Printer Friendly

PRESTON REPORTS RESULTS

 PRESTON, Md., Feb. 9 /PRNewswire/ -- Preston Corporation (NASDAQ: TRK) announced today a net loss for the quarter ended December 31, 1992, of $10.6 million or $1.84 per share versus a net loss of $4.6 million or $.80 per share for the same period in 1991. Revenues for the quarter were $146.4 million compared to $138.1 million for the fourth quarter of 1991.
 Fourth quarter results were adversely affected by approximately $4.0 million or $.69 per share from various unusual charges including expenses resulting from the pending acquisition of the company by Yellow Freight System, Inc. of Delaware, related interim financing and insurance arrangements, and other miscellaneous items. Excluding these impacts, the quarterly net loss was $6.6 million or $1.15 per share.
 While not quantifiable, quarterly results were also weakened by the concerns of customers and other constituents due to the company's strategic evaluation process originally announced August 14, 1992, as well as previously announced poor operating results, and liquidity and debt problems. The strategic evaluation process eventually resulted in an announcement on November 20, 1992, that the company had signed a definitive agreement to be acquired by Yellow Freight. The Yellow Freight cash tender offer at $4.125 per share is in process and currently will expire at midnight February 16, 1993. As of February 5, 1993, 77.65 percent of the company's common stock had been tendered. Consummation of the transaction is subject to conditions specified in the acquisition agreement including approval by the Interstate Commerce Commission. Assuming no objections are filed, the ICC approval process will become effective at the close of business on February 16, 1993.
 For the year ended December 31, 1992, the net loss was $14.6 million or $2.53 per share compared to a net loss of $3.4 million or $.59 per share in the same period of 1991. Revenues for 1992 were $581.1 million compared to $564.6 million for 1991.
 The current year loss includes prior quarter after-tax charges 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 a major portion of 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.
 Compared to the prior year, the 1992 LTL rates decreased 2.3 percent at Preston Trucking Company and 2.1 percent at Saia Motor Freight. 1992 LTL tonnage increased 1.1 percent at Preston Trucking Company compared to 1991 while Saia Motor Freight's 1992 LTL tonnage increased 11.6 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 1992 were adversely affected by the decline in rates, the 2.7 percent increase in Teamster wages in April, 1992, and the low growth in tonnage. Preston Trucking Company's operating loss before interest expense, non-operating items and income taxes for 1992 was $14.0 million as compared to a loss of $3.1 million in 1991. The 1992 operating ratio was 103.4 percent and the 1991 operating ratio was 100.7 percent.
 Saia Motor Freight reported 1992 operating income before interest expense, non-operating items and income taxes of $12.7 million and an operating ratio of 89.3 percent as volume gains more than offset the rate decline and various expense increases. Saia's comparable 1991 income was $11.8 million and the 1991 operating ratio was 89.2 percent.
 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, Maryland, and Saia Motor Freight Line, Inc. of Houma, Louisiana, which comprise 91 percent of consolidated revenue; as well as Smalley Transportation Company of Tampa, Florida, and CSI/Reeves, Inc. of Calhoun, Georgia.
 PRESTON CORPORATION
 Consolidated Revenues and Net Results
 For the Quarter and Year Ended December 31
 Unaudited
 (In Thousands Except Share Amounts)
 Fourth Quarter Year
 1992 1991 1992 1991
 Revenue $146,417 $138,076 $581,092 $564,610
 Net Loss (A) (10,589) (4,626) (14,588) (3,392)
 Loss per Share ($1.84) ($.80) ($2.53) ($.59)
 Accounting Charge for
 Revenue Recognition N/A N/A (837) N/A
 Loss excluding Revenue
 Recognition Charge (10,589) (4,626) (13,751) (3,392)
 Loss per Share
 excluding Revenue
 Recognition Charge ($1.84) ($.80) ($2.39) ($.59)
 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- 2/9/93
 /CONTACT: Bert Trucksess, vice president-finance of Preston, 410-673-7151, ext. 351/
 (PTRK)


CO: Preston Corporation ST: Maryland IN: TRN SU: ERN

KD -- NY094 -- 4873 02/09/93 17:24 EST
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:Feb 9, 1993
Words:846
Previous Article:THE EMERGING MEXICO FUND, INC. ANNOUNCES TERMS OF RIGHTS OFFERING
Next Article:REGENT BANCSHARES ANNOUNCES RESULTS
Topics:


Related Articles
PRESTON COMPLETES NEGOTIATIONS WITH LENDERS
PRESTON REPORTS RESULTS
PRESTON REPORTS NET LOSS FOR QUARTER ENDED JUNE 30
PRESTON EXPLORES STRATEGIC ALTERNATIVES
PRESTON REPORTS RESULTS
PRESTON CORPORATION TO BE ACQUIRED BY YELLOW FREIGHT SYSTEM, INC. OF DELAWARE
YELLOW EXPECTS BREAKEVEN FIRST QUARTER; SEPARATELY ANNOUNCES WAGE REDUCTION PROGRAM AT PRESTON TRUCKING CO.
YELLOW CORPORATION ANNOUNCES FIRST QUARTER RESULTS
YELLOW CORPORATION ANNOUNCES FIRST QUARTER RESULTS
Preston Outlines Benefits of Network Changes

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