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CALMAT REPORTS THIRD QUARTER EARNINGS

 CALMAT REPORTS THIRD QUARTER EARNINGS
 LOS ANGELES, Oct. 28 /PRNewswire/ -- CalMat Co. (NYSE: CZM) today


reported a net loss of $4.6 million, or $0.20 per share, for the third quarter of 1992, which includes a previously announced after- tax charge of $9.0 million, or $0.39 per share, to provide for anticipated losses on disposition of developed real estate. Excluding this charge the company reported a profit of $4.4 million, or $0.19 per share, for the period. This compares with net income of $9.0 million, or $0.39 per share, for the prior year's third quarter.
 The company reported a net loss of $8.5 million, or $0.36 per share, for the nine months ended Sept. 30, 1992, which 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, and an after-tax charge of $6.0 million, or $0.26 per share, to adopt the new accounting standard for postretirement benefits other than pensions (SFAS 106). Excluding these special charges, earnings for the period were $6.5 million, or $0.28 per share. This compares with net income of $16.5 million, or $0.70 per share, for the comparable period in 1991.
 Third Quarter Analysis
 Pre-tax income from operations was $7.7 million in the third quarter of 1992, compared with $15.8 million for the same quarter of 1991.
 Asphalt Division income from operations was $5.3 million in the most recent quarter, compared with $9.4 million in the year earlier quarter. Asphalt volume declined 8 percent and average prices were down 5 percent compared with the year earlier quarter.
 Concrete and Aggregates Division income from operations declined to $3.2 million during the recent quarter from $4.0 million in the year earlier period. Although rock and sand unit volumes increased in the third quarter, the average sales prices were slightly lower and unit production costs were somewhat higher. Ready mixed concrete sales volume also increased in the third quarter and unit production costs declined. However, this was more than offset by lower average selling prices resulting from competitive conditions.
 Properties Division income from operations was $1.5 million in the third quarter of this year, compared with $5.5 million in the year-earlier period. The decline was because of an absence of gains from real estate sales in the current quarter compared with $3.8 million in gains in the prior-year period.
 Losses in the Net Assets Held for Sale Category totaled $15.3 million in the recent quarter, largely because of a charge of $15.0 million to provide for potential losses on real estate held for sale. Losses in the year earlier period were $0.8 million.
 Nine Months Analysis
 Pre-tax income from operations for the nine months ended Sept. 30, 1992, was $11.3 million, compared with $28.9 million earned in the first nine months of 1991.
 Asphalt Division income from operations was $9.3 million in the first nine months of 1992, compared with $15.8 million in the prior period. Price competition in the division's primary markets during the first three quarters of 1992 caused a decline in profit margins. In addition, unit volumes in the first nine months of 1992 were 5 percent lower than in the comparable 1991 period.
 Concrete and Aggregates Division income from operations for the first nine months was $3.7 million, compared with $6.9 million in the 1991 period. Rock and sand volume and ready mixed concrete volume for the first nine months were up 4 percent and 18 percent, respectively, when compared with the same period last year. However, average selling prices were lower this year compared with 1991, resulting in lower profit margins and lower income from operations.
 Properties Division income from operations was $5.2 million in the first nine months of 1992, compared with $14.1 million in the prior period. Included in the 1992 period were gains from ongoing property sales of $0.5 million, compared with gains of $9.6 million in the comparable 1991 period. Excluding these gains, Properties Division income was $4.7 million in the 1992 period compared with $4.5 million in the 1991 period.
 CalMat continues to reduce overhead costs in response to the depressed conditions present in most of its markets. Selling, general and administrative expenses, including allocations to divisions, have decreased $2.8 million, or 8 percent, in the first three quarters of 1992 when compared to the same 1991 period.
 Further details are provided in the Earnings Report, Business Segment Information and Earnings Per Share Comparisons tables included in this report.
 Industry and Market Trends
 Some illustration of the environment in which CalMat is presently operating is provided by the tables that follow. 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
 1990 Actual $20.93 $12.97 $4.85 $38.75
 1991 Actual 15.06 9.62 6.18 30.86
