Moro Corporation (MRCR)

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Moro Corporation Reports 3rd Quarter 2008 Sales Increase of 28% over Year Ago Period; Nine Month Book Value Per Share up 9%

http://biz.yahoo.com/bw/081104/20081104005948.html?.v=1

Tuesday November 4, 12:14 pm ET

WAYNE, Pa.--(BUSINESS WIRE)--Moro Corporation (OTC:MRCR - News) today announced that financial results for the three and nine months ended September 30, 2008 were as follows:
Three Months Ended


Nine Months Ended


September 30


September 30


2008


2007


2008


2007
Revenue $ 22,777,000 $ 17,784,000 $ 55,095,000 $ 47,916,000
Net income $ 695,000 $ 795,000 $ 769,000 $ 1,548,000
Earnings per share $ .11 $ .13 $ .12 $ .25

Average number of common shares outstanding
6,369,643 6,282,143 6,369,643 6,282,143


Revenue for the third quarter of 2008 of $22,777,000 was 28% greater than for the year-ago period. The Construction Materials Division (mainly concrete reinforcing steel) represented 45% of total revenue and the Mechanical Contracting Division (mainly HVAC products and services) accounted for 55% of total revenue for the third quarter.

Net income for the third quarter was $695,000. Earnings per share for the third quarter were $.11. Both the Mechanical Contracting Division and the Construction Materials Division were strong contributors to profits.

Revenue for the first nine months of $55,095,000 was 15% greater than for the year-ago period. The Construction Materials Division represented 48% of total revenue and the Mechanical Contracting Division accounted for 52% of total revenue for the nine-month period.

Net income and earnings per share for the nine-month period of $769,000 and $.12, respectively, were below the results reported for the year-ago period. The Mechanical Contracting Division reported a revenue increase of 20% over the prior year period. However, profits were substantially less than those reported for the prior year for the following reasons: (a) the commercial segment of this Division did not have contracts that were as profitable as those for the previous year, and (b) the residential segment experienced a wide gap between selling prices and labor and operating expenses due to the turmoil in overall housing and financial markets. The Construction Materials Division reported an 11% revenue increase and net income that was 93% greater than for the prior year period. This division benefitted from higher profit margins caused by an increase in the difference between selling prices and the cost of purchased steel and operating costs.

David W. Menard, President and CEO, commented: “These are tough times for businesses serving the construction industry. I feel fortunate that Moro, on an overall basis, is doing reasonably well. We continue to expand our topline (revenue), by broadening our program’s reach and opening new branches, and searching for expansion opportunities including possible acquisitions and joint ventures.”

Moro is a profitable and financially strong and multi-subsidiary eleven-location construction products and services company engaged in the (a) fabrication of concrete reinforcing steel (rebar), sheet metal (duct work), and process piping, (b) distribution of construction steel, miscellaneous steel and construction accessories, and (c) mechanical contracting services (HVAC, plumbing, and piping).

For more information, contact David W. Menard, President and CEO, at 484-367-0300, fax [phone].

Statement under the Private Securities Litigation Reform Act: This press release contains certain forward-looking statements regarding, among other things, the anticipated profitability and continued growth of the company. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements, including the continued ability of the company to generate operation profits, the lack of continued demand for the company’s products, the ability to locate and acquire suitable acquisition opportunities, and if acquired, the failure of any such businesses to generate operating profits.


Contact:

Moro Corporation
David W. Menard
President and CEO
484-367-0300
Fax: [phone]