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INTER-CITY PRODUCTS CORPORATION REPORTS SECOND QUARTER RESULTS

 TORONTO, Aug. 11 /PRNewswire/ -- Inter-City Products Corporation today reported operating revenue of $246.0 million and operating profit of $9.8 million for the three months ended June 30, 1993.
 Net income for the second quarter of 1993 was $2.9 million. After deducting preference share dividends of $1.2 million, net income per ordinary share for the second quarter of 1993 was $0.07.
 This compares to second quarter 1992 operating revenue of $239.9 million, operating profit of $15.5 million and net income of $4.5 million. After deducting preference share dividends of $1.2 million, net income per ordinary share for the second quarter of 1992 was $0.15.
 Unit sales of furnaces during the second quarter of 1993 increased to 98,000 from 91,000 in the second quarter of 1992. Air conditioner volumes were 191,000 units down from 198,000 during the corresponding quarter of 1992.
 For the first six months of 1993, the company reported operating revenue of $410.8 million and operating profit of $3.6 million. This led to a net loss of $7.9 million or a loss of $0.32 per ordinary share, excluding restructuring charges and refinancing costs, but after deducting preference share dividends of $2.4 million.
 Restructuring costs of $0.6 million ($0.4 million, net of taxes) relate to workers' compensation claims resulting from the 1992 closure of a manufacturing plant in Red Bud, Illinois, while refinancing charges of $1.6 million (or $1.0 million, net of taxes) relate to the early extinguishment of the previously existing debt of the company's subsidiary, ICP USA. After restructuring costs and refinancing charges, the net loss was $6.9 million or a loss of $0.38 per ordinary share.
 For the comparable period of 1992, operating revenue was $422.8 million leading to operating profit of $21.3 million and net income of $4.2 million. After deducting preference share dividends of $2.4 million, net income for the first six months of 1992 was $0.09 per ordinary share.
 For the six months of 1993, air conditioner unit sales declined to 305,000 from 338,000 during the corresponding period of 1992. Unit sales of furnaces totaled 169,000 units down from 177,000 in 1992. Steel pipe volumes for the six months increased to 32,000 metric tons from 25,000 tons in 1992.
 R.G. Graham, chairman and chief executive officer, said: "While prices have remained stable during the first six months of 1993, product pricing has still not returned to the higher levels of a year ago. Consequently, the operating margins during the first six months of 1993 are below those achieved during the comparable period of 1992."
 "Inventory levels of air conditioners were high at the beginning of 1993 and it took the first two quarters to bring inventory into line with demand," said Graham. He added that air conditioner volumes during the first half of 1993 were down 35 percent in mid-west U.S. markets due to heavy rainfall and flooding.
 Henry J. Forrest, president and chief operating officer, said preliminary indications are that third quarter sales of air conditioners will benefit from more seasonable weather.
 "In certain markets, sales of our air conditioning products have been stronger this year," said Forrest, "but on a North American basis, cooling product sales have been weak in comparison to the first six months of 1992. While we are encouraged by the temperature patterns in July we still have market weakness to contend with in the mid-western U.S."
 Results Of Inter-City Products Corporation (USA) (ICP USA)
 The company's wholly owned subsidiary, ICP USA, also reported its results today. Operating revenue of ICP USA for the three months ended June 30, 1993 was $165.8 million (U.S.), leading to operating profit of $5.8 million (U.S.) and net income of $0.7 million (U.S.).
 This compares with operating revenue of $172.2 million (U.S.), operating profit of $12.4 million (U.S.) and net income of $3.6 million (U.S.) for the second quarter of 1992.
 For the six months of 1993, ICP USA reported operating revenue of $273.3 million (U.S.), leading to operating profit of $2.3 million (U.S.). Net loss, before restructuring costs of $0.5 million (U.S.) ($0.3 million U.S. net of taxes) and an extraordinary item of $1.3 million (U.S.) ($0.8 million U.S. net of taxes), was $3.4 million (U.S.).
 Restructuring costs relate to workers' compensation claims in Red Bud, Illinois. The extraordinary item relates to the early extinguishment of ICP USA's previously existing debt. Under U.S. GAAP rules, these costs are reported as an extraordinary item. After restructuring costs and the extraordinary item, the net loss was $4.5 million (U.S.).
 For the six months of 1992, ICP USA reported operating revenue of $303.6 million (U.S.), operating profit of $18.6 million (U.S.) and net income of $4.9 million (U.S.).
 These results are included in the consolidated results of the parent company, Inter-City Products Corporation, as disclosed previously in this news release.
 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. Through its engineered products business unit, the company manufactures spiral welded steel pipe for water transmission projects under the name Thompson Pipe & Steel and refrigeration products for the commercial market under the KeepRite name. The company's ordinary and Class C preference shares are traded on the Toronto and American stock exchanges.
 INTER-CITY PRODUCTS CORPORATION
 Summary Of Results


