MOBILE, Ala., April 27 /PRNewswire/ -- Integrity Incorporated
(Nasdaq: ITGR) today reported that net income for the first quarter ended
March 31, 1998, more than doubled to $455,000, or $0.08 per share, from
$184,000, or $0.03 per share, in the same period of 1997. Revenues increased
10.5 percent to $9.0 million from the year-ago $8.1 million.
P. Michael Coleman, chairman, president and chief executive officer, said
the performance reflected strong sales increases in the church, choral, hymnal
and song copyright divisions.
"The Celebration Hymnal" continues to generate strong sales and to offer
opportunities to market related products used by church music leaders, Coleman
noted. In addition, he said, "The practices we put in place as a result of
our thorough business review in recent years are serving us well. We again
have the flexibility to invest in growth opportunities, such as the research
we have under way for new direct to consumer programs."
For example, Coleman noted, consumers can now make purchases from
Integrity's catalog of products through the company's website at
http://www.integinc.com. "The Internet provides another way for Integrity to put
customers in touch with our products. Although it offers long-term promise
for growth, we do not expect material sales from this avenue in the near
term," Coleman commented.
He noted that first-quarter marketing and fulfillment expenses, which
include the research costs, increased 1.2 percent to $1.7 million from the
year-earlier $1.6 million. In the 1998 period the expenses represented
18.5 percent of net sales compared with 20.2 percent a year ago.
In addition to a 135 percent increase in sales in the church, choral and
hymnal divisions, Integrity reported a double-digit increase in its copyright
operations. Retail sales also produced a gain during the quarter, even though
a significant number of shipments did not go out in March as planned due to a
computer system conversion at Word's distribution center, which handles
Integrity's products for the CBA retail market.
"The distribution problem interfered with our progress in the first
quarter, but even so we were able to achieve satisfying financial results
based on the strengths of Integrity's core businesses. We are well positioned
to continue the momentum that developed during 1997 in products, market
standing and operations. We're optimistic about Integrity's opportunities.
The first quarter represented a strong start to what we believe will be a
satisfying year," Coleman said.
Integrity Incorporated is a leading producer and publisher of Christian
music, including praise and worship, children's and gospel. Its audio and
video products are sold throughout the United States and in more than
130 other countries worldwide.
Some of the statements contained in this press release are forward-looking
statements that involve a number of risks and uncertainties. In addition to
the factors discussed above, among the other factors that could cause actual
results to differ materially are: a reduction in demand for and resulting
sales of the Company's "Celebration Hymnal;" a decrease in consumer acceptance
of the Company's new or existing products resulting in an increase in the rate
of return on the Company's products above current levels; further disruptions
in the distribution systems supporting the Company's retail sales, and the
risk factors listed from time to time in Integrity's SEC reports, including,
but not limited to, the report on Form 10-k for the year ended
December 31, 1997.
INTEGRITY INCORPORATED
Condensed Consolidated Statement of Operations
Quarter Ended
March 30
1998 1997
Net sales $8,951,000 $8,103,000
Cost of sales 3,997,000 3,710,000
Gross profit 4,954,000 4,393,000
Marketing and
fulfillment expenses 1,655,000 1,635,000
General and
administrative expenses 2,416,000 1,951,000
Income from continuing
operations 883,000 807,000
Other expense
Interest expense, net 377,000 446,000
Other expense 45,000 63,000
Income before taxes 461,000 298,000
Provision for
income taxes 6,000 114,000
Net income $455,000 $184,000
Basic EPS
Income from continuing
operations $0.16 $0.15
Net income $0.08 $0.03
Diluted EPS
Income from continuing
operations $0.16 $0.15
Net income $0.08 $0.03
Weighted average
number of shares
outstanding 5,514,000 5,514,000
SOURCE Integrity Incorporated
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Related links:
http://www.integinc.com
CONTACT:
Alison S. Richardson of Integrity,
334-633-9000
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