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ARCTIC ALASKA REPORTS SECOND-QUARTER, SIX-MONTH EARNINGS

 ARCTIC ALASKA REPORTS SECOND-QUARTER, SIX-MONTH EARNINGS
 SEATTLE, July 27 /PRNewswire/ -- Arctic Alaska Fisheries Corp. (NYSE: ICE) today announced earnings and sales for the second quarter and six months ended June 30, 1992.
 Second-quarter net income was $2.2 million, or 13 cents per share, versus $4 million, or 24 cents per share, reported for the year-ago period. Revenue increased to $60.5 million, as compared with $56.7 million in 1991. Average weighted shares outstanding increased slightly during the period to 16,657,208 from 16,564,433 in 1991.
 Six-month net income decreased to $10.7 million, versus the $12.4 million earned last year. Earnings per share of 64 cents compare with the 75 cents earned for the year-ago period. Revenues at the six- month mark were $123.1 million, versus the $121.0 million reported in 1991.
 Ronald Jensen, Arctic Alaska president and chief executive officer, said markedly lower crab production and higher sales, general and administrative expenses for the period adversely affected the quarter.
 The record 1992 snow crab quota, targeted by an expanded crab fleet during an exceptionally mild winter, was harvested fully by late April, versus late June in 1991. Bottomfish production increased, Jensen noted, despite bycatch restrictions, which have closed the high-value cod fishery to trawling for the year. As a result, finfish production during the quarter primarily comprised lower-margin species. Additionally, expenses related to carrying higher product inventory levels overseas for market-timing purposes also contributed to increased sales, general and administrative costs.
 The second quarter was highlighted by the June 15 announcement that the company had reached a definitive agreement with Tyson Foods (NASDAQ: TYSNA) to merge with the $3.9-billion (sales) Arkansas-based poultry, beef and pork processor. The terms of the agreement call for each share of Arctic Alaska common stock to convert to a right to receive $2.23 in cash and .5686 shares of Tyson Class A common stock.
 The merger is subject to the approval of the holders of two-thirds of Arctic Alaska common stock and appropriate regulatory approvals. A special meeting of Arctic Alaska shareholders has been set for Aug. 27 in Seattle. If approved, the transaction is scheduled to be effective Oct. 5.
 Other developments during the quarter include the North Pacific Fishery Management Council's approval of a moratorium barring entry for newcomers into fisheries off Alaska. The company should benefit from the new limitations as the measure acts to protect its established fleet franchise. The moratorium, which will take effect in 1993, requires Commerce Department approval.
 Arctic has been notified by the Office of the Attorney General of the State of Alaska of a potential claim regarding the alleged illegal use of certain
fishing gear by three of Arctic Alaska's vessels. While no action has been filed on the matter, the State has advised Arctic that it intends to commence legal action unless its claims are otherwise resolved. The State could seek one or more of the following remedies: (i) forfeiture of all vessels involved, (ii) forfeiture of the value of the unlawful catch, (iii) damages for injury to natural resources, (iv) revocation of licenses and permits, (v) various other penalties and sanctions. Arctic management does not believe that the alleged violations warrant the imposition of substantial penalties and is seeking to resolve these through discussions with State representatives. The company intends to vigorously defend any actions pursued by the State of Alaska. The amount of penalties and the outcome of any suit cannot be estimated with any certainty at this time.
 Arctic Alaska Fisheries Corp. is the largest, and only publicly held, U.S. fishing and at-sea processing company. Company vessels generally operate in the 200-mile exclusive economic zone off Alaska, catching crab and 18 species of bottomfish such as pollock and cod. Arctic Alaska also operates shore-based fish and shellfish processing and reprocessing plants domestically and internationally. Its products are sold in the United States, to Japan and other export markets primarily under the Arctic Ice trademark.
 Financial highlights follow.
 ARCTIC ALASKA FISHERIES CORP.
 FINANCIAL HIGHLIGHTS
 Three Months Six Months
 Ended June 30: 1992 1991 1992 1991
 Net sales $60,506,000 $56,678,000 $123,126,000 $121,014,000
 Gross profit 13,522,000 14,374,000 35,862,000 35,476,000
 Selling, general and
 administrative
 expenses 7,376,000 5,791,000 15,046,000 11,481,000
 Income before taxes 2,472,000 5,543,000 14,060,000 17,342,000
 Net income $ 2,201,000 $ 4,011,000 $ 10,660,000 $ 12,357,000
 Average shares
 outstanding 16,657,208 16,564,433 16,652,162 16,545,427
 Earnings per
 share $ 0.13 $ 0.24 $ 0.64 $ 0.75
 -0- 7/27/92
 /CONTACT: Brian Kelly of Arctic Alaska Fisheries, 206-298-4000 or 206-298-4003/
 (ICE TYSNA) CO: Arctic Alaska Fisheries Corp.; Tyson Foods ST: Washington IN: FOD SU: ERN


SC-LM -- SE002 -- 3364 07/27/92 09:15 EDT
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Date:Jul 27, 1992
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