-in capital 105,421,000 101,569,000
(Deficit) (18,583,000) (20,667,000)
Cumulative translation adjustment -- (12,000)
Subtotal 118,913,000 112,957,000
Notes Receivable from sale of shares (155,000) (155,000)
TOTAL STOCKHOLDERS' EQUITY 118,758,000 112,802,000
COMMITMENTS AND CONTINGENCIES TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $217,075,000 $202,476,000
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
GRAHAM-FIELD HEALTH PRODUCTS, INC. AND SUBSIDIARIES
(Unaudited)
Three Months Ended
March 31
1997 1996
REVENUES:
Operations $51,204,000 $26,929,000
Interest and other income 128,000 419,000
51,332,000 27,348,000
COST AND EXPENSES:
Cost of revenues 34,657,000 18,502,000
Selling, general and administrative 12,149,000 7,329,000
Interest expense 972,000 589,000
47,778,000 26,420,000
INCOME BEFORE INCOME TAXES 3,554,000 928,000
INCOME TAXES 1,470,000 418,000
NET INCOME $2,084,000 $510,000
PER SHARE DATA:
NET INCOME PER SHARE $.09 $.04
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES OUTSTANDING 24,181,000 14,182,000
SOURCE Graham-Field Health Products, Inc. |
