A group of European investors may purchase control of Mortgage Investors of Washington for $13 million, the Bethesda-based business trust announced yesterday.
MIW also said its unaudited earnings for the fiscal year ended March 31 were $1.61 million (75 cents a share) compared with a loss of $722,047 for the preceding fiscal year, but added that it had a net loss from operations of $2.017 million in the latest period compared with $1.587 million a year earlier.
Overall net income for the recent year reflected gains from selling investments that totaled $3.6 million compared with a gain the previous year from selling assets that was $815,155.
The trust's net loss for the fourth quarter was reduced to $422,870 from $789,194 a year earlier, according to MIW President Peyton B. Fletcher III. He said reducing operating expenses and paying off $17 million in debt improved MIW's results.
The unidentified European investors would pay $4.00 for each of 3.25 million shares of newly issued beneficial interest in the trust, giving them almost 60 percent of its outstanding shares.
Fletcher said the investors are expected to review the trust's financial condition next month before negotiating a definitive purchase agreement, which then would have to be approved by MIW's board of trustees.
Proceeds of a sale would be applied toward repaying the trust's $14.615 million in floating-rate notes due Nov. 1, Fletcher said. MIW assets stood at $28 million on March 31.
Williams Industries Inc. of Merrifield, Va., has reported record earnings for the nine months ended April 30 as all segments of the construction services firm showed improvement.
Net income was $730,848 (95 cents a share) on revenues of $5.546 million compared with net income a year earlier of $61,604 (8 cents) on revenues of $5.731 million.
Williams has owned 25 percent of John F. Beasley Construction Co. of Dallas, Texas, since last Jan. 1, and one-quarter of its earnings have been included in the nine-month results, contributing $345,191 (45 cents).
Third-quarter net income was $499,611 (69 cents) on revenues of $2.196 million compared with a $7,702 loss a year earlier on revenues of $1.789 million.
Williams began as a steel erection company, but has added the buying, leasing and selling of heavy equipment, foundation work and minor steel fabrication.
United Consolidated Industries of Hanover, Md., lost $280,208 during its first quarter ended April 30 compared with net income a year earlier of $19,873 (6 cents a share) as sales decreased 4.4 percent to $5.283 million.
UCI President Morris Kay said losses are rare for his company, but noted that the first quarter is traditionally the poorest of the year for UCI. The company sells auto replacement parts to jobbers who in turn sell them to service stations, but also does one-quarter of its business through its six auto parts stores which sell to auto dealers and service stations.
Kay said extremely mild weather in the Northeast during the past winter, the economic downtown, high interest rates and the effect of rising gasoline prices on vehicle usage contributed to the drop in earnings and sales.