Disc Graphics Announces Third Quarter Profit on Improved Sales
Press release from the issuing company
HAUPPAUGE, N.Y., Oct. 30 -- Disc Graphics, Inc. today announced its financial results for the third quarter and nine months ended September 30, 2002.
Revenues for the third quarter rose 5.8%, reaching $14,232,000 from the $13,448,000 reported for 2001's third quarter. The strong year-over-year revenue growth was attributable to growing sales volumes of the Company's DVD, pharmaceutical and general packaging lines. Net income for the quarter was $314,000, or $0.06 per diluted share, as compared with a net income of $322,000, or $0.06 per diluted share, for the corresponding quarter one year ago.
Disc Graphics' nine month net income was $421,000 or $0.08 per share based on 5,529,319 diluted shares, an improvement from the year ago net loss of $1,291,000, or $(0.23) per diluted share. Revenues decreased in the first nine months by 6.1% to $37,340,000 compared with revenues of $39,771,000 for the first nine months of 2001. The revenue decline is primarily due to the impact of the Indiana facility closure during the second quarter of last year and lower sales from commercial printing, as the Company continues to focus on its core folding carton business.
"Our financial performance for the year to date is on target as we continue to implement our business plan," said Don Sinkin, chairman and Chief Executive Officer. "Adjusting for the fourth quarter 2001 nonrecurring write off of intangible assets ($2,286,000 net of taxes), the third quarter earnings represent the fifth consecutive quarter of profitability. Moreover, we continue to realize the benefits of our cost containment initiatives and improved sales. The liquidity position of the Company remains strong as total debt has been reduced by over $5,300,000 during the past nine months."
A preliminary proxy statement has been filed by Disc Graphics, Inc. with the Securities and Exchange Commission ("SEC") with respect to the proposed merger previously announced by Disc Graphics on September 6, 2002. When finally approved by the SEC, proxy statements will be mailed to each stockholder with the notice of the stockholder meeting to be held for the purpose of voting upon the merger. Stockholders are urged to read the proxy statement and any other relevant documents to be filed with the SEC, which will contain important information that should be considered before a decision is made regarding the merger. Disc Graphics and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders in favor of the merger. The merger will be subject to the "going private" rules and regulations of the SEC. A Transaction Statement on Schedule 13E-3 has also been filed by Disc Graphics with the SEC.
Disc Graphics, headquartered in Hauppauge, NY, is a diversified manufacturer and printer of specialty packaging focused on the home video, pharmaceutical, music, publishing and cosmetic markets. Disc Graphics products include prerecorded video, CD-ROM and audiocassette packaging, folding cartons for pharmaceuticals and cosmetics, book jackets, posters, pressure-sensitive labels and general commercial printing.
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