ITEL REPORTS FIRST QUARTER RESULTS
ITEL REPORTS FIRST QUARTER RESULTS CHICAGO, May 15 /PRNewswire/ -- Itel Corp. (NYSE: ITL) today
reported a first quarter net loss applicable to common stock of ($15.4 million), or (49) cents per share, compared to a net loss applicable to common stock of ($17.6 million), or (45) cents per share, during the first quarter of 1991. Per share results reflect 31.7 million weighted average shares outstanding during the first quarter of 1992, and 38.7 million shares in the prior-year period.
Loss from continuing operations in the first quarter of 1992 was ($4.5 million), or (19) cents per share, compared to a loss from continuing operations of ($0.5 million), or (5) cents per share in the first quarter of 1991. Operating income after goodwill amortization rose 10 percent to $46.0 million, from $42.0 million in the first quarter of 1991. Revenues were $445 million in the first quarter of 1992, an 11 percent increase over revenues of $403 million in the first quarter of 1991. Rod Dammeyer, Itel president, said higher revenues and operating income included improvements at Itel's wiring systems distribution business. Anixter's North American distribution business, its European distribui?on business, and ANTEC's Cable TV Supply business all showed revenue improvements during the quarter. "We're particularly pleased by the continued improvement in Anixter's European operations, where sales rose 61 percent over the first quarter of last year year and start-up expenses declined sharply," Dammeyer said. "In addition, our Cable TV Supply business generated improved operating results due to increased demand from our customers, particularly for fiber optic products." Itel's reported net loss is a result of a number of factors resulting mainly from the company's continuing efforts to reduce debt and repurchase shares. Loss from continuing operations was greater in the first quarter of 1992 than in 1991, due mainly to higher interest expense related to the share repurchase program. The company continued to experience the adverse impact of
Itel's cost to carry its investments in Catellus Development and Santa Fe Energy Resources, although total investment carrying costs were less than in the first quarter of 1991 due to the sale of Itel's investment in Santa Fe Pacific Corp. in late 1991.
"The significant reductions in debt and our decisions to undertake major repositioning efforts are allowing us to move quickly toward the objective of maximizing shareholder value by focusing on Anixter's continuing substantial growth opportunities," Dammeyer said. Through its Anixter Distribution and ANTEC businesses, Itel Corp. is involved mainly in supplying wiring systems for data, voice, video and energy. ITEL CORP. Segment Information (Unaudited; in millions) Three months ended March 31 1992 1991 Revenues: Distribution of wiring systems products $346.5 $307.8 Rail 99.0 95.1 Total $445.5 $402.9 Operating income (expense): Distribution of wiring systems products(A)(B) $ 12.9 $ 12.0 Rail 35.5 32.7 Corporate (2.4) (2.7) Total $ 46.0 $ 42.0 (A) -- Includes start-up expenses from increased European expansion of approximately $1.1 and $2.9 million for the three-month periods ended March 31, 1992, and 1991, respectively. (B) -- After amortization of goodwill of $2.1 million for both three-month periods. ITEL CORP. Consolidated Statement of Operations (In millions, except per share amounts) Three months ended March 31 1992 1991 Revenues $ 445.5 $ 402.9 Cost of operations, including amortization of goodwill (399.5) (360.9) Operating income 46.0 42.0 Interest expense and other, net (50.4) (42.1) Loss from continuing operations before income taxes (4.4) (0.1) Income tax expense (0.1) (0.4) Loss from continuing operations (4.5) (0.5) Loss from discontinued operations (net of related taxes) (5.1) (24.5) Extraordinary item (net of related taxes) (4.3) 8.9 Net loss (13.9) (16.1) Preferred stock dividends and amortization (1.5) (1.5) Loss applicable to common stock $ (15.4) $ (17.6) Loss per common and common equivalent share: Continuing operations $(0.19) $(0.05) Before extraordinary item $(0.35) $(0.68) Net loss $(0.49) $(0.45) Weighted average common and common equivalent shares 31.7 38.7 -0- 5/15/92 /CONTACT: Kirk Brewer or Gloria Waber of Itel, 312-902-1515/ (ITL) CO: Itel Corp. ST: Illinois IN: TLS SU: ERN
GK -- NY027 -- 0623 05/15/92 09:46 EDT
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|Date:||May 15, 1992|
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