Printer Friendly

KYSOR INDUSTRIAL CORPORATION REPORTS THIRD QUARTER AND NINE-MONTH EARNINGS CONTINUE STRONG

 CADILLAC, Mich., Oct. 21 /PRNewswire/ -- George R. Kempton, chairman of the board and chief executive officer of Kysor Industrial Corporation (NYSE: KZ), announced sales and revenue increases for both the third quarter and nine-month period ended Sept. 30, 1993, as well as continued strong earnings performance.
 The transportation products group generated excellent sales for the third quarter 1993, reflecting the healthy heavy-duty truck market while sales for the commercial products group were off slightly from the record pace exhibited in the third quarter 1992 due to the trimming of expansion plans by a major customer. Net income was $3.3 million or $.54 per share compared to the $3.8 million or $.66 per share reported during the same period in 1992. Third quarter 1993 results include a charge of $.03 per share reflecting the nine-month impact of the new federal income tax legislation.
 For the nine-month period ended Sept. 30, sales and revenues increased 8 percent to $208.3 million and income before the cumulative effect of the accounting change for postretirement health care benefits was $8.2 million compared to $7.2 million last year -- an increase of 14 percent. Year-to-date earnings per share before the accounting change were $1.32 compared to $1.22 during 1992.
 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 quarter and nine-month period ended Sept. 30, 1993, is as follows:
 KYSOR INDUSTRIAL CORPORATION
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (Unaudited, amounts in thousands except for per-share data)
 Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Sales and revenues $74,435 $72,379 $208,277 $193,049
 Costs and expenses 68,695 66,188 193,985 180,723
 Income before income taxes
 before cumulative effect
 of accounting change 5,740 6,191 14,292 12,326
 Income taxes 2,470 2,440 6,140 5,160
 Income before cumulative
 effect of accounting change 3,270 3,751 8,152 7,166
 Cumulative effect of change
 in accounting for
 postretirement benefits
 (net of income tax benefit
 of $4,435,000) --- --- (7,628) ---
 Net income (loss) 3,270 3,751 524 7,166
 Dividends on preferred stock 238 262 737 787
 Earnings (loss) applicable
 to common stock $3,032 $3,489 ($213) $6,379
 Earnings (loss) per
 common share
 Primary
 - income before
 accounting change $0.54 $0.66 $1.32 $1.22
 - accounting change --- --- (1.35) ---
 - net earnings (loss) $0.54 $0.66 ($0.03) $1.22
 Fully diluted
 - income before
 accounting change $0.46 $0.55 $1.12 $1.04
 - accounting change --- --- (1.35) ---
 - net earnings (loss) $0.46 $0.55 ($0.23) $1.04
 Primary weighted average
 common shares and
 equivalents 5,602 5,337 5,632 5,225
 Dividends declared per
 common share $0.11 $0.10 $0.32 $0.30
 In September 1993, Kysor signed a letter of intent to purchase the assets of Kalt Manufacturing Co., Inc. Kalt manufactures insulated panels and doors for the supermarket and convenience store industries. Terms and conditions, including the financial details of the proposed purchase, were not disclosed. The acquisition is subject to the approval of Kysor's Board of Directors after completion of a "due diligence" review.
 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 nine months ended Sept. 30, 1993, include $141,000 and $423,000 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.
 CONSOLIDATED CONDENSED BALANCE SHEET
 (Unaudited, amounts in thousands)
 Sept. 30, Dec. 31,
 ASSETS 1993 1992
 Cash and equivalents $18,018 $6,913
 Accounts receivable - net 44,366 32,070
 Inventories 30,641 34,435
 Prepaid expenses 884 1,402
 Deferred income tax charges 6,105 5,695
 CURRENT ASSETS 100,014 80,515
 Net property, plant and equipment 42,929 41,898
 Goodwill and other intangibles 2,866 3,046
 Cash value of officers' life insurance 9,499 8,589
 Deferred income tax charges 4,535 ---
 Other assets 1,986 1,802
 TOTAL $161,829 $135,850
 Sept. 30, Dec. 31,
 LIABILITIES AND SHAREHOLDERS' EQUITY 1993 1992
 Current maturities of long-term debt $3,474 $1,595
 Accounts payable 16,337 14,388
 Accrued income taxes payable 2,886 1,719
 Other accrued expenses 29,167 21,204
 CURRENT LIABILITIES 51,864 38,906
 Long-term debt, less current maturities,
 plus guarantee of ESOP indebtedness 36,897 36,521
 Deferred income taxes --- 1,108
 Accumulated postretirement benefit obligation 12,487 ---
 Other long-term liabilities 7,039 6,410
 Preferred shareholders' equity 3,396 2,817
 Common shareholders' equity 50,146 50,088
 TOTAL $161,829 $135,850
 KYSOR INDUSTRIAL CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS
 Nine Months Ended Sept. 30,
 1993 1992
 CASH FLOWS PROVIDED (USED) BY
 OPERATING ACTIVITIES:
 Net income $524 $7,166
 Adjustments to reconcile net income to
 net cash provided (used) by operating
 activities:
 Depreciation and amortization 5,926 5,930
 Provision for losses on accounts receivable 297 491
 (Gain) Loss on sales of fixed assets 0 (3)
 Deferred compensation (ESOP) 996 1,005
 Changes in assets and liabilities
 providing (consuming) cash:
 Accounts receivable (12,593) (21,747)
 Inventories 3,794 (341)
 Prepaid expenses 518 (367)
 Accounts payable 2,282 7,705
 Accrued expenses and contingent liabilities 7,963 5,953
 Accrued income taxes payable 2,021 3,214
 Deferred income taxes (6,053) (2,391)
 Other long-term liabilities 13,116 970
 NET CASH PROVIDED BY OPERATING ACTIVITIES 18,791 7,585
 CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
 Additions to property and equipment (6,784) (2,967)
 Proceeds from sales of fixed assets 8 88
 Decrease (increase) in other long-term
 assets (1,094) (679)
 Unrealized translation gain (loss) (42) 47
 NET CASH PROVIDED (USED) BY INVESTING
 ACTIVITIES (7,912) (3,511)
 CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
 Current borrowings 2,438 0
 Principal payments against long-term debt (183) (772)
 Proceeds from issuance of common stock 1,233 235
 Common stock and preferred stock
 dividends paid (3,262) (3,139)
 NET CASH PROVIDED (USED) BY FINANCING
 ACTIVITIES 226 (3,676)
 NET INCREASE (DECREASE) IN CASH AND
 EQUIVALENTS 11,105 398
 CASH AND EQUIVALENTS AT BEGINNING OF YEAR 6,913 4,339
 CASH AND EQUIVALENTS AT END OF PERIOD $18,018 $4,737
 -0- 10/21/93
 /CONTACT: Terry M. Murphy, V.P and Chief Financial Officer, or Richard G. De Boer, Treasurer, of Kysor Industrial Corporation, 616-779-2200/
 (KZ)


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

ML-SK -- DE010 -- 5093 10/21/93 10:46 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:1193
Previous Article:F & M NATIONAL CORPORATION REPORTS INCREASED NINE-MONTH EARNINGS
Next Article:GREAT LAKES BANCORP POSTS $4.9 MILLION 3RD-QUARTER NET OPERATING EARNINGS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters