Inter-City Products Corp. reports year end 1994 results.TORONTO, Ontario--(BUSINESS WIRE)--March 10, 1995--Inter-City Products Corporation Friday reported its financial results (in U.S. dollars) for the year ended Dec. 31, 1994. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. was $690.5 million for 1994 compared to $663.8 million a year earlier. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before unusual items more than tripled to $25.4 million versus $8.4 million in 1993. In 1994, the unusual items included (i) a provision for environmental costs of $4.0 million ($2.5 million, net of taxes); (11) a write-off of reengineering consulting fees of $3.4 million ($2.1 million, net of taxes); and (iii) 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). costs of $.9 million (or zero, not of taxes). In 1993, the unusual items included restructuring costs of $13.7 million ($12.2 million, net of taxes) relating primarily to the mothballing Mothballing The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed. of the company's Brantford, Ontario Brantford is a city located on the Grand River in southwestern Ontario, Canada. This single-tier municipality was once part of Brant County. manufacturing facility. After the unusual items, operating profit for 1994 was $16.5 million compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $5.9 million in 1993. Excluding the unusual items and a write-off of a portion of debt issuance costs of $1.2 million ($.8 million, net of taxes), on partial extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, the loss 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 for 1994 -- after deducting preference share dividend entitlements of $1.8 million -- was $2.9 million or 9 cents per ordinary share. Net loss for 1994 was $7.5 million or $0.29 per ordinary share. On an adjusted basic earnings per share basis, which assumes that the July 1994 exchange of Class C preference shares into 5.5 ordinary shares had occurred on Jan. 1, 1994, the loss from continuing operations before unusual items in 1994 was $1.1 million or 3 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. . After unusual items, the loss from continuing operations was $6.5 million or 17 cents per share. The adjusted basic net loss in 1994 was $7.5 million or 19 cents per share. In 1993, excluding the unusual items and similar refinancing Refinancing An extension and/or increase in amount of existing debt. costs of $1.2 million, loss from continuing operations -- after deducting preference share dividends of $3.7 million -- was $10.3 lillion or 42 cents per ordinary share. Net loss for 1993 was $21.0 million or $1.00 per ordinary share. Air conditioner conditioner, n 1. an additive substance used to increase the effectiveness of another substance. 2. a substance added to enamel that improves a sealant's ability to adhere. volumes were 621,000 units in 1994, an increase of 10.1% over the 564,000 units sold in 1993 as a result of strong consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. levels and low distributor inventory levels as well as favourable market reaction to the company's new lines of builder market cooling products. Furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. volumes increased marginally year over year to 450,000 units from 446,000 units in 1993. Unseasonably warm temperatures in key regions of the U.S. in the fourth quarter negatively impacted sales volumes of furnaces. Selling, general and administrative expenses as a percentage of operating revenue declined to 15.0% from 16.4% in 1993 as a result of cost reduction measures. Robert G. Graham, Inter-City Products Chairmen and Chief Executive Officer, said the results demonstrate the company restructuring program is on track. "The company's competitive position in the heating and cooling industry continues to improve as a result of programs implemented in 1994 to strengthen our product line and reduce costs," said Graham. "We continue to drive costs from the business and achieve greater efficiencies in our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . The benefits of this program will be more fully realized over the next 18 months." Year End Results of Inter-City Products Corporation (USA) The company's wholly-owned subsidiary, ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. USA, also reported its results for the year ended Dec. 31, 1994. The subsidiary's operating revenue was $594.5 million, compared to $574.4 million in 1993. Operating profit before unusual items was $17.7 million, compared to $5.7 million in 1993. In 1994, the unusual items included (i) a provision for environmental costs of $4.0 million; (ii) a write-off of reengineering consulting fees of $3.2 million; and (iii) restructuring costs of $2.1 million. In 1993, the unusual items were restructuring costs of $1.9 million and write-off of reengineering consulting fees of $.6 million. After these unusual items, operating profit for 1994 was $8.4 million compared to an operating profit of $3.1 million in 1993. In both 1994 and 1993, ICP USA incurred $1.3 million ($.8 million, net of taxes) of costs associated with the early extinguishment of debt, which are reflected as an extraordinary item in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Net loss in 1994 was $9.9 million, compared to $8.8 million in 1993. Operating under the brand names Heil, Tempstar, Arcoaire, Comfortmaker and KeepRite, Inter-City Products is one of North America's largest producers of residential and light commercial heating and cooling products. The company's ordinary shares are traded on the Toronto and American stock exchanges This is a list of American stock exchanges. Stock exchanges in Latin America (where Spanish and Portuguese prevail) use the term Bolsa de Valores, meaning 'bag' or 'purse' of 'values'. . -0- INTER-CITY PRODUCTS CORPORATION SUMMARY OF RESULTS
Years Ended December 31, 1994 and 1993
(In Millions of U.S. Dollars except per share amounts)
1994 1993
Operating revenue 690.5 663.8
Operating profit before unusual items 25.4 8.4
Unusual items
Provision for environmental costs (4.0) -
Restructuring costs (.9) (13.7)
Reengineering consulting fees (3.4) (.6)
Operating profit (loss) 17.1 (5.9)
Loss from continuing operations (6.5) (20.0)
Discontinued operations (1.0) (1.0)
Net loss (7.5) (21.0)
Basic Adjusted Basic(2)
------------------------------------
Net Loss per Ordinary Share 1994 1993 1994 1993
-----------------------------------------------------------------
From continuing operations
- Before unusual items (1) $(0.09) $(0.42) $(0.03) n/a
- After unusual items (1) $(0.26) $(0.96) $(0.17) n/a
After discontinued operations $(0.29) $(1.00) $(0.19) n/a
-0-
(1) Includes write-off of portion of debt issuance costs of $1.2
(1993 - $1.2) on partial extinguishment of debt
(2) Assumes the exchange of Class C preference shares for 5.5
ordinary shares had occurred on January 1, 1994.
-0-
BUSINESS SEGMENTS
Years Ended December 31, 1994 and 1993
(In Millions of U.S. Dollars)
Operating Operating Profit
Revenue (Loss)
------------------------------------
1994 1993 1994 1993
------------------------------------------------------------------
Heating and cooling 649.3 610.0 17.9 (4.8)
Steel pipe 41.0 52.8 (.5) (1.9)
Corporate and other .2 1.0 (.3) .8
-----------------------------------------------------------------
690.5 663.8 17.1 5.9
=================================================================
OPERATING HIGHLIGHTS
Years Ended December 31, 1994 and 1993
1994 1993
------------------------------------------------------------------
Heating and cooling
Air conditioners - thousands of units 621 564
Furnaces - thousands of units 450 446
Steel pipe - thousands of tones 43 55
-----------------------------------------------------------------
CONTACT: Inner-City Products Corp., Toronto Arindra Singh, Senior VP and CFO See Chief Financial Officer. , 416/598-0101 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion