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KYSOR ANNOUNCES CONTINUED EARNINGS IMPROVEMENT FOR SECOND QUARTER

 CADILLAC, Mich., July 19 /PRNewswire/ -- Kysor Industrial Corporation (NYSE: KZ) reported today income of $2.8 million equating to $.45 earnings per share for the second quarter, an 18.5-percent increase over the $2.3 million or $.40 per share reported for the same period a year ago. Sales and revenues for the quarter were $69.9 million, up 7.9 percent from the $64.8 million reported for the second quarter 1992.
 For the six-month period, earnings before the cumulative effect of the accounting change for SFAS No. 106 were $4.9 million or $.78 per share compared to $3.4 million or $.56 per share during the same period in 1992. Sales and revenues for the six-month period were $133.8 million compared to sales and revenues of $120.7 million during 1992. As previously disclosed, Kysor Industrial Corporation recorded the SFAS No. 106 postretirement health care transition obligation of $7.6 million as a one-time charge during the first quarter, 1993. Adoption of SFAS No. 106 did not have an impact on cash reserves, debt covenants or dividends, however, the cumulative impact of the accounting charge on earnings is $1.35 per share.
 George Kempton, chairman of the board and chief executive officer, stated, "Kysor's 11-percent increase in sales and revenues and a 43-percent increase in pre-SFAS No. 106 income for the six-month period ending June 30, 1993, reflect continued strength in earnings as the result of strategic capital investments and new product developments which have occurred over the last few years combined with continued aggressive cost containment efforts." Kempton further stated, "As we look ahead, backlogs continue to be strong and we feel we are well positioned to take advantage of improved economic activity and the strong market conditions in the heavy-duty truck market."
 Kysor Industrial Corporation is a quality producer of refrigeration systems for the supermarket industry and heavy-duty vehicle and marine components serving the transportation industries. The company has manufacturing operations in six states as well as Great Britain and Germany.
 Detailed financial information for the second quarter ended June 30, 1993, is as follows:
 KYSOR INDUSTRIAL CORPORATION
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (Unaudited; amounts in thousands except for per-share data)
 Quarter Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Sales and revenues $69,933 $64,829 $133,842 $120,670
 Costs and expenses 65,206 60,686 125,290 114,535
 Income before income taxes
 before cumulative effect of
 accounting change 4,727 4,143 8,552 6,135
 Income taxes 1,950 1,800 3,670 2,720
 Income before cumulative
 effect of accounting change 2,777 2,343 4,882 3,415
 Cumulative effect of change in
 accounting for postretirement
 benefits (net of income tax
 benefit of $4,435,000) --- --- (7,628) ---
 Net income (loss) 2,777 2,343 (2,746) 3,415
 Dividends on preferred stock 249 262 499 525
 Earnings (loss) applicable
 to common stock $2,528 $2,081 ($3,245) $2,890
 Earnings (loss) per common share
 Primary -- Income before
 accounting change $0.45 $0.40 $0.78 $0.56
 -- Accounting change --- --- (1.35) ---
 -- Net earnings (loss) $0.45 $0.40 ($0.57) $0.56
 Fully diluted -- Income before
 accounting change $0.38 $0.35 $0.66 $0.49
 -- Accounting change --- --- (1.35) ---
 -- Net earnings (loss) $0.38 $0.35 ($0.69) $0.49
 Primary weighted average common
 shares and equivalents 5,648 5,233 5,645 5,167
 Dividends declared per
 common share $0.11 $0.10 $0.21 $0.20
