BIRMINGHAM, Ala., July 26, 2000 (PRIMEZONE) - Moore-Handley, Inc. (Nasdaq:MHCO) a Birmingham, Alabama based distributor of hardware and home-center products, announced that gross profit for the quarter ending June 30, 2000 was $3,959,000 compared to $3,971,000 for the second quarter 1999, on sales of $38,642,000, a decrease in sales of 9.5% from the same period last year. The Company attributes the decline in sales mainly to higher interest rates, tighter credit, and lower housing sales. The net loss for the quarter was $.08 per share on 1,923,000 average shares outstanding compared to a net profit of $.01 per share on 1,875,000 average common shares outstanding in 1999.
The Company noted that a change in the method of estimating vendor allowances, described more fully in the Company's Form 10-Q, reduced 2000 reported second quarter pretax income by approximately $30,000 and approximately $208,000 for the first six months of 2000. The effect of the change was to increase the net loss per share by $.01 for the second quarter of 2000 and by $.07 for the first six months of 2000. This change in accounting estimate has no impact on annual reporting. Had operations been reported this year the same as last year, the Company's second quarter loss would have been $.07 per share and net income for the six months ending June 30, 2000 would have been $.03 per share.
Summary Statement of Operations
(in thousands, except per share data)
Quarter Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
Sales $ 38,642 $ 42,704 $ 82,397 $ 87,367
Total gross margin
6,506 6,826 13,422 13,282
Warehouse & delivery
expense 2,547 2,855 5,203 5,548
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Gross profit 3,959 3,971 8,219 7,734
Selling & administrative
expense 3,812 3,620 7,584 7,200
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Operating income 147 351 635 534
Interest expense 385 318 758 636
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Income (loss) before provision
for income tax
(benefit) (238) 33 (123) (102)
Income tax (benefit) (91) 13 (47) (38)
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Net income (loss)
$ (147) $ 20 $ (76) $ (64)
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Net income (loss) per
share $ (.08) $ .01 $ (.04) $ (.03)
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Weighted average common
shares outstanding
1,923,000 1,875,000 1,923,000 1,875,000