QUST Earnings Out!! $0.15 vs. $0.03. Here's the release:
QUESTRON TECHNOLOGY, INC. REPORTS SECOND QUARTER AND SIX MONTHS RESULTS
BOCA RATON, Fla., July 30, 1998 -- Questron Technology, Inc.
(NASDAQ: QUST, QUSTW) 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).
This release is available on the KCSA Worldwide website at
www.kcsa.com.
QUESTRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the three month period 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
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
This interim report is subject to independent audit at year-end.
CONTACT:
Dominic Polimeni
(561) 241-5251
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