#76. AMERICAN RESOURCES CORP.
6320 Augusta Dr. Springfield, Va. 22150 REVENUE: $12.2 milli5283on PROFITS: $689,000 EARNINGS PER SHARE: 9 cents DIVIDEND: None ASSETS: $11.6 million STOCKHOLDERS' EQUITY: $2.9 million RETURN ON EQUITY: 24 percent EXCHANGE: OTC EMPLOYES: 46 TOP EXECUTIVES: Charles E. Colburn III, president, chairman and chief executive officer; Lawrence Penrose, executive vice president. FOUNDED: 1985
DESCRIPTION: American Resources Corp. is a diversified holding company created last year through the merger of Colburn Energy Corp., a privately owned energy-investment firm in Springfield, and FP Industries Inc., a publicly held firm with headquarters in Honolulu. The combined companies have operating subsidiaries involved in the growing of tropical foliage plants, orchids and anthuriums in Hawaii; the manufacturing and marketing of log homes, commercial buildings and lodges; management and development of oil and gas ventures in Texas, West Virginia, Louisiana and Oklahoma; and the importing and distribution of high-quality decorative textiles, primarily from Europe.
DEVELOPMENTS: Financial results for the fiscal year ended Jan. 31 are stated on a pro-forma basis combining operations of Colburn Energy and FP Industries for the preceding 12 months. Actual merged operations of the combined firms were effective Nov. 1.
A. R. C. Agribusiness, the nursery operation in Hawaii, recently secured an option to acquire Agratech, a contract grower in Hawaii, on or before Dec. 31 of this year. If the acquisition is made final, A. R. C. Agribusiness, currently the fourth-largest nursery operation in the United States, would be enlarged significantly.
Several new marketing outlets have been developed for A. R. C. Rocky Mountain Homes, the log-home division of the company, including a new 160,000-square-foot showroom near Springfield, Mo., and catalogue distribution operations with a circulation of 2 million.
Because of declining prices for gas and oil, the company recently started an aggressive acquisition program to buy bargain-priced leases in the Southwest and hired a large Houston law firm specializing in bankruptcies to seek possible acquisitions. #77. WAXIE MAXIE QUALITY MUSIC CO.
5772 2nd St. NE Washington, D.C. 20011 REVENUE: $11.5 million PROFITS: $161,617 EARNINGS PER SHARE: 98 cents DIVIDEND: 10 cents ASSETS: $4.1 million STOCKHOLDERS' EQUITY: $1.4 million RETURN ON EQUITY: 11.3 percent EXCHANGE: OTC EMPLOYES: 230 TOP EXECUTIVES: Mark D. Silverman, president; David B. Blaine, vice president. FOUNDED: 1938
DESCRIPTION: Waxie Maxie operates 25 retail record stores in Maryland and Virginia. The stores offer compact discs and cassette tapes in addition to standard recordings. Products and accessories, including blank tapes, related to the reproduction of music and voice also are available in the stores. The company leases its retail and warehouse facilities.
DEVELOPMENTS: Company revenue increased 23 percent in the fiscal year ended July 31, 1985. Net income for the year was up 18 percent. Waxie Maxie Quality Music continued a major shift in inventory mix during the past year from traditional vinyl albums to new compact-disc and cassette-tape formats. The demand for the new formats has made long-playing albums a shrinking part of the recorded music business. Waxie Maxie management is making a substantial commitment to the new formats, which involve an increase in unit pricing. The price of most compact discs is two or three times that of comparable standard long-playing records.
The company expects the higher prices to have an initial negative impact on unit sales over the next few years of transition. Unit sales are expected to recover at higher annual levels once supply of the new formats become dominant in the marketplace in two or three years. Anticipating future growth, Waxie Maxie Quality Music has negotiated leases on two additional retail locations to be opened in 1986 and is considering another two locations. #78. SCOPE INC.
1860 Michael Faraday Dr. Reston, Va. 22090 REVENUE: $11.3 million LOSS: $1.2 million LOSS PER SHARE: 57 cents DIVIDEND: None ASSETS: $7.1 million STOCKHOLDERS' EQUITY: $3.4 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 141 TOP EXECUTIVES: Michael Levy, chief executive officer; Edward R. Olson, president and chief operating officer. FOUNDED: 1949
DESCRIPTION: Scope is an electronics company that specializes in the application of computer and signal-processing technology for industry and defense. Scope's principal defense work is the development of target classification processors for air-to-air combat and air defense. Its industrial products include a line of bar-code scanners and related products for use in factory floor assembly.
DEVELOPMENTS: Lexicon Corp., a Fort Lauderdale, Fla., computer company acquired a 51 percent controlling interest in Scope last June and has taken an active management role in the firm. Lexicon placed three officers on Scope's seven-member board of directors in July. As a result of the stock acquisition, Scope changed its fiscal year end from Dec. 31 to Aug. 31 to coincide with Lexicon's annual reporting period.
The two firms are in the process of consolidating Lexicon's manufacturing operations at the Scope plant, a move that is expected to be completed by June. Lexicon will continue to design and market terminal scanners and other products offered by the firms. Based on the growth of backlog in recent months, Scope anticipates significant revenue growth this year and in fiscal 1987. The backlog has climbed from between $3 million and $4 million in early 1985 to a current level of $13 million.
The company also expects to improve revenue through the sale of marketing rights for its scanning devices to Allen-Bradley Co. of Milwaukee. Scope will continue to market scanners for sale by Allen-Bradley under terms of the agreement.
Scope recently was awarded an $8.2 million contract from the Defense Department for communications security equipment. The government has the option to increase the award to $16.5 million by the end of this year. #79. ROWLEY-SCHER REPROGRAPHICS INC.
P.O. Box 1447 Beltsville, Md. 20705 REVENUE: $11.2 million PROFITS: $800,441 EARNINGS PER SHARE: 84 cents DIVIDEND: None ASSETS: $5.7 million STOCKHOLDERS' EQUITY: $1.3 million RETURN ON EQUITY: 60 percent EXCHANGE: OTC EMPLOYES: 270 TOP EXECUTIVES: Joel H. Salus, chairman; John Scher Zeller, president. FOUNDED: 1922
DESCRIPTION: Rowley-Scher operates graphic-reproduction service centers in the District, Baltimore and Norfolk. Most of its business is for design, engineering, construction and real estate, with no single customer accounting for more than 5 percent of its annual sales.
DEVELOPMENTS: Founded in Washington 63 years ago, the firm made its first stock offering in November and gained the distinction of becoming one of the few public companies in an industry in which most of its competitors are privately held.
Rowley-Scher reported a 60 percent jump in profits for the fiscal year ended March 31, 1985, to $800,441 from $333,348 in 1984.
For the nine months ended Dec. 31, 1985, the firm reported revenue of $11.2 million and net income of $774,036 (70 cents a share), compared with revenue of $7.9 million and net income of $669,143 (70 cents) in 1984. Costs increased during the period because of relocation expenses and because the company opened a new operation in Norfolk. #80. GENERAL KINETICS INC.
12300 Parklawn Dr. Rockville, Md. 20852 REVENUE: $10 million PROFITS: $955,288 EARNINGS PER SHARE: $1.13 DIVIDEND: None ASSETS: $4.6 million STOCKHOLDERS' EQUITY: $2.3 million RETURN ON EQUITY: 41 percent EXCHANGE: OTC EMPLOYES: 201 TOP EXECUTIVES: Louis R. Schap, president; Stanley J. Sarnowski, vice president and treasurer. FOUNDED: 1954
DESCRIPTION: General Kinetics supplies shipboard electronic mounting systems to the U.S. Navy and its prime systems contractors. Its media division offers magnetic tape products and services, and Food Technology Corp., a wholly owned subsidiary, makes food-texture equipment and automated electro-optical sorting systems.
DEVELOPMENTS: General Kinetics had one of its best years ever in 1985, with revenue increasing 25 percent -- to a little more than $10 million. There was also a sharp turnaround in profits, as the company went from a $52,000 loss in 1984 to a $955,000 profit last year. It maintained its position as the leading supplier of enclosures and rack-mounting systems for communications and electronics systems on Navy ships. That business produced 84 percent of the company's revenue as the customer base expanded to include leading high-technology manufacturers in the nation. locations.
78. SCOPE INC. 1860 Michael Fara