Graham-Field Merger Scheduled to be Completed in December 1997
ATLANTA, Nov. 10 /PRNewswire/ -- Fuqua Enterprises, Inc. (NYSE: FQE)
("Fuqua") today announced operating results for the third quarter ended
September 30, 1997.
Net income for the quarter ended September 30, 1997 rose 11% to $2,315,000
or $0.51 per share, on revenues of $60,476,000, compared to $2,087,000 or
$0.46 per share, on revenues of $50,227,000 in the third quarter of 1996.
For the first nine months of 1997, net income was $5,262,000 or $1.16 per
share, on revenues of $178,888,000, compared to $5,525,000 or $1.21 per share,
on revenues of $128,892,000 for the comparable period of 1996.
J. Rex Fuqua, Chairman of Fuqua, stated, "The third quarter operating
income from Fuqua's medical products operations increased 138% on revenue
growth of 22% due to continued growth and operational efficiencies achieved at
Lumex and Basic American and from the acquisition of Prism Enterprises in
February 1997. Although Fuqua's leather operations' quarterly revenues grew
22%, operating income was below that of the comparable period of 1996
resulting principally from unfavorable raw material hide prices and deferral
of shipments to a significant customer. However, based on current customer
orders and more favorable hide prices, the outlook is for improved results for
the balance of 1997."
As previously announced, on September 5, 1997, Fuqua entered into an
agreement whereby Fuqua will be acquired by Graham-Field Health Products, Inc.
("Graham-Field") in a tax-free exchange of 2.1 shares of Graham-Field common
stock for each share of Fuqua common stock, subject to adjustment based on the
market value of the Graham-Field common stock during a period prior to
closing. Mr. Fuqua noted that the Hart-Scott-Rodino Antitrust Improvements
Act waiting period with respect to the merger has expired. The merger is
expected to close in December 1997.
Fuqua's medical products operations manufacture a variety of products
including beds, patient aids and mobility products for the acute, long-term
and home health care markets. Fuqua's leather operations produce a broad line
of leathers that are sold to manufacturers of shoes, handbags, personal
leather goods and furniture in both the U.S. and foreign markets.
FUQUA ENTERPRISES, INC.
(Amounts in thousands, except for per share data)
For the 3 months ended For the 9 months ended
9/30/97 9/30/96 9/30/97 9/30/96
Revenues:
Net sales $60,372 $49,655 $178,701 $127,053
Investment income 104 572 187 1,839
Total revenues 60,476 50,227 178,888 128,892
Costs and Expenses:
Cost of sales 47,377 38,210 141,655 98,584
Selling, general
and administrative
expenses 8,968 7,881 26,982 19,682
Interest expense 776 862 2,307 1,956
Total costs and
expenses 57,121 46,953 170,944 120,222
Income before income
taxes 3,355 3,274 7,944 8,670
Income taxes 1,040 1,187 2,682 3,145
Net income $ 2,315 $ 2,087 $ 5,262 $ 5,525
Per Share:
Net income $ 0.51 $ 0.46 $ 1.16 $ 1.21
Average common shares
and common share
equivalents 4,563 4,565 4,530 4,556
SOURCE Fuqua Enterprises, Inc.
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CONTACT: John J. Huntz, Jr. or Brady W. Mullinax, Jr., Fuqua Enterprises, 404-815-2000
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