SIRC news....Revs, profits up. Loss due to unprofitable portion of business that SIRC is selling (already has an offer). Now focussing on internet and telecom...SIRC gapping up a little pre-open....check the chart!
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Sirco Announces 1998 Results and Plans to Divest Wholesale Luggage Operations in Order to Concentrate On Rapidly Growing Internet and Telecom Businesses
STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 24, 1999--Sirco
International Corp. (NASDAQ: SIRC) announced today a loss for the year
ended November 30, 1998 of ($4,977,003), or ($0.96) per share, as
compared to a net loss of ($2,868,165), or ($0.88) per share, for the
year ended November 30, 1997. Net sales for fiscal 1998 increased to
$17,037,000 as compared to net sales of $16,007,983 for fiscal 1996.
The results for fiscal 1998 included losses related to the Company's
wholesale luggage business of approximately ($2,663,000) and a
non-cash loss of approximately ($1,423,000) relating to the Company's
investment in Access One Communications. Under the equity method of
accounting, the Company does not report sales from its Access One
affiliate, but does report its portion of Access One's losses.
The Company also announced today the decision of its Board of
Directors to divest Sirco's wholesale luggage operations. In an effort
to maximize shareholder value, the Company has entered into
discussions with representatives of several potential buyers and has
received one formal offer.
Joel Dupre, CEO of the Company, stated, "Since our
diversification program began in August 1997, the Internet, Telecom
and Retail businesses of our subsidiaries and affiliates have
experienced rapid growth. We believe that Sirco and its affiliate have
now achieved a critical mass in these high growth businesses and Sirco
should focus all of its available resources on their continued growth.
In order to accomplish that objective, the Board has approved a plan
to divest Sirco's wholesale luggage businesses."
Paul Riss, Sirco's CFO continued, "The plan calls for Sirco to
retain its Internet retail businesses, which include AVI and the
E-Commerce sites www.800bags.com, www.avishop.com and www.tagintl.com.
The Company's continuing businesses will also include WebQuill, which
provides Nationwide Internet Access, Web design and hosting,
E-Commerce design and E-Complete, its E-Commerce fulfillment service.
The Company's telecommunications businesses include a wholly owned
subsidiary, Essex Communications, which is a competitive local
exchange carrier with operations primarily in the northeast United
States and its affiliate, Access One Communications, which is a
competitive local exchange carrier with operations primarily in the
southeast United States."
Sirco International Corp. is a diversified publicly traded
Company with operations organized into three divisions. Sirco's
telecommunications division focuses on developing integrated local and
long distance telephone and Internet services in the converging
communications industry. Sirco's retail division sells travel
products, uniforms and technical guides to professional airline crew
members, and Sirco's wholesale luggage division, designs, imports and
markets luggage, sport bags, backpacks, children's bags and related
products.
Sirco International Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
Years Ended November 30,
1998 1997
-------------------------------
Net Sales $ 17,037,186 $ 16,007,983
Cost of goods sold 13,971,644 13,802,712
-------------------------------
Gross profit 3,065,542 2,205,271
Selling, warehouse, general and
administrative expenses 6,445,648 5,166,849
-------------------------------
(3,380,106) (2,961,578)
Other (income) expense:
Interest expense 514,033 573,544
Interest income (49,843) (63,506)
Miscellaneous income, net (132,618) (477,934)
Loss on equity investment 1,423,300
-------------------------------
Net income (loss) before income taxes (5,134,978) (2,993,682)
Provision for income taxes (157,975) (125,517)
-------------------------------
Net income (loss) $(4,977,003) $ (2,868,165)
===============================
Net income (loss) per share of
common stock: $ (0.96) $ (0.88)
===============================
Number of common shares used
in basic and diluted
earnings (loss) per share 5,184,748 3,243,392
===============================
risks and uncertainties. The Company's actual results may differ
materially from the results discussed in the forward-looking
statements. Factors that might cause such a difference include, among
others, general economic and business conditions; industry trends; the
loss of major customers; changes in demand for the Company's product;
the timing of orders received from customers; dependence on third
party sources of supply; the loss of licenses; availability of
management; availability, terms and deployment of capital; and changes
in state or federal governmental regulations of telecommunications
services.
CONTACT:
Sirco International Corp., Stamford
Joel Dupre, CEO, 203/359-4100 |
