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 OIL CITY, Pa., Oct. 28 /PRNewswire/ -- Quaker State Corporation (NYSE: KSF) reported a significant rise in net income in the three months ended Sept. 30, 1993 to $3,976,000 from $895,000 a year ago.
 The strong performance was led by Quaker State Minit-Lube, Inc., the continued turnaround of its Truck-Lite Company, Inc. and included the one-time positive impact of approximately $1,200,000 related to the change in U.S. corporate tax rate. Earnings per share advanced to $0.14 from $0.04. This 250 percent increase occurred even though the company reserved for an estimated liability resulting from an adverse California court decision announced previously against its Heritage Life Insurance Company subsidiary. Sales and operating revenues for the quarter were $192,413,000, an increase of 3 percent over 1992 sales of $187,232,000.
 For the first nine months, Quaker State reported net income of $11,760,000 or $.43 per share, compared to a net loss of $58,087,000 or $2.13 loss per share in 1992. Income from continuing operations for the first nine months of 1992 was $7,725,000 or $0.29 per share, providing a 48 percent increase year-to-year from continuing operations. Sales and operating revenue of $567,307,000 for the first nine months of 1993 were 3 percent above the $550,396,000 reported in the same period of 1992.
 Amounts for 1992 have been restated to account for the discontinuance of coal operations and the cumulative effect of adopting Financial Accounting Board Standards 106 and 109 related to retiree health benefit costs and income taxes.
 "This has been an exciting quarter for 'The New Quaker State'," said Chairman and Chief Executive Officer Herbert M. Baum. "We are in the midst of the most aggressive consumer promotion program in Quaker State history to let our customers know we are now more flexible and more fiercely competitive than ever. We want their business. Our new advertising highlights the superiority of Quaker State motor oil and gives consumers more reasons to purchase our brand."
 Other significant events in the third quarter were:
 -- Quaker State Minit-Lube, Inc. began to convert 57 Minit-Lube outlets in Atlanta, Salt Lake City and Tucson, Ariz., into Q Lubes. Q Lubes in Phoenix and Reno have shown that the name recognition of Quaker State attracts new customers and increases weekly car counts.
 -- The oil and gas exploration and production division began construction of a feeder pipeline in southern New York State to deliver more natural gas from the company's new Stagecoach Field into commercial pipelines. Increased sales from this field will begin to contribute to Quaker State earnings in the first quarter of 1994.
 -- Truck-Lite Company, Inc. significantly increased quarterly operating profits by $3.6 million over a year-ago loss as safety lighting product demand for heavy-duty trucks and auto models remained high.
 -- Heritage Insurance Group reported record sales of extended warranty service contracts and increased sales of credit life policies.
 Operating profits for the Quaker State Oil Marketing and Refining Division were $5.3 million in the third quarter, compared to $6.3 million in the same quarter of 1992, with a sales decline of $4 million to $114 million. However, September motor oil gallonage was up 28 percent as new advertising, increased retail displays and a $4.20 per case cash rebate created new marketing excitement.
 Fast lube operating profits increased 83 percent to $1.7 million in the third quarter, although sales decreased 2 percent to $26.5 million. The sales decline reflects volume lost resulting from the sale of 16 stores in April; comparable store sales were up slightly. Reduced operating costs and a modest increase in average ticket prices contributed to the profit improvement.
 The oil and gas exploration and production division reported an operating loss of $169,000 in the seasonally slow third quarter compared to a profit of $523,000 in the same period a year ago. The primary causes were a $3 per barrel reduction in crude oil revenues and increased depreciation and depletion charges, which more than offset modest price and volume gains in natural gas. Also, results for 1992 reflect the extension of a gas gathering system lease which had a positive impact on operating profits.
 Truck-Lite Company, Inc. reported record sales in the third quarter of $19.1 million, compared to $15.1 million in the third quarter of 1992. During the same period, operating profit rose to $1.2 million from a loss of $2.4 million. On Sept. 24, the revitalized automotive division again received the coveted Q-1 Award from Ford Motor Co.
 Heritage Insurance Group, Inc. reported an operating loss in the third quarter of just under $2 million, compared to a profit of $946,000 in the third quarter of 1992. The reported loss was a result of the company's decision to reserve for its estimate of probable liability related to a recent adverse California jury decision. The verdict is under appeal. Otherwise, Heritage enjoyed an excellent quarter in which sales rose from $28.4 million in the third quarter of 1992 to a record $33.1 million this year.
 Quaker State Corporation is principally a producer of branded motor oil and lubricants and a marketer of products and services in the automotive aftermarket. Subsidiaries provide efficient and inexpensive fast lube services, produce crude oil and natural gas, manufacture safety lighting equipment for cars and trucks, and market credit life and indemnity insurance policies chiefly through auto dealers.
 Period Ended For the quarter For the nine months
 Sept. 30 1993 1992 1993 1992
 (in thousands except per share data, unaudited)
 Net Income (Loss)
 Per Share $.14 $.04 $.43 $(2.13)(A)
 Sales and
 Revenues $ 192,413 $ 187,232 $ 567,307 $ 550,396
 Operating Profit 6,303 6,821 28,141 24,141
 Income From
 Operations Before
 Income Taxes and
 Cumulative Effect
 of Accounting
 Changes 4,451 2,760 15,285 10,325
 Net Income (Loss) 3,976 895 11,760 (58,087)(A)
 Weighted Average
 Capital Shares
 Outstanding 27,222 27,188 27,215 27,186
 (A) Includes the cumulative effect of an accounting change for FASB Nos. 106 and 109 of $62,600,000 ($2.30 loss per share) in 1992.
 -0- 10/28/93
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7877/

CO: Quaker State Corporation ST: Pennsylvania IN: OIL AUT SU: ERN

KC -- PG017 -- 7991 10/28/93 13:54 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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