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CALMAT REPORTS IMPROVED SECOND QUARTER EARNINGS

 LOS ANGELES, July 28 /PRNewswire/ -- CalMat Co. (NYSE: CZM) today reported net income of $5.6 million, or $0.24 per share, for the second quarter of 1993, compared with $4.5 million, or $0.19 per share, for the prior-year's second quarter. Excluding real estate gains and gains on assets held for sale recorded in both quarters, CalMat Co.'s earnings increased 54 percent to $0.20 per share in the most recent quarter from $0.13 per share in the year-earlier quarter.
 The company reported net income of $3.1 million, or $0.13 per share, for the six months ended June 30, 1993, compared with a net loss of $3.9 million, or $0.17 per share, for the comparable period in 1992. The 1993 results include an after-tax credit of $0.9 million, or $0.04 per share, resulting from adoption of the new accounting standard for accounting for income taxes (SFAS 109). The 1992 results include an after-tax charge of $6.0 million, or $0.26 per share, arising from adoption of the new accounting standard for postretirement benefits other than pensions (SFAS 106).
 Excluding these nonrecurring items, earnings for the first six months of 1993 were $2.2 million, or $0.09 per share, compared with $2.1 million, or $0.09 per share, for the same period in 1992.
 SECOND QUARTER ANALYSIS
 Pre-tax income from operations increased 24 percent to $9.4 million in the second quarter of 1993 from $7.5 million for the same quarter of 1992.
 Concrete and Aggregates Division pre-tax income from operations increased to $5.3 million in the most recent quarter from $2.2 million in the year-earlier quarter. Gross profit from aggregates sales was higher in the second quarter due primarily to decreases in unit production costs combined with slightly higher volumes and selling prices. Ready mixed concrete gross profit was also higher in the second quarter. In this case, a 4 percent increase in average sales prices and slightly lower unit production costs more than offset a 17 percent volume decline.
 Asphalt Division pre-tax income from operations decreased to $3.1 million in the most recent quarter from $4.7 million in the year- earlier quarter. Asphalt tonnage sold increased 2 percent in this year's second quarter compared with the same period in 1992. However, operating margins in the current quarter were negatively impacted by a combination of slightly lower average sales prices and higher unit production costs. Higher production costs were due primarily to the increased cost of purchased liquid asphalt. Recently, however, liquid asphalt prices have softened, a trend which, if continued, should positively improve the division's margins in future months. The recent quarter's results were also negatively impacted by management's decision to strengthen bad debt reserves.
 Properties Division pre-tax income from operations was $4.2 million for the second quarter, compared with $2.5 million in the prior-year's second quarter. The increase is due primarily to gains from real estate sales which were $1.7 million in the current quarter, compared with $0.3 million in the prior-year period. Income from rental and landfill operations also improved in this year's second quarter.
 There were no gains or losses on disposition of assets held for sale in the most recent quarter, compared with gains of $1.8 million in the year earlier quarter.
 SIX MONTH ANALYSIS
 Pre-tax income from operations for the six months ended June 30, 1993, increased to $3.7 million from the $3.5 million in the first six months of 1992. Although this year's second quarter results were significantly better than the same period in 1992, the results of this year's first quarter were adversely impacted by severe weather.
 Concrete and Aggregates Division pre-tax income from operations for the first six months increased to $2.8 million, compared with $0.5 million in the 1992 period. Aggregates volume and ready mixed concrete volume for the first six months were down 3 percent and 14 percent, respectively, when compared with the same period last year. Average sales prices for both aggregates and ready mixed concrete were approximately the same as 1992; however, lower unit production costs for both aggregates and ready mixed concrete in the current period more than offset the impact of lower volume, resulting in higher income from operations.
 Asphalt Division pre-tax income from operations was $1.1 million in the first six months of 1993, compared with $4.0 million in the prior period. Sales volumes and average sales prices were essentially unchanged from the prior year. Higher unit production costs, resulting from the increased cost of purchased liquid asphalt and an increased provision for potential bad debts, were primarily responsible for the decline in earnings.
 Properties Division pre-tax income from operations was $6.4 million in the first six months of 1993, compared with $4.3 million in the prior period. Included in the current period are gains from ongoing property sales of $1.7 million vs. gains of $0.5 million in the comparable 1992 period. Excluding these gains, Properties Division income rose to $4.7 million in the 1993 period from $3.8 million in the 1992 period. The improved results reflect increased revenues from rental and landfill operations.
 There were no gains or losses on disposition of assets held for sale in the first six months of 1993, compared with gains of $1.8 million in the prior period.
