Printer Friendly

KATY INDUSTRIES, INC., REPORTS BREAKEVEN FOR THE THIRD QUARTER OF 1993

 ELGIN, Ill., Nov. 15 /PRNewswire/ -- John R. Prann Jr., president of Katy Industries, Inc. (NYSE: KT), today reported net income of $20,000 for the third quarter of 1993 compared to $382,000, or $.04 per share, in 1992. Income from continuing operations in the 1993 quarter was $4,295,000, or $.48 per share, compared to $382,000, or $.04 per share, in 1992.
 Prann noted that income from continuing operations for the third quarter of 1993 included a net gain of $5,030,000, or $.56 per share, from the sale of 300,000 shares of Union Pacific Corporation common stock. Also included in the third quarter of 1993 are losses, net of income tax benefits, for environmental clean-up costs (including reserves for such future costs) for discontinued consolidated operations of $4,275,000, or $.48 per share.
 For the nine months ended Sept. 30, 1993, the company reported net income of $3,862,000, or $.43 per share, compared to $2,690,000, or $.30 per share, in 1992. Income from continuing operations in 1993 was $10,898,000, or $1.20 per share, compared to $2,690,000, or $.30 per share, in 1992.
 Sales from continuing operations were $43,678,000 and $128,610,000 for the third quarter and nine months of 1993, respectively, compared to $42,105,000 and $134,887,000 for the same periods in 1992. The decrease in sales for the nine months (5 percent) is substantially attributable to Katy's 75 percent owned German subsidiary, Schoen & Cie AG, reflecting the effect of the continuing turmoil in the Commonwealth of Independent States and the ongoing recession in Schoen's industry worldwide.
 During the third quarter of 1993, Bee Gee Holding Company, Inc., a 37.5 percent owned subsidiary, purchased warrants previously issued to acquire 20,000 shares of Bee Gee common stock, resulting in a charge to Bee Gee's equity. This transaction resulted in a net charge of $600,000 to Katy's paid-in capital and reduced Katy's investment in Bee Gee by $1 million.
 Katy Industries, Inc. is a major diversified corporation with interests in industrial machinery, industrial components, and consumer products.
 KATY INDUSTRIES, INC.
 (Thousands of dollars, except per share amounts)
 For the periods ended Nine Months Quarter
 Sept. 30, 1993 1992 1993 1992
 Sales $128,610 $134,887 $43,678 $42,105
 Income before changes in
 accounting principle and
 discontinued operations $10,898 $2,690 $4,295(A) $382
 (A)(B)(C)(D)
 Cumulative effect of change
 in accounting principle (1,418)(E) -- -- --
 Loss from discontinued
 operations (5,618)(F) -- $ 4,295(F) --
 Net income $3,862 $2,690 $20 $382
 EARNINGS PER COMMON SHARE:
 Income from operations $1.20 $.30 $.48(A) $.04
 (A)(B)(C)(D)
 Cumulative effect of
 change in accounting
 principle (.15)(E) -- -- --
 Loss from discontinued
 operations (.62)(F) -- $(.48)(F) --
 Net income $.43 $.30 $.00 $.04
 Average shares
 outstanding 9,017,387 9,017,387 9,017,387 9,017,387
 FINANCIAL NOTES
 (A) Includes a net gain on sale of $5,030,000 from the sale of
 300,000 share of Union Pacific common stock.
 (B) Includes a net gain of $3,709,000 from the sale of Compagnie
 des Entrepots Gares Frigorifiques common stock.
 (C) Includes a net gain of $835,000 as a result of an initial
 public offering of an unconsolidated subsidiary.
 (D) Includes a net charge of approximately $549,000 to establish a
 retirement compensation program for Katy's Chairman of the
 Board, Jacob Saliba.
 (E) Reflects the adoption of FAS 106, "Accounting for
 Postretirement Benefits," as of Jan. 1, 1993 and is net of
 income tax benefits of $925,000.
 (F) Environmental clean-up costs at units previously discontinued,
 net of income tax benefits of $2,312,000 and $3,064,000, for
 the three months and nine months ended Sept. 30, 1993,
 respectively.
 -0- 11/15/93 R
 /CONTACT: Paul Kurowski, secretary of Katy Industries, 312-379-1121/
 (KT)


CO: Katy Industries, Inc. ST: Illinois IN: MAC SU: ERN

TW -- NY119R -- 5538 11/17/93 13:28 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 17, 1993
Words:676
Previous Article:NORTH EUROPEAN OIL ROYALTY TRUST REPORTS ROYALTY REVENUES
Next Article:MARLTON TECHNOLOGIES ANNOUNCES THIRD QUARTER 1993 EARNINGS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters