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ITEL REPORTS THIRD QUARTER, NINE-MONTH RESULTS

 ITEL REPORTS THIRD QUARTER, NINE-MONTH RESULTS
 CHICAGO, Nov. 2 /PRNewswire/ -- Itel Corp. (NYSE: ITL) today


reported a net loss applicable to common stock of $7.2 million, or 26 cents per share, for the third quarter ended Sept. 30, 1992, reduced sharply from a loss applicable to common stock of $55.5 million, or $1.68 per share, during the third quarter of 1991.
 For the first nine months of 1992, Itel's net loss applicable to common stock, including special charges, was $69.4 million, or $2.34 per share, compared to a net loss applicable to common stock of $78.9 million, or $2.24 per share, in the same period of 1991.
 Per-share results in 1992 reflect approximately 27 million weighted average shares outstanding during the third quarter and 30 million shares for the nine months. In 1991, there were 33 million weighted average shares outstanding in the third quarter and approximately 35 million shares for the nine months.
 Third quarter and nine-month results included a significant improvement in revenues and operating income at Itel's operating business units, Anixter Distribution and Antec.
 Reported results for Anixter, which include the Anixter Distribution and Antec businesses, reflected third quarter income before interest, taxes and goodwill amortization of $16.4 million in 1992, 28 percent higher than the $12.8 million reported in 1991. Anixter's revenues rose 18 percent to $386 million from $327 million during the third quarter of 1991. Operating income included net income losses of $0.2 million from Anixter Distribution's recently established foreign operations, compared to net losses of $1.8 million from recently established foreign operations in last year's third quarter.
 Combined Anixter income before interest, taxes and goodwill amortization rose 20 percent in the first nine months of 1992 to $47.1 million from $39.2 million during the first nine months of 1991. Revenues rose 14 percent in the nine-month period, to $1.1 billion from $956 million in 1991. Nine-month operating income included net start-up losses from recently established foreign operations of $2 million in 1992 and $6.9 million in 1991.
 Rod Dammeyer, Itel president, said the significant improvements in operating income were the result of Anixter Distribution's strong performance in the United States and the United Kingdom, continued expansion of Anixter Distribution's newer European business, and higher revenues and income at Antec. Anixter Distribution's North American business grew, due mainly to continued double-digit increases in the sale of networking and data products, offset partly by the impact of continued weakness in the Canadian economy.
 Antec supplies and develops products aimed principally at the cable television industry and has benefited from system upgrades and its investment in technology integration.
 "Anixter's continuing excellent operating results were offset by interest expense on our investments in Santa Fe Energy Resources, Inc. and Catellus Development.
 "Without these costs, and the restructuring costs associated with the major transaction through which Itel leased its entire railcar fleet to General Electric Capital Corporation in June, Itel would have been profitable in both the third quarter and year to date," Dammeyer said.
 Dammeyer said Itel continued to make progress in its efforts to monetize its non-core assets and focus Itel on Anixter Distribution's and Antec's rapid growth. Itel sold certain of its railcar maintenance shops and its container terminals during the third quarter, he said.
 "We're pleased by the progress to date in 1992, and expect that by year-end we will have made major strides in focusing Itel on Anixter as its major operating business," Dammeyer said.
 Through its Anixter Distribution business, Itel Corporation is involved mainly in supplying writing systems for data, voice and energy. Antec is a supplier and developer of products employing broad band and fiber networks for video, voice and data applications.
 ITEL CORPORATION
 Statement of Operations
 Supplemental Information
 Three months Railcar
 ended Consolidated Anixter(A) Leasing All other
 Sept. 30 1992 1991 1992 1991 1992 1991 1992 1991
 Revenues $448.4 $431.9 $386.2 $327.4 $38.3 $77.0 $23.9 $27.5
 Cost of
 opers. (405.4)(383.4) (369.8)(314.6) (12.7)(42.4) (22.9) (26.4)
 Amortization
 of goodwill (2.1) (2.1) (2.1) (2.1) -- -- -- --
 Operating
 income 40.9 46.4 14.3 10.7 25.6 34.6 1.0 1.1
 Interest
 expense and
 other, net (42.4) (52.0) (5.1) (9.6) (24.1)(18.5) (13.2) (23.9)
 Non-recurring