 Selling, general and administrative expenses, including allocations to divisions, decreased $0.7 million, or 3 percent, in the first half of 1993, compared with the similar 1992 period. This is a continuation of the trend to reduce these expenses over the past three years.
 Further details are provided in the Earnings Report, Business Segment Information and Earnings Per Share Comparisons tables included in this report. Certain prior-year amounts have been restated to conform to the current year's presentation.
 INDUSTRY AND MARKET TRENDS
 Some illustration of the environment in which CalMat is presently operating is provided by the table that follows. Residential and non- residential building are measured by dollar volume of building permits issued, and heavy construction is measured by contract awards.
 California Construction Trends and Forecasts(a)
 (Dollar amounts in billions)
 Res. Non-Res. Heavy
 Bldg. Bldg. Const. Total
 1991 Actual $15.02 $9.64 $6.37 $31.03
 1992 Actual 14.45 8.15 5.61 28.21
 1993 Forecast 14.32 7.50 5.43 27.25
 1991/1992 Change -4 pct -15 pct -12 pct -9 pct
 1992/1993 Change -1 pct -8 pct -3 pct -3 pct
 CalMat's regional markets declined 17 percent during 1992 vs. 1991, compared with a statewide decline of 9 percent. During the first five months of 1993, the company's regional markets declined 12 percent vs. the same period in 1992, which was in line with the overall decline for the state.
 Although construction activity remains sluggish in the company's California markets, trends seem to be improving in Arizona and New Mexico. Overall construction spending in these markets, according to F.W. Dodge Construction Potentials Bulletin, increased nearly 4 percent in the first five months of 1993 compared with 1992. Sizeable increases occurred in both the residential and heavy construction sectors, offset by a large decrease in the non-residential sector.
 CalMat Co. is one of the largest U.S. producers of construction aggregates, asphalt and ready mixed concrete. Its operations are concentrated in California, Arizona and New Mexico.
 (a) Source: Construction Industry Research Board, July 1993.
 CALMAT EARNINGS REPORT
 (Unaudited, amounts in thousands, except per share data)
 Quarter Ended June 30: 1993 1992
 Revenues $96,444 $97,272
 Net income(a) $5,620 $4,515
 Per share data:
 Net income(a) $0.24 $0.19
 Weighted average shares 23,118 23,333
 Six Months Ended June 30:
 Revenues $158,486 $164,616
 Net income (loss)(a)(b) $3,117 ($3,910)
 Per share data:
 Net income (loss)(a)(b) $0.13 ($0.17)
 Weighted average shares 23,119 23,323
 (a) Includes gain on disposition of assets held for sale of $1,069,000, or $0.05 per share, for the quarter ended June 30, 1992.
 (b) The 1993 amounts include a one-time gain, recorded in the first quarter, of $919,000, or $0.04 per share, to adopt the new accounting standard for income taxes (SFAS 109). The 1992 amounts include a one- time charge, recorded in the first quarter, of ($6,000,000), or ($0.26) per share, to adopt the new accounting standard for postretirement benefits other than pensions (SFAS 106).
 CALMAT
 Business Segment Information
 (Unaudited, amounts in thousands)
 Business segment information for the three and six months ended
 June 30, 1993 and 1992, is as follows:
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues:
 Asphalt $41,648 $41,511 $63,473 $64,582
 Concrete and
 aggregates 54,114 56,277 92,956 99,274
 Properties 7,293 5,747 12,693 10,882
 Corporate and
 other 1,292 842 1,702 1,368
 Intersegment
 sales (7,903) (7,105) (12,338) (11,490)
 Total $96,444 $97,272 $158,486 $164,616
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Income before
 income taxes and
 cumulative effect
 of change in
 accounting
 principle:
 Asphalt $3,138 $4,694 $1,109 $4,046
 Concrete and
 aggregates 5,258 2,237 2,807 529
 Properties 4,239 2,494 6,387 4,334
 Corporate and
 unallocated
 expenses, net (3,871) (4,034) (7,432) (7,803)
 Other Income 603 347 792 591
 Gains on
 disposition of
 assets held
 for sale 0 1,786 0 1,786
 Total $9,367 $7,524 $3,663 $3,483
 Segment income includes segment gross profits and other income and expense, less divisional and certain allocated corporate selling, general and administrative expenses. Corporate and unallocated expenses include corporate administrative expenses, interest expense and support expenses not allocated to business segments.
 CALMAT EARNINGS PER SHARE COMPARISONS(a)
 (Unaudited, amounts in thousands)
 1993 Quarter Ended
 March 31, June 30, YTD
 Operating income
 (excluding ongoing
 real estate gains and
 gain on disposition
 of assets held for sale) ($0.15) $0.20 $0.05
 Ongoing real estate gains 0.00 0.04 0.04
 Gain on disposition of
 assets held for sale 0.00 0.00 0.00
 Change in accounting
 principle (income taxes) 0.04 0.00 0.04
 Total ($0.11) $0.24 $0.13
 Weighted average shares
 (in thousands) 23,130 23,118 23,119
 1992 Quarter Ended
 March 31, June 30, YTD
 Operating income
 (excluding ongoing
 real estate gains and
 gain on disposition
 of assets held for
 sale) ($0.10) $0.13 $0.03
 Ongoing real estate gains 0.00 0.01 0.01
 Gain on disposition of
 assets held for sale 0.00 0.05 0.05
 Change in accounting
 principle
 (postretirement
 benefits) (0.26) 0.00 (0.26)
 Total ($0.36) $0.19 ($0.17)
 Weighted average shares
 (in thousands) 23,356 23,333 23,323
 (a) Per share figures have been calculated independently and were compiled from quarterly earnings releases, including footnote information.
 -0- 7/28/93
 /CONTACT: Frederick T. Sauer, VP & treasurer of CalMat, 213-258-2777/
 (CZM)


CO: CalMat Co. ST: California IN: CST SU: ERN

JL-BP -- LA030 -- 6632 07/28/93 09:10 EDT
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