BIRMINGHAM, Ala., Oct. 24, 2000 (PRIMEZONE) -- Moore-Handley, Inc. (Nasdaq:MHCO) a Birmingham, Alabama distributor of hardware and home center products, announced a net loss of three cents per share in the quarter ended September 30, 2000 versus a loss of two cents in the same quarter last year. Nine month results were a loss of seven cents versus six cents last year. The Company noted that the essentially flat bottom-line results for the quarter and nine months were achieved despite sharply lower sales, attributed to higher interest rates, tighter credit and lower housing sales, as well as a decision to discontinue selling about 300 unprofitable dealers.
The Company noted that a change in the method of estimating vendor allowances, described more fully in the Company's Form 10-Q, increased 2000 reported third quarter pretax income by approximately $244,000 and reduced reported pretax income approximately $265,000 for the first six months of 2000. The effect of the change was to reduce the net loss per share by $.08 for the third quarter of 2000 and increase the net loss by $(.09) for the first six months of 2000. This change in accounting estimate has no impact on annual reporting.
Summary Statement of Operations
(in thousands, except per share data)
Quarter Ended Nine Months Ended
September 30 September 30
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2000 1999 2000 1999
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Sales $ 38,903 $ 43,566 $ 121,300 $ 130,933
Total gross margin 6,101 6,932 19,522 20,215
Warehouse & delivery
expense 2,450 2,802 7,652 8,350
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Gross profit 3,651 4,130 11,870 11,865
Selling & administrative
expense 3,309 3,821 10,894 11,021
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Operating income 342 309 976 844
Interest expense 437 378 1,195 1,014
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Loss before provision
for income tax benefit (95) (69) (219) (170)
Income tax (benefit) (37) (27) (84) (64)
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Net (loss) $ (58) $ (42) $ (135) $ (106)
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Net (loss) per share $ (.03) $ (.02) $ (.07) $ (.06)
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Weighted average common
shares outstanding 1,929 1,876 1,923 1,876