 1992 Forecast 14.58 8.16 5.98 28.72
 1993 Forecast 17.93 7.67 5.73 31.33
 1990/1991 Change -28 pct -26 pct +27 pct -20 pct
 1991/1992 Change -3 pct -15 pct -3 pct -7 pct
 1992/1993 Change +23 pct -6 pct -4 pct +9 pct
 Results reported for the first eight months of 1992 compared with the same 1991 period are summarized as follows:
 California Construction Activity(a)
 Eight Months 1992 vs. Eight Months 1991
 Res. Non-Res. Heavy
 Bldg. Bldg. Const. Total
 CalMat's Markets -11 pct -26 pct -6 pct -15 pct
 Total California -6 pct -17 pct +5 pct -8 pct
 The company believes it has maintained or increased its overall market share. However, based upon the level of construction activity experienced so far this year and expected for the remainder of 1992, and based upon the cyclically depressed pricing environment this causes, the company expects that its 1992 operating results will be significantly less than those of 1991.
 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 1992
 CALMAT EARNINGS REPORT
 (Amounts in thousands, except per share amounts)
 Quarter ended Sept. 30,
 1992 1991
 Revenues $101,560 $108,766
 Net income/(loss)(a)(c) ($4,566) 9,041
 Per share data:
 Net income/(loss)(a)(c) ($0.20) $0.39
 Weighted average shares 23,174 23,286
 Nine months ended Sept. 30,
 1992 1991
 Revenues $262,705 $281,082
 Net income/(loss)(a)(b)(c) ($8,476) $16,458
 Per share data:
 Net income/(loss)(a)(b)(c) ($0.36) $0.70
 Weighted average shares 23,272 23,354
 (a) The 1992 amounts include a charge of $9,000,000, or $0.39 per share, to write down the book value of properties classified as net assets held for sale.
 (b) The 1992 amounts for the nine months ended Sept. 30 include a one-time charge of $6,000,000, or $0.26 per share, to adopt the new accounting standard for postretirement benefits other than pensions (SFAS 106). First quarter earnings have been restated to reflect this one-time charge.
 (c) The 1992 amounts include gains from ongoing property sales of $272,000, or $0.01 per share, for the nine months. Comparative amounts for 1991 were $2,295,000, or $0.10 per share, for the quarter, and $5,733,000, or $0.25 per share, for the nine months.
 CALMAT
 Business Segment Information
 Business segment information for the three and nine months
 ended Sept. 30, 1992 and 1991 is as follows:
 (Unaudited, amounts in thousands)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues:
 Asphalt $46,718 $53,559 $111,300 $124,979
 Concrete and
 aggregates 58,396 55,592 157,670 152,354
 Properties 4,321 7,514 11,732 20,120
 Corporate and
 other 766 1,028 2,134 3,335
 Intersegment
 sales (8,641) (8,927) (20,131) (19,706)
 Total $101,560 $108,766 $262,705 $281,082
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Income before
 income taxes and
 cumulative effect
 of change in
 accounting
 principle:
 Asphalt $5,259 $9,430 $9,305 $15,825
 Concrete and
 aggregates 3,220 4,028 3,749 6,886
 Properties 1,513 5,511 5,185 14,079
 Corporate and
 unallocated
 expenses, net (2,601) (3,816) (7,801) (10,169)
 Other income 302 690 893 2,279
 Income from
 operations 7,693 15,843 11,331 28,900
 Gains from
 disposal of, and
 loss from
 operations of,
 net assets held
 for sale (a) (15,303) (774) (15,458) (1,470)
 Total ($7,610) $15,069 ($4,127) $27,430
 (a) The 1992 amounts include a charge of $15,000,000 to write down the book value of properties classified as net assets held for sale.
 Income before income taxes includes segment gross profits and other income, net of 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(b)
 (Unaudited)
 1992 Quarter ended
 Restated
 March 31, June 30, Sept. 30, YTD
 Operating income
 (excluding ongoing real
 estate gains) ($0.08) $0.16 $0.20 $0.28
 Ongoing real estate gains 0.01 0.01 0.00 $0.01
 Assets held for sale (0.03) 0.02 (0.40) ($0.40)
 Change in accounting
 principle (postretirement
 benefits)(a) (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
 1991 Quarter ended
 March 31, June 30, Sept. 30, YTD
 Operating income
 (excluding ongoing real
 estate gains) ($0.07) $0.26 $0.31 $0.48
 Ongoing real estate gains 0.14 0.01 0.10 $0.25
 Assets held for sale 0.01 (0.03) (0.02) ($0.03)
 Total 0.08 0.24 0.39 $0.70
 Weighted average shares
 (in thousands) 23,473 23,387 23,286 23,354
 (a) Amounts for the quarter ended March 31, 1992, have been restated to reflect a one-time charge recorded to adopt the new accounting standard for postretirment benefits other than pensions (SFAS 106).
 (b) Per share figures have been calculated independently and were compiled from quarterly earnings releases, including footnote information.
 -0- 10/28/92
 /CONTACT: Ronald C. Hadfield, executive VP-finance and administration of CalMat, 213-258-2777/
 (CZM) CO: CalMat Co. ST: California IN: CST SU: ERN


JB-JL -- LA003 -- 5821 10/28/92 09:19 EST
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