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INTER-CITY PRODUCTS CORPORATION REPORTS THIRD QUARTER RESULTS

 TORONTO, Nov. 10 /PRNewswire/ -- Inter-City Products Corporation today reported improvements in operating revenue and operating profit for the three months ended September 30, 1993 versus the corresponding period of 1992. For the third quarter of 1993, the continuing operations of the company reported operating revenue of $246.1 million up 29 percent over $190.9 million a year ago, while operating profit increased to $9.9 million, versus $1.3 million for the third quarter of 1992.
 Income from continuing operations for the third quarter of 1993 was $4.0 million versus a loss from continuing operations of $1.3 million a year earlier. After deducting preference share dividends of $1.3 million, net income, after discontinued operations for the third quarter of 1993 was $2.3 million or 9 cents per ordinary share.
 In the third quarter of 1992, the company incurred a restructuring cost of $1.6 million (or $.9 million, net of taxes). Excluding this restructuring charge but after deducting preference share dividends of $1.3 million, the loss from continuing operations was $1.7 million or 7 cents per ordinary share. Net loss after discontinued operations and preference share dividends was $3.2 million or 13 cents per ordinary share.
 Unit sales of air conditioners during the third quarter of 1993 increased substantially to 145,000 from 106,000 in the third quarter of 1992. Furnace volumes were 137,000, up marginally from 133,000 during the corresponding quarter of 1992.
 For the nine months of 1993, the company reported operating revenue of $652.6 million compared to $609.2 million for the first nine months of 1992. Operating profit for the first nine months of 1993 was $14.7 million versus $23.6 million for the corresponding nine months of 1992. For the nine months ended September 30th 1993, the loss from continuing operations was $4.4 million or a loss of 18 cents per ordinary share, excluding restructuring charges and refinancing costs, but after deducting preference share dividends of $3.7 million.
 Restructuring costs of $0.6 million (or $0.4 million, net of taxes) relate to workers' compensation claims resulting from the 1992 closure of a manufacturing plant in Red Bud, Illinois, while refinancing charges of $1.6 million (or $1.2 million, net of taxes) relate to the early extinguishment of the previously existing debt of the company's subsidiary, ICP USA. After restructuring costs, refinancing charges and preference share dividends, the net loss after discontinued operations was $7.0 million or a loss of 29 cents per ordinary share for the first nine months of 1993.
 After deducting preference share dividends of $3.7 million but before restructuring charges of $6.3 million (or $3.7 million, net of taxes) loss from continuing operations for the first nine months of 1992 was $2.3 million or 10 cents per ordinary share. The net loss, after discontinued operations and preference share dividends, was $1.4 million or a loss of 7 cents per ordinary share for the nine months of 1992.
 For the first nine months of 1993, air conditioner unit sales increased marginally to 450,000 from 444,000 during the corresponding period of 1992. Unit sales of furnaces totaled 306,000 units down marginally from 310,000 in 1992. Steel pipe volumes for the nine months increased to 45,000 metric tonnes from 35,000 tonnes in 1992.
 In order to reduce costs and focus more closely on its core businesses, the company announced today its intention to sell its commercial refrigeration business, which is now treated as a discontinued operation.
 "This is just one of a number of steps we plan to take to significantly reduce our cost structure," said Robert G. Graham, Chairman and Chief Executive Officer. "Our goal is to improve the company's profitability substantially, even assuming modest industry growth in the future."
 RESULTS OF INTER-CITY PRODUCTS CORPORATION (USA) (ICP USA)
 The Company's wholly owned subsidiary, ICP USA, also reported improved third quarter 1993 results today. Operating revenue of ICP USA for the three months ended September 30, 1993 was $159.0 million (U.S.), versus $135.4 million (U.S.) for the three months of 1992. Operating profit for the third quarter of 1993 was $3.6 million (U.S.), versus $3.1 million (U.S.) in 1992. The net loss for the third quarter of 1993 was $0.3 million (U.S.), versus a net loss of $0.9 million (U.S.) for the third quarter of 1992.
 For the nine months of 1993, ICP USA reported operating revenue of $432.4 million (U.S.), leading to operating profit of $5.9 million (U.S.). Net loss, before restructuring costs of $0.5 million (U.S.) ($0.3 million (U.S.) net of taxes) and an extraordinary item of $1.3 million (U.S.) ($0.8 million (U.S.) net of taxes), was $3.7 million (U.S.).
