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KINARK ESTIMATES RECORD SALES AND EARNINGS IN 1992 DESPITE SLOW FIRST HALF AND RECORD $5 MILLION CAPITAL EXPENDITURES

KINARK ESTIMATES RECORD SALES AND EARNINGS IN 1992 DESPITE SLOW FIRST
            HALF AND RECORD $5 MILLION CAPITAL EXPENDITURES
    TULSA, Okla., Feb. 10 /PRNewswire/ -- Citing expected strong performances in its galvanizing and chemicals businesses during the second half of this year, Kinark Corporation (AMEX: KIN) estimates record sales and earnings for 1992, it was announced today.
    "We are encouraged by rising sales from our base galvanizing accounts as well as expected improvements in the economy," explained Paul R. Chastain, chairman and chief executive officer of Kinark.  "We are also expecting another strong year in our chemicals business, particularly in the second half."  Kinark reported sales of $34.1 million and earnings from continuing operations of $5.3 million or $1.43 per share in 1991.
    However, Chastain noted that first and second quarter sales for 1992 will be flat, with lower earnings due to the year-end slowdown in the company's galvanizing business which has carried into 1992.  "Margins have also narrowed from last year due to increased price competition resulting from lower zinc costs," Chastain said.
    It was also noted that the company has budgeted a record $5 million for capital expenditures in 1992.  "We are committed to a long-term expansion program for this company.  Therefore, investing in our future is critical to continued growth for our shareholders," Chastain said.
    The company also has decided to charge $1.9 million to discontinued operations for the fourth quarter of 1991.  This is for a note receivable and mortgage guarantees on hotel real estate the company had sold last year.  This resulted in a total discontinued loss of $1.6 million or $.43 per share for the year.  The writedown follows the buyer's filing for Chapter 11 protection in January.
    "We decided to establish a reserve for the maximum exposure on this discontinued operation, although we expect to recover some of our investment in time.  This will not affect the profitability of our core galvanizing and specialty chemical businesses," Chastain said.
    The company's revised net earnings for 1991, including the one-time charge to discontinued operations, totaled $3.7 million or $1 per share.
    Chastain also said Kinark plans to aggressively pursue expansion of its galvanizing business through an acquisition this year.  "Our goal is to increase Boyles Galvanizing's position of leadership in the galvanizing industry.  With our businesses strong and continuing to improve, and the hotel problems behind us, we are positioned to implement our acquisition plan."
    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, Ky., Nashville, Tenn., St. Louis, Houston, and Hurst, Texas.
                          KINARK CORPORATION
                  Consolidated Statements of Earnings
                        Revised Feb. 10, 1992
             (Thousands of dollars, except per share -- Unaudited)
                               Quarter Ended Dec. 31         Year
                                   1991      1990       1991       1990
    Sales                        $8,721    $8,808    $34,109    $34,202
    Costs & expenses              7,599     8,612     28,760     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)             (1,949)   (1,000)    (1,597)    (9,649)
    Net earnings (loss)            (790)     (865)     3,686     (7,519)
    Primary earnings (loss) per share:
     Continuing operations         $.28      $.04      $1.43       $.60
     Discontinued operations       (.53)     (.28)      (.43)     (2.71)
     Net earnings (loss)           (.25)     (.24)      1.00      (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-        2/10/92
    /CONTACT:  Carolyn A. Fredrich of Kinark, 918-494-0964, or Carl Thompson of Carl Thompson Associates, 303-494-5472, for Kinark/
    (KIN) CO:  Kinark Corporation ST:  Oklahoma IN:  CHM SU:  ERN CK-OJ -- NY026 -- 8199 02/10/92 10:25 EST
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Date:Feb 10, 1992
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