ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS
ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS RALEIGH, N.C., Nov. 13 /PRNewswire/ -- Acton Corporation
(AMEX: ATN) -- $3.75 Cumulative Preferred Stock (ATNPR) -- today announced a loss of $1,748,029 or $.85 per share (both primary and fully diluted) on net revenues of $59,482,950 for the three months ended Sept. 30, 1991. This compares to a loss of $6,230,808 or $2.59 per primary and fully diluted share on net revenues of $51,812,604 for the three months ended Sept. 30, 1990.
The Company's real estate segment reported a 1991 third quarter pre-tax loss of $2,917,395, including writedowns totalling $2,404,900 recorded to reflect declines in the estimated market value of certain of its properties held for development and sale. These declines are primarily the result of widespread changes in real estate market conditions. For the nine months ended Sept. 30, 1991, the Company reported net losses of $6,187,726 on net revenues of $180,408,362 or $2.92 per share (both primary and fully diluted) compared to a loss of $5,812,560 or $2.73 per primary and fully diluted share on revenues of $131,808,033 for the first nine months of 1990. All per share computations are after consideration of the Company's preferred stock dividend requirements. The 1991 nine month results also include $2,154,416 of writedowns to reflect what the Company believes to be other than temporary declines in the value of securities in its investment portfolio. A substantial portion of these recorded declines in value has previously been reflected in the unrealized losses of the equity portfolio and thereby had no impact upon stockholders' equity in 1991. Stockholders' equity increased from $32,349,028 at June 30, 1991 to $36,242,721 at Sept. 30, 1991, primarily due to a $5,643,860 increase in the market value of the investment portfolio offset by the quarter's operating loss. The 1990 losses were primarily the result of the general decline in the real estate markets, which necessitated writedowns totalling $4,297,000 or the carrying value of real estate held for development and sale, combined with a writedown of $1,500,000 to reflect what the Company believed to be other than temporary declines in the market value of its fixed maturity portfolio. Acton has accepted a written proposal from a lending institution which would provide funds to retire its $24,311,652 of loans which were due on June 30, 1991 and secured by substantially all of the resort lot and cable television assets. Although the proposal is subject to normal due diligence and final approval by the lending institution, Acton believes that it will be able to complete this financing or obtain alternative financing. Acton's outstanding 6.75 percent Subordinated Debentures in the amount of $2,096,500 matured on Sept. 1, 1991. Acton intends to retire these debentures by Dec. 31, 1991. Acton Corporation is primarily engaged in specialized automobile insurance underwriting, manufacturing, real estate development and the operation of a cable television system. -0- 11/13/91 /CONTACT: Glenn J. Kennedy, Chief Financial Officer, Acton Corporation, 919-781-5611/ (ATN) CO: Acton Corporation ST: North Carolina IN: TLS INS SU: ERN DF -- CH011 -- 4158 11/13/91 17:41 EST
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|Date:||Nov 13, 1991|
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