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ILLINOIS CENTRAL CORP. 1992 NET INCOME UP 11 PERCENT

 CHICAGO, Jan. 19 /PRNewswire/ -- Illinois Central Corp. (NYSE: IC) today reported net income for the fourth quarter ended Dec. 31, 1992, of $16.9 million ($.39 per share), including a pretax special charge of $8.9 million ($.13 per share) for organizational changes and various unrelated asset revaluations. Without the special nonrecurring charge, earnings would have been $22.8 million ($.52 per share), which compares to fourth quarter 1991 earnings of $18.8 million ($.45 per share).
 For the full year 1992, earnings before cumulative effect of change in accounting principle were $72.5 million ($1.70 per share), an 11 percent increase. Without the special charge, full year earnings would have been $78.4 million ($1.83 per share) which compares to $65.4 million ($1.64 per share) in 1991, a 20 percent improvement.
 As previously disclosed, the organizational special charge of $7 million pretax relates to the company's Dec. 21 announcement that Edward L. Moyers is expected to step down from his positions as chairman, president and chief executive officer. Additionally, the special charge includes $1.9 million pretax related to properties identified for disposition.
 Operating income for the quarter, excluding the special charge, was $44.6 million compared to $39.1 million a year ago. Revenues for the quarterly periods were $147.4 million in 1992 and $140.6 million in 1991, a 5 percent increase.
 Interest expense for the fourth quarter of 1992 was down $1.6 million from last year reflecting lower debt levels and lower interest rates on the Term Facility.
 In the fourth quarter of 1992, total loads of 223,724 were up 1.4 percent from the fourth quarter of 1991, with gains in most commodity groups more than offsetting decreases in grain mill and chemicals.
 For full year 1992, operating income, excluding the special charge, was $160.4 million versus $145.6 million in 1991. Revenue was $547.4 million in 1992 versus $549.7 million in 1991, down .4 percent. Operating expenses were $387.0 million in 1992, excluding the special charge, versus $404.1 million in 1991. Lower labor costs following the 1991 UTU agreement and lower car lease expense contributed to 1992s lower operating expense compared with 1991.
 Effective Jan. 1, 1992, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"). As a result, the company recorded a $23.4 million ($.55 per share) reduction of its accrued deferred income tax liabilities. The company elected to report this change as the cumulative effect of change in accounting principle. Therefore, prior period amounts have not been restated. Adjustments to balance sheet classifications were also made in compliance with SFAS No. 109.
 Earnings per share are based on the weighted average number of common stock and common stock equivalents outstanding during the period. Amounts for 1991 have been restated to give effect to the February 1992 three-for-two stock split.
 Illinois Central Corp.'s principal subsidiary, Illinois Central Railroad Company, operates a 2,700-mile freight railroad between Chicago and the Gulf of Mexico.
 ILLINOIS CENTRAL CORP. AND SUBSIDIARIES
 Consolidated Statements of Income
 ($ in millions, except share data)
 THREE MONTHS ENDED YEAR ENDED
 DEC. 31, DEC. 31,
 1992 1991 1992 1991
 Revenues $ 147.4 $ 140.6 $ 547.4 $ 549.7
 Operating expenses 102.8 101.5 387.0 404.1
 Special charge 8.9 - 8.9 -
 Operating income 35.7 39.1 151.5 145.6
 Operating income
 (excluding special charg 44.6 39.1 160.4 145.6
 Interest expense, net (10.5) (12.1) (43.6) (55.1)
 Other income, net 0.5 0.3 2.0 5.7
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 25.7 27.3 109.9 96.2
 Provision for income taxe 8.8 8.5 37.4 30.8
 Income before cumulative
 effect of change in accounting
 principle 16.9 18.8 72.5 65.4
 Cumulative effect of change
 in accounting principle - - 23.4 -
 Net income $ 16.9 $ 18.8 $ 95.9 $ 65.4
 Income per share:
 Income before cumulative
 effect of change in
 accounting principl$ 0.39 $ 0.45 $ 1.70 $ 1.64
 Cumulative effect of
 change in
 accounting principle - - 0.55 -
 Income per share $ 0.39 $ 0.45 $ 2.25 $ 1.64
 Weighted average number of
 shares of common stock and
 common stock equivalents
 outstanding (000's) 42,769 42,382 42,600 39,830
 Income per share effect of special charge:
 Income before cumulative effect of
 change in accounting
 principle $ 0.39 $ 0.45 $ 1.70 $ 1.64
 Special charge 0.13 $ - $ 0.13 $ -
 Income per share before
 special charg$ 0.52 $ 0.45 $ 1.83 $ 1.64
 ILLINOIS CENTRAL CORP. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 ($ in millions)
 Assets: 12/31/92 12/31/91
 Cash and cash equivalents $ 34.6 $ 32.7
 Other current assets 131.7 147.1
 Investments 15.1 17.0
 Properties, net 1,009.5 968.3
 Other assets 16.4 18.4
 Total assets $ 1,207.3 $ 1,183.5
 Liabilities and Stockholders' Equity:
 Current liabilities $ 169.3 $ 183.2
 Long-term debt 367.3 413.5
 Deferred taxes 171.2 172.4
 Other liabilities 160.7 154.1
 Stockholders' equity 338.8 260.3
 Total liabilities & stkhrs' equity $ 1,207.3 $ 1,183.5
 ILLINOIS CENTRAL CORP. & SUBSIDIARIES
 Operating Expense Detail/Ratios
 THREE MONTHS ENDED YEAR ENDED
 DECEMBER 31, DECEMBER 31,
 1992 1991 1992 1991
 Operating expense detail
 ($ in millions):
 Labor and fringe benef$ 47.6 $ 49.4 $ 191.3 $ 196.8
 Leases and car hire 19.2 20.0 70.4 76.9
 Diesel fuel 8.3 8.9 30.0 33.1
 Materials and supplies 7.6 8.9 33.1 31.4
 Depreciation and
 amortization 5.7 4.8 22.1 20.6
 Other 14.4 9.5 40.1 45.3
 Special charge 8.9 - 8.9 -
 Total operating
 expenses $ 111.7 $ 101.5 $ 395.9 $ 404.1
 Operating expense ratios as a percent of revenue:
 Line items:
 Labor and fringe benefit 32.29 35.14 34.95 35.80
 Leases and car hire 13.03 14.22 12.86 13.99
 Diesel fuel 5.63 6.33 5.48 6.02
 Materials and supplies 5.16 6.33 6.05 5.71
 Depreciation and
 amortization 3.87 3.41 4.04 3.75
 Other 9.77 6.76 7.33 8.24
 Special charge 6.04 - 1.63 -
 Total operating
 expenses 75.78 72.19 72.32 73.51
 ICC basis:
 Transportation 29.24 33.00 31.62 34.75
 Maintenance of way 8.96 5.41 7.07 6.37
 Maintenance of equipment 21.44 24.11 22.47 23.89
 Other 16.15 9.67 11.16 8.51
 Total operating
 expenses 75.78 72.19 72.32 73.51
 -0- 1/19/93
 /CONTACT: Ann G. Thoma of Illinois Central corporate relations, 312-755-7591/
 (IC)


CO: Illinois Central Corp. ST: Illinois IN: TRN SU: ERN

PS -- NY026 -- 6202 01/19/93 10:05 EST
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Date:Jan 19, 1993
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