Waverly earnings up 10% in quarter

April 27, 1993|By Ross Hetrick | Ross Hetrick,Staff Writer

Earnings for Waverly Inc., a Baltimore-based medical publishing and printing company, increased 10 percent during the first quarter because of higher international publishing revenues, the company said yesterday.

Income for the quarter was $493,000, or 11 cents a share, compared with income from operations of $446,000, or 10 cents a share, in the previous first quarter. Income in the 1992 first quarter included a noncash charge of $4.9 million for accounting changes, resulting in a loss of $4.4 million, or $1.03 a share.

Speaking at the company's annual meeting, Waverly President and Chief Executive Edward B. Hutton Jr. said he expected the first quarter trend to continue with 1993 earnings increasing by 10 to 15 percent and return on equity reaching about 12 percent.

"We remain committed to focusing on our niche markets and building aggressively our lines of proprietary publications," he told about 100 shareholders at the Center Club in Baltimore.

But, while the company will keep its focus on medical books, journals and related products, its status as a Baltimore-based company has been thrown into doubt.

The company, which has been in Baltimore for 102 years, is looking for a new location for its headquarters on East Preston Street and its composition operation at Mount Royal Ave. and Guilford Ave. The two locations have a total work force of about 600.

The company is outgrowing its present locations, but the main concern is the safety of the area, according to Arthur E. Newman, executive vice president for Waverly.

"I would say safety is the driving determinant," he said.

Besides finding buildings that fit the company's needs, Waverly is looking for a location with ample parking and security, Mr. Newman said.

The company has received information, along with incentives, fromthe Baltimore Development Corp., the city's development agency, he said. It has hired a consultant that will investigate the possibilities in surrounding counties, he said.

Mr. Newman said the "emotional" preference is to stay in Baltimore, because of the company's long ties to the city and the fact that 55 to 60 percent of its local work force lives in Baltimore.

He said a decision will be made in the next six to nine months, and the move is planned for late 1994 or early 1995.

Waverly Inc.

Ticker.. .. .. .. .. .. .. ... Yesterday's Symbol .. .. ... .. ... ... ...Cls... ..Chg.

WAVR .. .. .. .. .. .. .. ..17 1/4 Bid.. ..Unch.

Period ended

March 31.. .. .. .. .. 1st qtr.. ..Year ago.. ..Chg.

Revenue .. .. .. .. .. $37,736 .. .$35,511.. .. +6.3

Net Income .. .. .. .. .. $493 .. .$(4,472)*.. . --

Primary EPS .. .. .. .. .$0.11 .. .$(1.03)*.. .. --

Figures in thousands (except per share data.)

* Excluding noncash charge for accounting rule change, income in the 1992 first quarter was $446,000, or 10 cents a share.

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