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 YORK, Pa., Sept. 15 /PRNewswire/ -- Emons Holdings, Inc. (NASDAQ: EMHO) today announced a substantial turnaround for Fiscal 1993. Net earnings of $285,908 were reported for the year ended June 30, 1993, as compared to a net loss of $1,981,918 for the year ended June 30, 1992. After preferred dividend requirements, the company reported earnings applicable to common stock of $44,127, or $.01 per share, for Fiscal 1993 as compared to a loss applicable to common stock of $2,239,864, or $.42 per share, for Fiscal 1992.
 For the fourth quarter ended June 30, 1993, the company reported net earnings of $18,663 as compared to a net loss of $503,512 for the quarter ended June 30, 1992. After preferred dividend requirements, the company reported a loss applicable to common stock of $41,782, or $.01 per share, for the fourth quarter ended June 30, 1993, as compared to a loss applicable to common stock of $567,999, or $.10 per share, for the three months ended June 30, 1992.
 Revenues increased by $462,000 or 4.1 percent to $11.6 million in Fiscal 1993. This increase in revenues was largely attributable to a 3.3 percent increase in the number of carloads and a 1 percent increase in revenue per carload. The increase in carloads was the result of new business, not any significant strengthening in the markets served by the company. Costs and expenses dropped by $1.8 million or 14 percent to $11.2 million. Cost containment programs, reduction in staff and operating personnel, renegotiation of financing and other agreements instituted last year, plus benefits from government-funded track programs were responsible for this substantial cost reduction.
 Robert Grossman, chairman and president, stated that the real key to the company's success in Fiscal 1993 was the decision to focus on existing operations rather than search for acquisitions. The company has been successful in attracting new business by investing in facilities to attract new customers and help existing ones expand. Also, innovative logistic packages have been designed for certain customers.
 Grossman added that he is pleased to announce that the company settled a proposed assessment from the Internal Revenue Service, in the amount of $1.65 million plus interest, for $100,000. These claims were for Railroad Retirement taxes the IRS claimed were due despite a favorable ruling received by the company in 1985 from the Railroad Retirement Board that the three non-railroad subsidiaries in question were not "covered employers" under the Railroad Retirement Act. The company determined it was more appropriate to settle rather than spend time and money to litigate for the next several years. This removes a potential uncertainty from the company's financial statements.
 Grossman further added that he is not only very pleased with the turnaround but also with the prospects for the coming year. "Last year, we reduced costs, increased revenues and improved our physical plant. This year, our focus will be on adding business from new and existing customers and further improving our track structure, partly from government-funded track rehabilitation programs." The company is also working on implementing its previously announced proposed intermodal train service in New England. It is now expected that the new intermodal terminal will be constructed in Auburn, Maine, in the spring of 1994.
 Emons Holdings, Inc., a freight transportation and distribution services company headquartered in York, owns and operates short-line railroads, rail/truck transload facilities and provides companies with logistic services for movement and storage of their freight.
 Emons Holdings' shares of common stock and convertible preferred stock are traded in the Over-the-Counter securities market and the common shares are listed on NASDAQ under the symbol "EMHO."
 Periods ended Three months Year
 June 30 1993 1992 1993 1992
 Revenues $2,943,839 $3,037,123 $11,615,192 $11,152,748
 Net earnings (loss) 18,663 (503,512) 285,908 (1,981,918)
 Preferred dividend
 requirements 60,445 64,487 241,781 257,946
 Earnings (loss)
 applicable to common
 stock (41,782) (567,999) 44,127 (2,239,864)
 Average common shares
 outstanding(A) 5,629,942 5,550,188 5,565,409 5,394,638
 Earnings (loss) per
 common share(A) $(.01) $(.10) $.01 $(.42)
 (A) Earnings (loss) per share for the three and 12 months ended June 30, 1993, and 1992, are based upon the weighted average number of common share equivalents outstanding during each of these periods. Common share equivalents which are anti-dilutive and the conversion of convertible preferred stock which is anti-dilutive are not included in the calculation of earnings (loss) per share.
 -0- 9/15/93
 /CONTACT: Robert Grossman, chairman and president of Emons Holdings, 717-771-1701/

CO: Emons Holdings, Inc. ST: Pennsylvania IN: TRN SU: ERN

MJ-MP -- PH010 -- 2208 09/15/93 11:49 EDT
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Publication:PR Newswire
Date:Sep 15, 1993

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