Christiana reports strong earnings growth for the second quarter and first six months of fiscal 1997.MILWAUKEE--(BUSINESS WIRE)--Feb. 10, 1997--Christiana Companies Inc. (NYSE NYSE See: New York Stock Exchange :CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) today reported significantly improved financial results for the second quarter and first six months of fiscal 1997. Net earnings for the second quarter ended Dec. 31, 1996 totaled $3,730,000 or 73 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to $760,000 or 14 cents per share reported for the same period last year. Net earnings for the first six months of fiscal 1997 were $4,812,000 or 94 cents per share versus $2,398,000 or 46 cents per share reported for the comparable period a year ago. Revenues increased modestly in each of the second quarter and six months periods. Earnings in the second quarter were impacted by four major factors: -- Earnings from Operations increased 45 percent year-to-year reflecting good improvement in warehouse facility utilization and operating performance in logistic lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation services. -- Equity in Earnings of Energy Ventures Inc. (NYSE:EVI Evi (ē`vī), in the Bible, Midianite king. ) were $6,746,000 reflecting a threefold increase in income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and a one-time gain on the sale of Mallard mallard: see duck. mallard Abundant “wild duck” (Anas platyrhynchos, family Anatidae) of the Northern Hemisphere, ancestor of most domestic ducks. The mallard is a typical dabbling duck in its general habits and courtship display. Drilling ($66,924,000 - CST share $5,715,000). -- Total Logistic Control, Christiana's principal operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , disposed of excess processing equipment in connection with the execution of a 10-year contract for processing, packaging and warehousing services with Dean Foods Inc. a major vegetable processing customer. Loss on disposal of excess assets totaled $1,281,000. -- Sales of company-owned condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. homes have been effectively completed. In last year's second quarter, sales of 10 homes contributed net earnings of $284,000. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (net earnings plus non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. net, plus net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from real estate sales) for the first six months of fiscal 1997 totaled $6,046,000, equivalent to $1.18 per share. For the first six months of fiscal 1997, consolidated revenues were $40,821,000 up 3.1 percent from $39,588,000 reported for the same period last year. Net earnings for this period more than doubled to $4,812,000 or 94 cents per share from $2,398,000 or 46 cents per share. Earnings for this period reflect the large increase in Equity in Earnings of Energy Ventures, offset by fewer sales and lower gains from the sale of real estate, and the loss on disposal of excess equipment, as previously described. Results of Operations Total Logistic Control Total Logistic Control provides integrated third party logistic services comprised of refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. and non-refrigerated (dry) warehousing, transportation and distribution. Earnings from Operations from Total Logistic Control in the second quarter increased 30 percent to $1,913,000 on a 3.5 percent increase in revenues period to period. All segments of the operations, namely refrigerated and dry warehousing, logistic services and international freight forwarding contributed to the improved operating results. During the quarter Total Logistic Control was awarded two important long-term contracts. The first is a five-year third-party logistics A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. and dedicated fleet contract with Rich Products Inc. of Buffalo, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Revenues from this nationwide transportation and distribution services contract are a minimum of $10 million per year. The company has increased its refrigerated trucking fleet by approximately 60 units in connection with this contract. The second major contract awarded to Total Logistic Control was a 10-year services contract with Dean Foods Inc. to provide vegetable processing, packaging and warehousing at the company's Refrigerated Logistics Center in Beaver Dam Beaver Dam, city (1990 pop. 14,196), Dodge co., SE Wis., on Beaver Dam Lake, in a productive farm and dairy area; inc. 1856. Industries included food processing, metal and metal products fabrication, printing, and machinery manufacturing. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. . Revenues attributable to this contract are expected to be at least $1.1 million per year. This long-term agreement will provide a strong base level of operations at this facility which has been negatively impacted over the last few years by the significant consolidation and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). in the frozen vegetable industry. Energy Ventures Inc. Christiana Companies owns 1,948,731 shares of Energy Ventures representing an 8.54 percent ownership interest. Equity in Earnings of Energy Ventures in the second quarter totaled $6,746,000 compared to $405,000 reported for the same period last year. Energy Ventures consolidated financial results from continuing operations continue to be very strong led by the hugely successful combination of Grant/Prideco, the world's leading producer of premium downhole tubular tubular /tu·bu·lar/ (too´bu-lar) 1. shaped like a tube. 2. of or pertaining to a tubule. tubular 1. pertaining to renal tubules. 2. pertaining to fallopian tube. goods. For the quarter ended Dec. 31, 1996, Energy Ventures reported net income from continuing operations of $10,795,000 or 47 cents per share, on revenues of $154,381,000 compared to income from continuing operations of $2,708,000 or 15 cents per share, on revenues of $85,011,000 for the same quarter in the prior year. Also in this year's quarter Energy Ventures completed the sale of Mallard Drilling which generated a one-time after tax gain of $66,924,000 or $2.93 per share. Total net earnings for the quarter were $78,997,000 or $3.46 per share. At quarter end Christiana's 1,948,731 shares of EVI had a market value of $99,142,000 equivalent to $19.30 per Christiana common share versus a book-carrying value of $38,531,000. Chairman Sheldon B. Lubar said, "The second quarter's financial results, most notably the improvement in Earnings from Operations at Total Logistic Control are beginning to reflect the progress we are making in improving the operational performance of this business unit. We have an intense management process underway to increase the return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). and capital employed Capital Employed 1. The total amount of capital used for the acquisition of profits. 2. The value of all the assets employed in a business. 3. Fixed assets plus working capital. 4. Total assets less current liabilities. in this business. Our facilities are being more fully utilized and our costs, particularly in logistic services, are being rigorously managed which is resulting in improved operating results." He further noted, "EVI's operating performance continues to post strong growth and record results. Completion of the Mallard Drilling sale provides Energy Ventures with approximately $250 million of cash for strategic reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. to build its downhole premium tubulars and oil field production systems businesses." Christiana's principal operating business is providing refrigerated and non-refrigerated integrated warehousing and logistic services. Operations are conducted through a network of 16 distribution-oriented public warehouses, comprised of 33 million cubic feet of refrigerated and frozen storage capacity in seven locations servicing the entire Midwest, and a national network of nine dry distribution centers providing 1.6 million square feet of storage capacity in key markets across the U.S. Christiana's principal investment is its holding of approximately 8.54 percent of Energy Ventures Inc., an international energy service and equipment company engaged in manufacturing drill pipe and premium tubulars and oil field production tools and systems. -0-
Christiana Companies Inc.
Consolidated Statement of Earnings
(In Thousands Except Per Share Data)
(Unaudited)
Six Months Ended Three Months Ended
Dec. 31, Dec. 31,
__________________ __________________
1996 1995 1996 1995
____ ____ ____ ____
Revenues:
Warehousing and
Logistic Services $40,821 $39,588 $20,342 $19,651
_______ _______ _______ _______
Costs and Expenses:
Warehousing and
Logistic Services 33,913 32,820 16,693 16,737
Selling, general and
administrative expenses 3,895 3,662 2,124 1,861
_______ _______ _______ _______
37,808 36,482 18,817 18,598
_______ _______ _______ _______
Earnings from operations 3,013 3,106 1,525 1,053
Other Income (Expense):
Interest income 257 271 124 142
Interest expense (1,667) (1,532) (799) (758)
Gains (losses) on sale
of real estate 279 1,314 (6) 474
Equity in earnings of
Energy Ventures Inc. 7,636 809 6,746 405
Loss on disposal of assets (1,281) -- (1,281) --
Other income (expense), net (346) (25) (183) (67)
_______ _______ _______ _______
4,878 837 4,601 196
_______ _______ _______ _______
Earnings before income taxes 7,891 3,943 6,126 1,249
Income tax provision 3,079 1,545 2,396 489
_______ _______ _______ _______
Net earnings $ 4,812 $ 2,398 $ 3,730 $ 760
_______ _______ _______ _______
_______ _______ _______ _______
Net earnings per share(a) $ .94 $ .46 $ .73 $ .14
_______ _______ _______ _______
_______ _______ _______ _______
(a) Average number of
shares outstanding 5,136,630 5,194,065 5,136,630 5,195,200
CONTACT: Christiana Companies Inc., Milwaukee William T. Donovan, 414/291-9000 |
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