 The company adopted the provisions of SFAS (Statement of Financial Accounting Standards) 106 -- Employers Accounting for Postretirement Benefits Other than Pensions and SFAS 109 -- Accounting for Income Taxes in the quarter ended March 31, 1993. The accumulated postretirement benefit obligation booked as a one-time cumulative change in accounting amounted to $12,063,000 less a deferred tax benefit of $4,435,000 which equated to $1.35 per share. Expenses for the quarter and six months ended June 30, 1993, include $141,000 and $282,000 respectively, relating to the current effect of this change over the pay-as-you-go method which was in effect for 1992. There was no material effect on income due to the adoption of SFAS 109 -- Accounting for Income Taxes.
 KYSOR INDUSTRIAL CORPORATION
 CONSOLIDATED CONDENSED BALANCE SHEET
 (Unaudited; amounts in thousands)
 June 30, Dec. 31,
 ASSETS 1993 1992
 Cash and equivalents $12,902 $6,913
 Accounts receivable - net 40,655 32,070
 Inventories 32,262 34,435
 Prepaid expenses 1,752 1,402
 Deferred income tax charges 5,759 5,695
 CURRENT ASSETS 93,330 80,515
 Net property, plant and equipment 43,256 41,898
 Goodwill and other intangibles 2,926 3,046
 Cash value of officers' life insurance 8,770 8,589
 Deferred income tax charges 4,363 ---
 Other assets 2,181 1,802
 TOTAL $154,826 $135,850
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current maturities of long-term debt $2,886 $1,595
 Accounts payable 17,014 14,388
 Accrued incomes taxes payable 2,028 1,719
 Other accrued expenses 26,499 21,204
 CURRENT LIABILITIES 48,427 38,906
 Long-term debt, less current maturities
 plus guarantee of ESOP indebtedness 36,881 36,521
 Deferred income taxes --- 1,108
 Accumulated postretirement benefit
 obligation 12,345 ---
 Other long-term liabilities 6,750 6,410
 Preferred shareholders' equity 3,200 2,817
 Common shareholders' equity 47,223 50,088
 TOTAL $154,826 $135,850
 KYSOR INDUSTRIAL CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS
 Six Months Ended June 30,
 1993 1992
 Cash flows provided (used) by
 operating activities:
 Net income (loss) ($2,746) $3,415
 Adjustments to reconcile net income
 (loss) to net cash provided (used) by
 operating activities:
 Depreciation and amortization 3,940 3,969
 Provision for losses on accounts receivable 162 89
 (Gain) loss on sales of fixed assets 6 6
 Deferred compensation (ESOP) 606 614
 Changes in assets and liabilities
 providing (consuming) cash:
 Accounts receivable (8,747) (14,553)
 Inventories 2,173 (30)
 Prepaid expenses (350) (579)
 Accounts payable 2,564 4,618
 Accrued expenses and contingent
 liabilities 5,295 4,026
 Accrued income taxes payable 971 1,759
 Deferred income taxes (5,535) (1,363)
 Other long-term liabilities 12,685 646
 Net cash provided (used) by operating
 activities 11,024 2,617
 Cash flows provided (used) by investing
 activities:
 Additions to property and equipment (5,322) (1,724)
 Proceeds from sales of fixed assets 138 195
 Decrease (increase) in other long-term
 assets (560) (43)
 Unrealized translation gain (loss) (271) 20
 Net cash provided (used) by investing
 activities (6,015) (1,552)
 Cash flows provided (used) by financing
 activities:
 Current borrowings 1,835 2,000
 Principal payments against long-term debt (185) (1,054)
 Proceeds from issuance of common stock 1,201 13
 Common stock and preferred stock
 dividends paid (1,871) (1,828)
 Net cash provided (used) by financing
 activities 980 (869)
 Net increase (decrease) in cash and
 equivalents 5,989 196
 Cash and equivalents at beginning of year 6,913 4,339
 Cash and equivalents at end of period $12,902 $4,535
 -0- 7/19/93
 /CONTACT: Terry M. Murphy, vice president/chief financial officer, or Richard G. De Boer, treasurer, Kysor Industrial Corporation, 616-779-2200/
 (KZ)


CO: Kysor Industrial Corporation ST: Michigan IN: SU: ERN

JG-KE -- DE010 -- 3022 07/19/93 11:37 EDT
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Date:Jul 19, 1993
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