TASA Announces Record Revenues for Second Quarter of 1998
Tuesday June 9, 7:46 am Eastern Time
Company Press Release
BREWSTER, N.Y.--(BUSINESS WIRE)--June 9, 1998---Touchstone Applied
Science Associates (NASDAQ:TASA - news), today announced record
revenues for the second quarter and six-month period ended April 30,
1998. Revenues for the second quarter of 1998 increased 71% to a
record $1.12 million as compared to $650,000 in 1997's second quarter.
Six-month revenues were $2.4 million, a 52% increase over the $1.6
million reported in 1997's comparable period. The net loss for the
second quarter was ($160,000) vs. ($60,000) in 1997's comparable
quarter. The per share loss for the second quarter was ($0.02) vs.
($0.01) for 1997's comparable quarter. For the six-month period ended
April 30, 1998, the Company's net loss was ($193,000) as compared to a
profit of $91,000 in 1997's comparable period. The per share loss for
the six-month period ended April 30, 1998 was ($0.02) vs. $0.01 profit
in 1997's comparable period.
The Company's second quarter revenue increase reflected growth in all
of the Company's operations. Revenues from TASA's DRP tests increased
for both the quarter and six-month period. DRP catalog sales were
$587,000 for the quarter and $1.04 million for the six-month period,
an increase of 22% and 15%, respectively. DRP contract sales to its
three state customers of $87,000 for the quarter and $583,000 for the
six-month period were up 19% and 8%, respectively. TASA's custom test
design subsidiary BETA had revenues of $124,000 for the quarter and
$248,000 for the six-month period, an increase of 25% and 67%,
respectively. Modern Learning Press, purchased in May 1997, had second
quarter and six-month sales of $318,000 and $547,000, respectively. In
1998, MLP accounted for 66% and 69% of the Company's respective
quarter and six-month revenue gain.
Gross profit for the second quarter increased 97% to $692,000 as a
result of increased revenues (71%) and improved gross profit margins
(62% vs. 54% in 1997's second quarter). For the six-month period,
gross profit increased 40% to $1.63 million, again as a result of
increased revenues (52%) and improved gross profit margins (67% vs.
65% in 1997's comparable period). Net operating costs, including
selling, general and administrative expenses, and a $200,000 bad debt
recovery, increased 63% to $785,000 during the second quarter of 1998,
or 70% of revenues. The bad debt recovery booked in the second quarter
was for settlement of a 1997 write-off of a $400,000 note receivable.
Net operating costs for the six-month period, including the 1998 bad
debt recovery, rose 81% to $1.71 million, or 71% of sales.
Andrew L. Simon, President and CEO, noted ''TASA continues to position
itself for future growth during this quarter. We announced execution
of a letter of intent to acquire the Drake Business Schools.our first
entry into the proprietary post secondary school market. We also
announced a subcontract award to our custom test design division
(BETA) to develop a new Limited English Proficiency (LEP) test in
Texas. Additionally, the state of Texas approved our DRP test as one
of the several reading tests schools may choose for their mandated
testing in grades 1 and 2. Therefore, TASA is stepping up marketing
efforts to reach most of Texas's elementary schools before the 1998-99
school year begins. At MLP,'' Mr. Simon continued, ''we are
developing two new workbook series as well as expanding an existing
series for release this winter. The gearing up for these projects had
some effect on second quarter earnings. However, the fruits of these
efforts should positively effect future revenue streams.''
John M. Dutton, Chief Financial Officer, noted that ''in the past,
TASA's sales were reasonably level across all quarters. This year,
however, since the addition of MLP, which does over 50% of its
business in the June-September period, we expect the second half of
1998 to show higher levels of revenues. Since our operating expenses
are effectively flat, we expect to see profitability in the second
half of our fiscal year.''
For further information, please contact either Mr. Andrew Simon
914-277-8100 or Mr. John M. Dutton at 213-630-4401.
Statements contained in this release, which are not historical facts,
are ''forward-looking'' statements as contemplated by the Private
Securities Litigation Reform Act of 1995. Such forward- looking
statements are subject to risks and uncertainties, which could cause
actual results to differ materially from those projected or implied in
the forward-looking statements.
QTR QTR Six Months Ended
Apr. 30, Apr. 30, Apr. 30, Apr. 30,
'98 '97 '98 '97
Total Revenues $1,117,193 $654,656 $2,414,937 $1,592,167
Gross Profit 691,998 350,532 1,626,146 1,027,931
Net Income (Loss) (160,635) (60,265) (193,411) 91,177
Earnings (Loss)
per Share (0.02) (0.01) (0.02) 0.01
Shares Outstanding
(millions) 8.49 8.11 8.47 8.00
Contact:
Andrew Simon
914-277-8100
or
John Dutton, CFO
213-630-4401 |
