Arrow-Magnolia Reports Results for Third Quarter, Nine Months; Stockholders' Equity at Record High.

DALLAS, Nov. 12 /PRNewswire/ --

Arrow-Magnolia International, Inc. (Nasdaq: ARWM) today announced that net sales for the third quarter ended September 30, 2001 declined slightly to $3.75 million from $3.87 million in the same quarter last year. Net income in the most recent quarter was $211,000, or 7 cents per share basic (6 cents diluted), compared to $352,000, or 11 cents per share (10 cents diluted), compared to the same quarter last year.

For the nine months ended September 30, 2001, net sales were $10.7 million, compared to $11.2 million in the same period last year. Net income was $474,000, or 15 cents per share (13 cents diluted), compared to $988,000, or 30 cents per share (27 cents diluted) a year ago.

Morris Shwiff, Chairman, commented that higher hospitalization and fuel-price-related shipping costs continued to affect the Company's operating results. In addition, he noted that the nine-month results were adversely impacted by costs of settling a lawsuit during the June 30, 2001 quarter, which amounted to $125,000. At September 30, 2001, the Company had current assets of $7.3 million, of which $2.5 million was in cash and equivalents, and current liabilities of $1.2 million, an approximate 6 to 1 ratio. Stockholders' equity is at a record high of $8.6 million.

Arrow-Magnolia International, Inc. is a Dallas-based company engaged primarily ...