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PRESTON REPORTS NET LOSS FOR QUARTER ENDED JUNE 30

 PRESTON REPORTS NET LOSS FOR QUARTER ENDED JUNE 30
 PRESTON, Md., July 23 /PRNewswire/ -- Preston Corporation (NASDAQ: PTRK) reported today a net loss for the quarter ended June 30, 1992, of $2,417,000, or 42 cents per share, versus net income of $1,885,000, or 33 cents per share, for the same period in 1991. Revenues for the quarter were $142,641,000 compared to $144,663,000 for the second quarter of 1991.
 For the six months ended June 30,1992, the net loss was $2,950,000 or 51 cents per share, compared to net income of $1,152,000, or $.20 per share, in the same period of 1991. Revenues for the first six months of 1992 were $281,960,000 compared to $280,329,000 in the first half of 1991.
 The current quarter loss includes an after-tax charge of $1,723,000, or 30 cents per share, relating to an increase in the provision for the September 1990 closing of Pioneer Transportation Systems, Inc. and Reeves Transportation Company. This unfavorable variance resulted from increased insurance reserves and the impact of removing the CSI/Reeves division, a carpet distribution activity, from the close-down provision and re-establishing it as a stand-alone operating entity. The current quarter loss excluding the adjustment to the close-down provision was $694,000, or 12 cents per share.
 The net loss for the six months ended June 30, 1992 includes a first-quarter after-tax charge to earnings of $837,000, or 14 cents per share, pertaining to an accounting change in the method of revenue recognition. Excluding this accounting charge and the second quarter adjustment to the close-down provision, the net loss for the first six months of 1992 was $192,000 or 3 cents per share.
 William B. Potter, chairman and president, said, "We are disappointed with second quarter results which reflect, in part, erosion of the January 1 rate increase which benefited first quarter results at Saia and Preston Trucking, to below prior-year levels." Compared to the prior year's second quarter, the current LTL rates decreased 3.1 percent at Preston Trucking Company and 6.1 percent at Saia Motor Freight.
 Although second quarter LTL tonnage trends were essentially flat at Preston Trucking Company compared to the second quarter 1991, Saia Motor Freight grew at 16.4 percent as a result of market share gains due primarily to the failure of a major competitor in July, 1991.
 During the quarter, Preston Trucking Company completed five terminal consolidations within its Central States region and now will provide scheduled next-day service for 81 percent of its shipments within the region. Similar changes have been completed in the Middle Atlantic/Northeast region to increase scheduled next-day service to 63 percent in this market. Preston Trucking Company's quarterly results were adversely affected by the rate decline, flat tonnage, a 2.7 percent increase in Teamster wages on April 1, and expense and revenue impacts of the terminal consolidation and market positioning changes. Preston Trucking Company's operating loss was $2,383,000 and its operating ratio was 102.3 percent.
 In the second quarter, Saia Motor Freight reported operating income of $3,931,000, and an operating ratio of 86.7 percent, benefiting from volume gains and effective cost controls more than offsetting the rate decline.
 Preston Corporation is a holding company which, through its principal subsidiaries, transports freight by truck for a wide range of manufacturers, wholesalers and retailers. The operating subsidiaries include Preston Trucking Company, Inc., of Preston, Md., and Saia Motors Freight Line, Inc. of Houma, La., which comprises 93 percent of consolidated revenue; as well as Smalley Transportation Company of Tampa, Fla., and CSI/Reeves, Inc., of Calhoun, Ga.
 PRESTON CORPORATION
 Consolidated Revenues And Net Results
 (In thousands except per share amounts -- Unaudited)
 Periods ended Second Quarter Six Months
 June 30 1992 1991 1992 1991
 Revenue $142,641 $144,663 $281,960 $280,329
 Net earnings (loss) (2,417) 1,885 (2,950) 1,152
 Earning (loss)
 per share (A) ($0.42) $0.33 ($0.51) $0.20
 Accounting charge
 for revenue
 recognition -- -- (837) --
 Earnings (loss)
 excluding revenue
 recognition charge (2,417) 1,885 (2,113) 1,152
 Earnings (loss) per
 share excluding revenue
 recognition charge ($0.42) $0.33 ($0.37) $0.20
 Average shares outstand. 5,758,701 5,758,701 5,758,701 5,758,701
 (A) Includes impact of a charge to the provision for close-down of subsidiaries in the amount of $1,723,000, or 30 cents per share, in the second quarter of 1992 and $1,921,000, or 33 cents per share, for the 1992 six month period.
 -0- 7/23/92
 /CONTACT: William B. Potter, chairman and president of Preston, 410-673-7151/
 (PTRK) CO: Preston Corporation ST: Maryland IN: TRN SU: ERN


TQ-SM -- NY017 -- 2367 07/23/92 10:05 EDT
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Date:Jul 23, 1992
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