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AMERICAN PRESIDENT COMPANIES ANNOUNCES FOURTH QUARTER 1992 RESULTS

 OAKLAND, Calif., Jan. 21 /PRNewswire/ -- American President Companies, Ltd. (APC) (NYSE: APS) today announced earnings for its fourth quarter ended December 25, 1992 of $10.6 million, or $0.64 per share. This compares with earnings for the fourth quarter of 1991 of $12.0 million, or $0.67 per share. Operating income was $19.8 million on revenues of $669 million for the quarter, compared with $27.6 million on revenues of $668 million for the fourth quarter of 1991. Collection of detention charges for Desert Storm containers contributed only $2.9 million to operating income for the fourth quarter of 1992, while Desert Storm detention contributed $11.0 million to operating income in the fourth quarter of 1991. Real estate sales in the fourth quarter of 1992 and 1991 contributed $3.4 million and $7.4 million to operating income, respectively.
 Total earnings for 1992 were $78.1 million, or $4.68 per share, fully diluted, before a one-time after-tax charge of $21.6 million, or $1.29 per share, related to a change in the company's method of recognizing revenues and expenses. This compares to earnings for 1991 of $66.2 million, or $3.71 per share, fully diluted, before a one-time after-tax charge of $10.5 million, or $0.59 per share, related to a change in accounting for postretirement benefits. Including the accounting changes, net income for 1992 and 1991 was $56.5 million, or $3.39 per share, and $55.7 million, or $3.12 per share, respectively. The 1991 fourth quarter and full year amounts have also been restated to give effect to Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes," which was implemented as of the beginning of 1989. In 1992, revenues increased to $2.5 billion from $2.4 billion in 1991. Operating income was $140.1 million for 1992, compared with $142.8 million in 1991. Transportation of Desert Storm cargo was a very significant contributor to operating results in 1991. In addition, Desert Storm detention contributed $41.2 million and $12.7 million to operating income for 1992 and 1991, respectively. The company's real estate operations contributed $3.4 million and $11.6 million to operating income in 1992 and 1991, respectively.
 Commenting on the non-Desert Storm operating results for the fourth quarter, Chairman John M. Lillie said the company's rates and cargo mix improved in its import and export markets, and volumes increased in the company's intra-Asia market, compared in both cases with the fourth quarter of 1991. Partially offsetting these improvements were a 16 percent decline in the company's volume of export cargo, a decrease in rates and changes in cargo mix in the company's intra-Asia market, and lower stacktrain volumes, compared with the fourth quarter of 1991. Additionally, operating costs in Asia increased in the fourth quarter of 1992, reflecting high rates of inflation and a weakened U.S. dollar compared with the fourth quarter of 1991.
 Commenting on the outlook for 1993, Lillie stated that he expects first half earnings to be lower than first half 1992 earnings because operating income in the 1992 period included $35 million from the collection of Desert Storm detention charges. Although there are some positive economic trends emerging in the U.S., in general the containerized transportation industry is still facing economic weakness in both the U.S. and Japan. The company's performance is expected to strengthen in the second half of 1993, as the outlook for these economic conditions begins to improve and the company benefits from its continuing cost controls.
 The company's capital spending was approximately $53 million in 1992, excluding the purchase of one C9-class containership previously leased. Capital spending is expected to be approximately $98 million in 1993, $25 million of which the company had originally planned to spend in 1992, and will be primarily for incremental and replacement transportation equipment. The 1993 capital spending amount excludes the purchase on Jan. 5 of two C9-class containerships, previously leased and the company's proposed investment in an Asia to Europe service. The aggregate amount paid for the containerships was $197 million.
 During the quarter the company repurchased a total of 827,800 shares of its common stock at an average price of $38.83 per share including expenses. Year-to-date stock repurchases totaled 1,857,964 shares at an average cost of $41.88 including expenses.
 American President Companies Ltd. provides container transportation services in North America, Asia and the Middle East through an intermodal system combining ocean, rail and truck transportation.
 AMERICAN PRESIDENT COMPANIES LTD.
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share data)
 Quarter Ended Year Ended
 Dec. 25, Dec. 27, Dec. 25, Dec. 27,
 1992 1991 1992 1991
 (Restated) (Restated)
 REVENUES
 Transportation
 International $ 490.5 $ 475.9 $ 1,867.0 $1,786.7
 Domestic 174.2 182.6 631.8 645.2
 Real Estate 4.6 9.8 6.0 16.8
 Total 669.3 668.3 2,504.8 2,448.7
 EXPENSES
 Operating, Net of
 Operating - Differential
 Subsidy 602.7 593.5 2,198.4 2,139.1
 General &
 Administrative 17.8 18.3 59.1 60.3
 Depreciation &
 Amortization 29.0 28.9 107.2 106.5
 Total 649.5 640.7 2,364.7 2,305.9
