Losses for Best Products Co. worsened in the second quarter, according to financial results reported yesterday by the Richmond-based catalogue showroom retailer.
Best, one of the nation's largest catalogue retailers with 195 showrooms and 35 Best Jewelry outlets, lost $33.7 million on sales of $442.8 million in the most recent period, compared with a loss of $27.2 million on sales of $429.6 million for the second quarter of fiscal 1989.
For the first six months of this year, the performance improved over the same period last year. So far this year, the company had a net loss of $59.9 million on sales of $850.7 million, compared with a $62.2 million loss on sales of $820.9 million in the first six months of fiscal 1989.
Best also announced yesterday that it had refinanced $175 million of debt and also got banks to add $30 million to its short-term credit pool.
"While we were disappointed with the results for the second quarter, recent changes in our merchandising assortment coupled with increased credit availability have the company well-positioned for the all-important Christmas season," said Jerry E. Goldress, Best chairman and chief executive officer.
Hadron Inc., a Vienna-based technology services company, said one-time charges and declining profits from its government contracts led to a $1.9 million loss for the fiscal year ended June 30.
The company, which changed the end of its fiscal year to June 30 from March 31, said it earned $221,000 (2 cents a share) for the fiscal year ended March 31, 1989. For the three months ended June 30, 1989, it had a profit of $34,000.
Revenue for the year rose to $29 million from $28 million in fiscal 1989. For the three months ended June 30, Hadron's revenue totaled $7.1 million.
Hadron said its one-time charges covered some of its accounts receivable and real estate leases. James Arnold, its chairman and chief executive officer, said the company expects to return to profitability soon as it wins more contracts.
General Kinetics Inc. of Rockville said sharp gains in sales of its fax equipment designed to be safe from electronic eavesdropping, reversed losses in the fiscal year and fourth quarter ended May 31.
The company earned $898,319 ($1.03) in fiscal 1990, compared with an $855,576 loss a year earlier. Revenue rose almost 64 percent, to $18.3 million from $11.2 million.
Fourth-quarter profits totaled $324,224 (37 cents), compared with a loss of $531,000 in the fiscal 1989 fourth quarter. Revenue gained 81 percent, to $6.3 million from $3.5 million.
McCormick & Co. said its profits in the fiscal third quarter ended Aug. 31 fell nearly 10 percent from the same period in 1989, when earnings were boosted by the sale of some operations.
During 1989, the Hunt Valley, Md.-based spice giant earned almost $86 million from the sale of its portion control and food color businesses as well as operations in Brazil. In the third quarter of 1989, the gain on those sales was $2.7 million.
McCormick earned $17.9 million (43 cents) in the third quarter on revenue of $321.5 million, compared with a profit of $19.4 million (45 cents) on revenue of almost $314.9 million in the same period a year ago.
In the first nine months, McCormick earned $43.9 million ($1.04), including gains from the sale of land in the United Kingdom for $6.3 million. For the same period of 1989, profits totaled $115.2 million ($2.61), including $83 million in gains from the asset sales.
Circuit City Stores Inc., the Richmond-based electronics retailer with several stores in the Washington area, said its profits rose 13 percent in the fiscal first half and second quarter ended Aug. 31.
Much of the gain came from new stores. Sales at stores open more than a year rose only 2 percent and company officials said the results reflected consumers' uncertainty about the economy.
Circuit City said it earned $19 million (41 cents) in the second quarter, compared with $16.8 million (37 cents) in the same period a year earlier. Revenue rose almost 18 percent, to $554.9 million from $471.6 million.
In the first half, the company earned $31.1 million (67 cents), compared with $27.6 million (60 cents) in the year-earlier first half. Revenue gained more than 19 percent, to $1.05 billion from $879.6 million.