Printer Friendly

NATIONAL INTERGROUP ANNOUNCES IMPROVED THIRD QUARTER RESULTS

 NATIONAL INTERGROUP ANNOUNCES IMPROVED THIRD QUARTER RESULTS
 DALLAS, Jan. 31 /PRNewswire/ -- National Intergroup, Inc. (NYSE: NII) today reported a substantial increase in operating earnings from continuing operations, based on a 6.7 percent increase in net sales for its third quarter ended Dec. 31, 1991.
 Operating income from continuing operations was $15.6 million for the third quarter, compared with $6.7 million for the same period the previous year. Sales of $871.5 million were up from $816.5 million for the third quarter of the previous year.
 National Intergroup earned $3.7 million, or $0.11 per share, from continuing operations before extraordinary items and cumulative effect of a change in accounting principle; this compares with similar earnings of $2.5 million, or $0.06 per share, for the third quarter of the prior year. Per share calculations are affected by $1.4 million in prferred stock dividends paid in the third quarter of each year.
 Net income for the third quarter was $737,000; after consideration of the dividend of $1.4 million paid to holders of preferred stock, the company recorded a net loss of $0.03 per share of common stock. In last year's third quarter, National Intergroup recorded net income of $2.6 million, or $0.06 per common share after the payment of the preferred stock dividend.
 Earnings for the third quarter ended Dec. 31, 1991, included an extraordinary charge of $3 million, or $0.14 per share; this reflects a $2.8 million credit from the utilization of tax loss carryforwards and an offsetting $5.8 million charge related to the early retirement of the company's 11.2 percent subordinated debentures due 1996.
 "The strong improvement in operating performance resulted primarily from an excellent third quarter by FoxMeyer Corporation, our primary operating subsidiary," said Abbey J. Butler and Melvyn J. Estrin, co-chairmen and co-chief executive officers for National Intergroup. "FoxMeyer boosted its operating income 43.4 percent to $14.6 million for its third quarter ended Dec. 31, 1991, and increased net income 14.7 percent to $10.2 million for the same quarter, compared with the previous year." FoxMeyer (NYSE: FOX), the nation's third largest wholesale distributor of pharmaceuticals, announced its third quarter results Jan. 23, 1992. It is 67 percent owned by National Intergroup and 33 percent publicly owned.
 "National Intergroup also achieved a number of milestones in its plan to strengthen its financial condition and maximize shareholder value," the co-chairmen said. "Early redemption of the subordinated debentures avoided substantial interest costs over the next four years at what have become above-market rates; we are now debt free, other than obligations directly attributable to FoxMeyer and our other operating subsidiary, Ben Franklin Retail Stores, Inc."
 On Nov. 5 the board of directors authorized the repurchase of up to 2 million shares of National Intergroup's common stock. By Dec. 31, 1991, 1.3 million shares had been repurchased in this ongoing program. At the end of the third quarter, National Intergroup had a total of 20.6 million shares outstanding, compared with 21.8 million shares outstanding as of Dec. 31, 1990.
 The co-chairmen noted that during the quarter the company also substantially completed the liquidation of its holdings in Ashland Oil, which were acquired as a result of the July 1991 sale of The Permian Corporation. National Intergroup sold the remainder of its Ashland stock in early January 1992, after the close of the third quarter.
 "Consistent with our efforts to build shareholder value, we have continued to negotiate with NKK Corporation regarding the sale of National Intergroup's ownership position in National Steel Corporation. In addition, Ben Franklin filed a registration statement on Nov. 12 with the Securities and Exchange Commission in connection with a proposed initial public offering by National Intergroup of 2 million shares of Ben Franklin common stock, representing 40 percent of its common stock."
 Ben Franklin is a national wholesale supplier of variety and craft merchandise, as well as a franchisor of more than 763 variety stores and 225 craft stores in 47 states. The company's net sales for the third quarter ended Dec. 31, 1991, were $85.4 million. Net sales for the same period last year were $85.5 million. Net income for the current third quarter was $674,000, up sharply from $71,000 for the third quarter last year.
 Results For the First Nine Months
 National Intergroup recorded $21.8 million in operating income from continuing operations for the first nine months of fiscal 1992, compared with a loss from continuing operations of $19.1 million for the same period last year. Net sales were $2.5 billion, an increase of 5.8 percent over the prior-year first nine months.
 Net income for the nine months ended Dec. 31, 1991, was $21.6 million, or $0.81 per share, after consideration of $4.1 million in preferred stock dividends. This includes income from discontinued operations of $25.6 million; an extraordinary gain of $6.3 million from the utilization of net operating loss carryforwards; and an extraordinary charge of $5.8 million related to the early redemption of subordinated debt.
 For the first nine months last year, the company reported a net loss of $294.1 million, or $13.70 per share, after consideration of $4.1 million in preferred stock dividends. This included $232.1 million in reserves recorded in the first quarter of fiscal 1991 for discontinued operations, including provisions for the disposition of The Permian Corporation and Ben Franklin; $7.5 million in costs for relocating the corporate office to Dallas; and a $15.6 million charge related to the cumulative effect of a change in accounting principle.
 Ben Franklin recorded net sales of $253.89 million for the nine months ended Dec. 31, 1991, compared with $253.86 million for the same period last year. Net income for the first nine months was $960,100, compared with a net loss of $7.4 million for the first nine months last year, including a $9.5 million charge related to the cumulative effect of a change in accounting principle.
 NATIONAL INTERGROUP, INC. AND SUBSIDIARIES
 CONDENSED STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
 (In thousands, except for per share data)
 For the third quarter ended Dec. 31, 1991 1990
 Net sales $871,529 $816,521
 Cost of goods sold 855,960 809,831
 Operating income (loss) from
 continuing operations 15,569 6,690
 Investment in National Steel Corporation
 Equity in earnings -- (458)
 Loss on exchange of stock -- --
 Net preferred dividend income 1,881 1,630
 Total 1,881 1,172
 Net financing costs 4,544 5,611
 Income (loss) from continuing operations
 before income tax provision, minority interest,
 extraordinary items & cumulative effect
 of change in accounting principle 12,906 2,251
 Income tax provision (benefit) 5,839 (260)
 Income (loss) from continuing operations
 before minority interest, extraordinary
 items & cumulative effect of change
 in accounting principle 7,067 2,511
 Minority interest in net income
 of consolidated subsidiary 3,365 --
 Income (loss) from continuing
 operations before extraordinary
 items and cumulative effect
 of change in accounting principle 3,702 2,511
 Discontinued operations -- --
 Income (loss) before extraordinary
 items and cumulative effect of
 change in accounting principle 3,702 2,511
 Extraordinary items (2,965) 80
 Cumulative effect of change in
 accounting principle -- --
 Net income (loss) $737 $2,591
 Preferred stock dividends $1,375 $1,375
 Per share of common stock
 Income (loss) from continuing
 operations before extraordinary
 items and cumulative effect of
 change in accounting principle $0.11 $0.06
 Discontinued operations -- --
 Extraordinary items (0.14) --
 Cumulative effect of change in
 accounting principle -- --
 Net income (loss) per share $(0.03) $0.06
 Average number of shares
 outstanding 21,368 21,765
 NATIONAL INTERGROUP AND SUBSIDIARIES
 CONDENSED STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
 (In thousands, except for per share data)
 For the nine months ended Dec. 31, 1991 1990
 Net sales $2,483,918 $2,347,156
 Cost of goods sold 2,462,111 2,366,288
 Operating income (loss) from
 continuing operations 21,807 (19,132)
 Investment in National Steel Corporation
 Equity in earnings -- 3,078
 Loss on exchange of stock -- (14,767)
 Net preferred dividend income 5,671 3,360
 Total 5,671 (8,329)
 Net financing costs 15,746 22,731
 Income (loss) from continuing operations
 before income tax provision, minority
 interest, extraordinary items &
 cumulative effect of change in
 accounting principle 11,732 (50,192)
 Income tax provision (benefit) 11,856 (3,263)
 Income (loss) from continuing operations
 before minority interest, extraordinary
 items & cumulative effect of change
 in accounting principle (124) (46,929)
 Minority interest in net income
 of consolidated subsidiary 4,279 --
 Income (loss) from continuing operations
 before extraordinary items & cumulative
 effect of change in accounting principle (4,403) (46,929)
 Discontinued operations 25,569 (232,107)
 Income (loss) before extraordinary
 items and cumulative effect of
 change in accounting principle 21,166 (279,036)
 Extraordinary items 472 486
 Cumulative effect of
 change in accounting principle -- (15,553)
 Net income (loss) $21,638 $(294,103)
 Preferred stock dividends $4,125 $4,125
 Per share of common stock
 Income (loss) from continuing operations
 before extraordinary items & cumulative
 effect of change in accounting principle $(0.39) $(2.35)
 Discontinued operations 1.18 (10.66)
 Extraordinary items 0.02 0.02
 Cumulative effect of change in
 accounting principle --
 (0.71)
 Net income (loss) per share $0.81 $(13.70)
 Average number of shares outstanding 21,730 21,763
 NATIONAL INTERGROUP AND SUBSIDIARIES
 SUMMARIZED BALANCE SHEET DATA
 (Thousands of dollars)
 Dec. 31, March 31,
 1991 1991
 Net working capital $399,626 $349,453
 Properties -- net 73,404 54,246
 Investments and other assets 347,645 352,827
 Long-term debt 102,995 208,353
 Reserves and other liabilities 84,815 58,543
 Minority interest in net income
 of consolidated subsidiary 163,388 --
 Redeemable preferred stock 55,000 55,000
 Stockholders' equity 414,477 434,630
 -0- 1/31/92
 /CONTACT: J. Warren Henry of National Intergroup, 214-446-4270, or Jeffrey Z. Taufield or Roy Winnick, Kekst and Company, 212-593-2655, for National Intergroup/
 (NII) CO: National Intergroup, Inc. ST: Texas IN: HOU SU: ERN


JT -- NY070 -- 5834 01/31/92 17:54 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 31, 1992
Words:1693
Previous Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Next Article:SWIFT TRANSPORTATION CO. INC. REPORTS REVENUES AND EARNINGS FOR FOURTH QUARTER & YEAR END
Topics:


Related Articles
/C O R R E C T I O N -- FoxMeyer Corporation/
NATIONAL INTERGROUP DECLARES PREFERRED DIVIDEND; FOXMEYER, A NATIONAL INTERGROUP SUBSIDIARY, ALSO ANNOUNCES INITIAL DIVIDEND
NATIONAL INTERGROUP IMPROVES OPERATING RESULTS FOR FOURTH QUARTER, YEAR
NII ACHIEVES HIGHER EARNINGS ON $1 BILLION SALES; FIRST QUARTER OPERATING, NET INCOME SIGNIFICANTLY IMPROVED
NATIONAL INTERGROUP REPORTS SIGNIFICANT INCREASE IN SECOND QUARTER SALES AND TURNAROUND IN EARNINGS FROM CONTINUING OPERATIONS
NATIONAL INTERGROUP REPORTS SIGNIFICANTLY HIGHER SALES AND OPERATING INCOME IN FOURTH QUARTER
NATIONAL INTERGROUP DECLARES QUARTERLY DIVIDEND
NATIONAL INTERGROUP SELLS NATIONAL STEEL COMMON STOCK
NATIONAL INTERGROUP ANNOUNCES PLAN TO REPURCHASE 1.3 MILLION SHARES
NATIONAL INTERGROUP DECLARES DIVIDEND

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters