THE HENLEY GROUP POSTS A THIRD QUARTER LOSS
THE HENLEY GROUP POSTS A THIRD QUARTER LOSS HAMPTON, N.H., Nov. 11 /PRNewswire/ -- The Henley Group, Inc.
(NASDAQ: HENG) posted a third-quarter 1991 loss from continuing operations of $538 million, or $27.31 per share, compared with a loss from continuing operations of $11 million, or 56 cents per share, in the corresponding period of last year.
The latest results include charges of $672 million, primarily for the writedown of goodwill and other intangibles, for recognition of post-retirement health-care benefits and for restructuring of certain operations. The net loss in the latest three months was $526 million, or $26.70 per share, which included an extraordinary gain of $12 million, or 61 cents per share, representing the after-tax gain on the purchase of an additional $47 million face value of debt securities of Henley's Pneumo Abex Corporation subsidiary. Henley had purchased $272 million of Pneumo Abex debt through Sept. 30 and may make additional purchases. Effective Sept. 30, Henley contributed to Pneumo Abex $384 million face value of the subsidiary's debt, all of the Pneumo Abex debt previously held by Henley. This action had no effect on Henley's consolidated results of operations, balance sheets or cash flows. For the third quarter of 1990, Henley had income from discontinued operations of $1 million, or 5 cents per share, and a net loss of $10 million, or 51 cents per share. Revenues for the July-September period of this year were $423 million, compared with $428 million in the year-ago quarter, as declining Pneumo Abex revenues more than offset higher sales by the Fisher Scientific International Inc. unit. For the first nine months of 1991, Henley had a loss from continuing operations of $573 million, or $29.08 per share, and a net loss of $685 million, or $34.77 per share, on revenues of $1.24 billion, compared with a loss from continuing operations of $115 million, or $5.84 per share, and a net loss of $114 million, or $5.79 per share, on net revenues of $1.34 billion in the first nine months of last year. THE HENLEY GROUP, INC. Financial Highlights (In millions, except per share amounts) Three Months Ended Nine Months Ended 9/30/91 9/30/90 9/30/91 9/30/90 Net revenues $423 $428 $1,240 $1,343 Income (loss) from continuing operations(a) $(538) $(11) $(573) $(115) Income from discontinued operations(b) --- 1 3 1 Income (loss) before extraordinary item (538) (10) (570) (114) Extraordinary item net of tax(c) 12 --- 56 --- Transition effect of an accounting change for post-retirement benefits other than pensions(d) --- --- (171) --- Net income (loss) $(526) $(10) $(685) $(114) Earnings (loss) per common share: Continuing operations $(27.31) (56 cents) $(29.08) $(5.84) Discontinued operations --- 5 cents 15 cents 5 cents Earnings (loss) per common share before extraordinary item $(27.31) (51 cents) $(28.93) $(5.79) Extraordinary item, net of tax 61 cents --- 2.84 --- Transition effect of an accounting change for post-retirement benefits other than pensions --- --- (8.68) --- Net earnings (loss) per common share $(26.70) (51 cents) $(34.77) $(5.79) Weighted average common shares outstanding 19.7 19.7 19.7 19.7 ---- NOTE: (a) Includes $501 million of nonrecurring charges for both of the three and nine month periods ended Sept. 30, 1991 related to the company's third quarter 1991 restructuring and operations review and a $16 million loss on the sale of the company's Instrumentation Laboratory subsidiary. (b) Reflects the discontinued operations of Cape Horn Methanol. (c) Reflects the company's gain on the purchase of Pneumo Abex public debt securities. (d) Reflects the adoption of Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions" on the immediate recognition basis effective Jan. 1, 1991. -0- 11/11/91 /CONTACT: Norman Ritter of The Henley Group, 603-929-2322/ (HENG) CO: The Henley Group, Inc. ST: New Hampshire IN: SU: ERN KM-PB -- NE010 -- 3220 11/11/91 18:19 EST
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|Date:||Nov 11, 1991|
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