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ITEL REPORTS IMPROVED FIRST QUARTER RESULTS

 CHICAGO, April 30 /PRNewswire/ -- Reflecting significant improvements in Anixter Distribution and ANTEC results and substantial reductions in interest and related expenses, Itel Corp. (NYSE: ITL) today reported a net loss applicable to common stock of ($6.6 million) during the first quarter of 1993, down sharply from a net loss applicable to common stock of ($12.9 million) reported for the first quarter of 1992.
 Itel's principal operating businesses, Anixter Distribution and ANTEC, reported income before interest, taxes and goodwill amortization of $18.8 million, up 25 percent on revenues of $393 million during the first three months of 1993. For the same period of 1992, Anixter and ANTEC reported comparable income of $15.0 million on revenues of $347 million.
 On a per share basis, Itel's first quarter net loss, including losses from discontinued operations was (23 cents) compared to (41 cents) during the same quarter last year. The first quarter of 1992 included a (9 cent) extraordinary loss. Per share results reflect 28.4 million weighted average shares outstanding in 1993 and 31.7 million in 1992, as a result of share repurchases.
 Anixter Distribution's operating income included net losses from recently established foreign operations of ($1.2 million) in 1993, compared to ($1.4 million) in 1992. In 1993, these losses were related to expansion into the Pacific Rim and Australia, with the new operations in Western Europe having become marginally profitable.
 "Anixter Distribution's businesses in the U.S. and Europe continued their substantial growth," said Rod Dammeyer, Itel president and chief executive officer. "ANTEC also experienced significant growth over 1992 with operating earnings up nearly 30 percent. This growth was due to improvements in capital spending by its CATV industry customers and those customers' expanded investments in fiber optics and optronic equipment.
 "Itel's significant reduction in debt over the last 30 months also has had a significant positive impact on the company's results."
 Itel's subordinated debt stood at $498 million on March 31, 1993, down more than $430 million from a year ago. Nevertheless, the cost to carry Itel's continued investments in marketable securities (Santa Fe Energy and Catellus) was a principal cause of losses for Itel as a whole.
 "We are very optimistic about Anixter Distribution's and ANTEC's outlook


for the remainder of 1993, and expect them to generate record combined results for the 12 months."
 Through its Anixter Distribution business, Itel Corp. is involved mainly in supplying wiring systems for data, voice and energy. Through ANTEC, it is a supplier and developer of products employing broad-band and fiber networks for video, voice and data applications.
 ITEL CORP.
 Statement of Operations
 (In millions, except per share amounts)
 Three-month periods ended March 31,
 Supplemental Information
 Consolidated Anixter(A) Rail car leasing All other
 1993 1992 1993 1992 1993 1992 1993 1992
 Revenues $431.5 $422.8 $393.1 $346.5 $38.4 $76.3 -- --
 Cost of
 opers. (389.0) (377.2) (374.3) (331.5) (12.9) (43.3) (1.8) (2.4)
 Amort. of
 goodwill (5.3) (3.1) (2.1) (2.1) (3.2) (1.0) -- --
 Operating
 income
 (loss) 37.2 42.5 16.7 12.9 22.3 32.0 (1.8) (2.4)
 Interest
 expense
 & other,
 net (39.3) (49.1) (5.8) (6.0) (23.5) (16.5) (10.0)(26.6)
 Income
 (loss)
 from
 continuing
 operations
 before
 income
 taxes (2.1) (6.6) 10.9 6.9 (1.2) 15.5 (11.8)(29.0)
 Income tax
 (expense)
 benefit(B)(1.7) 0.3 (5.5) (3.3) (0.8) (3.7) 4.6 7.3
 Income
 (loss)
 from
 continuing
 opers. (3.8) (6.3) 5.4 3.6 (2.0) 11.8 (7.2)(21.7)
 Loss from
 discontinued
 operations
 (net of
 related
 taxes) (1.3) (2.4) -- -- -- -- (1.3) (2.4)
 Income
 (loss)
 before
 extraord.
 items (5.1) (8.7) 5.4 3.6 (2.0) 11.8 (8.5)(24.1)
 Extraord.
 items,
 net -- (2.7) -- -- -- (0.6) -- (2.1)
 Net income
 (loss) (5.1) (11.4) $5.4 $3.6 ($2.0) $11.2 ($8.5)($26.2)
 Preferred
 stock
 dividends
 and
 amort. (1.5) (1.5)
 Loss
 applicable
 to common
 stock ($6.6) ($12.9)
 Loss per
 common
 and common
 equivalent
 share:
 Continuing
 opers. ($0.19) ($0.25)
 Before
 extraordinary
 items ($0.23) ($0.32)
 Net loss ($0.23) ($0.41)
 Weighted
 average
 common
 and common
 equivalent
 shares 28.4 31.7
 (A) -- Operating income included net start-up results from recently established foreign operations of ($1.2) million in 1993 and ($1.4) million in 1992.
 (B) -- Income taxes at Anixter and Rail car leasing are primarily deferred and intercompany taxes.
 Balance Sheets
 (In millions)
 Supplemental Information
 Rail car
 Consolidated Anixter leasing Other
 3/31/93 12/31/92 3/31/93 3/31/93 3/31/93
 Assets
 Cash and
 equivalents $22.8 $44.5 $11.7 $3.0 $8.1
 Accounts
 receivable, net 282.9 246.5 267.7 14.3 0.9
 Inventories,
 primarily
 finished goods 263.4 261.6 263.4 -- --
 Other assets 11.7 11.5 6.0 3.0 2.7
 Total current
 assets 580.8 564.1 548.8 20.3 11.7
 Property, net 1,080.9 1,095.9 30.6 1,049.9 0.4
 Goodwill, net 432.3 437.6 290.4 141.9 --
 Discontinued and
 assets held for
 sale, net 305.7 333.2 -- -- 305.7
 Investment in
 marketable
 equity
 securities
 at market 136.8 116.9 -- -- 136.8
 Investment in
 and advances
 to Quadrum 57.5 41.5 -- -- 57.5
 Other assets 50.2 51.6 5.2 27.4 17.6
 Total $2,644.2 $2,640.8 $875.0 $1,239.5 $529.7
 Liabilities and Stockholders' Equity
 Accounts payable $167.8 $136.5 $167.6 $0.2 --
 Accrued expenses 108.4 138.5 56.5 28.7 23.2
 Senior Subordinated
 Notes 73.3 74.3 -- -- 73.3
 Current maturities of
 senior long-term
 debt 63.2 62.2 -- 63.2 --
 Total current
 liabilities 412.7 411.5 224.1 92.1 96.5
 Deferred income
 taxes, net 91.9 84.8 (13.5) 272.1 (166.7)
 Other liabilities 35.9 39.3 17.6 17.3 1.0
 Intercompany -- -- 56.4 (44.8) (11.6)
 Long-term debt
 - senior 1,299.4 1,241.7 246.2 1,053.3 --
 - subordinated 424.5 496.6 -- -- 424.5
 Total liabilities 2,264.4 2,273.5 530.8 1,390.0 343.6
 Stockholders' equity
 Series C convertible
 preferred stock 83.7 83.6 -- -- 83.7
 Common equity (A) 332.1 332.8 344.2 (150.5) 138.4
 Total 415.8 416.4 344.2 (150.5) 222.1
 Valuation allowance
 -marketable equity
 securities, net (36.0) (49.1) -- -- (36.0)
 Total stockholders'
 equity 379.8 367.3 344.2 (150.5) 186.1
 Total $2,644.2 $2,640.8 $875.0 $1,239.5 $529.7
 (A) -- Common shares outstanding were 28.6 million and 28.1 million at March 31, 1993, and Dec. 31, 1992, respectively.
 -0- 4/30/93
 /CONTACT: Kirk Brewer of Itel Corp., 312-902-1515/
 (ITL)


CO: Itel Corp. ST: Illinois IN: SU: ERN

TS -- NY011 -- 3047 04/30/93 08:46 EDT
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Date:Apr 30, 1993
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