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ILLINOIS CENTRAL CORP. FIRST QUARTER 1992 RESULTS IMPROVE 38 PERCENT SHEARSON TO SELL 10 MILLION SHARES IN OFFERING

ILLINOIS CENTRAL CORP. FIRST QUARTER 1992 RESULTS IMPROVE 38 PERCENT
 SHEARSON TO SELL 10 MILLION SHARES IN OFFERING
 CHICAGO, April 15 /PRNewswire/ -- Illinois Central Corp. (NYSE: IC) announced today that its earnings for the first quarter ended March 31 before cumulative effect of change in accounting principle increased 38 percent to $21.1 million ($.50 per share), versus $15.3 million ($.43 per share), in the first quarter of 1991.
 Operating income for the quarter was $42.6 million compared to $36.8 million a year ago. Revenues for the quarterly periods were flat at $138.7 million in 1992 and $138.0 million in 1991. The results for 1992 reflect lower labor costs (approximately $2.6 million) primarily from the crew consist agreement and lower fuel costs ($1.8 million) resulting from both lower prices and the greater efficiency of locomotives purchased in late 1991.
 Interest expense for the first quarter of 1992 was down by $3.6 million from last year reflecting lower debt levels, the refinancing of Series K bonds and lower interest rates on the term facility following the financial restructuring that occurred in July 1991 and the March 1992 decision by the railroad's bank creditors to cease designating loans to the railroad as a highly leveraged transaction, in accordance with government guidelines.
 In the first quarter of 1992, total loads of 215,017 were flat versus the first quarter of 1991, but modest price increases helped operating revenue rise .5 percent. Gains in coal, paper and grain mill traffic of 7.6 percent, 5.6 percent and 5.7 percent, respectively, compared to 1991 were offset by declines in chemicals (1.6 percent), grain (1.5 percent) and other traffic (12 percent).
 Effective Jan. 1, 1992, the company adopted Statement of Financial 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. also announced today that it has been requested to file a registration statement in the next several weeks with the Securities and Exchange Commission relating to a proposed secondary public offering of the company's common stock by certain merchant banking partnerships affiliated with Shearson Lehman Brothers Inc.
 The partnerships intend to sell substantially all of their approximately 10 million shares in the offering, which shares represent approximately 25 percent of the outstanding shares of the company. Neither the company nor any of the officers or directors of the company will sell any shares in the offering. The offering will be made only by means of a prospectus.
 Illinois Central Corp.'s principal subsidiary, Illinois Central Railroad Co., 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 per share data)
 Three Months
 ended March 31, 1992 1991
 Revenues $138.7 $138.0
 Operating expenses 96.1 101.2
 Operating income 42.6 36.8
 Interest expense, net (11.5) (15.1)
 Other income, net 0.9 0.9
 Income before income taxes and
 cumulative effect of change
 in accounting principle 32.0 22.6
 Provision for income taxes 10.9 7.3
 Income before cumulative effect
 of change in accounting principle 21.1 15.3
 Cumulative effect of change in
 accounting principle 23.4 -
 Net income $ 44.5 $ 15.3
 Income per share:
 Income before cumulative effect
 of change in accounting principle $0.50 $0.43
 Cumulative effect of change in
 accounting principle 0.55 -
 Income per share $1.05 $0.43
 Weighted average number of shares of
 common stock and common stock
 equivalents outstanding (000s) 42,410.7 35,739.4
 ILLINOIS CENTRAL CORP. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 ($ in millions)
 Assets: 3-31-92 12-31-91
 Cash and cash equivalents $ 42.8 $ 32.7
 Other current assets 143.8 147.1
 Investments 17.1 17.0
 Properties, net 973.6 968.3
 Other assets 18.6 18.4
 Total assets $1,195.9 $1,183.5
 Liabilities and
 Stockholders' Equity:
 Current liabilities $ 176.7 $ 183.2
 Long-term debt 404.3 413.5
 Deferred taxes 162.6 172.4
 Other liabilities 151.6 154.1
 Stockholders' equity 300.7 260.3
 Total liabilities and
 stockholders' equity $1,195.9 $1,183.5
 ILLINOIS CENTRAL CORP. & SUBSIDIARIES
 Operating Expense Detail/Ratios
 Three Months ended
 March 31 1992 1991
 Operating expense detail ($ in millions):
 Labor and fringe benefits $46.7 $49.3
 Leases and car hire 19.5 20.2
 Diesel fuel 7.4 9.2
 Materials and supplies 8.9 7.4
 Depreciation and amortization 5.4 5.5
 Other 8.2 9.6
 Total operating expenses $96.1 $101.2
 Operating expense ratios as a percent of revenue:
 Line Items:
 Labor and fringe benefits 33.68 percent 35.69 percent
 Leases and car hire 14.09 percent 14.66 percent
 Diesel fuel 5.35 percent 6.66 percent
 Materials and supplies 6.41 percent 5.34 percent
 Depreciation and amortization 3.86 percent 3.98 percent
 Other 5.89 percent 6.98 percent
 Total operating expenses 69.28 percent 73.32 percent
 ICC basis:
 Transportation 32.23 percent 34.71 percent
 Maintenance of way 5.84 percent 4.86 percent
 Maintenance of equipment 23.36 percent 23.99 percent
 Other 7.85 percent 9.76 percent
 Total operating expenses 69.28 percent 73.32 percent
 -0- 4/15/92
 /CONTACT: Dale W. Phillips, vice president/CFO of Illinois Central Corp., 312-819-7930/
 (IC) CO: Illinois Central Corp. ST: Illinois IN: TRN SU: ERN


AH -- NY058 -- 8700 04/15/92 12:32 EDT
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