Profits at Waverly Inc., the Baltimore-based publisher of medical journals, surged in the last three months of 1994, partially due to a one-time $2 million gain on the sale of its stake in a German publisher.
Waverly said it made almost $2.6 million in the three months ended Dec. 31, up from $70,000 in the same period a year ago. The final quarter's revenues, $36.1 million, were up 4.6 percent over the previous year.
Company officials said that while revenues from Waverly's periodicals were down 1 percent because of a downturn in pharmaceutical advertising, revenues from Waverly's new electronic publications were up 37 percent.
Contributing to the contrast was the gain on the sale of Waverly's interest in Urban & Vogel, a German medical publisher. That division reported a $200,000 operating loss in the last quarter of 1993.
The improved profits were greeted enthusiastically by investors, who sent Waverly's stock up $1 yesterday, to finish the day at a 52-week high price of $33.50.
In fact, Waverly's stock price has been rising steadily for months, and has more than doubled from its recent low of $16.50 in April of last year.
Some of the price increase may be due to heavier buying pressure. Since last October, two large publishers have told federal regulators they have made large purchases of Waverly stock.
In October, the Los Angeles-based Times Mirror Co., owner of a competing medical publisher and several newspapers, including The Baltimore Sun Co., said it had bought up more than 5 percent of Waverly's shares. And in November, Chicago-based printing company Newsweb Corp. said it had built up a 7.68 percent stake in Waverly.
While the interest of competitors raised speculation that Waverly may be a takeover target, company officials have insisted that they want to remain independent.
The fourth-quarter financial improvements capped a turnaround year for Waverly.
For the year, the company said it earned nearly $4.7 million, up from a $2 million loss in 1993, which included a one-time after-tax charge of $2.2 million for restructuring costs and the write-down of buildings. Revenues were $131.9 million, up more than $10 million from 1993.
Waverly Inc.
Baltimore ... ... ... ... ... Ticker ... ... ... Yesterday's
... ... ... ... ... ... .. .. Symbol ... ... Cls. ... ... Chg.
... ... ... ... ... ... .. .. WAVR ... .. .. 33 1/2 .. .. +1
Period ended
12/31 ... ... ... .. .. .. .. 4th qtr. ... ... Year ago ... Chg.
Revenue ... ... ... ... .. .. $36,110 .. .. .. $34,534 .. .. +4.6%
Net Income ... ... ... ... .. $2,595 ... .. .. $70 ... .. .. +3607.1%
Primary EPS ... ... ... .. .. $0.60 ... ... .. $0.02 ... ... +2900.0%
... ... ... ... ... ... .. .. 12 mos. ... ... Year ago ... ... Chg.
Revenue ... ... ... ... .. .. $131,914 ... .. $121,684 ... ... +8.4%
Net Income ... ... ... ... .. $4,660 .. .. .. $(2,008) ... ... --
Primary EPS ... ... ... .. .. $1.07 ... .. .. $0.(46) .. .. .. --
Figures in thousands (except per share data.)