Printer Friendly

CALMAT BOARD REDUCES QUARTERLY DIVIDEND; ALSO REPORTS FOURTH QUARTER AND YEAR-END RESULTS

 LOS ANGELES, Feb. 17 /PRNewswire/ -- The board of directors of CalMat Co. (NYSE: CZM) voted yesterday to reduce the company's quarterly cash dividend to $0.10 per share of the company's common stock (par value $1) from the $0.16 per share rate paid in prior quarters. CalMat's markets are experiencing a third straight year of significant decline in residential and commercial construction. The decision to reduce the dividend reflects the board's desire to maintain operating flexibility and conserve cash until there are clear signs of improvement in the company's severely depressed markets.
 The dividend is payable April 2, 1993, to shareholders of record March 9, 1993.
 The company reported a net loss of $8.0 million, or $0.35 per share, for the fourth quarter of 1992, which includes a non-recurring after-tax charge of $6.7 million, or $0.29 per share, related to the consolidation of certain construction materials operations. Excluding this charge the company reported a net loss of $1.4 million, or $0.06 per share, for the period. This compares with net income of $2.4 million, or $0.10 per share, for the prior year's fourth quarter.
 The company reported a net loss of $16.5 million, or $0.71 per share, for the year ended Dec. 31, 1992, which includes after-tax charges totaling $21.8 million, or $0.94 per share. These after-tax charges consist of the fourth quarter charge referred to above of $6.7 million, or $0.29 per share, plus a third quarter charge of $9.0 million, or $0.39 per share, to provide for anticipated losses on disposition of developed real estate and a first quarter charge of $6.0 million, or $0.26 per share, to adopt the new required accounting standard for postretirement benefits other than pensions (SFAS 106). Excluding these special charges, earnings for the year were $5.3 million, or $0.23 per share. This compares with net income of $18.9 million, or $0.81 per share, for 1991.
 The losses in the fourth quarter resulted in the company being out of compliance with certain financial covenants in its loan agreements. The lenders involved have waived compliance with these covenants through March 30, 1993, with no restrictions or limitations on borrowing. CalMat is negotiating permanent amendments to the agreements which are not expected to adversely affect the company's current borrowing ability.
 Fourth Quarter Analysis
 Operations resulted in a $13.4 million pre-tax loss in the fourth quarter of 1992 compared with pre-tax income from operations of $5.4 million for the same quarter of 1991. The fourth quarter of 1992 includes a special charge of $11.1 million related to the consolidation of certain construction materials operations. Excluding this charge, operations for the fourth quarter of 1992 would have resulted in a pre-tax loss of $2.3 million.
 Asphalt Division income from operations was $1.7 million in the fourth quarter of 1992 compared with $5.3 million in the year earlier quarter. The primary reason for this decline was a 21 percent reduction in unit volume, in part reflecting weak economic conditions and in part due to weather related delays.
 The Concrete and Aggregates Division posted a $2.5 million loss from operations during the recent quarter compared with income of $1.2 million in the year-earlier period. Rock and sand gross profit was lower in the 1992 fourth quarter due to the combination of a 7 percent decrease in unit volume, slightly lower average sales prices and somewhat higher unit production costs. Ready mixed concrete gross profit was also lower despite a sales volume increase of 9 percent in the fourth quarter. Average selling prices were lower due to competitive conditions, and this factor more than offset the favorable results of lower concrete production costs.
 Properties Division income from operations was $1.4 million in the fourth quarter of 1992 compared with $1.7 million in the year- earlier period. There were no real estate sales in either period.
 There were no gains or losses recorded in the Net Assets Held for Sale Category in the recent quarter compared with losses of $1.4 million in the year-earlier period.
 Full Year Analysis
 Operations resulted in a $2.0 million pre-tax loss for the year ended Dec. 31, 1992 compared with pre-tax income from operations of $34.3 million in 1991. The year 1992 includes a special charge of $11.1 million related to the consolidation of certain construction materials operations. Excluding this charge, operations for 1992 would have resulted in pre-tax income of $9.1 million.
 Asphalt Division income from operations was $11.0 million for all of 1992 compared with $21.1 million in 1991. Competitive pricing in the Division's primary markets caused a decline in profit margins. In addition, unit volumes in 1992 were 9 percent lower than in 1991.
 Concrete and Aggregates Division income from operations for 1992 was $1.3 million compared with $8.1 million in 1991. Rock and sand volume and ready mixed concrete volume for the year were up 1 percent and 15 percent, respectively, when compared with last year. However, average selling prices were lower this year compared with 1991, resulting in lower profit margins and lower income from operations.
 Properties Division income from operations was $6.6 million in 1992 compared with $15.7 million in 1991. Gains from ongoing property sales were $0.5 million in 1992 vs. gains of $9.6 million in 1991. Excluding these gains, Properties Division income was $6.2 million in both 1992 and 1991.
 CalMat continues to aggressively reduce overhead costs in response to the depressed conditions now present in most of its markets. Selling, general and administrative expenses, including allocations to Divisions, have decreased $3.4 million, or 7 percent, in 1992 compared with 1991 and have declined a total of 15 percent since 1989.
 Further details are provided in the Earnings Report, Business Segment Information and Earnings Per Share Comparisons tables included in this report.
 Industry and Market Trends
 Some illustration of the environment in which CalMat is presently operating is provided by the tables that follow. Residential and non-residential building is measured by dollar volume of building permits issued, and heavy construction is measured by contract awards.
