Sea Containers reports net earnings of $9.9 million for third quarter - $0.45 per common share on revenue of $260.6 million.HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda--(BUSINESS WIRE)--November 7, 1996-- Sea Containers Sea Containers may refer to:
quarter ($0.45 per common share) on revenue of $260.6 million; Special factors hold back Container division while Ferries and Leisure divisions are well ahead of prior year period. Sea Containers Ltd Sea Containers Ltd. is a Bermuda-registered company which operates two main business areas: transport and container leasing. In March 2006 the company sold its share of Orient-Express Hotels Ltd. ., the container leasing, ferries and leisure group, today announced its results for the third quarter and nine months ended September 30, 1996. Net earnings for the quarter were $9.9 million ($0.45 per common share) on revenue of $260.6 million, compared with net earnings of $9.8 million ($0.53 per common share) on revenue of $144.9 million in the third quarter of 1995. For the nine months the company reported net earnings of $22.7 million ($0.90 per common share) on revenue of $579.4 million, compared with net earnings of $105.7 million ($8.49 per common share) on revenue of $374.2 million in the first nine months of 1995. The 1995 period included a gain of $100 million on sale of a ferry subsidiary. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of the company's container division were $17.3 million for the third quarter, down from $23.8 million in the third quarter of 1995. The year earlier period benefitted from a container asset sale of $3.3 million which was not repeated in this year's third quarter. The company encountered technical problems in the period with the two containerships in its Maersk West Australia Line joint venture, necessitating the withdrawal of both vessels for extensive repairs. Replacement vessels were chartered-in for the repair period but they performed poorly and there was significant disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. to the service and consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. losses. Both ships have now been fully repaired and returned to service. Another containership suffered an unexpected off-hire during the month of August. The North Europe container leasing market remained soft in the period, resulting in higher than normal idle equipment levels, although all other markets generally performed to expectation. For the nine months the division's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. is down 3% to $62.1 million from $64 million in the first nine months of 1995. The company's ferry, train and port division increased its operating income by 40% to $15.9 million from $11.4 million in the prior year's third quarter, despite the poor results of the new Denmark/Norway fast ferry service (which has been withdrawn) and the unexpected decision by Stena Line Stena Line is one of the world's largest ferry operators, with ferry services serving Sweden, Denmark, Norway, Great Britain, Ireland, Germany, Netherlands and Poland. Stena Line is a major unit of Stena AB, itself a part of the Stena Sphere, a grouping of Stena AB, Stena Metall AB to dump 80,000 free tickets on the Scotland/Northern Ireland ferry route in August, to promote introduction of a new ship. Isle of Man Steam Packet The Isle of Man Steam Packet Company is the oldest continuously operating passenger shipping company in the world, celebrating its 175th anniversary in 2005. The company provides freight, passenger and vehicle services between the port of Douglas, Isle of Man and four ports Company earnings were up in the period, those of Hoverspeed's cross-English Channel services were maintained at the 1995 level and the GNER GNER Great North Eastern Railway (Britain) (Great North Eastern Railway) performed to expectation. For the nine months this division's operating income is up 118% to $17.8 million from $8.2 million in the first nine months of 1995 (excluding the gain on sale of the ferry subsidiary). The company's leisure division reported operating income up 17% to $6.9 million from $5.9 million in the year earlier period. This division is performing to expectation and its operating income is up 42% for the nine months, to $18.1 million from $12.8 million in the first nine months of 1995. In October, the company announced its latest hotel acquisition, the famous La Samanna beach