Reconditioned Systems, Inc. News
Release
444 West Fairmont
Tempe, Arizona 85282 Contact: Investor Relations
(480) 968-1772 (Telephone)
(480) 894-1907 (Fax)
“RSI reports Revised Fiscal
2004 results”
Tempe, Arizona, May 19, 2004
Dear Fellow Shareholders:
Although we were profitable in
our third fiscal quarter, slower sales in the March quarter prevented us from
having a profitable year. Although the
overall economy is recovering, we have not seen a meaningful recovery in the
modular office furniture industry. We
remain hopeful that sales will pick up in the fall.
The glut of cubicles available
from the dot-com bust has hurt our remanufactured sales, because as-is sales
were available in almost new condition.
These inventories have now been absorbed for the most part, and I expect
that we will begin to see less competition from as-is.
For the three months ended March
31, 2004, RSI earned pre-tax income of $19 thousand on sales of $4.8
million. This compares to pre-tax earnings
of $22 thousand on sales of $2.9 million for the quarter ending March 31,
2003. We continue to believe that the
economy and our business are slowly but steadily improving, and that we should
continue to pick up market share due to the number of competitors who have gone
out of business. We remain cautiously
optimistic for our next fiscal year.
We have cut costs again this
quarter and are hopeful that these cuts combined with the savings associated
with becoming a non-reporting company will enable this next fiscal year to be
profitable. We do not expect to expand
further, but rather consolidate our operations and concentrate on maximizing
profits. I look forward to reporting
better results to you this next year.
Scott W. Ryan
Chairman of the Reconditioned Systems, Inc.
New Release
May 19, 2004
Page -2-
|
|
For the Year Ended |
|
|
|
March 31, 2004Consolidated (Unaudited) |
March 31,
2003 (Unaudited) |
|
Sales |
$16,580,004 |
$11,511,058 |
|
Gross margin |
$3,650,790 |
2,517,922 |
|
Selling and administrative expenses |
$3,854,307 |
$2,474,293 |
|
Other income (expense) |
$18,365 |
$23,408 |
|
Net income (loss) before provision for income
taxes |
$(185,152) |
$67,037 |
|
Net income (loss) |
$(162,685) |
$50,277 |
|
Basic earnings (loss) per share |
$(0.12) |
$0.04 |
|
Basic weighted average number of common shares outstanding |
1,357,774 |
1,253,032 |
|
Diluted earnings (loss) per common and equivalent
share |
$(0.12) |
$0.04 |
|
Diluted weighted average number of common and
equivalent shares outstanding |
1,357,774 |
1,370,730 |
|
Summary Balance Sheet as
of |
|||||
|
|
March 31, 2004
Consolidated (Unaudited) |
March 31,
2003 (Unaudited) |
|
March 31, 2004
Consolidated (Unaudited) |
March 31,
2003 (Unaudited) |
|
Assets |
|
|
Liabilities
and Equity |
|
|
|
Cash |
$996,739 |
$1,031,512 |
Accounts payable |
$1,211,255 |
$643,895 |
|
Accounts receivable |
1,862,682 |
1,585,583 |
Customer deposits |
381,560 |
170,414 |
|
Inventory |
1,912,694 |
1,349,184 |
Other current liabilities |
510,006 |
309,863 |
|
Property & equipment |
713,756 |
359,976 |
Stockholders’ equity |
3,820,300 |
3,742,188 |
|
Other assets |
437,250 |
540,105 |
|
|
|
|
Total |
$5,923,121 |
$4,866,360 |
Total |
$5,923,121 |
$4,866,360 |