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CALMAT REPORTS IMPROVED THIRD QUARTER EARNINGS

 LOS ANGELES, Oct. 26 /PRNewswire/ -- CalMat Co. (NYSE: CZM) today reported net income of $4.5 million, or $0.20 per share, for the third quarter of 1993 compared with a loss of $4.6 million, or $0.20 per share, for the prior year's third quarter. Excluding nonrecurring items, earnings for the current quarter increased 18 percent to $5.2 million, or $0.23 per share, from $4.4 million, or $0.19 per share, in the year earlier quarter.
 Third quarter 1993 results include a one-time provision to income tax expense of $0.7 million, or $0.03 per share, to adjust deferred taxes because of the recent increase in the federal tax rate. The third quarter of 1992 includes an after-tax charge of $9.0 million, or $0.39 per share, to provide for anticipated losses on disposition of developed real estate.
 The company reported net income of $7.6 million, or $0.33 per share, for the nine months ended Sept. 30, 1993, compared with a net loss of $8.5 million, or $0.36 per share, for the comparable period in 1992. Excluding nonrecurring items, earnings for the first nine months of 1993 increased 14 percent to $7.4 million, or $0.32 per share, compared with $6.5 million, or $0.28 per share, for the same 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) and a one-time provision to income tax expense of $0.7 million, or $0.03 per share, to adjust deferred taxes because of the recent increase in the federal tax rate. 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) and an after- tax charge of $9.0 million, or $0.39 per share, to provide for anticipated losses on disposition of developed real estate.
 Third Quarter Analysis
 Pre-tax income from operations, excluding nonrecurring charges, increased 18 percent to $8.7 million in the third quarter of 1993 from $7.4 million for the same quarter of 1992.
 Concrete and Aggregates Division pre-tax income from operations increased to $5.4 million in the most recent quarter from $3.2 million in the year earlier quarter. Gross profit from aggregates sales was higher in the third quarter due to a combination of higher average selling prices and lower unit production costs. Aggregates unit sales volume was essentially unchanged. Ready mixed concrete gross profit was also higher in the third quarter. In this case, a 7 percent increase in average sales prices more than offset a slight increase in unit production costs and a 21 percent volume decline.
 Asphalt Division pre-tax income from operations decreased to $4.5 million in the most recent quarter from $5.3 million in the year earlier quarter. Asphalt tonnage sold decreased 3 percent in this year's third quarter compared with the same period in 1992. Although average selling prices were slightly higher in the most recent quarter, manufacturing cost increases, principally purchased liquid asphalt, more than offset average selling price increases, negatively impacting operating margins compared with the same period in 1992. The cost of liquid asphalt did decline during the current quarter, thus improving margins over earlier 1993 quarters, but still remained above 1992 levels. The recent quarter's results were also impacted by strengthening of bad debt reserves.
 Properties Division pre-tax income from operations was $2.2 million for the third quarter compared with $2.3 million in the prior year's third quarter.
 Nine Months Analysis
 Pre-tax income from operations, excluding nonrecurring charges, for the nine months ended Sept. 30, 1993, increased 14 percent to $12.4 million, from $10.9 million in the first nine months of 1992. Although this year's second and third quarter results were well ahead of the same periods in 1992, the nine month profits were limited by a first quarter which was affected by unusually severe weather.
 Concrete and Aggregates Division pre-tax income from operations for the first nine months increased to $8.2 million compared with $3.7 million in the 1992 period. Aggregates volume and ready mixed concrete volume for the first nine months were down 2 percent and 16 percent, respectively, when compared with the same period last year. However, higher average sales prices for both aggregates and ready mixed concrete and lower unit production costs for aggregates 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 $5.6 million in the first nine months of 1993 compared with $9.3 million in the prior period. A slight increase in average sales prices, from the prior year, was more than offset by higher unit production costs, resulting from the higher cost of purchased liquid asphalt during 1993, and a 1 percent decline in unit sales volumes. The current year's results were also impacted by strengthening of bad debt reserves.