resort in St. Martin St. Martin in midwinter, gave his cloak to a freezing beggar. [Christian Hagiog.: Brewer Dictionary] See : Kindness , French West Indies French West Indies: see West Indies. , which was acquired for $20 million. Mr. James B. Sherwood, President, said that the container division has recently entered into a large contract to supply refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. container storage for beef. The contract will generate $0.5 million of revenue per month. The ferries division is seeking to win the 15 year franchise to take over the West Coast Main Line of British Rail British Rail n → RENFE f (SP) British Rail n → compagnie ferroviaire britannique, SNCF f , which is scheduled for privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned on April 1, 1997. This division will launch a new ferry service between Campbeltown, Scotland and Ballycastle, Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. in July, 1997 using a multi- purpose ferry, m.v. Claymore, which is being purchased for $1.2 million from the government-owned ferry operator, Caledonian MacBrayne Caledonian MacBrayne (usually shortened to CalMac; Caledonian Mac a' Bhriuthainn in Scottish Gaelic) is the major operator of passenger and vehicle ferries between the mainland of Scotland and 22 of the major islands on Scotland's west coast. . The leisure division will be taking over most of the 67 new rooms and suites in the Palm Avenue wing of the Mount Nelson Hotel in Cape Town Cape Town or Capetown, city (1991 pop. 854,616), legislative capital of South Africa and capital of Western Cape, a port on the Atlantic Ocean. It was the capital of Cape Province before that province's subdivision in 1994. in time for the peak season which starts in December. This new wing will increase the hotel's capacity by 42%. All rooms and suites in the Copacabana Hotel in Rio de Janeiro Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r were handed over from the contractors
at the end of October, thus providing the full 224 unit capacity of the
property for guests for the first time since renovation was started 4
years ago. Construction has started on a new wing at the Lodge at Vail,
Colorado "Vail" redirects here. For the community in Arizona, see Vail, Arizona. For the city in Iowa, see Vail, Iowa.Vail, Colorado is a town in Eagle County, Colorado, USA. According to 2005 Census Bureau estimates, the population of the city is 4,589. which will add 21 units, mostly suites, to the room stock by the start of the high season late in 1997. Construction is well advanced on the new Westcliff Hotel in Johannesburg with the first phase opening of 60 rooms and suites planned for mid 1997. "Our container division has suffered some setbacks this year due to lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). defaults, resulting in lost rent and recovery costs, and unexpected problems with some of our containerships. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of this division are likely to be somewhat less than the $85.9 million earned in 1995, however, any decline will be more than offset by improvements in our ferry and leisure businesses. The fundamentals for container leasing look good with world trade in containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. goods growing rapidly, many new containerships on order, the increasing penetration of the refrigerated cargo transport market by containers at the expense of conventional pallet ships and increased movement of bulk liquids in tank containers. The company's proprietary "Sea Cell" two pallet wide containers are meeting with an enthusiastic market reception," Mr. Sherwood said. He concluded with the announcement that the company will redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. all outstanding $4.125 Convertible Cumulative Preferred Noun 1. cumulative preferred - preferred stock whose dividends if omitted accumulate until paid out cumulative preferred stock preference shares, preferred shares, preferred stock - stock whose holders are guaranteed priority in the payment of dividends but Shares at $50 per share and 20% of the outstanding $2.10 Cumulative Preferred Shares, Series 1982 at $15.14 per share, using proceeds from the sale of new common shares earlier in the year. The redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. will be December 31, 1996. Redemption will be in cash, including dividends accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. to the redemption date, although holders of the $4.125 Convertible Cumulative Preferred Shares may convert each such share into 3.22 Class B common shares in their option. Formal notices of the redemption will be mailed by the redemption agent (First National Bank of Boston) on or about Friday, November 29, 1996. Mr. Sherwood said that it is still the company's longer term intention to retire all the $2.10 shares, perhaps linked with a major asset sale currently under negotiation. -0-