 Restructuring costs relate to workers' compensation claims in Red Bud, Illinois. The extraordinary item relates to the early extinguishment of ICP USA's previously existing debt. Under U.S. GAAP rules, these costs are reported as an extraordinary item. After restructuring costs and the extraordinary item, the net loss was $4.8 million (U.S.) for the nine months of 1993.
 For the nine months of 1992, ICP USA reported operating revenue of $439.0 million (U.S.), operating profit of $21.7 million (U.S.) and net income of $4.0 million (U.S.).
 These results are included in the consolidated results of the parent company, Inter-City Products Corporation, as disclosed previously in this news release.
 Through its Heil, KeepRite, Tempstar, Arcoaire, Comfortmaker and ZoneAire brand names, Inter-City Products Corporation is North America's second largest heating and cooling products producer for residential and light commercial markets. The company also manufactures spiral welded steel pipe for water transmission projects under the name Thompson Pipe & Steel. The company's ordinary and Class C preference shares are traded on the Toronto and American stock exchanges.
 INTER-CITY PRODUCTS CORPORATION
 SUMMARY OF RESULTS
 To September 30, 1993 and 1992 - Unaudited
 (In Millions of Canadian Dollars except per share amounts)
 3 Months ended 9 Months ended
 September 30 September 30
 1993 1992 1993 1992
 Operating revenue 246.1 190.9 652.6 609.2
 Operating profit 9.9 1.3 14.7 23.6
 Income (loss) from
 continuing operations 4.0 (1.3) (2.1) 2.3
 Discontinued operations
 Loss from Refrigeration
 operations (.6) (1.2) (1.7) (2.0)
 Utilization of prior
 years' tax losses .2 .6 .5 2.0
 Net income (loss) 3.6 (1.9) (3.3) 2.3
 Preference dividends 1.3 1.3 3.7 3.7
 Weighted average number of
 ordinary shares outstanding
 (in millions) 24.8 24.2 24.7 21.8
 Net income (loss) per
 ordinary share
 From continuing operations $0.10 ($0.11) ($0.24) ($0.07)
 After discontinued
 operations $0.09 ($0.13) ($0.29) ($0.07)
 BUSINESS SEGMENTS
 To September 30, 1993 and 1992 - Unaudited
 (In Millions of Canadian Dollars)
 3 Months ended 9 Months Ended
 September 30 September 30
 Operating Operating Operating Operating
 Revenue Profit (Loss) Revenue Profit (Loss)
 1993 1992 1993 1992 1993 1992 1993 1992
 Heating and
 cooling 227.5 177.6 9.0 1.5 599.5 570.4 13.8 22.0
 Steel pipe 17.7 13.2 (.1) .4 51.8 38.6 (.3) 2.7
 Corporate
 and other .9 .1 1.0 (.6) 1.3 .2 1.2 (1.1)
 246.1 190.9 9.9 1.3 652.6 609.2 14.7 23.6
 OPERATING HIGHLIGHTS
 To September 30, 1993 and 1992
 3 Months ended 9 Months ended
 September 30 September 30
 1993 1992 1993 1992
 Heating and cooling
 Air conditioners -
 thousands of units 145 106 450 444
 Furnaces - thousands of units 137 133 306 310
 Steel pipe - thousands of tonnes 13 10 45 35
 INTER-CITY PRODUCTS CORPORATION (USA)
 STATEMENTS OF INCOME
 FOR THE THREE MONTHS ENDED SEPTEMBER 30,1993 AND 1992
 (In Thousands of U.S. Dollars)
 1993 1992
 (Unaudited)
 OPERATING REVENUE $159,022 $135,373
 COST OF SALES 132,219 107,820
 RESTRUCTURING COSTS - 869
 132,219 108,689
 GROSS MARGIN 26,803 26,684
 SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES 23,251 23,624
 OPERATING PROFIT 3,552 3,060
 FINANCIAL EXPENSES
 Discount on sale of receivables - 2,711
 Interest on long-term debt 3,805 1,175
 Other interest 106 629
 Amortization of debt issuance costs 301 -
 4,212 4,515
 LOSS BEFORE INCOME TAXES 660 1,455
 RECOVERY OF INCOME TAXES 362 540
 NET LOSS $ 298 $ 915
 INTER-CITY PRODUCTS CORPORATION (USA)
 STATEMENTS OF INCOME
 FOR THE NINE MONTHS ENDED SEPTEMBER 30,1993 AND 1992
 (in Thousands of U.S. Dollars)
 1993 1992
 (Unaudited)
 OPERATING REVENUE $432,367 $439,001
 COST OF SALES
 RESTRUCTURING COSTS 357,374 342,379
 532 3,580
 357,906 345,959
 GROSS MARGIN 74,461 93,042
 SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES 68,592 71,362
 OPERATING PROFIT 5,869 21,680
 FINANCIAL EXPENSES
 Discount on sale of receivables 869 9,710
 Interest on long-term debt 9,537 4,021
 Other interest 802 1,313
 Amortization of debt issuance costs 861 -
 12,069 15,044
 INCOME (LOSS) BEFORE INCOME TAXES
 AND EXTRAORDINARY ITEM (6,200) 6,636
 PROVISION FOR (RECOVERY OF)
 INCOME TAXES (2,223) 2,694
 INCOME (LOSS) BEFORE EXTRAORDINARY
 ITEM (3,977) 3,942
 EXTRAORDINARY ITEM
 Loss on early extinguishment of debt,
 net of income tax recovery of $494 808 -
 NET INCOME (LOSS) $ (4,785) $ 3,942
 -0- 11/10/93
 /CONTACT: Arindra Singh, Senior Vice President, Chief Financial Officer of Inter-City Products, 416-598-0101/


CO: Inter-City Products Corporation ST: Toronto IN: SU: ERN

SH -- NY016 -- 2594 11/10/93 08:52 EST
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Date:Nov 10, 1993
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