Wards Co. Inc., operators of Circuit City, Dixie, Lafayette and other discount electronics chains, reported a 449 percent increase in its second-quarter profits of $434,000 (21 cents per share), compared with $79,000 (four cents) last year.
Wards President Alan L. Wurtzel attributed the gain, particularly in the video and electronics products divisions, to "improved acquisition costs of merchandise as a result of the opportunistic buys available in this soft economy." Profits also benefited from lower interest rates and borrowing levels for working capital, Wurtzel said.
Second-quarter sales were $49 million, a 31 percent increase over last year's $37 million.
Dixie stores in Winston-Salem and Fayetteville, N.C., and licensed departments in Haynes furniture stores in Virginia Beach and Hampton, Va., were closed as planned during the quarter. A new Circuit City store in Fayetteville and new Superstores were opened in Winston-Salem and Virginia Beach. The company also opened licensed departments in Zody's stores in Ceres and Riverside, Calif.
A provision for $1 million in losses on the Sheraton WaiaKea Village hotel in Hilo, Hawaii, helped decrease fourth-quarter profits of Hotel Investors Trust and Hotel Investors Corp. The company reported net income for the quarter of $621,000 (24 cents), compared with $1,853,000 (74 cents) last year. Net income for the fiscal year ended Aug. 31 was $6.26 million ($2.40), compared with $6.12 million ($2.78) for fiscal 1981.
Hotel Investors Trust is a real estate investment trust specializing in investments in the hotel industry. It owns or finances Marriott, Hilton, Sheraton, Ramada Inn, Holiday Inn, Travelodge and other hotel properties. Hotel Investors Corp. leases hotel properties from the trust.
Combined gross income for fiscal 1982 increased to $27.16 million from $23.13 million in fiscal 1981. Gross income for 1982 includes room, food, beverage and other hotel revenues of $17.82 million at hotel properties leased by the corporation from the trust, compared with $14.06 million in 1981.
The trust declared a quarterly cash dividend of 75 cents per share, payable on Nov. 1 to shareholders of record Oct. 15.
Software AG Systems Group Inc. reported a 42 percent decrease in its net 1983 first quarter income of $148,785 (two cents), compared with $258,670 (four cents) for the same period last year. Revenues for the first quarter were $6.38 million, compared with last year's $4.49 million.