Printer Friendly

ELCOR REPORTS BETTER EPS THAN EXPECTED FOR SECOND QUARTER ON LOWER SALES AND EARNINGS THAN LAST YEAR; CORE ROOFING PRODUCTS PERFORMED WELL

 DALLAS, Jan. 13 /PRNewswire/ -- Elcor Corporation (NYSE: ELK) said today its $.26 per share earnings for the second quarter ending Dec. 31, 1993 bettered recent security analyst estimates that ranged from $.15 per share to $.25 per share for this quarter. Operating results for its core Roofing Products segment were strong, and the Industrial Products segment recorded a smaller operating loss than in the first quarter. However, second quarter sales and earnings were below the year-ago level, primarily because of Industrial Products' operating performance. In addition, second quarter earnings per share were below the year-ago level, as a result of 16 percent more shares outstanding than the same period last year.
 Roy E. Campbell, chairman and chief executive officer, said, "Higher sales and prices for our Elk Prestique(R) premium laminated fiberglass asphalt roofing shingles almost fully offset higher raw material and other costs resulting in excellent operating performance. On the other hand, softer market conditions for our Industrial Products segment led to lower sales and an operating loss, which reduced second quarter earnings by about $.09 per share. Staffing reductions helped to lower the level of loss from the first quarter."
 Campbell reaffirmed that Elcor is fully committed to restoring profitability and taking those actions necessary to curtail losses in the Industrial Products segment in fiscal 1994.
 Operating Results
 For the second quarter ending Dec. 31, 1993, income before extraordinary item of $2,338,000, or $.26 per share, compared to $2,900,000, or $.38 per share, and net income of $2,338,000 or $.26 per share, compared to net income of $4,050,000, or $.53 per share, in the year-ago quarter. Net income last year included $1,150,000, or $.15 per share, tax carryforward extraordinary item. Average common and common equivalent shares for the second quarter this year were 8,899,000 shares, up 16 percent from 7,657,000 shares last year. Sales of $38,999,000 were down from $41,781,000 in the year-ago period.
 For the first half ending December 31, 1993, income before extraordinary item and change in accounting for income taxes was $6,410,000, or $.72 per share, compared to $6,750,000, or $.90 per share, and net income of $7,078,000, or $.79 per share, compared to $9,767,000, or $1.30 per share, in the year-ago period. Net income in the first half this year included $668,000, or $.07 per share, for the cumulative effect of a change in accounting for income taxes in accordance with Statement of Accounting Standards No. 109. Net income in the first half last year included a tax carryforward extraordinary item of $3,017,000, or $.40 per share. Average common and common equivalent shares for the first half were 8,916,000 shares, up 18 percent from 7,526,000 shares last year. Sales of $84,396,000 compared to $85,343,000 in the year-ago period.
 Financial Position
 Richard J. Rosebery, executive vice president and chief financial officer, said, "Elcor maintains a strong financial position with over $24 million in cash and cash equivalents, about $77 million in equity and no debt. In addition, our $30 million unsecured three-year revolving credit facility provides additional financial resources. As such, we are in an excellent position to pursue growth opportunities in our core Roofing Products business," he said.
 Roofing Products
 Elk Corporation enjoyed higher sales, primarily as a result of better prices; however, operating income was just below the year-ago level, primarily as a result of higher raw material and other costs. Strong West Coast demand for Elk Prestique premium laminated fiberglass asphalt shingles continued to keep the Ennis, Texas plant sold out during the second quarter, although the Tuscaloosa, Alabama plant did build some inventory during the quarter as a result of seasonal weather conditions in the northern states served by this plant.
 Construction of the new asphalt roofing plant in California is proceeding on schedule Foundation work is well along and building erection should be underway during the March quarter. Initial production should be underway in the December 1994 quarter. The new plant will expand Elk's premium laminated fiberglass asphalt shingle manufacturing capacity by about 65 percent when operating near full capacity.
 Industry shipments of premium laminated fiberglass asphalt shingles were up 24 percent in both California and the Western States during the September 1993 quarter. The subsequent fire storms in California in early November are expected to cause many homeowners to reroof wood shingled homes with our premium laminated shingles in the years ahead.
 Industrial Products
 Second quarter, Industrial Products' sales were down 35 percent, primarily because of lower demand for Chromium Corporation's products. Chromium's sharply reduced sales level, plus the cost of moving and transitioning certain product lines between Chromium facilities, resulted in a second quarter operating loss compared to an operating profit in the prior year period. Mosley Machinery's sales and operating results were near the year-ago level, and Ortloff Engineers' sales and operating income were substantially higher than the year-ago period as a result of strong demand for its consulting engineering services and increased patent licensing of its proprietary technology.
