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ELCOR REPORTS THIRD QUARTER RESULTS; SALES UP 34 PERCENT WITH A SMALLER LOSS THAN ANTICIPATED

 ELCOR REPORTS THIRD QUARTER RESULTS;
 SALES UP 34 PERCENT WITH A SMALLER LOSS THAN ANTICIPATED
 DALLAS, April 15 /PRNewswire/ -- A strong performance by its roofing products business enabled Elcor Corporation (NYSE: ELK) today to report a smaller loss than anticipated by security analysts for its traditionally soft third quarter ended March 31, 1992. As a result, sales for both the quarter and the first nine months were higher than 1991 comparable periods, while nine-months net income of $3,449,000, or $0.47 per share, reflected a substantial improvement over the prior year period when the company reported a net loss of $9,409,000, equal to $1.31 per share.
 According to Roy E. Campbell, president, "Our performance through the first nine months reflects the growing strength of our roofing products business, improved performance of our industrial products business and the success of our restructuring efforts, begun in 1991, to return the company to profitability. Demand for our Elk Prestique(R) premium laminated fiberglass asphalt shingles picked up sharply during the seasonally slow third quarter and is continuing into our seasonally stronger fourth quarter.
 "The improving prospects for both of our business segments mean that earnings from continuing operations should reasonably be in line with current security analysts projections of about $0.55 per share for the fiscal year ending June 30, 1992. More importantly, we believe that fiscal 1993 earnings from continuing operations should surpass present estimates by analysts of about $0.70 per share," Campbell said.
 Third Quarter Results
 Sales rose 34 percent to $33,343,000 from $24,818,000, restated to reflect the company's July, 1991 sale of its Gory Roof Tile business.
 The company reported a loss from continuing operations and a loss before extraordinary item of $362,000, equal to $.05 per share, compared to restated losses in last year's third quarter of $5,335,000, equal to $0.74 per share, from continuing operations; $1,100,000, equal to $0.15 per share, from discontinued operations; and $6,435,000, equal to $0.89 per share, before extraordinary item. A net loss of $617,000, equal to $0.08 per share, included a reversal of a tax loss carryforward extraordinary item in the amount of $255,000, equal to $0.03 per share, compared to a net loss of $6,435,000, equal to $0.89 per share, in the year-ago period.
 Nine Months Results
 Sales for the nine months ending March 31, 1992 were up 15 percent to $105,919,000 from restated $92,255,000 last year.
 Income from continuing operations and income before extraordinary item were $2,322,000, or $0.32 per share, compared to restated losses in last year's third quarter of $6,625,000, equal to $0.92 per share from continuing operations; $2,784,000, equal to $0.39 per share, from discontinued operations; and $9,409,000, equal to $1.31 per share, before extraordinary item.
 Net income of $3,449,000, or $0.47 per share, included a tax loss carryforward benefit extraordinary item of $1,127,000, or $0.15 per share, for the nine months ended March 31, 1992, compared to a net loss of $9,409,000, equal to $1.31 per share, in the year-ago period.
 Financial Position
 With respect to the company's financial position, Campbell said, "Significantly improved operations and utilization of available cash allowed the company to reduce borrowings by more than $7 million from the restated level in the prior year period. We expect continuing strong cash flow to result in a further strengthening of the balance sheet by the end of fiscal 1992," he added.
 Operating Performance
 Campbell said, "The significant improvement in operating performance in the third quarter was the result of increased sales in each of our businesses combined with improved operating effectiveness and lower costs resulting from the actions taken over the last year to restore satisfactory profitability. Reroofing demand is being spurred by the torrential rains attributed to the "El Nino effect" in the western and southern areas of the country as many homeowners found that previously deferred reroofing is now a necessity. In addition, much lower mortgage rates have triggered a sharp increase in new housing starts and an increase in sales of existing homes. Both of these factors are also spurring the growing demand for Elk's premium residential roofing products. At the same time, Elcor's industrial products segment also achieved a strong improvement in sales and operating results.
 Looking Ahead
 "At the present time, we are looking forward to a good fourth quarter and a very good year in fiscal 1993. As the country moves out of recession, demand for our premium residential roofing products and proprietary industrial products should improve. Strong cash flow should provide financing for current growth needs and build a stronger balance sheet. At this time, we like what we see about Elcor's future," Campbell concluded.
 Results of Operations for the three months, nine months, and trailing 12 months ending March 31, 1992 and 1991 are as follows:
 ELCOR CORPORATION
 Condensed Results of Operations
 (Unaudited, in thousands of dollars except for per-share data)
 Third Quarter
 Three Months ended March 31 1992 1991
 SALES $ 33,343 $ 24,818
 Income (Loss):
 Continuing operations (362) (5,335)
 Discontinued operations - (1,100)
 Before extraordinary item (362) (6,435)
 Extraordinary item (A) (255) -
 NET INCOME (LOSS) $ (617) $ (6,435)
 Income (Loss) Per Common Share:
 Continuing operations $ (.05 ) $ (.74)
 Discontinued operations - (.15)
 Before extraordinary item (.05) (.89)
 Extraordinary item (A) (.03) -
 NET INCOME (LOSS) PER SHARE $ (.08) $ (.89)
 Average Common Shares Outstanding 7,366 7,231
 Nine months ended March 31 1992 1991
 SALES $105,919 $ 92,255
 Income (Loss):
 Continuing operations 2,322 (6,625)
 Discontinued operations - (2,784)
 Before extraordinary item 2,322 (9,409)
 Extraordinary item (A) 1,127 -
 NET INCOME (LOSS) $ 3,449 $ (9,409)
 Income (Loss) Per Common Share:
 Continuing operations $ .32 $ (.92)
 Discontinued operations - (.39)
 Before extraordinary item .32 (1.31)
 Extraordinary item (A) .15 -
 NET INCOME (LOSS) PER SHARE $ .47 $ (1.31)
 Average Common Shares Outstanding 7,326 7,197
 Trailing 12 months ended March 31 1992 1991
 SALES $142,219 $125,768
 Income (Loss):
 Continuing operations 263 (6,651)
 Discontinued operations (3,983) (3,326)
 Before extraordinary item (3,720) (9,977)
 Extraordinary item (A) 1,127 (417)
 NET INCOME (LOSS) $ (2,593) $(10,394)
 Income (Loss) Per Common Share:
 Continuing operations $ .04 $ (.93)
 Discontinued operations (.54) (.46)
 Before extraordinary item (.50) (1.39)
 Extraordinary item (A) .15 (.06)
 NET INCOME (LOSS) PER SHARE $ (.35) $ (1.45)
 Average Common Shares Outstanding 7,312 7,180
 (A) Tax loss carryforward
 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.
 Elcor's roofing products facilities are located in Tuscaloosa, Ala., Dallas and Ennis, Texas. Its industrial products facilities are located in Cleveland, Ohio; Dallas, Lufkin, Midland and Waco, Texas.
 -0- 4/15/92
 /CONTACT: Richard J. Rosebery, vice president, treasurer and chief financial officer of Elcor Corporation, 214-851-0500/
 (ELK) CO: Elcor Corporation ST: Texas IN: CST SU: ERN


TQ -- NY057 -- 8726 04/15/92 12:57 EDT
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