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PINKERTON DISCUSSES 1992 OUTLOOK; SEES AT LEAST 25 PERCENT EARNINGS GAIN FOR YEAR; FIRST QUARTER TO BE AFFECTED BY ACQUISITION EXPENSE

PINKERTON DISCUSSES 1992 OUTLOOK; SEES AT LEAST 25 PERCENT EARNINGS GAIN
 FOR YEAR; FIRST QUARTER TO BE AFFECTED BY ACQUISITION EXPENSE
 LOS ANGELES, March 16 /PRNewswire/ -- Thomas W. Wathen, chairman and chief executive officer, Pinkerton Security & Investigation Services (NASDAQ: PKTN) today told a meeting of institutional investors and securities analysts that the company expects increased earnings in 1992.
 Wathen and Pinkerton President Albert J. Berger spoke today at the L.H. Friend, Weinress & Frankson Seventh Annual Institutional Investor Conference.
 Wathen said, "We expect earnings to increase at least 25 percent during 1992 based on the following factors:
 -- "We are starting with a 10 percent larger revenue base in 1992 than we had at the beginning of 1991 due to internal growth and acquisitions;
 -- "Our ability to attract new clients continues to expand with the maturing of our two-year-old corporate marketing department and new training and incentives for business development at the field office level;
 -- "We expect to continue our positive account retention trend throughout 1992;
 -- "We expect to make a number of additional acquisitions of security companies in the U.S., U.K. and Mexico;
 -- "We are successfully increasing billings among our existing clients; and,
 -- "Most of the development of our proprietary Pinkerton Automated Resource System (PARS) is behind us and we expect to reap the benefits of improved operations and lower costs in late 1992 and the future."
 Wathen said that Pinkerton expects to report increased revenues and gross margins from operations during the first quarter vs. a year ago. However, he said that higher than expected expenses and seasonally lower than expected revenues associated with the acquisition late in 1991 of Business Risks International may cause first quarter 1992 net income to be lower than the same period last year.
 Pinkerton acquired 17 companies with total annualized revenues of $91 million in 1991. Although most of these companies were immediately integrated into existing operations, some represent assimilation expenses which will continue into 1992. The largest part of these costs will be expensed in the first quarter and relate to the BRI acquisition.
 Pinkerton operates on a quarter system in which the last quarter is four weeks longer than each of the first three. Wathen said the cyclical nature of the security business often makes the first quarter less than 10 percent of annual results.
 Pinkerton, founded in 1850, is one of the world's largest security companies with more than 200 offices and 45,000 employees throughout the world. Services provided by Pinkerton include security guard operations and a full range of investigational services.
 -0- 3/16/92
 /CONTACT: Daniel C. Weaver, CFO and VP-finance of Pinkerton Security & Investigation Services, 818-782-5400; Timothy C. Kent or William F. Coffin of The Financial Relations Board, 818-783-2400, for Pinkerton Security & Investigation Services/
 (PKTN) CO: Pinkerton Security & Investigation Services ST: California IN: SU: ERP


DM-JL -- LA024 -- 8396 03/16/92 15:02 EST
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Publication:PR Newswire
Date:Mar 16, 1992
Words:480
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