 Both Chromium and Mosley are taking further actions to restore profitability or reduce operating losses in the months ahead.
 Outlook
 According to Campbell, "At the present time, we expect both sales and operating results to improve in the second half of the year. Overall, fiscal 1994 will be a solid year for Elcor. We are taking the actions and making the investments which will result in substantially higher sales and earnings in the years ahead," he concluded.
 Elcor manufactures roofing products and industrial products. Each of Elcor's principal operating subsidiaries is the leader or one of the leaders within its particular market. Its common stock is listed on the New York Stock Exchange (ticker symbol: ELK).
 Elcor's roofing products facilities are located in Tuscaloosa, Ala.; Dallas and Ennis, Texas; and its newest facility is located in Shafter, Calif. Its industrial products facilities are located in Cleveland, Ohio; Dallas, Lufkin, Midland, and Waco, Texas.
 Condensed Results of Operations
 (In thousands, except for per share data)
 Second Quarter Six Months Trailing
 Three Months Ended Ended Twelve Months Ended
 December 31, December 31, December 31,
 1993 1992 1993 1992 1993 1992
 Sales $38,999 $41,781 $84,396 $85,343 $172,027 $161,876
 Costs and Expenses:
 Cost of
 Sales 28,166 30,183 60,586 60,707 121,198 120,450
 SG&A 7,204 6,264 13,699 12,788 27,293 25,982
 Other (Income)
 Expense 0 0 0 0 0 (115)
 Interest, Net (109) 428 (213) 955 184 2,224
 Total Costs and
 Expenses 35,261 36,875 74,072 74,450 148,675 148,541
 Income Before
 Income Taxes 3,738 4,906 10,324 10,893 23,352 13,335
 Prvsn. for inc.
 taxes 1,400 2,006 3,914 4,143 8,932 4,924
 Inc. bef. extraord.
 items and change in
 accounting 2,338 2,900 6,410 6,750 14,420 8,411
 Extraord.
 items(a) 0 1,150 0 3,017 0 5,609
 Cumulative Effect
 of Change in
 Accounting for
 inc. taxes (b) 0 0 668 0 668 0
 Net Income $ 2,338 $ 4,050 $ 7,078 $ 9,767 $ 15,088 $ 14,020
 Income Per Common
 Share:
 Bef. extraord. items
 and change
 in Accounting $0.26 $0.38 $0.72 $0.90 $1.72 $1.13
 Extraord.
 Items (a) 0.00 0.15 0.00 0.40 0.00 0.75
 Cumulative
 Effect of
 Change in
 Accounting for
 Income
 Taxes (b) 0.00 0.00 0.07 0.00 0.08 0.00
 Net Income Per
 Share $0.26 $0.53 $0.79 $1.30 $1.80 $1.88
 Avg. common and
 common equivalent
 shares
 outstng. 8,899 7,657 8,916 7,526 8,377 7,449
 (a) Includes $1,278, or $.17 per share, in the 12 months ended
 Dec. 31, 1992, from extinguishment of debt, and the balance is
 tax benefit from tax-loss carryforwards.
 (b) Represents cumulative effect of applying Statement of
 Accounting Standards No. 109, Accounting for Income Taxes.
 Condensed Statement of Cash Flows
 (Unaudited, $ in thousands) Six Months Ended
 December 31,
 1993 1992
 Cash Flows From:
 Operating Activities
 Net income $ 7,078 $ 9,767
 Adjustments to net income:
 Depreciation and amortization 2,191 2,261
 Changes in assets and liabilities:
 Trade receivables 4,172 4,413
 Inventories 238 (486)
 Deferred income taxes (631) --
 Prepaid expenses and other 54 (2,659)
 Accounts payable and accrued liabilities (814) 14
 Net cash from operations 12,288 13,310
 Net cash from discontinued operations -- (212)
 Investing Activities
 Additions to property, plant & equipment (6,086) (1,303)
 Increase in assets held for future sale -- (473)
 Other (566) (295)
 Net cash from investing activities (6,652) (2,071)
 Financing Activities
 Long-term debt reductions and current maturities -- (12,002)
 Treasury stock transactions, net 184 418
 Other (34) --
 Net cash from financing activities 150 (11,584)
 Net Increase (Decrease) in Cash 5,786 (557)
 Cash at Beginning of Year 18,516 2,705
 Cash at End of Period $24,302 $ 2,148
 Condensed Balance Sheet
 (In thousands)
 December 31,
 ASSETS 1993 1992
 Cash and Cash Equivalents $24,302 $ 2,148
 Receivables, Net 23,320 21,616
 Inventories 13,848 12,741
 Deferred Taxes 1,771 --
 Prepaid Expenses and Other 1,352 4,581
 Total Current Assets 64,593 41,086
 Property, Plant and Equipment, Net 23,409 19,721
 Net Assets of Discontinued Operations 6,896 6,903
 Other Assets 2,769 2,046
 Total Assets $97,667 $69,756
 December 31,
 LIABILITIES AND SHAREHOLDERS' EQUITY 1993 1992
 Accounts Payable & Accrued Liabilities $20,691 $20,529
 Current Maturities on Long-Term Debt -- 3,000
 Total Current Liabilities 20,691 23,529
 Long-Term Debt, Net -- 15,455
 Shareholders' Equity 76,976 30,772
 Total Liabilities and Shareholders' Equity $97,667 $69,756
 -0- 1/13/94
 /CONTACT: Richard J. Rosebury, executive vice president and chief financial officer of Elcor, 214-851-0500/
 (ELK)


CO: Elcor Corporation ST: Texas IN: CST SU: ERN

LG -- NY046 -- 1040 01/13/94 11:28 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 13, 1994
Words:1692
Previous Article:ITT SHERATON CORPORATION EXTENDS SEGMENTATION BY PREMIERING THE ITT SHERATON LUXURY COLLECTION
Next Article:LIZ CLAIBORNE, INC. ANNOUNCES CASH DIVIDEND
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters