Waverly profits increased 3.5% in 2nd quarter

August 02, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

Rebounding from heavy losses last year, Waverly Inc. reported yesterday that earnings were up 3.5 percent, to $1.2 million, in the second quarter.

The recovery for the Baltimore-based medical publishing firm was even more noticeable when results from the company's printing operation, which was sold last year, are excluded from the 1993 figures. Net income from continuing publishing operations jumped 145.5 percent, with increased publishing revenues more than replacing lost printing income.

"We had a good quarter and a good first half for revenues," said E. Philip Hanlon, Waverly's chief financial officer.

Sales for the quarter that ended June 30 were up 9.7 percent, to $34.4 million, from $31.3 million for the same period a year ago.

Book publishing revenues during the quarter were pushed up 15 percent by an increase in the number of publications introduced and growth in newly established European businesses. Periodical sales increased by 3 percent because of new magazines, but it was offset somewhat by a soft pharmaceutical advertising market, the company said.

Earnings also benefited from a corporate restructuring, which included the elimination of 50 jobs during the first half of the year, leaving the U.S. work force at 400.

Net income for the first six months was up 4.1 percent, to $1.8 million, from a year ago. Sales increased by 6.1 percent, to $63.2 million.

The 104-year old company lost $2 million, or 46 cents per share, in 1993 because of drops in medical book sales to pharmaceutical companies and economic problems in Japan and Germany. It also took a $1.1 million loss on the sale of its printing operations.

Waverly Inc. ... ... ... ... Ticker ... ... ... Yesterday's

... ... ... ... ... ... ... ... Symbol ... ... ... Cls. ... Chg.

... ... ... ... ... ... ... ... WAVR ... ... .. .. 19 1/2 .. .. + 1/4

Period ended

June 30 ... ... ... 2nd qtr. ... ... ... Year ago ... ... ... Chg.

Revenue ... ... ... $34,403 .. .. .. ... $31,337 ... .. .. .. +9.7%

Net Income .. .. .. $1,242 ... .. .. ... $1,200* ... .. .. .. +3.5%

Primary EPS ... ... $0.29 ... ... .. ... $0.28* ... ... .. .. +3.6%

... ... ... ... ... 6 mos. ... ... ... Year ago ... ... .. .. Chg.

Revenue ... ... ... $63,173 .. ... ... $59,547 ... ... ... .. +6.1%

Net Income .. .. .. $1,762 ... ... ... $1,693** .. ... ... .. +4.1%

Primary EPS ... ... $0.41 .. .. .. ... $0.39** ... ... ... .. +5.1%

* Includes income of $694,000, or 16 cents per share, from discontinued printing operation.

** Includes income of $1.1 million, or 26 cents per share, from discontinued printing operation.

Figures in thousands (except per share data.)

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