 item -- (29.4) -- -- -- -- -- (29.4)
 Income (loss)
 from continuing
 operations
 before income
 taxes (1.5) (35.0) 9.2 1.1 1.5 16.1 (12.2) (52.2)
 Income tax
 (expense)
 benefit(B) (0.2) (1.4) (4.9) (3.1) (1.7) (7.3) 6.4 9.0
 Income (loss)
 from continuing
 operations (1.7) (36.4) 4.3 (2.0) (0.2) 6.8 (5.8) (43.2)
 Loss from
 discont., oper.
 (net of related
 taxes) (3.3) (17.5) -- -- -- -- (3.3) (17.5)
 Inc. (loss)
 bef. extraord.
 item (5.0) (53.9) 4.3 (2.0) (0.2) 8.8 (9.1) (60.7)
 Extraordinary
 items, net (0.6) -- -- -- (0.2) -- (0.4) --
 Net income
 (loss) (5.6) (53.9) 4.3 (2.0) (0.4) 8.8 (9.5) (60.7)
 Preferred stock
 dividends and
 amort. (1.6) (1.6)
 Loss applicable
 to common
 stock ($7.2)($55.5)
 Loss per common
 equivalent share
 Continuing
 opers. ($0.12)($1.15)
 Before
 extraordinary
 items ($0.24)($1.68)
 Net loss ($0.26)($1.88)
 Weighted average
 common and
 common equivalent
 shares 27.2 33.0
 (A) -- Operating income included net start-up costs from recently established foreign operation of $.2 million in 1992 and $1.8 million in 1991.
 (B) -- Income taxes at Anixter and Rail car leasing include intercompany taxes.
 Supplemental Information
 Nine months Railcar
 ended Consolidated Anixter Leasing All other
 Sept. 30 1992 1991 1992 1991 1992 1991 1992 1991
 Revenues $1,343.6 $1,254.4 $1,093.2 $955.7$179.0 $226.7$71.4 $72.0
 Cost of
 opers. (1,203.8)(1,117.1)(1,046.1)(916.5)(89.1)(128.1)(68.6)(72.5)
 Amortization
 of goodwill (6.4) (6.4) (6.4) (6.4) -- -- -- --
 Operating
 income 133.4 130.9 40.7 32.8 89.9 98.6 2.8 (0.5)
 Interest
 expense and
 other, net (136.6) (141.2) (17.5) (25.5)(59.7)(53.2) (59.4)(62.5)
 Restructuring
 costs (21.8) -- -- -- (21.8) -- -- --
 Non-recurring
 item -- (29.4) -- -- -- -- -- (29.4)
 Income(loss)
 from cont.
 opers. before
 inc. taxes (25.0) (39.7) 23.2 7.3 8.4 45.4 (56.6)(92.4)
 Income tax
 (expense)
 benefit(B) (1.7) (2.5) (11.9) (10.0) (6.6) (20.7) 16.8 28.2
 Income (loss)
 from continuing
 operations (26.7) (42.2) 11.3 (2.7) 1.8 24.7 (39.8)(64.2)
 Loss from
 discontinued
 operations
 (net of related
 taxes) (9.1) (41.0) -- -- -- -- (9.1)(41.0)
 Income (loss)
 bef. extraord.
 item (35.8) (83.2) 11.3 (2.7) 1.8 24.7 (48.9)(105.2)
 Extraordinary
 items, net (29.0) 8.9 -- -- (10.5) -- (18.5) 8.9
 Net income
 (loss) (64.8) (74.3) 11.3 (2.7) (8.7) 24.7 (67.4) (96.3)
 Preferred stock
 dividends and
 amortization (4.6) (4.6)
 Loss applicable
 to common
 stock ($69.4) ($78.9)
 Loss per common
 and common
 equivalent share
 Continuing
 opers. ($1.06) ($1.33)
 Before
 extraordinary
 items ($1.36) ($2.49)
 Net loss ($2.34) ($2.24)
 Weighted average
 common and
 common
 equivalent
 shares 29.6 35.2
 Balance Sheets
 (Unaudited; in millions)
 Supplemental Information
 Railcar
 Consolidated Anixter leasing Other
 9/30/92 12/31/91 9/30/92 9/30/92 9/30/92
 ASSETS (unaudited) (unaudited)(unaudited)(unaud)
 Cash & equivalents $32.8 $28.6 $16.9 $9.4 $6.5
 Accounts receivable,
 net 303.4 299.2 258.1 17.2 28.1
 Inventories, primarily
 finished goods 259.8 256.2 250.4 0.1 9.3
 Other assets 15.8 23.4 5.2 2.7 7.9
 Total current assets 611.8 607.4 530.6 29.4 51.8
 Property, net 1,208.3 1,239.0 30.2 1,070.9 107.2
 Goodwill, net 294.2 300.8 294.2 -- --
 Discontinued and assets
 held for sale, net 262.3 326.0 -- -- 262.3
 Investments in marketable
 equity securities at
 market 122.8 143.8 -- -- 122.8
 Investment in Quadrum 28.6 29.9 -- -- 28.6
 Other assets 67.4 105.6 6.3 14.4 46.7
 LIABILITIES AND OTHER STOCKHOLDERS' EQUITY
 Accounts payable $182.4 $173.7 $159.7 $0.3 $22.4
 Accrued expenses 125.8 180.5 56.7 32.2 36.9
 Senior subordinated
 notes 135.7 184.1 -- -- 135.7
 Current maturities of
 senior long-term debt 69.1 78.2 0.4 63.2 5.5
 Total current
 liabilities 513.0 616.5 216.8 95.7 200.5
 Other liabilities 53.8 43.5 13.5 15.8 24.5
 Intercompany -- -- 202.0 20.0 (222.0)
 Long-term debt
 - senior 1,200.7 720.8 83.8 1,088.1 28.8
 - subordinated 495.5 848.8 -- -- 495.5
 Total liabilities 2,263.0 2,227.6 516.1 1,219.6 527.3
 Temporary equity -- 10.9 -- -- --
 Other stockholders'
 equity
 Series C convertible
 preferred stock 83.5 83.3 -- -- 83.5
 Common equity(A) 342.4 503.0 345.2 (104.9) 102.1
 Valuation allowance --
 marketable equity
 securities (93.5) (72.5) -- -- (93.5)
 Total other stockholders'
 equity 332.4 513.8 345.2 (104.9) 92.1
 (A) -- Common shares outstanding were 27.2 million and 32.1 at Sept. 30, 1992, and Dec. 31, 1992, respectively.
 -0- 11/2/92
 /CONTACT: Kirk Brewer, 312-902-1515, for Itel Corp./
 (ITL) CO: Itel Corp. ST: Illinois IN: TLS SU: ERN


CK -- NY028 -- 1584 11/02/92 11:58 EST
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