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ILLINOIS CENTRAL CORPORATION REPORTS THIRD QUARTER NET INCOME IMPROVES TO 13.4 PERCENT OF REVENUE

 ILLINOIS CENTRAL CORPORATION REPORTS THIRD QUARTER NET INCOME
 IMPROVES TO 13.4 PERCENT OF REVENUE
 CHICAGO, Oct. 15 /PRNewswire/ -- Illinois Central Corporation (NYSE: IC) today reported net income for the third quarter ended Sept. 30, 1992, of $17.6 million ($.41 per share). This compares to third quarter 1991 earnings of $15.2 million ($.35 per share) excluding a nonrecurring, net gain of $2.4 million on the early redemption of Series K Bonds, which increased year-ago earnings by $.06 per share.
 Management estimates that third quarter of 1992 earnings were depressed 2 to 3 cents per share due to the impact on Louisiana and southern Mississippi of Hurricane Andrew in late August. IC lost carloadings and revenue because customers were without electric power for several days following the storm. The company sustained very little physical damage, but incurred clean-up costs.
 Commenting on the quarter, Chairman and Chief Executive Officer Edward L. Moyers said, "Despite a lackluster economy and Hurricane Andrew, we improved both operating income, by 5 percent, and net income, excluding last year's gain, by 16 percent. We are pleased with the operating performance of our railroad and are confident in its long-term growth and profitability.
 "As a reflection of our confidence, we announced last month a 50 percent increase in our dividend. We remain highly focused on the operation and market expansion of the company as we continue to strive for greater efficiencies."
 Operating income for the quarter was $36.5 million compared to $34.6 million a year ago. Revenues for the quarterly periods were $131.4 million in 1992 and $139.8 million in 1991. As mentioned, revenue for the 1992 third quarter was adversely affected by Hurricane Andrew. Significant declines in lease and car hire costs ($2.3 million) and lower fuel costs ($.4 million) more than offset increases in materials and depreciation.
 Interest expense for the third quarter of 1992 was down $2.1 million from last year reflecting lower debt levels, the refinancing of Series K Bonds and lower interest rates on the Term Facility.
 In the third quarter of 1992, total loads of 208,036 were down 5.7 percent from the third quarter of 1991. Flat coal loadings and a slight increase in grain mill products were unable to offset the decline in grain (22.9 percent) from the strong level experienced in 1991
 For the first nine months of 1992, earnings before cumulative effect of change in accounting principle were $55.6 million ($1.31 per share) compared to $46.6 million ($1.19 per share) in 1991, a 19 percent improvement. Operating income year-to-date was $115.8 million in 1992 and $106.5 million last year. Revenue was $400.0 million in the first nine months of 1992 versus $409.1 million in 1991. Lower labor costs following the 1991 UTU agreement and lower car lease expense resulting from shift in commodity mix 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 Corporation's principal subsidiary, Illinois Central Railroad Company, operates a 2,700 mile freight railroad between Chicago and the Gulf of Mexico.
 ILLINOIS CENTRAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 ($ in millions, except share data)
 THREE MONTHS ENDED NINE MONTHS ENDED
 SEPT. 30, SEPT. 30,
 1992 1991 1992 1991
 Revenues $ 131.4 $ 139.8 $ 400.0 $ 409.1
 Operating expenses 94.9 105.2 284.2 302.6
 Operating income 36.5 34.6 115.8 106.5
 Interest expense, net (10.6) (12.7) (33.1) (43.0)
 Other income, net 0.8 4.1 1.5 5.4
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 26.7 26.0 84.2 68.9
 Provision for income tax 9.1 8.4 28.6 22.3
 Income before cumulative
 effect of change in accounting
 principle 17.6 17.6 55.6 46.6
 Cumulative effect of change
 in accounting principle - - 23.4 -
 Net income $ 17.6 $ 17.6 $ 79.0 $ 46.6
 Income per share:
 Income before cumulative
 effect of change in
 accounting principal $0.41 $ 0.41 $ 1.31 $ 1.19
 Cumulative effect of
 change in
 accounting principle - - 0.55 -
 Income per share $ 0.41 $ 0.41 $ 1.86 $ 1.19
 Weighted average number of
 shares of common stock and
 common stock equivalents
 outstanding (000's) 42,754 42,387 42,544 38,986
 ILLINOIS CENTRAL CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 ($ in millions)
 Assets: 9/30/92 12/31/91
 Cash and cash equivalents $ 46.3 $ 32.7
 Other current assets 144.3 147.1
 Investments 16.5 17.0
 Properties, net 990.5 968.3
 Other assets 16.6 18.4
 Total assets $ 1,214.2 $ 1,183.5
 Liabilities and Stockholders' Equity:
 Current liabilities $ 183.3 $ 183.2
 Long-term debt 378.8 413.5
 Deferred taxes 171.1 172.4
 Other liabilities 156.2 154.1
 Stockholders' equity 324.8 260.3
 Total liabilities & stkhrs' equity $ 1,214.2 $ 1,183.5
 ILLINOIS CENTRAL CORPORATION & SUBSIDIARIES
 Operating Expense Detail/Ratios
 THREE MONTHS ENDED NINE MONTHS ENDED
 SEPT. 30, SEPT. 30,
 1992 1991 1992 1991
 Operating expense detail
 ($ in millions):
 Labor and fringe benef $ 48.8 $ 51.5 $ 143.7 $ 147.4
 Leases and car hire 16.9 19.2 51.2 56.9
 Diesel fuel 7.5 7.9 21.7 24.2
 Materials and supplies 8.3 7.7 25.5 22.5
 Depreciation and
 amortization 5.6 4.8 16.4 15.8
 Other 7.8 14.1 25.7 35.8
 Total operating
 expenses $ 94.9 $ 105.2 $ 284.2 $ 302.6
 Operating expense ratios as a percent of revenue:
 Line items (in percent):
 Labor and fringe benefit 37.14 36.84 35.93 36.03
 Leases and car hire 12.86 13.73 12.80 13.91
 Diesel fuel 5.71 5.65 5.43 5.92
 Materials and supplies 6.32 5.51 6.38 5.50
 Depreciation and
 amortization 4.26 3.43 4.10 3.86
 Other 5.94 10.09 6.43 8.75
 Total operating
 expenses 72.22 75.25 71.05 73.97
 ICC basis:
 Transportation 32.27 36.41 32.50 35.35
 Maintenance of way 6.62 6.37 6.38 6.70
 Maintenance of equipment 23.36 23.89 22.85 23.81
 Other 9.97 8.58 9.33 8.12
 Total operating
 expenses 72.22 75.25 71.05 73.97
 -0- 10/15/92
 /CONTACT: Ann G. Thoma, corporate relations of Illinois Central Corporation, 312-755-7591/
 (IC) CO: Illinois Central Corporation ST: Illinois IN: TRN SU: ERN


PS -- NY016 -- 0255 10/15/92 09:23 EDT
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Date:Oct 15, 1992
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