Jenna any thoughts on QUST??
Thursday July 30, 9:36 am Eastern Time
Company Press Release
Questron Technology, Inc. Reports Second Quarter and Six Months
Results
BOCA RATON, Fla.--(BUSINESS WIRE)--July 30, 1998--Questron Technology, Inc. (NASDAQ:QUST - news,
QUSTW - news) announced today results for the second quarter and six months ended June 30, 1998.
For the quarter ended June 30, 1998, the Company reported record sales of $10,670,970, compared with $5,181,060
reported for the second quarter of 1997. Operating income for the quarter was $1,547,924, compared with $514,786 for the
second quarter of 1997. Net income for the quarter rose to $717,750, or $0.22 per common share ($0.15 per diluted
common share), compared with $262,915, or $0.03 per common share ($0.03 per diluted common share), reported in the
second quarter of 1997. There were 4,894,013 and 3,255,067 average number of diluted common shares outstanding for the
1998 and 1997 periods, respectively. The Company has included its previously outstanding preferred stock in the computation
of its net income per diluted common share, as well as the effects of its Series IV Warrants. The preferred stock was converted
into common stock on July 2, 1998.
For the six months ended June 30, 1998, sales totaled $21,071,936, compared with sales of $9,093,337 reported for the first
half of 1997. Operating income rose to a record $3,113,373 for the six months, compared with $932,799 in 1997. Net
income for the 1998 six month period was $1,475,354, or $0.49 per common share ($0.31 per diluted common share),
compared with $472,946, or $0.16 per common share ($0.16 per diluted common share), reported in the first half of 1997.
The Company also reported that it has not yet completed the financing necessary to close the previously announced pending
acquisitions of Fas-Tronics, Inc. and Fortune Industries, Inc., both fastener distributors serving the aerospace industry, based in
Forth Worth, Texas. As a result, the anticipated timing for the completion of these transactions, which are subject to financing,
has been postponed for up to 60 days.
Dominic A. Polimeni, Chairman, President and Chief Executive Officer of Questron, said, ''We are pleased with our second
quarter results, particularly since certain of our high technology OEM customers were impacted by the slowdown attributable
to the Asian economic situation. In spite of this situation, our business continues to grow with our second quarter sales
surpassing those reported in the first quarter.'' Mr. Polimeni continued, ''The fundamentals of our business remain strong and
we are enthusiastic about our proposed acquisitions of Fortune and Fas-Tronics.''
Questron Technology Inc., headquartered in Boca Raton, Florida, is a leading provider of inventory logistics management
programs for fasteners and related products (commonly referred to as ''C'' inventory items). The Company is also a master
distributor of fasteners and a distributor of lithium batteries and customized battery packs and assemblies. Questron's securities
are traded on NASDAQ under the symbols QUST (common) and QUSTW (warrants).
Certain information contained in this release includes ''Forward-Looking Statements'' within the meaning of the Private
Securities Litigation Reform Act of 1995 and is subject to certain risks and uncertainties, including those ''Risk Factors'' set
forth in the Company's current Annual Report on Form 10-K for the year ended December 31, 1997. Readers are cautioned
not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company
undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect unanticipated events or developments.
This release is available on the KCSA Worldwide website at www.kcsa.com.
QUESTRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the three month and six month periods ended
June 30, 1998 and 1997
Three Months Ended
June 30,
1998 1997
Sales $10,670,970 $ 5,181,060
Costs and expenses:
Cost of products sold 6,380,473 3,130,894
Selling, general and
administrative expenses 2,573,014 1,433,823
Depreciation and amortization 169,559 101,557
9,123,046 4,666,274
Operating income 1,547,924 514,786
Interest expense 331,398 66,890
Income before income taxes 1,216,526 447,896
Provision for income taxes 498,776 184,981
Net income $ 717,750 $ 262,915
Net income used in
per common share
calculation (reflecting
deduction for preferred
stock dividends) $ 469,978 $ 42,814
Net income per common share $ 0.22 $ 0.03
Net income per diluted
common share $ 0.15 $ 0.03
Average number of common
shares outstanding 2,110,590 1,551,968
Average number of diluted
common shares outstanding 4,894,013 3,255,067
Six Months Ended
June 30,
1998 1997
Sales $21,071,936 $ 9,093,337
Costs and expenses:
Cost of products sold 12,561,823 5,459,268
Selling, general and
administrative expenses 5,063,581 2,519,843
Depreciation and amortization 333,159 181,427
17,958,563 8,160,538
Operating income 3,113,373 932,799
Interest expense 612,773 127,099
Income before income taxes 2,500,600 805,700
Provision for income taxes 1,025,246 332,754
Net income $ 1,475,354 $ 472,946
Net income used in
per common share
calculation (reflecting
deduction for preferred
stock dividends) $ 1,029,813 $ 252,845
Net income per common share $ 0.49 $ 0.16
Net income per diluted
common share $ 0.31 $ 0.16
Average number of common
shares outstanding 2,121,897 1,543,771
Average number of diluted
common shares outstanding 4,816,487 2,616,241
This interim report is subject to independent audit at year-end.
Contact:
QUESTRON TECHNOLOGY, INC., Boca Raton
Dominic Polimeni
561/241-5251
or
KCSA
Joseph A. Mansi/Scott Eckstein
212/682-6300, ext. 205/288
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