Katy Industries Considers Sale Following 3Q Results
For the nine months of 2000, Katy reported a net loss from its continuing segments, excluding unusual items, of $60,000 or $.01 per diluted share. Net income from continuing segments, excluding unusual items, for the same period of 1999 was $6,985,000 or $.83 per diluted share. Including unusual items and results from operations to be disposed of, Katy reported a net loss for the first nine months of $3,183,000 or $.38 per diluted share. Net income after unusual items and operations to be disposed of was $5,996,000 or $.71 per diluted share for the first nine months of 1999.
Katy cited cost pressure from increased plastic resin prices, poor performance in the mop and broom operations, and softer sales than anticipated as the principal reasons for negative year-over-year comparisons. Katy expects this softer sales trend to continue into the fourth quarter, in particular at retail, and that full year sales will be at levels comparable to 1999.
Katy also announced that it is exploring its strategic alternatives, including the possible sale of the Company. Katy indicated that it is in discussions with one potential purchaser relating to a transaction that would involve the purchase of the Company at a premium to its current market price. However, the company said there can be no assurance that an agreement will be reached, or if reached, will be completed. Katy said it did not intend to comment further, unless agreement is reached or discussions terminate.