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MAYFLOWER GROUP ANNOUNCES THIRD QUARTER RESULTS

 INDIANAPOLIS, Nov. 3 /PRNewswire/ -- Mayflower Group, Inc. (NASDAQ: MAYF) today announced its operating results for the three months ended Sept. 30, 1993. Operating profits for the third quarter before charges for interest and taxes increased 63 percent over pro forma results for the third quarter of 1992.
 However, primarily due to a special adjustment for increased corporate tax rates of $405,000, or $.03 per share, the company reported a net loss for the third quarter of $379,000, or $.03 per share. These results compare to a pro forma 1992 third quarter net loss of $347,000, or $.03 per share. Net loss reported for the third quarter of 1992 was $1,105,000 before pro forma adjustments related to the company's March 1992 financial reorganization, adoption of new accounting principles and adoption of shorter lives used to write off intangible assets. The company's third quarter results for both years also reflect seasonally low revenues for Contract Services, the company's passenger service operating subsidiary.
 For the nine months ended Sept. 30, 1993, net income after the special adjustment for increased corporate tax rates, but before an extraordinary charge of $549,000, or $.04 per share, related to the early repayment of indebtedness by Contract Services, was $3,894,000 or $.30 per share. These results compare to net income of $4,083,000, or $.32 per share, for the same period in 1992 after pro forma adjustments, as discussed above.
 Revenues from the company's two operating subsidiaries continued to grow. Contract Services' revenue increased by 15.7 percent during the three months ended Sept. 30, 1993, compared to the third quarter of 1992. Mayflower Transit's revenues grew 2.3 percent during the same period. On a consolidated basis, revenues were $186,220,000 for the third quarter, up 5.1 percent over the same period in 1992.
 For the nine month period ended Sept. 30, revenues increased to $527,129,000, or 8.1 percent over 1992 nine month revenues of $487,589,000. During this nine month period, Contract Services' revenues increased 13.8 percent and Transit's revenues increased 5.7 percent.
 The company's Chairman and Chief Executive Officer, Michael L. Smith, noted that most of Contract Services' growth during the nine month period was related to the expansion of its contracted paratransit services operation. He pointed out that Contract Services' prospects for future performance were enhanced during the third quarter by the award of thirteen new service contracts with aggregate annual revenues of approximately $20 million and the acquisition on Sept. 1, 1993, of CTS Management Company, a North Carolina paratransit contractor with annual revenues of $4.5 million.
 Smith observed that Transit's revenue increases this year have not been sufficient to offset higher costs associated with driver turnover. Downward price pressures and higher equipment and insurance costs and recent fuel price increases have severely hurt Transit's independent van operator fleet. "We remain determined to reverse Transit's operating profit declines, but recognize that pricing trends and higher driver costs represent a challenge for Mayflower and the entire industry," he stated. Management is working on a number of programs targeting improved driver productivity, according to Smith.
 Mayflower Group, Inc. is a holding company that conducts its entire business through its two operating subsidiaries, Mayflower Transit, Inc. ("Transit") and Mayflower Contract Services, Inc. ("Contract Services"). Transit, headquartered in Carmel, Ind., is an international services company that provides specialized transportation, warehousing, distribution, and related logistics/management services involving household goods, electronic products, trade show exhibitry, and other products requiring special handling. Contract Services is a national passenger transportation services company headquartered in Overland Park, Kan. It provides student transportation and public transportation services pursuant to contracts with school corporations, municipalities, and other government or private entities throughout the United States.
 Mayflower Group, Inc.
 Consolidated Operating Results
 (Unaudited)
 (in thousands except
 per share data) Three months ended Sept. 30,
 1993 1992 1992
 Actual Pro Forma Actual
 Operating revenues:
 Transit $144,004 $140,710 $140,710
 Contract Services 42,216 36,477 36,477
 Total $186,220 $177,187 $177,187
 Operating profit:
 Transit $ 8,530 $ 8,877 $ 9,407
 Contract Services (6,577) (7,620) (9,087)
 Unallocated overhead (153) (155) 227
 Total 1,800 1,102 547
 Interest expense, net (1,724) (1,624) (1,624)
 Other, net (65) (37) (37)
 Income (loss) before federal income
 taxes, change in tax rate and
 ext. items 11 (559) (1,114)
 Prov. for fed. income taxes (15) (212) (9)
 Income (loss) before
 change in tax rate and ext. items 26 (347) (1,105)
 Adjustment for effect of change in
 tax rate (405) --- ---
 Income (loss) before ext. items (379) (347) (1,105)
 Extraordinary items --- --- ---
 Net income (loss) $ (379) $ (347) $ (1,105)
 Weighted avg. shares 12,650 12,646 12,646
 Earnings (loss) per share:
 Before ext. items and change
 in tax rate $ --- $ (.03) $ (.09)
 Change in tax rate (.03) --- ---
 Before ext. items (.03) (.03) (.09)
 Extraordinary items --- --- ---
 Net income (loss) $ (.03) $ (.03) $ (.09)
 Nine months ended Sept. 30,
 1993 1992 1992
 Actual Pro Forma Actual
 Operating revenues:
 Transit $360,557 $341,215 $341,215
 Contract Services 166,572 146,374 146,374
 Total $527,129 $487,589 $487,589
 Operating profit:
 Transit $ 6,710 $ 10,361 $ 12,081
 Contract Services 5,562 2,422 3,236
 Unallocated overhead (579) (418) (962)
 Total 11,693 12,365 14,355
 Interest expense, net (4,849) (6,063) (7,824)
 Other, net (244) 164 164
 Income (loss) before federal income
 taxes, change in tax rate and
 ext. items 6,600 6,466 6,695
 Prov. for fed. income taxes 2,301 2,383 3,050
 Income (loss) before
 change in tax rate and ext. items 4,299 4,083 3,645
 Adjustment for effect of change in
 tax rate (405) --- ---
 Income (loss) before ext. items 3,894 4,083 3,645
 Extraordinary items (549) --- 93,141
 Net income (loss) $ 3,345 $ 4,083 $ 96,786
 Weighted avg. shares 12,647 12,646 12,646
 Earnings (loss) per share:
 Before ext. items and change
 in tax rate $ .33 $ .32 $ .29
 Change in tax rate (.03) --- ---
 Before ext. items .30 .32 .29
 Extraordinary items (.04) --- 7.36
 Net income (loss) $ .26 $ .32 $ 7.65


PRO FORMA FINANCIAL INFORMATION
 During 1992, certain events occurred that result in the condensed consolidated financial statements not being comparable between the respective fiscal periods. Pro forma pre-tax results reflect credits of $555,000 and charges of $229,000 for the three months and nine months ended Sept. 30, 1992, respectively, and include the following: the elimination of subordinated debt interest and expenses related to the March 1992 corporate reorganization; the additional expense relative to retroactive adoption of SFAS 109, "Accounting for Income Taxes" to Jan. 1, 1992 (actual adoption date was April 1, 1992); the additional expense relative to retroactive adoption of shorter lives of intangible assets and goodwill to Jan. 1, 1992 (actual adoption date was Oct. 1, 1992); and reversal of amortization credits relative to the adoption of fresh start reporting following the reorganization in 1992.
 -0- 11/3/93
 /CONTACT: Michael L. Smith, chairman, president and chief executive officer, of Mayflower Group, 317-875-1440 or 913-345-1986/
 (MAYF)


CO: Mayflower Group, Inc. ST: Indiana IN: TRN SU: ERN

BM-AR -- CL026 -- 0339 11/03/93 17:15 EST
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Date:Nov 3, 1993
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