MRCR Moro Corporation (PK)

Moro Corporation (OTC: MRCR) today announced that financial results for the three months ended March 31, 2010 were as follows:

 

Three Months EndedMarch 31

2010   2009   Revenue $ 9,976,000 $ 15,586,000 Net income (loss) $ (297,500 ) $ 63,000 Earnings per share (loss) (.05 ) $ .01

Average number of common shares outstanding

6,369,643 6,369,643  

Revenue for the three months ended March 31, 2010 was $9,976,000, a decrease of 36% over the prior year period.

The Construction Materials Division (mainly reinforcing steel and construction accessories) accounted for 31% of first quarter revenue and the Mechanical Contracting Division (HVAC, plumbing, piping) accounted for 69% of revenue. Revenue for the Construction Materials Division declined by 45% due to decreased demand for the company’s fabricated steel, the result of customer uncertainties regarding funding from the Federal Stimulus Program. Revenue for the Mechanical Contracting Division decreased from the year-ago period by 32% due to a slowdown in construction awards. The residential/light commercial segment of this Division was profitable due to strong customer demand driven by both the Residential Energy Property Credit and vendor rebates. Both Divisions were negatively impacted by severe snows and flooding in the Northeast.

As anticipated, the recession has caused first quarter revenue to be well below 2009 levels. The Company believes that recent indicators of economic recovery should lead to an upswing in revenue. The expected funding of road and bridge rehabilitation should benefit the Construction Materials Division. In early May, the Mechanical Contracting Division was awarded an $18 million contract for plumbing, heating and sheet metal ductwork for a large Pennsylvania hospital system.

The Company’s financial position is strong. At March 31, 2010 the current ratio was 1.5:1 and cash of $2,994,000 represented 32% of stockholders’ equity.

David W. Menard, President and CEO commented: “The construction industry has expected 2010 to be a rough year. We believe that eventually business conditions in construction will rebound. Moro continues to actively expand geographic coverage for its products and seek acquisitions. We recently opened a new branch in the residential/light commercial segment located in Poughkeepsie, New York where we do business as Hudson Valley Heating. Moro has also signed a nonbinding letter of intent to purchase the operating assets of a specialty steel fabrication business which we hope to close during the 3rd quarter of 2010.”

Moro is a profitable and financially strong multi-location and multi-subsidiary 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, piping).

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

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 operating profits, the lack of continued demand for the company’s products , the availability of governmental funding for its projects, the ability to locate and acquire suitable acquisition opportunities, and if acquired, the failure of any such businesses to generate operating profits.