 Operating Income(A) 19.8 27.6 140.1 142.8
 OTHER INCOME (EXPENSE)
 Interest Income 3.0 3.2 12.2 8.3
 Interest Expense (9.9) (11.5) (38.7) (44.4)
 Gain on Sale of Investment 8.1
 Income Before Taxes 12.9 19.3 121.7 106.7
 Federal, State & Foreign
 Tax Expense (B) 2.3 7.3 43.6 40.5
 Income before Cumulative
 Effect of Accounting
 Change 10.6 12.0 78.1 66.2
 Cumulative Effect on Prior Years of Changing
 the Accounting for Revenues &
 Expenses (C) (21.6)
 Cumulative Effect on Prior Years of Changing
 the Accounting for Postretirement Benefits (10.5)
 Net Income $ 10.6 $ 12.0 $ 56.5 $ 55.7
 Earnings Per Common Share (D)
 Primary
 Before Cumulative Effect
 of Accounting
 Changes $ 0.64 $ 0.67 $ 4.86 $ 3.79
 Cumulative Effect of Accounting Changes (1.47) (0.67)
 Earnings Per Share $ 0.64 $ 0.67 $ 3.39 $ 3.12
 Fully Diluted
 Before Cumulative
 Effect of Accounting
 Changes $ 0.64 $ 0.67 $ 4.68 $ 3.71
 Cumulative Effect
 of Accounting Changes (1.29) (0.59)
 Earnings Per Share $ 0.64 $ 0.67 $ 3.39 $ 3.12
 Weighted Average Common Shares (D)
 Primary 14.0 15.2 14.7 15.7
 Fully Diluted 14.0 15.2 16.7 17.8
 OPERATING INCOME BY SEGMENT
 Transportation $ 16.4 $ 20.2 $136.7 $131.2
 Real Estate 3.4 7.4 3.4 11.6
 Total Operating
 Income $ 19.8 $ 27.6 $140.1 $142.8
 (A) The U.S. government is obligated to pay detention for the company's containers transported for Operation Desert Storm and held beyond an allowed time. The revenue and related expenses are recognized as revenue is collected. Desert Storm detention contributed $3 million and $41 million to Operating Income for the fourth quarter and the year ended Dec. 25, 1992, respectively, and $11 million and $13 million to Operating Income for the fourth quarter and year ended Dec. 27, 1991, respectively. Approximately an additional $20 million is subject to negotiation with the U.S. government and the timing of its collection is uncertain.
 (B) The company adopted the new income tax accounting standard in the first quarter of 1992 and applied the effects retroactively to 1989. Net Income and Earnings per Share for the fourth quarter and the year ended Dec. 27, 1991, have been restated from $11.5 million, or 65 cents per share, and $53.9 million, or $3 per share, respectively.
 (C) The company changed its method of revenue and expense recognition in 1992 to a percentage-of-completion method for revenue, and expenses as incurred, from recording revenue and variable expenses when cargo was loaded. If the new method of recognizing revenues and expenses had not been implemented, Net Income and Earnings per Share for the fourth quarter and the year ended Dec. 25, 1992, would have been $6.3 million, or 33 cents per share, and $75.7 million, or $4.55 per share, respectively. Conversely, if the new method of recognizing revenues and expenses had been applied retroactively to 1991, Income before the Cumulative Effect of Accounting Change and related Earnings per Share for the fourth quarter and the year ended Dec. 27, 1991, would have been $19.6 million, or $1.14 per share and $70.4 million, or $3.36 per share, respectively.
 (D) Primary earnings available to common stock are net of dividends on preferred stock of $1.7 million for the quarters ended Dec. 25, 1992, and Dec. 27, 1991, and $6.8 million for the years ended Dec. 25, 1992, and Dec. 27, 1991. Weighted average common shares reflects the repurchase of 1.9 million shares in 1992 and 3.9 million shares in 1991.
 1992 FOURTH QUARTER OPERATIONAL HIGHLIGHTS
 Quarter Ended Year Ended
 Dec. 25, Dec. 27, Dec. 25, Dec. 27,
 1992 1991 1992 1991
 VOLUMES (A)
 (in Forty-Foot Equivalent Units -- FEUs)
 INTERNATIONAL
 Import 56,500 56,400 206,800 204,000
 Export 34,800 41,600 147,600 152,400
 Intra-Asia 40,600 34,900 146,100 138,200
 Desert Storm --- 300 --- 19,400
 Total
 International 131,900 133,200 500,500 514,000
 STACKTRAIN
 International 50,200 52,600 190,900 188,300
 Domestic 86,200 93,600 316,900 320,700
 Total
 Stacktrain 136,400 146,200 507,800 509,000
 AVERAGE REVENUE PER FEU (A)
 INTERNATIONAL
 Import $4,025 $3,770 $4,013 $3,800
 Export $3,453 $3,174 $3,385 $3,268
 Intra-Asia $1,982 $2,194 $2,030 $2,025
 Desert Storm --- N/A --- $5,309
 DOMESTIC
 STACKTRAIN (B) $1,364 $1,307 $1,327 $1,304
 (A) Volumes and revenue per FEU information is based upon shipments originating during the period, which differs from the percentage-of- completion method used for financial reporting purposes.
 (B) Average revenue per FEU excludes the effect of international stacktrain revenues and volumes.
 Quarter Ended Year Ended
 Dec. 25, Dec. 27, Dec. 25, Dec. 27,
 1992 1991 1992 1991
 TRANSPORTATION OPERATING EXPENSES (in millions) (A)
 Land Transportation $254.0 $258.9 $ 925.5 $ 942.4
 Cargo Handling 126.6 110.9 457.7 399.7
 Vessel, Net 74.1 74.5 280.8 293.5
 Transportation
 Equipment 46.9 54.2 181.5 180.2
 Information Systems 13.5 12.5 49.5 48.1
 Other 86.4 80.1 300.8 270.0
 Total $601.5 $591.1 $2,195.8 $2,133.9
 Percentage of
 Transportation
 Revenue (in percent) 90 90 88 88
 (A) Excluding Real Estate Operating Expenses
 -0- 1/21/93
 /CONTACT: Randall K. Gausman of American President Companies, 510-272-8284/
 (APS)


CO: American President Companies Ltd. ST: California IN: TRN SU: ERN

TM -- SF004 -- 7559 01/21/93 15:40 EST
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