 Properties Division pre-tax income from operations was $8.5 million in the first nine months of 1993 compared with $6.6 million in the prior period. Included in the current period are gains from ongoing property sales of $1.8 million versus gains of $0.5 million in the comparable 1992 period. Excluding these gains, Properties Division income rose to $6.7 million in the 1993 period from $6.2 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 nine months of 1993 compared with gains of $1.8 million in the prior period.
 Selling, general, and administrative expenses, including allocations to Divisions, decreased $1.2 million, or 4 percent, in the first nine months of 1993 compared with the similar 1992 period. This reflects management's continuing efforts to reduce these expenses.
 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 is 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 12.96 7.50 5.43 25.89
 1991/1992 Change -4 pct -15 pct -12 pct -9 pct
 1992/1993 Change -10 pct -8 pct -3 pct -8 pct
 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 11 percent in the first eight 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, October 1993
 CALMAT EARNINGS REPORT
 (Unaudited, amounts in thousands, except per share data)
 1993 1992
 Quarter ended Sept. 30:
 Revenues $100,432 $102,849
 Net income (loss)(a) $4,521 ($4,566)
 Per share data:
 Net income (loss)(a) $0.20 ($0.20)
 Weighted average shares 23,116 23,174
 Nine months ended Sept. 30:
 Revenues $258,918 $267,465
 Net income (loss)(a),(b) and (c) $7,638 ($8,476)
 Per share data:
 Net income (loss)(a),(b) and (c) $0.33 ($0.36)
 Weighted average shares 23,114 23,272
 (a) The 1993 amounts include a one-time provision to income tax expense of $705,000, or $0.03 per share, to adjust deferred taxes because of the recent increase in the federal tax rate. The 1992 amounts include a charge of $9,000,000, or $0.39 per share, to provide for anticipated losses on disposition of properties included in the category assets held for sale.
 (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).
 (c) 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.
 CALMAT
 Business Segment Information
 (Business segment information for the three and nine months
 ended Sept. 30, 1993 and 1992, is as follows)
 (Unaudited, amounts in thousands)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues:
 Asphalt $46,859 $46,718 $110,332 $111,300
 Concrete and
 aggregates 55,253 58,396 148,209 157,670
 Properties 5,792 5,610 18,485 16,492
 Corporate and
 other 672 766 2,374 2,134
 Intersegment
 sales (8,144) (8,641) (20,482) (20,131)
 Total $100,432 $102,849 $258,918 $267,465
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle:
 Asphalt $4,501 $5,259 $5,610 $9,305
 Concrete and
 aggregates 5,439 3,220 8,246 3,749
 Properties 2,159 2,283 8,546 6,617
 Corporate and
 unallocated
 expenses, net (3,629) (3,674) (11,061) (11,477)
 Other income 240 302 1,032 893
 Special charges 0 (15,000)(a) 0 (15,000)(a)
 Gain on disposition
 of assets held
 for sale 0 0 0 1,786
 Total $8,710 ($7,610) $12,373 ($4,127)
 (a) Provision for anticipated losses on disposition of properties included in the category assets held for sale.
 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)
 Quarter ended
 March 31 June 30 Sept. 30 YTD
 1993
 Operating income
 (excluding ongoing
 real estate gains
 and gain on
 disposition of
 assets held for sale) ($0.15) $0.20 $0.20(b) $0.25
 Ongoing real estate gains 0.00 0.04 0.00 0.04
 Gain on disposition
 of assets held for sale 0.00 0.00 0.00 0.00
 Change in accounting
 principle (income taxes) 0.04 0.00 0.00 0.04
 Total ($0.11) $0.24 $0.20 $0.33
 Weighted average shares
 (in thousands) 23,130 23,118 23,116 23,114
 Quarter ended
 March 31 June 30 Sept. 30 YTD
 1992
 Operating income
 (excluding ongoing
 real estate gains and
 gain on disposition
 of assets held for sale) ($0.10) $0.13 $0.19 $0.23
 Ongoing real estate gains 0.00 0.01 0.00 0.01
 Gain on disposition of
 assets held for sale 0.00 0.05 0.00 0.05
 Special charge 0.00 0.00 (0.39) (0.39)
 Change in accounting
 principle (postretirement
 benefits) (0.26) 0.00 0.00 (0.26)
 Total ($0.36) $0.19 ($0.20) ($0.36)
 Weighted average shares
 (in thousands) 23,356 23,333 23,174 23,272
 (a) Per share figures have been calculated independently and were compiled from quarterly earnings releases, including footnote information.
 (b) Includes a one-time provision to income tax expense of $0.03 per share to adjust deferred income taxes because of the recent increase in the federal tax rate.
 -0- 10/26/93
 /CONTACT: Frederick T. Sauer, VP, Treasurer, 213-258-2777/
 (CZM)


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

JL-LM -- LA005 -- 6745 10/26/93 09:10 EDT
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Date:Oct 26, 1993
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