Delayed Report Shows Flat Sales for Simi...
Delayed Report Shows Flat Sales for Simi Valley Firm
G.I. Industries, the Simi Valley rubbish hauling conglomerate, finally reported its results for the second quarter that ended Oct. 31. Sales were flat at $1.7 million, whereas the company showed a $194,582 loss contrasted with a $186,177 profit for the same period a year earlier.
The company was delayed in its reporting to the Securities and Exchange Commission because G.I. has recently acquired several companies, slowing the accounting process. The latest results, however, are not indicative of G.I. Industries’ true size.
G.I. Industries is run by four members of the Asadurian family who last year took G.I. public. G.I. has been steadily acquiring some of the Asadurian family’s many privately held rubbish collection firms and then folding them into G.I.
But as part of the company’s diversification push, in April G.I. also acquired two Mack Truck operations in greater Los Angeles for 600,000 shares of G.I. stock.
Daniel Van Rossen, G.I.’s vice president of corporate development, said the deal included three Mack Truck dealerships with combined annual sales of $32 million, as well as a smaller truck leasing operation. When combined with the other acquisitions, Van Rossen expects G.I. to post total sales of $100 million for the fiscal year to end in April, 1989.
One of G.I.’s subsidiaries also recently arranged a $8.5-million line of credit with the Mitsubishi Bank of California to refinance some of its sizable debt. As of Oct. 31, G.I. had current liabilities of $5.6 million, nearly matching its current assets.
The company’s stock remains a thinly traded “pink sheets” stock on the over-the-counter market, but Van Rossen expects G.I. to be included by November in the computerized NASDAQ list of over-the-counter stocks, which would probably increase ownership of the company’s stock by institutional investors. Eventually, Van Rossen said, he expects G.I. to have a secondary stock offering to raise additional cash.
