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THE PENN CENTRAL CORPORATION REPORTS 1993 SECOND QUARTER RESULTS

 CINCINNATI, July 22 /PRNewswire/ -- The Penn Central Corporation (NYSE: PC) today reported 1993 second quarter income from continuing operations of $75.0 million, or $1.60 per share ($1.55 per share assuming full dilution), compared with $11.2 million, or $.23 per share, for the 1992 second quarter. Income from continuing operations before tax was $45.7 million for the second quarter of 1993, compared with $18.4 million for the same period last year. Net revenues from continuing operations increased to $397.3 million from $342.4 million for the 1992 second quarter.
 The Company's insurance operations' net written premiums for the 1993 second quarter were $329.8 million, an increase of 25 percent from $263.0 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 second quarter of $43.7 million compared with the 1992 second quarter of $34.4 million. Excluding realized investment gains, the insurance operations experienced an 18 percent increase in operating income, principally due to improved underwriting results in the workers' compensation insurance businesses. The combined ratio for the insurance operations was 96.5 percent for the 1993 second quarter as compared with 98.0 percent for the 1992 second quarter.
 The Company's second quarter 1993 results of continuing operations included a pre-tax gain of $18.5 million from the sale of all of the Company's limited partnership units of Buckeye Partners, L.P.. In addition, 1993 second quarter income from continuing operations included a tax benefit of $29.3 million as compared with a tax charge of $7.2 million in the 1992 second quarter. The 1993 benefit resulted from a $45 million 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.
 For the first six months of 1993 and 1992, income from continuing operations was $106.1 million, or $2.27 per share ($2.21 per share assuming full dilution), and $21.6 million, or $.45 per share, respectively. Net income for the first half of 1993 was $108.9 million, or $2.33 per share ($2.27 per share assuming full dilution). For the same 1992 period, net income was $271.0 million, or $5.71 per share, which included $252.8 million, or $5.33 per share from the cumulative effect of a change in accounting for income taxes, and a loss from discontinued operations of $3.4 million, or $.07 per share. The loss from discontinued operations included income of $.13 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 six months ended June 30, 1993 and 1992 were $206.1 million and $684.0 million, respectively.
 The Company has presented fully diluted earnings per share data because the potential dilution represented by outstanding employee stock options and similar rights, determined in accordance with the applicable provisions of Accounting Principles Board Opinion No. 15, exceeded 3 percent for the quarter ended June 30, 1993.
 Penn Central ended the 1993 second quarter with shareholders' equity of $1,624.6 million, or $34.62 per share.
 Penn Central operates businesses primarily in the areas of specialty property and casualty insurance.
 THE PENN CENTRAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
 INCOME STATEMENT
 (In Millions, Except Per Share Amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues
 Premiums earned $ 312.9 $ 244.9 $ 584.0 $ 472.1
 Net investment income
 from insurance
 operations 28.1 27.3 55.0 51.5
 Net realized gains from
 insurance investments 8.3 4.5 13.7 10.6
 Net sales 48.0 65.7 100.9 132.3
 Total 397.3 342.4 753.6 666.5
 Costs and expenses
 Insurance losses 177.9 145.8 335.6 282.8
 Loss adjustment expenses 32.9 26.3 62.4 50.4
 Commissions and other
 insurance expenses 70.9 57.3 131.5 108.3
 Policyholder dividends 23.9 13.0 41.0 24.7
 Cost of sales 25.0 38.9 46.5 78.5
 Operating expenses 24.2 25.9 53.4 54.0
 Corporate and
 administrative expenses 4.9 5.6 9.5 11.0
 Total 359.7 312.8 679.9 609.7
 Operating income 37.6 29.6 73.7 56.8
 Interest and dividend
 income 13.6 8.2 27.5 16.7
 Interest and debt expense (17.1) (17.5) (34.4) (35.0)
 Net gain from Parent
 Company equity investment
 transaction 15.7 -- 15.7 --
 Other income (expense)
 - net (4.1) (1.9) (10.2) (2.9)
 Total 8.1 (11.2) (1.4) (21.2)
 Income from continuing
 operations before income
 taxes 45.7 18.4 72.3 35.6
 Income tax benefit
 (expense) 29.3 (7.2) 33.8 (14.0)
 Income from continuing
 operations 75.0 11.2 106.1 21.6
 Income (loss) from
 discontinued operations -- (.2) 2.8 (3.4)
 Cumulative effect of
 accounting change -- -- -- 252.8
 Net income $ 75.0 $ 11.0 $ 108.9 $ 271.0
 Primary Earnings Per
 Share Data:
 Continuing operations $ 1.60 $ .23 $ 2.27 $ .45
 Discontinued operations -- -- .06 (.07)
 Cumulative effect of
 accounting change -- -- -- 5.33
 Total $ 1.60 $ .23 $ 2.33 $ 5.71
 Weighted average
 shares 46.8 47.5 46.7 47.4
 Fully Diluted Earnings Per Share Data:
 Continuing operations $ 1.55 $ .23 $ 2.21 $ .45
 Discontinued operations -- -- .06 (.07)
 Cumulative effect of
 accounting change -- -- -- 5.33
 Total $ 1.55 $ .23 $ 2.27 $ 5.71
 Weighted average
 shares 48.4 47.5 48.0 47.4
 THE PENN CENTRAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
 (In Millions, Except Per Share Amounts and Ratios)
 June 30, 1993
 Balance Sheet Data:
 Investments held by insurance operations $1,497.1
 Investments of Parent Company $ 873.3
 Unpaid losses and loss adjustment expenses $ 910.0
 Debt $ 655.9
 Shareholders' equity $1,624.6
 Common Stock outstanding or issuable 46.9
 Book value per share of Common Stock $ 34.62
 Statutory surplus of insurance operations $ 528.3
 -0- 7/22/93
 /CONTACT: Philip A. Hagel, vice president - treasurer of The Penn Central Corporation, 513-579-6600/
 (PC)


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

SM -- CL023 -- 4542 07/22/93 12:28 EDT
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Date:Jul 22, 1993
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