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PRESTON REPORTS RESULTS

 PRESTON REPORTS RESULTS
 PRESTON, Md., Oct. 21 /PRNewswire/ -- Preston Corporation


(NASDAQ: PTRK) announced today a net loss for the quarter ended Sept. 30, 1992, of $1,049,000 or $.18 per share versus net income of $82,000 or $.01 per share for the same period in 1991. Revenues for the quarter were $152.7 million compared to $146.2 million for the third quarter of 1991.
 For the nine months ended Sept. 30, 1992, the net loss was $4.0 million or $.69 per share compared to net income of $1.2 million or $.21 per share in the same period of 1991. Revenues for the first nine months of 1992 were $434.7 million compared to $426.5 million in the first nine months of 1991.
 The current year-to-date loss includes an after-tax charge of $1,744,000 or $.30 per share relating to an increase in the provision for the September, 1990 closing of Pioneer Transportation Systems, Inc. and Reeves Transportation Company. The current year-to-date loss also includes a first-quarter after-tax charge to earnings of $837,000 or $.14 per share pertaining to an accounting change in the method of revenue recognition. Excluding this first quarter charge and the adjustments to the close-down provision, the net loss for the nine months of 1992 would be $1.4 million or $.25 per share.
 Compared to the prior year's third quarter, the current quarter's LTL rates decreased 2.2 percent at Preston Trucking Company and 1.4 percent at Saia Motor Freight.
 Third quarter LTL tonnage increased .6 percent at Preston Trucking Company compared to the third quarter of 1991, while Saia Motor Freight third quarter 1992 LTL tonnage increased 6.0 percent as a result of market share gains due in part to the failure of a major competitor in July, 1991.
 Preston Trucking Company's operating results for the quarter ended Sept. 30, 1992 were adversely affected due to the decline in rates, the 2.7 percent increase in Teamster wages on April 1, and flat tonnage. Preston Trucking Company's operating loss for the third quarter of 1992 was $3.7 million and its operating ratio was 103.5 percent.
 In the third quarter, Saia Motor Freight reported operating income of $3.6 million and an operating ratio of 88.2 percent, benefiting from volume gains which more than offset the rate decline; increased salary, wage and fringe expenses; and increases in insurance reserves.
 William B. Potter, chairman and president, said, "With the exception of continued strong performance at Saia, we remain disappointed with operating performance, particularly at Preston Trucking Company. We continue to pursue operating initiatives to maintain Preston Trucking Company's market positioning as a premier next-day service provider in its regional markets and to restore its profitability in a continuing sluggish economic environment."
 On Aug. 14, 1992, the company announced that, in view of previously reported operating results and the constraints of its various long-term debt facilities, it had retained Goldman Sachs & Co. to assist in the evaluation of strategic and financial alternatives, restructuring possibilities, and operating initiatives. The company has been exploring various alternatives with the assistance of Goldman Sachs & Co. and is currently actively pursuing possible transactions. The company hopes to be in a position in the near future to report on a transaction; however, there can be no assurance that it will be able to do so.
 Preston Corporation is a holding company which, through its principal subsidiaries, transports freight by truck for a wide range of manufacturers, wholesalers and retailers. The operating subsidiaries include Preston Trucking Company, Inc. of Preston, and Saia Motor Freight Line, Inc. of Houma, La., which comprise 91 percent of consolidated revenue; as well as Smalley Transportation Company of Tampa, Fla., and CSI/Reeves, Inc. of Calhoun, Ga.
 PRESTON CORPORATION
 Consolidated Revenues and Net Results
 (In thousands except share amounts, unaudited)
 Periods ended Third Quarter Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenue 152,715 146,205 434,675 426,534
 Net earnings (loss)(A) (1,049) 82 (3,999)(A) 1,234
 Earnings (loss)
 per share ($0.18) $0.01 ($0.69)(A) $0.21
 Accounting charge for
 revenue recognition N/A N/A (837) N/A
 Earnings (loss)
 excluding revenue
 recognition charge (1,049) 82 (3,162) 1,234
 Earnings (loss) per
 share excluding
 revenue recognition
 charge ($0.18) $0.01 ($0.55) $0.21
 Average shares
 outstanding 5,758,701 5,758,701 5,758,701 5,758,701
 (A) Current year-to-date loss includes impact of a charge to the provision for close-down of subsidiaries in the amount of $1,744,000 or $0.30 per share.
 -0- 10/21/92
 /CONTACT: William B. Potter, chairman and president of Preston Corporation, 410-673-7151/
 (PTRK) CO: Preston Corporation ST: Maryland IN: TRN SU: ERN


AH -- NY120 -- 3131 10/21/92 17:05 EDT
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Date:Oct 21, 1992
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