Puerto Rican Cement Announces 1998 First-Quarter Results.SAN JUAN San Juan, city, Argentina San Juan (săn wän, Span. sän hwän), city (1991 pop. 353,476), capital of San Juan prov., W Argentina. It is a commercial and industrial center in an agricultural region. , Puerto Rico--(BUSINESS WIRE)--April 22, 1998--Puerto Rican Cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. Company, Inc. (NYSE NYSE See: New York Stock Exchange :PRN (PRiNter) The DOS name for the first connected parallel port. See DOS device names. ) today announced first-quarter 1998 earnings of $3,314,000, or $0.61 per share, versus $3,943,000, or $0.71 per share, for the comparable 1997 period. As previously announced, the first-quarter results in 1998 reflect the effects of the cement plant's shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of its clinker clink·er n. 1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal. 2. A partially vitrified brick or a mass of bricks fused together. 3. production facilities for 33 days during January January: see month. and early February 1998 to provide for completion of all work allowed by current permits in its capacity expansion program. In mid February, upon completion of the scheduled works, production commenced. Once final permits are received, the Company expects to complete its capacity expansion without major interruptions in production schedules. Consolidated sales of $36,459,000 during the first quarter of 1998 compare with $37,188,000 for the same period in 1997, reflecting a change in the mix of cement sales which lowered average prices, notwithstanding an actual cement sales volume increase to 256,617 short tons in 1998 from 252,700 short tons sold in the 1997 first quarter. The cement market continued at a strong pace during the first quarter of 1998 and reported a 2% increase from figures reported during the first three months in 1997. Dollar net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were slightly higher for the ready mix operation and almost doubled for the lime subsidiary in the first three months of 1998 compared with the same period in 1997. Consolidation of operations continues to render benefits to our ready mix subsidiary while lime exports have been strong for the first quarter of 1998. Cost of sales for the quarter increased by 4% as a result of clinker purchases needed to supplement production during the clinker production shutdown in the first quarter of 1998. Selling general and administrative expenses increased mostly as a result of legal fees associated with the permit process of our Vega Vega (vā`gə), brightest star in the constellation Lyra; Bayer designation Alpha Lyrae; 1992 position R.A. 18h36.7m, Dec. +38°47'. A white main-sequence star of spectral class A0 V, its apparent magnitude is 0. Alta ALTA Alberta (Canada) ALTA AltaVista (stock symbol) ALTA American Land Title Association ALTA American Literary Translators Association ALTA Atlanta Lawn Tennis Association realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. project and limestone limestone, sedimentary rock wholly or in large part composed of calcium carbonate. It is ordinarily white but may be colored by impurities, iron oxide making it brown, yellow, or red and carbon making it blue, black, or gray. The texture varies from coarse to fine. extraction project at Guanica. Other income increased primarily as a result of a gain on the sale of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has by our ready mix subsidiary. Provision for income tax decreased to 14.6% of earnings as compared to 25.5% in 1997 due to the acquisition of certain tax credits purchased by the Company as investments under a Government incentive program. Puerto Rican Puer·to Ri·co Abbr. PR or P.R. A self-governing island commonwealth of the United States in the Caribbean Sea east of Hispaniola. Cement reflected a current ratio of 3.7 and total debt was 87% of total capital at the end of the first quarter in 1998. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses continued strong for the first quarter in 1998 at approximately $4.3 million. The company repurchased 68,000 shares during the quarter and maintains an authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program of up to 300,000 shares approved by the Board during the first quarter of 1998. Mr. Miguel A. Nazario, President and Chief Executive Officer, commented: "The cement market continues strong during the first part of 1998 even when compared with 1997 standards. We have just signed a very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. five-year collective bargain agreement for our cement plant and have completed major upgrades to our cement production equipment. As such, we are poised to take advantage of these favorable market conditions during the remainder of 1998. Our ready mix subsidiary is reflecting the benefits of its recent consolidation of operations and our lime exports are increasing as we had expected. Legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. to secure permits for our realty and lime extraction project are progressing and we are confident of a favorable outcome in the near future." Puerto Rican Cement Inc. produces cement and related products, including Portland gray cement and hydrated hy·drat·ed adj. Chemically combined with water, especially existing in the form of a hydrate. Adj. 1. hydrated - containing combined water (especially water of crystallization as in a hydrate) hydrous lime, concrete, multiwall paper bags, polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents. bags, and engages in realty operations.
Puerto Rican Cement Company, Inc.
Consolidated Statement of Income
(Unaudited)
Three months ended
March 31,
1998 1997
(In Thousands, except share data)
Net sales $ 36,459 $ 37,188
Revenue from real estate operations 25 24
36,484 37,212
Cost of sales:
Depreciation and amortization expenses 3,207 2,998
Manufacturing expenses 24,470 23,565
Total cost of sales 27,677 26,563
Gross margin 8,807 10,649
Selling, general & administrative
expenses 5,523 4,774
Income from operations 3,284 5,875
Other (credits) charges (595) 586
Income before income tax 3,879 5,289
Provision for income tax 565 1,346
Net Income $ 3,314 $ 3,943
Income per share:
Net income $0.61 $0.71
Common shares outstanding 5,429,407 5,527,074
Puerto Rican Cement Company, Inc.
Consolidated Balance Sheet
(Unaudited)
March 31, 1998
(In thousands)
Assets
Current Assets -
Cash and cash equivalents $ 920
Investments available for sale 1,160
Short-term investments 5,655
Notes and accounts receivable 30,396
Inventories 34,939
Prepaid expenses 4,415
Total Current Assets 77,485
Property, plant and equipment 163,054
Long-term investments 46,718
Other assets 3,852
Total Assets $ 291,109
Liabilities and Stockholders' Equity
Current Liabilities -
Current portion of long-term debt 1,280
Accounts payable 10,415
Accrued liabilities 6,890
Income taxes payable 2,474
Total Current Liabilities 21,059
Long-term Liabilities -
Long-term debt, less current portion 75,980
Deferred income taxes 35,520
Other long-term liabilities 3,038
Total long-term Liabilities 114,538
Total Liabilities 135,597
Stockholders' Equity 155,512
Total Liabilities and Stockholders' Equity $ 291,109
Puerto Rican Cement Company, Inc.
Condensed Statement of Cash Flows
For the Three Months ended
(Unaudited)
March March
31, 1998 31, 1997
(In thousands)
Cash flow from operating activities:
Net income $ 3,314 $ 3,944
Total adjustments 1,035 (4,529)
Cash provided by (used in)
operations 4,349 (585)
Cash flows from investing activities:
Capital expenditures (7,645) (3,293)
Redemption of long-term investments 3,835 1,499
Purchase of short-term investments -- (1,045)
Proceeds from sale of investments
available for sale 2,373 --
Purchase of investments available for
sale -- (18)
Proceeds from sale of fixed assets 23 30
Cash used in investing activities (1,414) (2,827)
Cash flows from financing activities:
Purchase of treasury stock (3,288) --
Repayment of long-term debt (305) (57,247)
Proceeds from loans -- 50,000
Decrease in short-term borrowings (394) --
Dividends paid (1,023) (1,050)
Cash used in financing activities (5,010) (8,297)
Decrease in cash and cash equivalents ($2,075) ($11,709)
Cash and cash equivalents - beginning
of year $ 2,995 $ 14,809
Cash and cash equivalents - end of
period 920 3,100
Decrease in cash and cash equivalents ($2,075) ($11,709)
CONTACT: Kathy Liebmann Gavin Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic & Company (212) 373-0200 |
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