To all,
Here is the news, just in case you need to read it. The revnue increases rapidly
as I have dreamed about. Hope we will see break even or positive earnings early
next year.
Sincerely,
Wade
Recovery Engineering Reports 134% Sales Increase in Second Quarter;
Wal-Mart to Roll Out Full Line of Products in the Third Quarter
MINNEAPOLIS, July 17 /PRNewswire/ -- Recovery Engineering, Inc.
(Nasdaq:REIN), today reported sales of $15,462,000 and a net loss of
$1,492,000 or 33 cents per share for its second quarter ending June
30, 1997. This compares with sales of $6,598,000 and a net loss of
1,722,000 or 40 cents per share for the second quarter of 1996.
For the six months ended June 30, 1997, sales were $25,809,000 with a
net loss of $3,390,000 compared to sales of $13,038,000 and a net
loss of $3,643,000 for the first six months of 1996.
Second quarter sales increased 134 percent over the second quarter of
1996. The increase was led by a greater than three-fold increase of
the Company's PUR household water filters. The Company also reported
strong sales in the outdoor systems market. The increase in sales in
the home market is primarily the result of increased sell-through at
retail; expansion of the distribution base also contributed. The
Company's distribution base increased further with the expansion of
its product offerings at Wal-Mart Stores to include four additional
water filters. In addition, Menards, the country's third largest home
center chain, now will carry all five of the Company's household
products. Initial shipments related to product rollouts at Wal-Mart
and Menards began in July. PUR household water filters are now available
at over 20,000 retail outlets nationwide.
Second quarter gross margins were 45 percent compared to 38 percent
for the same period last year. Gross margins were significantly
influenced by sales volumes increasing at a much higher level than
production costs, higher sales mix of replacement filters, and an
increase in outdoor systems margins.
``We are very pleased with the greater than three-fold increase in
sales of household systems for the quarter. Our retail customers
continue to show strong interest in our full line of products. Our
sell-through at retail indicates a strong acceptance of our products
by consumers as well,'' said Brian F. Sullivan, President and Chief
Executive Officer. ``With a strong base of retailers in place, we are
well positioned to broaden our presence in the market and increase the
leverage from our marketing and manufacturing investments.''
Recovery Engineering, Minneapolis, designs, develops, manufactures and
markets small-scale drinking water systems sold under the PUR brand
name for household, marine and recreational use.
RECOVERY ENGINEERING, INC.
Statements of Operations (unaudited)
(In thousands, except per-share amounts)
Three months ended Six months ended
June 30 1997 1996 1997 1996
Sales $15,462 $6,598 $25,809 $13,038
Gross profit 7,001 2,522 11,156 4,976
Operating expenses:
Selling, general & admin 7,457 3,810 12,613 7,516
Research & development 704 402 1,458 1,071
Loss from operations (1,160) (1,690) (2,915) (3,611)
Loss before income taxes (1,492) (1,722) (3,390) (3,643)
Net loss (1,492) (1,722) (3,390) (3,643)
Loss per share $(.33) $(.40) $(.77) $(.85)
Weighted average common
shares outstanding 4,465 4,319 4,412 4,290 |
