Schwartz Brothers Inc.This Lanham-based company, one of...


December 21, 1990

Schwartz Brothers Inc.

This Lanham-based company, one of the nation's leading distributors of videocassettes and an independent distributor of recorded records, tapes and compact discs, reported yesterday that it had a net loss in the third quarter of $3,065,000, or $1.72 a share, compared with net earnings of $425,000, or 23 cents per share, in the same period a year ago.

Revenue for the quarter fell 21.9 percent because of the "weakened economy, the lack of major hit audio and video releases and tighter credit-granting policies," the company said in a statement.

Schwartz Brothers also said it had included in this quarter's results a "provision for doubtful accounts" of $3,894,000 because of "adverse payment experience and bankruptcies of several of the company's customers, the slowing of the national economy and the imposition of more stringent and aggressive collection procedures by the company." In the third quarter of 1989 there was a provision for doubtful accounts of $214,000, the statement said.

Three months ended 10/31/90

Revenue Net Share

'90 26,859,000 (3,065,000) (1.72)

'89 34,392,000 425,000 0.23

% change -21.9

Nine months ended 10/31/90

Revenue Net Share

'90 83,031,000 (2,883,000) (1.62)

'89 79,624,000 697,000 0.38

% change +4.3

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