BIRMINGHAM, Ala., March 30, 2001 (PRIMEZONE) -- Moore-Handley, Inc. (Nasdaq:MHCO), a Birmingham, Alabama distributor of hardware and home center products, announced a net loss of 75 cents per share in the fourth quarter ended Dec. 31, 2000, versus net income of 21 cents in the same quarter of 1999. Annual results showed a loss of 82 cents per share versus net income of 16 cents for the previous year. Sales were down 10 percent in the fourth quarter and approximately 8 percent year over year.
The company noted that business conditions in the hardware-home center industry had deteriorated throughout the second half of 2000, and that both sales and earnings were further impacted by deflation of commodity prices. Company results also were adversely affected by an unusually large year-over-year increase in benefit expenses.
Mike Gaines, the company's President, said that sales remained soft during January and February. However, expense reductions carried out during the second half of 2000 and slightly firmer margins had contributed to year-over-year improvement in the company's unaudited results for early 2001.
Some of the foregoing statements may constitute "forward-looking statements." Such forward-looking statements are subject to various risks and uncertainties and the Company claims the privilege afforded by the safe harbor for forward-looking statements in the Private Securities Litigation Reform Act of 1995. These statements include statements as to the trend in early 2001 and any continuation thereof and involve known and unknown risks and uncertainties, including the risk of continuing softness in economic conditions that, together with other risks and uncertainties detailed from time to time in the Company's filings with the SEC, may cause actual results or performance of the Company to be materially different from any future results or performance expressed or implied by the forward-looking statements.
Moore-Handley
Summary Statement of Operations
(in thousands, except per share data)
Quarter Ended Twelve Months Ended
December 31, 2000 December 31, 2000
2000 1999 2000 1999
Sales $ 32,765 $ 36,283 $ 154,065 $ 167,217
Total gross
margin $ 4,634 $ 6,693 $ 24,157 $ 26,907
Warehouse &
delivery expense $ 2,479 $ 2,472 $ 10,132 $ 10,822
Gross Profit $ 2,155 $ 4,220 $ 14,025 $ 16,085
Selling &
administrative
expense $ 3,794 $ 3,213 $ 14,687 $ 14,234
Operating
income/(loss) $ (1,639) $ 1,007 $ (662) $ 1,851
Interest Expense $ 455 $ 393 $ 1,650 $ 1,407
Income/(loss)
before provision
for income tax
(benefit)/expense $ (2,094) $ 614 $ (2,312) $ 444
Income tax
(benefit)/expense $ (675) $ 209 $ (759) $ 145
Net income/(loss) $ (1,419) $ 405 $ (1,553) $ 299
Net income/(loss)
per share $ (0.75) $ 0.21 $ (0.82) $ 0.16
Weighted average
common shares
outstanding 1,892 1,912 1,903 1,881