Kirschner Medical Corp. of Timonium said that problems in...

BY THE NUMBERS

November 20, 1991|By Timothy J. Mullaney

Kirschner Medical Corp. of Timonium said that problems in its Spanish subsidiary held profits from continuing operations to $21,000, or 1 cent a share, during the three months that ended in September.

"We've deliberately scaled back the growth" of the overseas unit, Dr. C. Scott Harrison, the company's chairman, said. He said the unit, which like Kirschner's domestic operations makes medical equipment such as replacement joints, had been growing at a rate of about 30 percent a year but had been hampered by government bureaucracies that often took 300 days or more to pay for merchandise.

"It's great for profits, but . . . you have a problem with cash flow," he said.

Despite the drop in operating earnings, which had been $193,000 in the third quarter of last year, Kirschner's net income was bolstered by a tax-loss carry-forward and by the release of money that had been held in escrow from the sale of a divisions last year, Dr. Harrison said.

Kirschner had announced last week that its domestic operations would show a profit for the quarter but that its overall performance would be hampered by losses overseas.

When the specific numbers came out yesterday, they also included some losses stemming from slow payments from Mexican buyers, Dr. Harrison said.

But he said the company still thinks it will meet analysts' predictions that it will earn 11 cents a share for the fourth quarter, which would give Kirschner its first annual profit since 1988. "We don't see that as an unrealistic goal," Dr. Harrison said.

Three months ended 9/30/91

... .... ....Revenue .. .. ..Net .. .. ..Share

'91 .. .. ..15,677,000 .. .905,000 .. 0.35

.. .. ..15,106,000 .. .193,000 .. 0.08

change .. .+3.8 .. .. .. ..+368.9 .. ..+337.5

Six months ended 9/30/91

.. .. .. .. ..Revenue .. .. .Net .. .. ..Share

'91 .. .. .. 52,105,000 .. 2,528,000 ..1.00

.. .. .. 47,395,000 .. 1,599,000 ..0.66

change .. ..+9.9 .. .. .. .+58.1 .. .. +51.5

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