KATY INDUSTRIES REPORTS NET INCOME OF $3,141,000, OR
$.34 PER SHARE FOR THE THIRD QUARTER OF 1991
ELGIN, Ill., Nov. 11 /PRNewswire/ -- William H. Murphy, president of Katy Industries, Inc. (NYSE: KT), today reported income from continuing operations and net income of $3,141,000, or $.34 per share, for the third quarter of 1991. Last year's third quarter results from continuing operations was a loss of $1,273,000, or $.26 per share, and the net loss was $995,000, or $.22 per share.
Murphy noted that the results for the 1991 quarter included a gain of $2,902,000, or $.31 per share, from the sale of Union Pacific Stock and that absent that income, the third quarter was basically a break- even. He commented that the results for the quarter were affected by a 23 percent decline in sales, most of which came from the Industrial Machinery segment, coupled with significant expenses at the waste-to- energy facilities. He also noted that the 1990 quarter included an after tax reserve of $4,000,000, to cover potential losses on notes receivable.
For the nine months ended Sept. 30, 1991, the company reported net income of $12,402,000, or $1.31 per share, compared to $22,320,000, or $3.23 per share, in the previous year. The 1991 period included an extraordinary gain of $3,055,000, or $.32 per share, and gains on sale of the Union Pacific Stock of $6,445,000, or $.68 per share and the 1990 period included non-recurring income of $16,100,000, or $2.47 per share.
Sales from continuing operations were $39,057,000 and $134,378,000, respectively for the third quarter and nine months of 1991 compared to $50,645,000 and $167,300,000 for the same periods of 1990.
Katy Industries, Inc. is a diversified corporation with interests in industrial machinery, industrial components, consumer products and energy resources.
KATY INDUSTRIES, INC.
(Thousands of dollars, except per share amounts and
Nine Months Ended Quarter Ended
Sept. 30, Sept. 30,
1991 1990 (A) 1991 1990 (A)
Sales $ 134,378 $ 167,300 $ 39,057 $ 50,645
operations 9,347(B) 21,574(C,D) 3,141(B) 1,273(D,E)
operations -- 1,104(E) -- 281(E)
Extraordinary gain 3,055 (F) 559(G) -- 559(G)
of change in
principle -- 1,291(H) -- --
Net income $ 12,402 $ 22,320 $ 3,141 $ 995(E)
EARNINGS PER COMMON SHARE: (I)
operations $ .99(B) $ 3.11(C,D) $ .34(B) $ .26(D,E)
operations -- .16(E) -- .04(E)
Extraordinary gain .32 (F) .08 (G) -- .08(G)
Cumulative effect of
change in accounting
principle -- .20 (H) -- --
Net income $ 1.31 $ 3.23 $ .34 $ .22(E)
EARNINGS PER COMMON SHARE,
ASSUMING FULL DILUTION: (I)
operations $ -- $ 2.23(C,D) $ -- $ .13(D,E)
operations -- .11(E) -- .03(E)
Extraordinary gains -- .06(G) -- .06(G)
Cumulative effect of
change in accounting
principle -- .13(H) -- --
Net income $ -- $ 2.31 $ -- $ .10(E)
outstanding 9,500,516(I) 6,502,134 9,321,003(I) 6,514,174
dividends $ -- $1,347,278 $ -- $ 447,245
(A) Restated for operation discontinued in 1990.
(B) Includes net gain on sale of Union Pacific common stock for the three months and nine months ended Sept. 30, 1991, of $2,902,000 and $6,445,000 or $.31 and $.65 per share, respectively.
(C) Includes net gain on sale of subsidiary stock of $14,250,000, or $2.19 per share ($1.45 fully diluted).
(D) Includes $4,000,000, or $.61 per share ($.41 fully diluted), net charge for reserve for notes receivable.
(F) Equity in insurance settlement reported as an extraordinary item by an unconsolidated subsidiary.
(G) Net gain on early extinguishment of debt.
(H) Change in accounting to the equity method because of the increase in ownership of an investee company.
(I) In December 1990, all outstanding shares of preferred stock were converted into shares of common stock or were redeemed. Accordingly, since Katy will no longer have fully diluted earnings per share, primary earnings per share for 1991 are more comparable to fully diluted earnings for 1990.
/CONTACT: Jacob Saliba, chairman and chief executive officer, 617-266-4100, or William H. Murphy, president and chief operating officer, 312-379-1121, or J. Russell Hones, treasurer, 312-379-1121, all of Katy Industries/
(KT) CO: Katy Industries, Inc. ST: Illinois IN: MAC SU: ERN PS -- NY085 -- 3221 11/11/91 18:25 EST