Disc Graphics, Inc. Reports Q2 Profit: Net income of $82,000
Press release from the issuing company
HAUPPAUGE, N.Y., July 30 -- Disc Graphics, Inc. today announced its financial results for the second quarter and six months ended June 30, 2002.
Disc Graphics' second quarter 2002 net income was $82,000 or $.01 per share based on 5,533,402 diluted shares compared to a net loss of $869,000 or $(.16) per share based on 5,518,248 diluted shares in the same period of 2001. Revenues decreased in the second quarter by 5.3% to $12,106,000 compared with revenues of $12,779,000 in the second quarter of 2001.
Disc Graphics' six month net income was $107,000 or $.02 per share based on 5,530,275 diluted shares compared to a net loss of $1,613,000 or $(.29) per share based on 5,518,248 diluted shares in the same period of 2001. Revenues decreased in the first six months by 12.2% to $23,108,000 compared with revenues of $26,323,000 for the first six 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 businesses.
Gross profit margin has improved to 19.9% of net sales for the second quarter of 2002 compared to 17.8% for last year's same period. Gross profit has increased by $130,000 during the year over year quarter despite the decline in sales as the Company has lowered its cost structure through better deployment of available manufacturing resources and improved labor utilization. Sales, general and administrative expenses ("SG&A") have declined by $782,000 or 28.4% during the second quarter compared to the same period last year.
Commenting on the second quarter results, Donald Sinkin, Chairman and Chief Executive Officer, said: "We continued to make progress reducing our expenses and improving our margins during the second quarter. Our rate of quarterly sales decline compared to the prior year has substantially narrowed to 5.3% during the second quarter compared to the decline of 18.8% experienced during the first quarter. Our cash flow continues to be strong as the Company has reduced its debt by $3,536,000 or 23.4% during the first half of 2002. We believe the Company is solidly positioned with its current cost structure to capitalize on its traditionally stronger second half of the year."
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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