Waverly Press to raise quarterly dividend

November 03, 1992

After announcing increased earnings for the third quarter, Waverly Press Inc. said yesterday that it will raise its quarterly dividend to 11 cents, from 10 cents a share.

The Baltimore-based publishing and printing company reported a 64 percent increase in earnings for the three months that ended Sept. 30, which the company attributed to a 10 percent increase in the sales of books and periodicals, particularly overseas.

Boosting the volume of the sales in the higher-margin publishing end of the business enabled the company to improve its profit margin as well.

Two years ago, Waverly, known for its conservative approach, acquired three publishing companies and took on $17 million in debt. Despite that debt, which it expects to reduce by one-third soon, company executives said the company's continued growth allowed them to pay a dividend.

"What we have found over the past couple years is that integration of the acquisitions has not presented any surprises," said E. Philip Hanlon, chief financial officer. "We feel confident that cash flows will be sufficient to cover debt.

The company has increased its dividend about every two years, he said. The new dividend is payable Dec. 14 to shareholders of record Nov. 26.

Waverly reported a loss for the nine months that ended Sept. 30 because of a one-time $4.9 million charge stemming from an accounting change related to retirees' future medical benefits.

Three months ended 9/30

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

92.......... 39,010,000..... 932,000.......... 0.22

91.......... 35,495,000..... 568,000.......... 0.13

% change.......... +10.1.........+64.1.......... +69.2

Nine months ended 9/30/92

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

92............ 116,477,000...(1,756,000).... (0.41)

91............ 106,290,000...1,838,000........ 0.42

% change.............. +9.6.......... --............--

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