 California Construction Trends and Forecasts(A)
 (Dollar amounts in billions)
 Res. Non-Res. Heavy
 Bldg. Bldg. Const. Total
 1991 Actual $15.02 $9.64 $6.37 $31.03
 1992 Preliminary 14.13 8.13 5.67 27.93
 1993 Forecast 16.15 7.65 5.57 29.37
 1991/1992 Change -6 pct -16 pct -11 pct -10 pct
 1992/1993 Change +14 pct -6 pct -2 pct +5 pct
 The statewide data tabulated above understates the severity of the decline in the specific markets in which the company is active. CalMat's regional markets declined by 18 percent in the first 11 months of 1992 vs. a statewide decline of 10 percent in the same months of 1991. On a cumulative basis the company's regional markets declined by 37 percent between 1990 and 1992 vs. a statewide decline of 29 percent.
 Extremely high levels of rainfall have virtually halted operations for periods of time during recent months. The poor economy plus weather related delays will adversely impact 1993 results. CalMat will continue to emphasize reduction of expenses and capital expenditures until such time as market conditions improve. As yet, such improvement is not evident.
 CalMat Co. is one of the largest U.S. producers of construction aggregates, asphalt, and ready mixed concrete. Its operations are concentrated in California, Arizona and New Mexico.
 (A) Source: Construction Industry Resource Board, January 1993.
 CALMAT EARNINGS REPORT
 Quarter ended Dec. 31,
 1992 1991
 Revenues $81,819,000 $91,673,000
 Net income/(loss)(A) ($8,028,000) $2,396,000
 Per share data:
 Net income/(loss)(A) ($0.35) $0.10
 Weighted average shares 23,150,000 23,215,000
 12 months ended Dec. 31:
 Revenues $344,524,000 $372,755,000
 Net income/(loss)(A)(B)(C) ($16,504,000) $18,854,000
 Per share data:
 Net income/(loss)(A)(B)(C) ($0.71) $0.81
 Weighted average shares 23,242,000 23,319,000
 (A) The 1992 amounts for the three and 12 months ended Dec. 31 include a non-recurring charge of $6,700,000, or $0.29 per share, to write off excess plant and equipment, permitting and development costs and to provide for severance payments related to the consolidation of the construction materials operations.
 (B) The 1992 amounts for the 12 months ended Dec. 31 include a one-time charge of $6 million, or $0.26 per share, to adopt the new accounting standard for postretirement benefits other than pensions (SFAS 106) and a charge of $9 million, or $0.39 per share, to write down the book value of properties classified as net assets held for sale.
 (C) The 1992 amounts include gains from ongoing property sales of $272,000, or $0.01 per share, for the 12 months compared to $5,733,000, or $0.25 per share, in the same period of 1991.
 CALMAT
 Business Segment Information
 (Business segment information for the three and 12 months
 ended Dec. 31, 1992 and 1991 is as follows)
 (Unaudited, amounts in thousands)
 Three months ended 12 months ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues:
 Asphalt $35,157 $43,498 $146,457 $168,477
 Concrete and
 aggregates 47,980 51,292 205,650 203,646
 Properties 4,570 3,633 16,302 23,753
 Corporate and
 other 391 496 2,525 3,831
 Intersegment
 sales (6,279) (7,246) (26,410) (26,952)
 Total $81,819 $91,673 $344,524 $372,755
 Three months ended 12 months ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Income before income
 taxes and cumulative
 effect of change
 in accounting
 principle:
 Asphalt $1,669 $5,256 $10,974 $21,081
 Concrete and
 aggregates (2,482) 1,205 1,267 8,091
 Properties 1,424 1,669 6,609 15,748
 Corporate and
 unallocated
 expenses, net (3,194) (2,970) (10,995) (13,139)
 Other income 304 198 1,197 2,477
 Special
 charges(B) (11,100) --- (11,100) ---
 Income from
 operations (13,379) 5,358 (2,048) 34,258
 Gains from
 disposal of, and
 loss from
 operations of,
 net assets held
 for sale(A) --- (1,366) (15,458) (2,836)
 Total ($13,379) $3,992 ($17,506) $31,422
 (A) The 1992 amounts for the 12 months include a charge of $15 million to write down the book value of properties classified as net assets held for sale.
 (B) Non-recurring charge to write off excess plant and equipment, permitting and development costs and to provide severance payments related to consolidation of the construction materials operations.
 Income before income taxes includes segment gross profits and other income, net of divisional and certain allocated corporate selling, general and administrative expenses. Corporate and unallocated expenses include corporate administrative expenses, interest expense and support expenses not allocated to business segments.
 CALMAT
 Earnings Per Share Comparisons(C)
 1992 Quarter ended
 Unaudited Restated
 March 31 June 30 Sept. 30 Dec. 31 YTD
 Operating income
 (excluding
 ongoing real
 estate gains) ($0.08) $0.16 $0.20 ($0.06) $0.23
 Ongoing real
 estate gains 0.01 0.01 0.00 0.00 0.01
 Special charges(B) --- --- --- ($0.29) (0.29)
 Assets held for sale (0.03) 0.02 (0.40) 0.00 (0.40)
 Change in accounting
 principle
 (postretirement
 benefits)(A) (0.26) --- --- --- (0.26)
 Total ($0.36) $0.19 ($0.20) ($0.35) ($0.71)
 Weighted average
 shares (in
 thousands) 23,356 23,333 23,174 23,150 23,242
 1991 Quarter ended
 Unaudited March 31 June 30 Sept. 30 Dec. 31 YTD
 Operating income
 (excluding
 ongoing real
 estate gains) ($0.07) $0.26 $0.31 $0.14 $0.64
 Ongoing real
 estate gains 0.14 0.01 0.10 0.00 0.25
 Assets held for sale 0.01 (0.03) (0.02) (0.04) (0.07)
 Total 0.08 0.24 0.39 0.10 $0.81
 Weighted average
 shares (in
 thousands) 23,473 23,387 23,286 23,215 23,319
 (A) Amounts for the quarter ended March 31, 1992, have been restated to reflect a one-time charge recorded to adopt the new accounting standard for postretirement benefits other than pensions (SFAS 106).
 (B) Non-recurring charge to write off excess plant and equipment, permitting and development costs and to provide severance payments related to consolidation of the construction materials operations.
 (C) Per share figures have been calculated independently and were compiled from quarterly earnings releases, including footnote information.
 -0- 2/17/93
 /CONTACT: Ron Hadfield, executive VP-finance and administration, of CalMat, 213-258-2777/
 (CZM)


