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PENN CENTRAL RELEASES THIRD QUARTER EARNINGS

 CINCINNATI, Oct. 26 /PRNewswire/ -- The Penn Central Corporation (NYSE: PC) today reported 1993 third quarter income from continuing operations of $86.2 million, or $1.77 per share, compared with $11.3 million, or $.24 per share, for the 1992 third quarter. Exclusive of a deferred tax asset adjustment, income from continuing operations for the 1993 third quarter was $21.2 million, or $.44 per share. Net revenues from continuing operations increased to $430.8 million from $363.9 million for the 1992 third quarter.
 The company's insurance operations' net written premiums for the 1993 third quarter were $365.2 million, an increase of 33 percent from $274.7 million for the 1992 period, attributable to continued growth in both the non-standard automobile and California workers' compensation insurance businesses. The insurance operations reported operating income for the 1993 third quarter of $40.0 million compared with the 1992 third quarter of $35.9 million. Excluding realized investment gains, the insurance operations experienced a 42 percent increase in operating income, principally due to improved underwriting results in both the workers' compensation and non-standard automobile insurance businesses as well as higher portfolio income. The GAAP combined ratio for the insurance operations was 96.1 percent for the 1993 third quarter as compared with 98.4 percent for the 1992 third quarter. At Sept. 30, 1993, the investment assets of the insurance operations were $1,583.1 million.
 The company's third quarter 1993 results of continuing operations included a tax benefit of $51.0 million as compared with a tax charge of $7.8 million in the 1992 third quarter. The 1993 benefit resulted from a $65 million, or $1.33 per share, increase in the company's net deferred tax asset due to revisions to the estimated future taxable income during the company's loss carryforward period. The company's net deferred tax asset is primarily attributable to the company's Federal income tax loss carryforward which is available to offset taxable income, and substantially eliminates the company's requirement to pay current Federal income tax.
 Net income for the 1993 third quarter was $82.1 million, or $1.68 per share, which included a discontinued operations' loss of $4.1 million, or $.09 per share, principally on the sale of the company's defense services businesses which was completed on August 25, 1993 for approximately $94 million in cash.
 For the first nine months of 1993, income from continuing operations was $192.3 million, or $4.00 per share, compared to $32.9 million, or $.70 per share, for the same period last year. Excluding the year-to- date deferred tax asset adjustments, income from continuing operations for the 1993 period was $67.3 million, or $1.40 per share. For the nine month period of 1993, the insurance operations experienced a 28 percent growth in net written premiums over the 1992 period and reported operating income of $122.2 million.


Excluding realized investment gains, the insurance operations' operating income increased 27 percent over last year. The GAAP combined ratio for the insurance operations was 96.4 percent for the first nine months of 1993 versus 97.9 percent for the comparable 1992 period.
 Net income for the nine-month period of 1993 was $191.0 million, or $3.97 per share. For the same 1992 period, net income was $285.1 million, or $6.03 per share, which included $252.8 million, or $5.34 per share, from the cumulative effect of a change in accounting for income taxes, and a loss from discontinued operations of $.6 million, or $.01 per share. The loss from discontinued operations for the 1992 period included income of $.19 per share from the Defense Services businesses and a loss of $.20 per share attributable to the operations owned by General Cable Corporation which were spun-off to shareholders in July 1992. Revenues from discontinued operations for the nine months ended September 30, 1993 and 1992 were $274.8 million and $782.1 million, respectively.
 Penn Central ended the 1993 third quarter with shareholders' equity of $1,708.1 million, or $36.11 per share.
 Penn Central operates businesses primarily in specialty property and casualty insurance.
 THE PENN CENTRAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
 INCOME STATEMENT
 (In Millions, Except Per Share Amounts)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1993 1992 1993 1992
 Revenues
 Insurance operations
 Premiums earned $ 337.2 $ 259.4 $ 921.2 $ 731.5
 Net investment
 income 29.1 26.1 84.1 77.6
 Net realized gains .3 7.9 14.0 18.5
 Other operations
 Net sales 54.0 57.3 154.9 189.6
 Interest and dividend
 income 13.0 14.3 40.5 31.0
 Net gains (losses) from
 equity investments (2.8) (1.1) 12.9 (1.1)
 Total 430.8 363.9 1,227.6 1,047.1
 Expenses
 Insurance operations
 Insurance losses 188.6 155.3 524.2 438.1
 Loss adjustment
 expenses 32.1 28.1 94.5 78.5
 Commissions and other
 insurance expenses 76.7 59.8 208.2 168.1
 Policyholder dividends 29.2 14.3 70.2 39.0
 Other operations
 Cost of sales 23.5 35.1 70.0 113.6
 Operating expenses 28.8 21.9 82.2 75.9
 Corporate and
 administrative
 expense 4.0 4.9 13.5 15.9
 Interest and debt
 expense 15.0 17.3 49.4 52.3
 Other expense (income),
 net (2.3) 8.1 7.9 11.0
 Total 395.6 344.8 1,120.1 992.4
 Income from continuing
 operations before
 income taxes 35.2 19.1 107.5 54.7
 Income tax (expense)
 benefit 51.0 (7.8) 84.8 (21.8)
 Income from continuing
 operations 86.2 11.3 192.3 32.9
 Discontinued operations:
 Income (loss) from
 discontinued operations --- 2.8 2.8 (.6)
 Loss on disposal (4.1) --- (4.1) ---
 Cumulative effect of
 accounting change --- --- --- 252.8
 Net income $ 82.1 $ 14.1 $ 191.0 $ 285.1
 Earnings Per Share Data:
 Continuing operations $ 1.77 $ .24 $ 4.00 $ .70
 Discontinued operations (.09) .06 (.03) (.01)
 Cumulative effect of
 accounting change --- --- --- 5.34
 TOTAL $ 1.68 $ .30 $ 3.97 $ 6.03
 Weighted average common
 shares 48.8 47.0 48.1 47.3
 THE PENN CENTRAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
 (In Millions, Except Per Share Amounts and Ratios)
 September 30,
 1993
 Balance Sheet Data:
 Investments held by insurance operations $1,583.1
 Investments of Parent Company $ 876.7
 Unpaid losses and loss adjustment expenses $ 944.5
 Debt $ 523.1
 Shareholders' equity $1,708.1
 Common Stock outstanding or issuable 47.3
 Book value per share of Common Stock $ 36.11
 Statutory surplus of insurance operations $ 563.7
 -0- 10/26/93
 /CONTACT: Philip A. Hagel, vice president - treasurer, of Penn Central, 513-579-6600/
 (PC)


CO: The Penn Central Corporation ST: Ohio IN: INS SU: ERN

BM -- CL029 -- 6810 10/26/93 13:15 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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