MRCR Moro Corporation (PK)

Moro Corporation (OTC: MRCR) today announced that financial results for the three and nine months ended September 30, 2010 were as follows:

 

Three Months Ended

Nine Months Ended

September 30

September 30

2010

 

2009

2010

 

2009

Revenue $ 16,030,000 $ 16,738,000 $ 39,155,000 $ 48,347,000 Net income $ 851,000 $ 914,000 $ 789,000 $ 1,415,000 Earnings per share $ 0.13 $ 0.14 $ 0.12 $ 0.22

Average number of common shares outstanding

6,369,643 6,369,643 6,369,643 6,369,643  

Revenue for the third quarter of 2010 of $16,030,000 was 4% lower than for the year-ago period. The Construction Materials Division (mainly fabrication of concrete reinforcing steel) represented 39% of total revenue and the Construction Contracting Division (mainly HVAC, plumbing, piping, miscellaneous steel and electrical products and services) accounted for 61% of total revenue for the third quarter.

Net income for the third quarter was $851,000 including an extraordinary item of gains on acquisitions of $460,000. Earnings per share for the third quarter were $.13. Both the Construction Contracting Division and the Construction Materials Division had net income for the quarter.

Revenue for the first nine months was $39,155,000 compared with $48,347,000 for the year-ago period. The Construction Materials Division represented 38% of total revenue and the Construction Contracting Division accounted for 62% of total revenue for the nine-month period.

Net income for the nine-month period was $789,000 compared with $1,415,000 for the year-ago period. Nine month 2010 net income includes an extraordinary item of gains on acquisitions of $460,000.

Moro acquired two businesses (an electrical contractor (high voltage, fiber optics, lighting, building controls) and a fabricator of miscellaneous metals (stairs, railings and ornamental iron work) during the third quarter, which, based on their historical revenues, is anticipated to result in annualized revenues of about $20,000,000 to our company.

David W. Menard, President and CEO, commented: “These are tough times for businesses serving the construction industry. Moro, on an overall basis, is doing reasonably well. We continue to broaden our company’s geographic reach, scope of products and services provided to customers, and search for expansion opportunities including possible acquisitions and joint ventures. Our book value per share (stockholders’ equity divided by outstanding shares) was $1.64 and cash represented 16% of stockholders’ equity at September 30, 2010.”

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

For more information, contact David W. Menard, President and CEO, at 484-367-0300, fax 484-367-0305.

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.