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KINARK ANNOUNCES RECORD FOURTH QUARTER AND YEAR EARNINGS

 KINARK ANNOUNCES RECORD FOURTH QUARTER AND YEAR EARNINGS
 TULSA, Okla., Jan. 14 /PRNewswire/ -- Kinark Corporation (AMEX: KIN) announced today that it had achieved net earnings and earnings per share for the fourth quarter and year ended Dec. 31, 1991.
 Kinark's earnings for 1991 jumped 148 percent to $5,283,000, or $1.43 per share, compared with $2,130,000 or 60 cents a share for the prior year. Net earnings were $5,635,000, or $1.52 a share, including a one-time gain of $352,000, or 9 cents a share, from the disposition of discontinued hotel operations. In 1990, the company reported a net loss of $7,519,000, or $2.11 a share, including a charge of $9,649,000, or $2.71 a share, against discontinued hotel operations. The company sold its hotel operations during 1991. Net sales for 1991 were $34,108,000, essentially unchanged from $34,202,000 in 1990.
 The company's net earnings for the fourth quarter were $1,159,000, or 28 cents a share, an eightfold increase from $135,000, or 4 cents a share, in the year-ago period. The company posted a net loss of $865,000, or 24 cents a share, in the final quarter of 1990 which included a charge of $1,000,000 for discontinued hotel operations. Net sales for the quarter were $8,720,000 compared with $8,808,000 in 1990.
 In announcing the record results, Paul R. Chastain, chairman and chief executive officer of Kinark, commented on the highlights for 1991:
 -- Earnings from continuing operations increased for the sixth consecutive year with every Kinark operating division reporting a profit. Boyles Galvanizing, the company's largest subsidiary, increased profits 15.1 percent on a 3.2 percent increase in the volume of steel tonnage over the record set in 1990. This result was achieved despite increased competition and the general economic slowing that prevailed in the fourth quarter. The Lake River chemical storage terminal achieved the largest profit gain of 33.5 percent, benefiting from a sales increase of 10.9 percent. The industry-wide reduced demand for antifreeze impacted our Kinpak contract packaging division, which experienced a 9.2 percent reduction in sales from last year.
 -- Consolidated operating margins improved over the prior year to a record 17.4 percent and pretax profit reached a new high of 15.7 percent of sales.
 -- Investments in plant, machinery, and equipment increased 75 percent to a record $2,600,000 supporting the company's strategy to improve operating efficiencies and increase profit margins.
 -- Cash provided by operating activities was a record $6,600,000 and an increase of 24 percent over last year.
 -- Kinark reduced total debt 36.7 percent to $7,900,000 as a result of strong cash flow and record earnings. The company continues to generate strong cash flow which will be used to further reduce debt and support growth opportunities.
 -- The goal of eliminating the hotel loss operations was achieved in 1991. The properties were sold for $3,750,000 -- the buyer assumed an $800,000 first mortgage, Kinark provided $2,150,000 in seller financing and received $800,000 in cash.
 -- Net earnings benefited from a virtual elimination of federal income taxes in 1991 as the result of previous losses from the discontinued operations. The company expects this tax benefit will continue through 1992.
 "Kinark management expects an improvement in sales and earnings for 1992, but we view the present slowness in the domestic economy with some caution. Capital investments the company made in 1991 have improved profit margins and we plan to increase capital expenditures 50 percent this year. Overall, 1992 will be a challenging year. Kinark is in a strong financial position and as the economy recovers we see our improvement coming in the second half of the year," Chastain said.
 Kinark Corporation, with corporate headquarters in Tulsa, operates chemical facilities in Chicago and Montgomery, Ala., and supports industrial/commercial construction and metals corrosion protection with galvanizing plants in Denver, Louisville, Nashville, St. Louis, Houston and Hurst, Texas.
 KINARK CORPORATION
 Consolidated Statements of Earnings
 (Unaudited -- thousands of dollars except per share)
 Quarter Year
 Periods ended Dec. 31; 1991 1990 1991 1990
 Sales $8,720 $8,808 $34,108 $34,202
 Costs & expenses 7,598 8,612 28,759 31,048
 Operating income 1,122 196 5,349 3,154
 Gain on sale of equipment -- (52) -- 249
 Earnings from continuing
 operations before tax 1,122 144 5,349 3,403
 Income tax (37) 9 66 1,273
 Earnings from
 continuing operations 1,159 135 5,283 2,130
 Discontinued operations
 earnings loss -- (1,000) 352 (9,649)
 Net earnings (loss) 1,159 (865) 5,635 (7,519)
 Primary Earnings (Loss) Per Share:
 Continuing operations $.28 $.04 $1.43 $.60
 Discontinued operations -- (.28) .09 (2.71)
 Net earnings (loss) .28 (.24) 1.52 (2.11)
 Average shares outstanding(A) 3,704,823 3,561,002
 (A) -- Average shares for 1991 includes the dilutive effect of stock options calculated to be 117,209 equivalent shares, or $.05 per share.
 -0- 1/14/92
 /CONTACT: Carolyn A. Fredrich of Kinark, 918-494-0964/
 (KIN) CO: Kinark Corporation ST: Oklahoma IN: OIL SU: ERN


SH-JT -- NY037 -- 9544 01/14/92 12:13 EST
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Date:Jan 14, 1992
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