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 TULSA, Okla., Oct. 25 /PRNewswire/ -- Kinark Corporation (ASE: KIN) announced today third quarter 1993 net earnings of $347,000, or 9 cents per share, compared with a loss of $573,000, or 16 cents a share, for the same period in 1992. Sales for the third quarter were $7,893,000, a decrease of 8.4 percent from sales of $8,621,000 in 1992.
 For the nine-month period ended Sept. 30, the company's net earnings were $2,126,000, or 57 cents a share, compared with earnings of $568,000, or 15 cents a share, for the same nine-month period in 1992. After adjustment for non-operating gains and losses, pretax operating income from the three core businesses for the nine months was $1,806,000 in 1993 compared with $2,644,000 in 1992. Sales for the nine months were $23,001,000 compared with sales of $23,075,000 in 1992.
 All of the company's operating subsidiaries were profitable in the third quarter 1993, but gross revenues were down from the same period in the prior year due to the continuing effects of the slow economy.
 Of Kinark's three operations -- hot-dip galvanizing, terminals storage and specialty chemicals packaging -- only packaging had increases in sales and operating income on a year-to-date comparison. The Kinpak specialty chemicals packaging subsidiary reported increased sales for the nine-month period of over 33 percent from the same period in 1992, and was profitable compared to a loss in the prior year. New accounts for private label household cleaners that are sold primarily through SAM's Club, made a significant contribution to Kinpak's nine- month sales results.
 The sales volume of hot-dip galvanized steel at the Boyles Galvanizing subsidiary was even with the 1993 second quarter, but down 10.3 percent from a year ago. Though business from nonbuilding construction projects requiring galvanized steel has been generally sluggish this year, Boyles has been profitable in every quarter.
 Lake River Terminals sales were down 7.9 percent for the third quarter. Throughput volume declined because customers were forced to divert inbound shipments to other terminals during the exceptional floods experience in the Midwest.
 Kinark's president and chief executive officer, Paul R. Chastain, commented, "Given the slow pace of economic recovery, we are pleased with the results of our chemical operations in the third quarter and Kinpak's return to profitability. Boyles Galvanizing is generating a good earnings base from increased projects for the highway and railroad transportation sector and this business should be very strong for us, long-term."
 Kinark Corporation, with corporate headquarters in Tulsa, operates chemical facilities in Chicago and Montgomery, Ala. and provides corrosion protection of structural steel components with galvanizing plants in Denver, Louisville, Nashville, St. Louis, Houston, and Hurst, Texas.
 (in thousands of dollars except per share)
 Periods Quarter Nine Months
 ended Sept. 30 1993 1992 1993 1992
 Sales $7,893 $8,621 $23,001 $23,075
 Cost of sales 5,767 6,177 16,838 16,329
 Selling, administrative expenses 1,058 999 3,130 2,898
 Depreciation 414 402 1,227 1,204
 Income from operations 654 1,043 1,806 2,644
 Interest expense, net 139 147 408 471
 Consent solicitation expenses (4) --- 1,076 ---
 Environmental settlement --- 250 --- 250
 Income tax 172 79 116 215
 Earnings before cumulative effect
 of change in accounting method 347 567 206 1,708
 Cumulative effect of accounting
 change --- --- 1,920 ---
 Discontinued operations-loss --- (1,140) --- (1,140)
 Net earnings (loss) 347 (573) 2,126 568
 Earnings (loss) per common share:
 Before cumulative effect of
 accounting change .09 .15 .06 .46
 Cumulative effect of accounting
 change --- --- .51 ---
 Discontinued operations --- (.31) --- (.31)
 Consolidated .09 (.16) .57 .15
 Average shares outstanding 3,759,000 3,680,000 3,756,000 3,699,000
 -0- 10/25/93
 /CONTACT: Carolyn A. Friedrich of Kinark, 918-494-0964/

CO: Kinark Corporation ST: Oklahoma IN: CHM SU: ERN

LG -- NY080 -- 6419 10/25/93 14:32 EDT
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Publication:PR Newswire
Date:Oct 25, 1993

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