Printer Friendly

SAFETY-KLEEN REPORTS RECORD REVENUE, SIX PERCENT GAIN IN FIRST QUARTER 1992 EARNINGS

 SAFETY-KLEEN REPORTS RECORD REVENUE,
 SIX PERCENT GAIN IN FIRST QUARTER 1992 EARNINGS
 ELGIN, Ill., April 8 /PRNewswire/ -- Donald W. Brinckman, chairman and chief executive officer of Safety-Kleen Corp. (NYSE: SK), announced today that Safety-Kleen achieved record revenue and a six percent gain in earnings, before the cumulative effect of a change in accounting principle for its first interim reporting period of 1992.
 Revenue for the 12 weeks ended March 21, 1992 was $173,939,000, an increase of $20,744,000 or 14 percent over 1991. Earnings before the cumulative effect of a change in accounting principle, increased 66 percent to $12,095,000. Earnings per share, before the cumulative effect of the accounting change, were $.21, compared to $.20 last year. The company adopted Statement of Financial Accounting Standards No. 10 on accounting for income taxes in the first interim period of 1992. The cumulative effect of the change increased net earnings by $3.2 million or six cents per share.
 Brinckman said, "Revenue of our North American Automotive/Retail Repair Parts Cleaner service was $55,344,000 in the current period, up 2 percent from 1991. Parts cleaner units in service worldwide in the Automotive/Retail Repair market totaled nearly 475,500 units at the end of the first quarter, an increase of 1.7 percent compared to the same time period last year. Most of the increase in units was due to the acquisition of Niemann Chemie at the beginning of fiscal year 1992."
 "Revenue of our North American Industrial Parts Cleaner and Fluid Recovery Services was $42,225,000 in the first quarter of 1992, an increase of 25
percent over 1991," Brinckman said. "Parts cleaner units in service worldwide in the industrial market totaled 117,000 at the end of the first quarter 1992, an increase of 15 percent from the same time period a year ago. Included in Industrial Services revenue for the first quarter of 1992 is $18,110,000 of revenue from the Fluid Recovery Service, an increase of 40 percent over 1991. We continue to experience excellent growth in our Industrial Services and as the economy improves, we would expect even better growth in the industrial market."
 Brinckman said, "At the start of the second quarter we increased prices for the domestic Automotive/Retail Repair and Industrial Parts Cleaner Services. Prices were increased from four percent to 10 percent with a weighted average of approximately 5.5 percent for customers who are not on annual contracts. Those who are on annual contracts will be subject to the price increase as their contracts expire."
 Brinckman added, "We have seen a substantial upturn in revenue from the Oil Recovery Service. Revenue of this service was $25,671,000 in the current quarter, up 29 percent from last year, compared to a 16 percent revenue gain for all of 1991. This increase stems from a 20 percent increase in used oil gallons collected and increased sales of re-refined products. For the quarter, sales of re-refined products exceeded production. Operating losses from this service totaled approximately $1.4 million in the current period, an increase of approximately $250,000 from last year. In May 1992, construction will be completed on the expansion of the East Chicago, Indiana re-refining plant, raising annual capacity from 50 million gallons to 75 million gallons. We expect improved results from this business as the expanded re-refining capacity comes on stream."
 "Our European operations were at breakeven in the current period, compared to losses of $462,00 last year," Brinckman said. "Many of these operations are still in the developing stage. With continued growth in the customers base, we expect these operations to be close to breakeven for the full year 1992."
 Brinckman said, "First quarter consolidated earnings were adversely effected by approximately $1.0 million due to higher costs in our Puerto Rican operations. The available fuel burning capacity of the local cement kiln has been temporarily reduced as a result of conversion of the kiln to new technology. The use of an alternate kiln has results in significant additional transportation and other costs. At this time, we expect a gradual improvement with full resumption of normal burning capacity of the local Puerto Rican kiln by mid-year 1992."
 Brinckman concluded, "Net earnings in the first interim period are in line with our internal operating plan. We expect improved year-to- year earnings comparisons for the remainder of the year. Results should benefit from reduced losses from our Oil Recovery Services and lower costs in our Puerto Rican operations. In addition, we anticipate improved margins from the price increase in our Parts Cleaner Service and continued growth in the Industrial Services. Our established long- range earnings goal is to grow at 20 percent to 25 percent per year. We believe we can meet or exceed this goal in 1992."
 Safety-Kleen Corp. is the world's largest provider of parts cleaner services and related solvent recycling. The company also collects a variety of hazardous and quasi-hazardous liquid wastes from automotive report outlets, industrial plants, dry cleaners and other waste generators. The fluids are recycled or re-refined for reuse or blended into fuels for use in industrial furnaces or cement kilns.
 SAFETY-KLEEN CORP.
 Consolidated Statement of Earnings
 (Thousands, except per share amounts)
 12 weeks ended 3/21/92 3/23/91
 Revenue $179,939 $153,195
 Operating costs and expenses 126,551 109,683
 Selling and administrative expenses 24,840 23,237
 Operating income 22,548 20,275
 Interest income 303 629
 Interest expense (3,439) (2,530)
 Earnings before taxes and cumulative
 effect of change in accounting principle 19,412 18,374
 Income taxes 7,317 6,938
 Earnings before cumulative effect of
 change in accounting principle 12,095 11,436
 Cumulative effect of change in
 accounting for income taxes 3,200 --
 Net earnings $15,295 $11,436
 Earnings Per Common And Common Equivalent Shares:
 Earnings before cumulative effect of
 change in account principle $0.21 $0.20
 Cumulative effect of change in accounting
 for income taxes 0.06 --
 Net earnings $0.27 $0.20
 Average number of common and common
 equivalent shares outstanding 57,673 57,376
 Cash dividends per common share $0.085 $0.080
 -- Effective at the beginning of fiscal year 1992, the company purchased Niemann Chemie in exchange for 446,240 shares of the company's common stock and cash for a combined value of approximately $13 million.
 -- The company adopted Statement of Financial Accounting Standards (SFAS) No. 109 on accounting for income taxes during the first interim period of 1992. The effect of adopting SFAS No. 109 on earnings before cumulative effect of change in accounting principle for the 12 weeks ended March 21, 1992 was not material. The cumulative prior years' effect of the change increased net earnings by $3.2 million or six cents per share.
 -- The company's interim reporting periods are 12 weeks each for the first three reporting periods of the year and 17 weeks for the fourth reporting period of 1992 and 16 weeks for the fourth period of 1991.
 -0- 4/8/92
 /CONTACT: Robert Willmschen of Safety-Kleen, 708-468-2002/
 (SK) CO: Safety-Kleen Corp. ST: Illinois IN: SU: ERN


SM -- NY106 -- 6516 04/08/92 19:27 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 8, 1992
Words:1203
Previous Article:DIBRELL BROTHERS INCORPORATED ESTABLISHES RESERVE AGAINST FUTURE COLLECTION OF ACCOUNTS RECEIVABLE FROM SHIPMENTS TO IRAQ
Next Article:MICHIGAN OTC CHANGES, PROVIDED BY FIRST OF MICHIGAN CORP., TODAY: APRIL 8, 1992


Related Articles
SAFETY-KLEEN REPORTS RECORD REVENUE, DECLINE IN EARNINGS FOR 1991
SAFETY-KLEEN REPORTS SECOND QUARTER REVENUE, 11 PERCENT GAIN IN NET EARNINGS
SAFETY-KLEEN CORP. REPORTS THIRD QUARTER OPERATING RESULTS
SAFETY-KLEEN CORP. REPORTS RECORD REVENUE, DECLINE IN EARNINGS FOR 1992
SAFETY-KLEEN REPORTS REVENUE, DECLINE IN FIRST QUARTER 1993 EARNINGS
SAFETY-KLEEN REPORTS SECOND QUARTER 1993 OPERATING RESULTS
SAFETY-KLEEN CORP. REPORTS THIRD QUARTER OPERATING RESULTS
SAFETY-KLEEN REPORTS 12% INCREASE IN FIRST QUARTER 1994 EARNINGS
SAFETY-KLEEN REPORTS RECORD REVENUE, 24 PERCENT GAIN IN NET EARNINGS FOR THE FIRST INTERIM PERIOD
SAFETY-KLEEN CORP. REPORTS FIRST INTERIM PERIOD 1996 REVENUE INCREASE AND EARNINGS GAIN

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters