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INTER-CITY PRODUCTS CORPORATION REPORTS FIRST QUARTER RESULTS

 TORONTO, May 10 /PRNewswire/ -- Inter-City Products Corporation (AMEX: IPR) today reported operating revenue for the three months ended March 31, 1993 of $164.8 million, versus $182.9 million during the corresponding three months of 1992.
 Operating loss for the first quarter of 1993 was $6.2 million, leading to a net loss, excluding restructuring and refinancing charges but after deducting preference share dividends of $1.2 million, of $9.7 million or a net loss of $0.39 per ordinary share. Restructuring costs of $568,000 relate to workers' compensation claims resulting from the 1992 closure of a manufacturing plant in Red Bud, Illinois. Refinancing charges of $1.6 million represent costs associated with the early extinguishment of the previously existing debt of the company's subsidiary Inter-City Products Corporation (USA). Including restructuring and refinancing charges and after preference share dividends, the net loss was $11.1 million or a loss of $0.45 per ordinary share.
 Net loss for the first quarter of 1992 was $0.3 million, or a net loss of $0.07 after deducting preference share dividends.
 The company said the reduction in revenue was due to two major factors: continuing economic uncertainty in the marketplace, which led air conditioner and furnace distributors to delay placement of new orders -- and in many cases, to reduce inventories; and winter storms, which reduced new housing starts in North America. The company added that historically first quarter results are not indicative of results for the remainder of the year.
 "The first quarter is traditionally a weak period for the heating and air conditioning industry and does not provide an accurate indicator of the future," said Robert G. Graham, chairman and chief executive officer.
 Henry J. Forrest, president and chief operating officer added: "The first quarter of 1992 was unusually strong as distributors built inventory in anticipation of a strong selling year, which never materialized because of record cool summer weather. This year, distributors purposely delayed ordering during the first quarter because of last year's experience."
 Forrest said the company remains optimistic that 1993 will produce improved results.
 "The most important earnings period is the second and third quarters," said Forrest. "Although consumer confidence in the economy is still weak, we expect demand will surface with a return to more normal summer weather."
 Shipments in the first quarter of 1993 reflect weak market conditions. Units sales of air conditioners totalled 114,000 for the first quarter of 1993, versus 140,000 during the first three month period of 1992. Furnace shipments for the first quarter of 1993 were 71,000 versus 86,000 a year ago.
 The company's business unit Thompson Pipe & Steel, which makes steel water transmission pipe, reported continued growth in the first quarter of 1993. Steel pipe volumes were ahead 55 per cent to 17,000 tons from 11,000 tons in the first quarter a year ago. Both of Thompson Pipe's facilities are working at capacity and based on new orders booked, results for the balance of the year look very promising.
 RESULTS OF INTER-CITY PRODUCTS CORPORATION (USA) (ICP USA)
 The company's wholly owned subsidiary, ICP USA, also announced its results today. ICP USA reported operating revenue for the three months ended March 31, 1993 of $107.5 million (US), versus $131.4 million (US) during the corresponding three months of 1992.
 Net loss, after deducting restructuring costs of $456,000 (US) ($283,000 (US) net of taxes) but before extraordinary item was $4.3 million (US). Restructuring costs relate to workers' compensation claims resulting from the 1992 closure of a manufacturing plant in Red Bud, Illinois. The company incurred $1.3 million (US) ($0.8 million (US) net of taxes) of costs associated with the early extinguishment of its previously existing debt. Under U.S. GAAP, these costs are required to be reflected as an extraordinary item. After deducting the extraordinary item, the net loss was $5.1 million (US).
 These results have been consolidated into the results of Inter-City Products Corporation, as disclosed earlier in this news release.
 "Operationally, we remain in a very strong position because of steps we took to cope with the downturn in 1992," said Forrest. "We also have a strong capital structure in place because of the recent refinancing of ICP USA."
 Completed on March 11, 1993, the refinancing gives the company additional financial flexibility as well as interest rate protection for the balance of the decade.
 Through its Heil, KeepRite, Tempstar, Arcoaire, Comfortmaker and ZoneAire brand names, Inter-City Products Corporation is North America's second largest heating and cooling products producer for residential and light commercial markets. The company also produces steel water transmission pipe for a variety of uses through its Thompson Pipe & Steel operations.
 INTER-CITY PRODUCTS CORPORATION
 Summary of Results
 To March 31, 1993 and 1992 - Unaudited
 (In Millions of Canadian Dollars except per share amounts)
 1993 1992
 Operating revenue 164.8 182.9
 Operating profit (loss) (6.2) 5.8
 Net loss
 From continuing operations (9.9) (.9)
 After discontinued operations (9.8) (.3)
 Preference dividends 1.2 1.2
 Weighted average number of
 ordinary shares outstanding
 (in millions) 24.6 19.8
 Net loss per ordinary share
 From continuing operations ($0.45) ($0.11)
 After discontinued operations ($0.45) ($0.07)
 Business Segments
 To March 31, 1993 and 1992 - Unaudited
 (In Millions of Canadian Dollars)
 Operating Revenue Operating Profit (Loss)
 1993 1992 1993 1992
 Heating and
 cooling 143.9 168.6 (5.8) 5.8
 Engineered
 products 20.5 14.2 (.5) .3
 Corporate and
 other .4 .1 .1 (.3)
 Total 164.8 182.9 (6.2) 5.8
 Operating Highlights
 To March 31, 1993 and 1992
 1993 1992
 Heating and cooling
 Air conditioners - thousands
 of units 114 140
 Furnaces - thousands of units 71 86
 Engineered products
 Steel pipe - thousands of tons 17 11
 INTER-CITY PRODUCTS CORPORATION (USA)
 Statement of Income
 (Unaudited, In Thousands of U.S. Dollars)
 Periods ended March 31 Three Months Ended
 1993 1992
 Operating revenue $107,548 $131,419
 Cost of sales 88,921 102,971
 Restructuring costs 456 -
 Total 89,377 102,971
 Gross margin 18,171 28,448
 Selling, general and administrative
 expenses 21,605 21,982
 Operating profit (loss) (3,434) 6,466
 Financial expenses
 Discount on sale of receivables 869 2,530
 Interest on long-term debt 1,800 1,375
 Other interest 850 273
 Total 3,519 4,178
 Income (loss) before income taxes
 and extraordinary item (6,953) 2,288
 Provision for (recovery of)
 income taxes (2,595) 1,066
 Income (loss) before extraordinary
 item (4,358) 1,222
 Extraordinary item
 Loss on early extinguishment of
 debt, net of income tax recovery
 of $483 (787) -
 Net income (loss) $(5,145) $ 1,222
 -0- 5/10/93
 /CONTACT: Arindra Singh, senior vice president and chief financial officer, or Cameron Turner, vice president-corporate development, 416-598-0101/
 (IPR)


CO: Inter-City Products Corporation ST: Ontario IN: SU: ERN

TM -- NY110 -- 6734 05/10/93 18:21 EDT
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Date:May 10, 1993
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