(In Millions of Canadian Dollars, except per share amounts - Unaudited)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Operating revenue 246.0 239.9 410.8 422.8
 Operating profit 9.8 15.5 3.6 21.3
 Net income (loss)
 From continuing operations 2.7 3.6 (7.2) 2.7
 After discontinued
 operations 2.9 4.5 (6.9) 4.2
 Preference dividends 1.2 1.2 2.4 2.4
 Weighted average number of
 ordinary shares outstanding
 (in millions) 24.7 21.5 24.7 20.6
 Net income (loss) per
 ordinary share
 From continuing operations $ 0.06 $ 0.11 $(0.39) $ 0.01
 After discontinued
 operations $ 0.07 $ 0.15 $(0.38) $ 0.09
 INTER-CITY PRODUCTS CORPORATION
 Business Segments
 (In Millions of Canadian Dollars - Unaudited)
 Periods ended Three Months Six Months
 June 30 Operating Operating Operating
 Revenue Profit (Loss) Revenue Profit (Loss)
 1993 1992 1993 1992 1993 1992 1993 1992
 Heating and
 cooling 228.1 224.2 10.6 14.6 372.0 392.8 4.8 20.4
 Engineered
 products 17.9 15.7 (.8) 1.1 38.4 29.9 (1.3) 1.4
 Corporate
 and other -- -- -- (.2) .4 .1 .1 (.5)
 Total 246.0 239.9 9.8 15.5 410.8 422.8 3.6 21.3
 INTER-CITY PRODUCTS CORPORATION
 Operating Highlights
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Heating and cooling
 Air conditioners -
 thousands of units 191 198 305 338
 Furnaces - thousands
 of units 98 91 169 177
 Engineered products
 Steel pipe - thousands
 of tons 15 14 32 25
 INTER-CITY PRODUCTS CORPORATION (USA)
 Statements Of Income
 (In Thousands of U.S. Dollars - Unaudited)
 Three months ended June 30 1993 1992
 Operating Revenue $165,797 $172,209
 Cost Of Sales 136,234 131,496
 Restructuring Costs 76 2,711
 Total 136,310 134,207
 Gross Margin 29,487 38,002
 Selling, General And Administrative
 Expenses 23,736 25,599
 Operating Profit 5,751 12,403
 Financial Expenses
 Discount on sale of receivables -- 4,469
 Interest on long-term debt 3,932 1,471
 Other interest 106 411
 Amortization of debt issuance costs 301 --
 Total 4,339 6,351
 Income Before Income Taxes And
 Extraordinary Item 1,412 6,052
 Provision For Income Taxes 735 2,398
 Income Before Extraordinary Item 677 3,654
 Extraordinary Item
 Loss on early extinguishment of debt,
 net of income tax recovery of $12 19 --
 Net Income $ 658 $ 3,654
 INTER-CITY PRODUCTS CORPORATION (USA)
 Statements Of Income
 (In Thousands of U.S. Dollars - Unaudited)
 Six Months Ended June 30 1993 1992
 Operating Revenue $273,345 $303,628
 Cost Of Sales 225,155 234,559
 Restructuring Costs 532 2,711
 Total 225,687 237,270
 Gross Margin 47,658 66,358
 Selling, General And Administrative
 Expenses 45,341 47,738
 Operating Profit 2,317 18,620
 Financial Expenses
 Discount on sale of receivables 869 6,999
 Interest on long-term debt 5,732 2,846
 Other interest 696 684
 Amortization of debt issuance costs 560 --
 Total 7,857 10,529
 Income (Loss) Before Income Taxes And
 Extraordinary Item (5,540) 8,091
 Provision For (Recovery Of) Income
 Taxes (1,861) 3,234
 Income (Loss) Before Extraordinary
 Item (3,679) 4,857
 Extraordinary Item
 Loss on early extinguishment of debt,
 net of income tax recovery of $494 808 --
 Net Income (Loss) $ (4,487) $ 4,857
 -0- 8/11/93
 /CONTACT: Arindra Singh, senior vice president, chief financial officer, or Cameron Turner, vice president corporate development, 416-598-0101, both of Inter-City Products Corporation/
 (IPR)


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

SM -- NY014 -- 1504 08/11/93 08:31 EDT
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