SEA CONTAINERS LTD. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS (UNAUDITED)
Three months ended September 30,
1996 1995
Container asset rental
and sales revenue $46,104,000 $ 55,332,000
Ferry, Train and Port
operations revenue 165,248,000 53,760,000
Leisure operations
revenue 46,865,000 33,536,000
Other revenue 2,374,000 2,237,000
Total revenue $260,591,000 $144,865,000
Earnings/(losses) before
finance costs and
income taxes:
Container asset
rental and sales $17,308,000 $ 23,811,000
Ferry, Train and Port
operations 15,919,000 11,391,000
Leisure operations 6,859,000 5,873,000
Other (366,000) (235,000)
39,720,000 40,840,000
Corporate costs (3,599,000) (3,676,000)
Net finance costs (21,038,000) (21,786,000)
Earnings before income
taxes 15,083,000 15,378,000
Provision for income taxes 5,146,000 5,611,000
Net earnings 9,937,000 9,767,000
Preferred share dividends (3,895,000) (3,932,000)
Net earnings on class A
and class B common
shares $ 6,042,000 $ 5,835,000
Net earnings per class A
and class B common share $ 0.45 $ 0.53
Weighted average number of
class A and class B
common shares 13,339,873 11,064,684
-0-
SEA CONTAINERS LTD. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS (UNAUDITED)
Nine months ended September 30,
1996 1995
Container asset rental
and sales revenue $150,350,000 $162,641,000
Ferry, Train and Port
operations revenue 303,595,000 113,737,000
Leisure operations
revenue 116,905,000 88,877,000
Other revenue 8,540,000 8,903,000
Total revenue $579,390,000 $374,158,000
Earnings/(losses)
before finance
costs and income taxes:
Container asset
rental and sales $ 62,081,000 $ 64,012,000
Ferry, Train and
Port operations 17,804,000 108,181,000
Leisure operations 18,124,000 12,808,000
Other (15,000) 645,000
97,994,000 185,646,000
Corporate costs (10,509,000) (10,591,000)
Net finance costs (61,488,000) (68,020,000)
Earnings before income
taxes 25,997,000 107,035,000
Provision for income
taxes 3,295,000 1,355,000
Net earnings 22,702,000 105,680,000
Preferred share
dividends (11,686,000) (11,796,000)
Net earnings on class
A and class B common
shares $ 11,016,000 $ 93,884,000
Net earnings per class A and
class B common share:
Primary $ 0.90 $ 8.49
Fully diluted $ - $ 6.54
Weighted average number of
class A and class B
common shares:
Primary 12,173,070 11,060,811
Fully diluted - 15,380,274
-0-
SEA CONTAINERS LTD. AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS (UNAUDITED)
September 30, December 31,
1996 1995
Containers, Cranes, Chassis
and Ships, net book value $ 917,318,000 $ 879,149,000
Real estate and other fixed
assets, net book value 481,800,000 414,382,000
Assets under capital leases,
net book value 18,427,000 33,073,000
Cash 81,789,000 63,567,000
Receivables 230,164,000 193,550,000
Inventories 30,758,000 23,898,000
Investments and other assets 159,391,000 103,741,000
$1,919,647,000 $1,711,360,000
Liabilities with respect
to Containers, Chassis
and Ships $ 616,931,000 $ 641,053,000
Bank loans with respect to
real estate and other
fixed assets 256,502,000 181,608,000
Obligations under capital
leases 15,828,000 29,320,000
Other liabilities 291,638,000 223,373,000
9% senior notes 100,000,000 100,000,000
10% senior notes 65,000,000 -
12% senior subordinated
debentures 123,317,000 123,161,000
10% subordinated debentures 13,000,000 16,000,000
Redeemable preferred shares 55,224,000 55,224,000
Shareholders' equity 773,468,000 732,882,000
Class B common shares with
voting rights owned by
subsidiaries (391,261,000) (391,261,000)
$1,919,647,000 $1,711,360,000
CONTACT: Sea Containers America Inc. Jennifer Hawkins Jennifer Hawkins (born 22 December 1983 in Holmesville, New South Wales, Australia<ref name="holmesville" />) is a beauty queen, model and television presenter from Newcastle, Australia who held the Miss Universe 2004 title. 212/302-5066 or William W. Galvin 212/838-5454 |
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