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ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS

 RALEIGH, N.C., Nov. 15 /PRNewswire/ -- Acton Corporation (AMEX: ATN), $3.75 Cumulative Preferred Stock (ATNPR), today announced a net loss of $2,676,897 for the three months ended Sept. 30, 1993, or $1.21 per primary and fully diluted share, on net revenues of $58,522,284. This compared to a loss of $3,197,470 or $1.41 per primary and fully diluted share on net revenues of $54,995,607 in 1992. All per share computations are after consideration of the company's preferred stock dividend requirements.
 For the nine months ended Sept. 30, 1993, the company reported a net loss of $3,668,978 on net revenues of $170,401,554 or $1.86 per primary and fully diluted share as compared to a loss of $699,888 or $.73 per primary and fully diluted share on revenues of $181,202,910 for the first nine months of 1992.
 Although, net gains of $3,390,510 and $15,989,483 were realized from the insurance subsidiary's investment portfolio during the 1993 third quarter and year-to-date, respectively, higher underwriting losses offset much of these gains. The company believes that it has now substantially completed the reserve additions required by inadequate loss reserving during 1991 and 1992. Included in the first quarter of 1993 is $260,000 of income reported in connection with a mandated change in the method of accounting for income taxes.
 Third quarter 1992 earnings were reduced by a $1,800,000 provision to cover anticipated costs to be incurred in connection with the closing of one of its furniture manufacturing plants. Included in 1992 earnings were gains of approximately $1,279,000 and $8,189,000 realized during the quarter and year-to-date periods, respectively, in the insurance subsidiary's investment portfolio.
 Stockholders' equity decreased $6,572,646 during the nine months of 1993, from $575,735 to a deficit of $5,996,911.
 The previously announced agreement to sell Acton's sole remaining cable television system for $76 million is now expected to close in December 1993 and produce after-tax net income of approximately $46.1 million or $18.14 per share on a primary basis and $14.97 per share on a fully diluted basis.
 Acton Corporation is primarily engaged in specialized automobile insurance underwriting, manufacturing, real estate development and the operation of a cable television system.
 ACTON CORPORATION
 FINANCIAL SUMMARY
 (Amounts in Thousands, except per share data)
 (Unaudited)
 Quarter Ended 9 Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 Net revenues $58,522 54,996 170,402 181,203
 Loss before items shown below (2,677)(2,814) (3,929) (700)
 Extraordinary item for reduction
 in benefit from utilization of
 net operating loss carryforwards -- (383) -- --
 Cumulative effect on prior years
 of a change in accounting for
 income taxes -- -- 260 --
 Net loss (2,677)(3,197) (3,669) (700)
 Per share data:
 Primary:
 Loss before items show below (1.21) (1.26) (1.96) (.73)
 - Extraordinary item -- (.15) -- --
 - Cumulative effect of
 change in accounting method -- -- .10 --
 Net loss (1.21) (1.41) (1.86) (.73)
 Fully diluted:
 Loss before items shown below (1.21) (1.26) (1.96) (.73)
 - Extraordinary item -- (.15) -- --
 - Cumulative effect of change in
 accounting method -- -- .10 --
 Net loss (1.21) (1.41) (1.86) (.73)
 Assets 243,186 270,475
 Stockholders' Equity (Deficit) (5,997) 17,153
 -0- 11/15/93
 /CONTACT: Glenn J. Kennedy, chief financial officer, of Acton, 919-781-5611/
 (ATN)


CO: Acton Corporation ST: North Carolina IN: INS SU: ERN

SB-DF -- CH023 -- 4739 11/15/93 18:00 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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