WGA 1.80/1.90 Amex..good interview on CEO Cast...5.5m shares outstanding...52wh 3.52...gambling is always a growth industry esp in harder times:
Wells-Gardner Reports Second Quarter Earnings of $0.04 Per Share Compared to A Loss Of $0.39 Per Share
Company Announces Sales Growth of 14 Percent
CHICAGO, Aug. 1 /PRNewswire-FirstCall/ -- Wells-Gardner Electronics Corporation (Amex: WGA - News) announced that sales in the second quarter ended June 30, 2002 were $12.1 million, an increase of 14.2%, from $10.6 million in the same quarter in the previous year. The Company also announced second quarter, 2002 net earnings of $229,000 or $0.04 per share compared to a loss of $2.1 million or ($0.39) per share in the second quarter, 2001. The 2001 results included a charge of $1.3 million or ($0.24) per share related to moving the Company's headquarters.
For the first 6 months of 2002, sales were $23.4 million, an increase of 5.6% from the $22.1 million in the same period in 2001. Net earnings for the 2002 six month period were $431,000 or $0.08 per share compared to a loss of $2.8 million or ($0.51) per share in 2001.
"Wells-Gardner has continued its good performance in 2002 with earnings improving by over $3.2 million on a sales increase of 5.6%," said Anthony Spier, Wells-Gardner's Chairman and Chief Executive Officer. "The results have been favorably impacted by our cost reduction programs implemented in 2001 and a combination of moving a substantial amount of production to our joint venture in Malaysia and a favorable sales mix. Second quarter sales showed increased penetration of the gaming market."
2002 Outlook
"We anticipate improved sales in the last 6 months," noted George B. Toma, Wells-Gardner's Chief Financial Officer. "Due to this and the cost reduction program mentioned above, we expect the Company's results to continue to improve in the second half of this year."
Founded in 1925, Wells-Gardner Electronics Corporation is a distributor and manufacturer of color video monitors and other related distribution products for a variety of markets including, but not limited to, gaming machine manufacturers, casinos, coin-operated video game manufacturers and other display integrators. During 2000, the Company formed a 50/50 joint venture named Wells-Eastern Asia Displays ("WEA") to manufacture video monitors in Malaysia. In addition, the Company acquired American Gaming & Electronics, Inc. ("AGE"), a leading parts distributor to the gaming markets, which sells parts and services to over 500 casinos in North America with offices in Las Vegas, Nevada; Egg Harbor Township, New Jersey; Hollywood, Florida and McCook, Illinois. AGE also sells refurbished gaming machines on a global basis as well as installs and services some brands of new gaming machines into casinos in North America.
This press release contains certain forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement as a result of many uncertain future factors. Wells-Gardner assumes no obligation to update the information contained in this release to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. A copy of its Annual Report and Quarterly Report can be obtained without charge by request to George B. Toma, Wells-Gardner Electronics Corporation, 9500 West 55th Street, Suite A, McCook, Illinois 60525-3605. For additional investor information, please call 1-800-336-6630 ext. 2170 or at www.wellsgardner.com
Consolidated Condensed Statements of Operations
Second Quarter Ended June 30,
2002 2001
Sales 12,077,000 10,579,000
Cost of sales 9,753,000 8,509,000
Engineering, selling & administrative 2,018,000 2,639,000
Moving related expenses 0 1,318,000
Operating earnings (loss) 306,000 (1,887,000)
Other expense {net} 77,000 166,000
Earnings (loss) from continuing
operations before tax 229,000 (2,053,000)
Income tax expense 0 0
Earnings (loss) from continuing
operations 229,000 (2,053,000)
Loss on discontinued operations 0 (58,000)
Cumulative effect of change in
accounting principle 0 0
Net earnings (loss) 229,000 (2,111,000)
Basic earnings (loss) per common
share:
Continuing operations 0.04 (0.38)
Discontinued operations 0.00 (0.01)
Cumulative effect of change in
accounting principle 0.00 0.00
Basic earnings (loss) per common
share 0.04 (0.39)
Diluted earnings (loss) per common
share:
Continuing operations 0.04 (0.38)
Discontinued operations 0.00 (0.01)
Cumulative effect of change in
accounting principle 0.00 0.00
Diluted earnings (loss) per common
share 0.04 (0.39)
Weighted average common shares
outstanding 5,475,245 5,430,674
Weighted average common & common
equivalent shares outstanding 5,604,130 5,430,674
Consolidated Condensed Statements of Operations
Six Months Ended June 30,
2002 2001
Sales 23,380,000 22,149,000
Cost of sales 18,827,000 18,331,000
Engineering, selling & administrative 3,945,000 4,835,000
Moving related expenses 0 1,318,000
Operating earnings (loss) 608,000 (2,335,000)
Other expense {net} 227,000 350,000
Earnings (loss) from continuing
operations before tax 381,000 (2,685,000)
Income tax expense 2,000 0
Earnings (loss) from continuing
operations 379,000 (2,685,000)
Loss on discontinued operations 0 (106,000)
Cumulative effect of change in
accounting principle 52,000 0
Net earnings (loss) 431,000 (2,791,000)
Basic earnings (loss) per common
share:
Continuing operations 0.07 (0.49)
Discontinued operations 0.00 (0.02)
Cumulative effect of change in
accounting principle 0.01 0.00
Basic earnings (loss) per common
share 0.08 (0.51)
Diluted earnings (loss) per common
share:
Continuing operations 0.07 (0.49)
Discontinued operations 0.00 (0.02)
Cumulative effect of change in
accounting principle 0.01 0.00
Diluted earnings (loss) per common
share 0.08 (0.51)
Weighted average common shares
outstanding 5,459,387 5,429,332
Weighted average common & common
equivalent shares outstanding 5,610,861 5,429,332
Consolidated Condensed Balance Sheets
June 30, December 31,
Assets: 2002 2001
Cash & cash equivalents 94,000 159,000
Accounts receivable {net} 9,244,000 5,924,000
Inventory 9,424,000 10,011,000
Other current assets 981,000 958,000
Total current assets 19,743,000 17,052,000
Fixed assets {net} 2,682,000 2,898,000
Investment in joint venture 389,000 296,000
Intangibles {net} 1,329,000 1,329,000
Total assets 24,143,000 21,575,000
Liabilities & Shareholders' Equity:
Current liabilities 8,040,000 5,445,000
Long-term notes payable 8,293,000 8,925,000
Shareholders' equity 7,810,000 7,205,000
Total liabilities & shareholders'
equity 24,143,000 21,575,000
SOURCE: Wells-Gardner Electronics Corporation |
