Rockefeller Center Properties announces results of operations for the third quarter and nine months ended September 30, 1994.NEW YORK--(BUSINESS WIRE)--Nov. 10, 1994--Rockefeller Center Properties Inc. (RCPI RCPI Royal College of Physicians of Ireland RCPI Regional Community Policing Institute RCPI Radio Communications of the Philippines, Inc. RCPI Research for Communication & Public Involvement ) today announced third quarter net income of $3,321,000, or 9 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. , on revenues of $27,417,000. For the same period in 1993, the company reported net income of $6,878,000, or 18 cents per share, on revenues of $27,815,000. Net income for the quarter ended September 30, 1994 decreased by $3,557,000 from the prior year comparable period, principally due to a charge of $3,125,000, equivalent to 8 cents per share, in connection with certain interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. which no longer serve as hedges ("Uncovered Swaps"). RCPI stated that this charge is not deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for tax purposes and therefore has no impact on the computation of the company's taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. for purposes of determining the amounts required to be distributed to shareholders. Net income for the nine month period was $16,539,000, or 43 cents per share, compared to net income of $31,596,000, or 84 cents per share, for the same period of the prior year. This decrease is principally due to non-recurring gains recorded in 1993 of $8,593,000, representing gains on sales of portfolio securities, decreased portfolio income of $4,015,000, resulting from the reduction in the company's portfolio of investment securities, and the charge of $3,125,000 recorded in the third quarter of 1994 for Uncovered Swaps. During the quarter ended September 30, 1994 the company completed the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of its investment portfolio. RCPI reported that as a result of the liquidation of the company's portfolio of investment securities and a reduction in the amount of its commercial paper, the company has taken a charge for Uncovered Swaps. All of the company's Asset Swaps Asset Swap Similar in structure to a plain vanilla swap, the key difference is the underlying of the swap contract. Rather than regular fixed and floating loan interest rates being swapped, fixed and floating investments are being exchanged. in the notional principal amount Notional Principal Amount In an interest rate swap, the predetermined dollar amount on which the exchanged interest payments are based. Notes: Each period's rates are multiplied by the notional principal amount to determine the value of each counterparty's payment. of $40 million and Liability Swaps Liability swap An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets. in the notional principal amount of $67 million are not currently being utilized for hedging purposes. RCPI stated that proceeds from the sale of portfolio securities had been used to fund scheduled reductions in the commercial paper outstanding under one of the company's letter of credit backed facilities, which was originally scheduled to expire in May 1993 and which has been extended to December 15, 1994. RCPI also reported that net cash provided by operating activities for the third quarter and nine months ended September 30, 1994 was $14,050,000 and $38,359,000, respectively, as compared to $13,026,000 and $38,194,000 for the same periods in 1993. -0-
Rockefeller Center Properties, Inc.
Financial Highlights
Quarters Ended Nine Months Ended
Sept. 30 Sept. 30
1994 1993 1994 1993
Revenues $27,417,000 $27,815,000 $81,949,000 $85,694,000
Income before
non-recurring
income $3,290,000 $6,878,000 $16,508,000 $23,003,000
Non-recurring
income (gain
on sales of
portfolio
securities) $31,000 -- $31,000 $8,593,000
Net income $3,321,000 $6,878,000 $16,539,000 $31,596,000
Net income per
share $.09 $.18 $.43 $.84
Per share earnings are based on 38,260,704 and 37,510,000 shares of
common stock outstanding during the quarters and nine months ended
Sept. 30, 1994 and 1993 respectively. The company's common stock is
listed on the New York Stock Exchange under the symbol RCP.
CONTACT: Rockefeller Center Rockefeller Center, complex of buildings in central Manhattan, New York City, between 48th and 51st streets and Fifth Ave. and the Ave. of the Americas (Sixth Ave.). The project was sponsored by John D. Rockefeller, Jr. Properties Inc. Stephanie Leggett Young, 212/698-1440 |
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