CO: CalMat Co. ST: California IN: CST SU: ERN

JL -- LA013 -- 7168 02/17/93 09:17 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 17, 1993
Words:2141
Previous Article:ENVIROMINT HOLDINGS REPORTS YEAR-END RESULTS
Next Article:AIR-CURE ENVIRONMENTAL, INC. REPORTS THIRD QUARTER RESULTS
Topics:


Related Articles
CALMAT REPORTS THIRD QUARTER EARNINGS
CALMAT REPORTS IMPROVED SECOND QUARTER EARNINGS
CALMAT REPORTS IMPROVED THIRD QUARTER EARNINGS
CALMAT REPORTS IMPROVED FOURTH QUARTER AND YEAR-END RESULTS
CALMAT REPORTS POSITIVE FIRST QUARTER RESULTS
CALMAT REPORTS IMPROVED THIRD QUARTER AND NINE MONTH RESULTS
CALMAT REPORTS SECOND QUARTER AND SIX MONTH RESULTS
CALMAT REPORTS THIRD QUARTER AND NINE MONTH RESULTS
CALMAT REPORTS FOURTH QUARTER AND YEAR-END RESULTS, INCLUDING A $26.5 MILLION NON-CASH CHARGE TO ADOPT A NEW ACCOUNTING STANDARD
CalMat Reports First Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters