Waverly quarterly profit tied to 18.2% sales jump

November 01, 1994|By Timothy J. Mullaney | Timothy J. Mullaney,Sun Staff Writer

Waverly Inc. said yesterday it turned last year's big third-quarter loss into a small profit for the three months ended Sept. 30, as the Baltimore medical and technical publishing company avoided the restructuring charges that caused much of last year's red ink.

Waverly said it earned $303,000, or six cents a share, on revenue of $32.6 million, up 18.2 percent from the same months last year.

In 1993, the company lost $3.2 million, or 75 cents a share, on continuing operations during the third quarter, in large part because of charges totaling 51 cents a share.

These charges covered a writedown of the value of Baltimore office buildings Waverly owns and set up a restructuring reserve to reduce future operating costs. The company also took a charge worth 24 cents a share on the sale of its printing division.

Company officials said last year's restructuring helped pave the way for this year's profit gains.

"Certainly the driving force was the 18 percent revenue increase," said Waverly Chief Financial Officer E. Philip Hanlon.

L "But there are also savings from the restructuring in 1993."

He said the company believes it saved about $400,000 during the quarter from staff reductions.

He said Waverly expects to see a $2 million reduction of payroll from pre-1993 levels next year.

Waverly's staff has shrunk about 10 percent this year, he said.

However, the quarterly profit was smaller than Waverly posted during the second three months of the year, when it earned $1.2 million.

Wall Street had little immediate reaction to the earnings zTC announcement.

Waverly's stock is thinly traded and the biggest shareholders are members of the family of company Chairman William M. Passano Jr.

The stock closed unchanged at $20.50, after trading around its 52-week high for most of the day.

No analysts had published estimates of what Waverly would earn during the quarter, according to Nelson Publications Inc., .. which tracks earnings estimates for public companies.

Instead, Wall Street's recent interest in Waverly revolves around takeover speculation that flared after last month's disclosure that Times Mirror Co., which owns The Baltimore Sun Co., had boosted its stake in Waverly above 5 percent.

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

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

... ... ... ... ... ... .. .. WAVR ... ... ... .. .. 20 1/2 . .. unchg

Period ended

09/30/94 ... ... ... .. .. 3rd qtr. ... ... ... Year ago ... Chg.

Revenue ... ... ... ... ... $32,631 ... ... ... $27,603 ... .+18.2%

Net Income ... ... ... ... $303 ... ... ... ... $(3,771) .. .--

Primary EPS ... ... ... .. $0.06 ... ... ... .. $(0.87) .. ..--

... ... ... ... ... ... .. 9 mos. ... ... .. .. Year ago ... .. Chg.

Revenue ... ... ... ... .. $95,804 ... ... ... $87,150 ... ... +9.9%

Net Income ... ... ... .. $2,065 ... ... ... $(2,078) .. ... ..--

Primary EPS ... ... ... .. $0.47 ... ... ... $(0.48) .. .. ... --

Figures in thousands (except per share data.)

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.