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 ANNAPOLIS, Md., Oct. 28 /PRNewswire/ -- UNC Incorporated (NYSE: UNC) today reported earnings for the third quarter of $.18 per share on net earnings of $3.2 million.
 Earnings reported were level with third quarter of 1992. Revenues for the quarter were reported at $105.5 million an increase of $10.2 million over the same period of 1992. Operating income for the period was $2.3 million versus $6.6 million for the third quarter of 1992. Operating income was negatively impacted, as previously announced, by the loss incurred in the third quarter on the JT8 product line. Operating income was also affected by the absence of non- recurring government contract termination claim income recorded in 1992 but not in 1993.
 The company also recorded two non-recurring items in the third quarter that impacted net earnings. The first was the adjustment of an income tax reserve resulting from changes in circumstances which caused the company to reevaluate the recoverability of certain deferred income tax assets. This resulted in a $5.8 million positive tax provision. The second item was the write off of the remaining unamortized bond issue costs, of $0.5 million, associated with the early retirement of the remaining $24 million balance of 11+ percent debentures, which was redeemed on Sept. 7. This expense is reflected as an extraordinary item in the third quarter.
 Interest expense net of interest income for the third quarter was up $1.1 million from last year due to the additional expense of the Senior Notes issued on July 29. Also, the 11+ percent debentures could not be redeemed until Sept. 7 and the proceeds from the financing were not yet invested in acquisitions which would have yielded offsetting operating income.
 Net earnings for the nine months year to date were $8.3 million or $.48 per share, which is level with last year. Operating income year to date was $15.5 million versus $19.1 million in 1992. Revenues through September 30th were $283.2 million, up 5 percent over 1992 nine months revenues of $269.0 million.
 The company reported it has a record backlog as of Sept. 30 of $522 million, mainly due to its recent contract awards and from acquisitions. Backlog figures by comparison for the prior year were $326 million.
 Dan Colussy, chairman and CEO of UNC, said, "Our third quarter results should not be interpreted as a change in UNC's positive outlook. This was a transitional quarter in which a number of one time events had to be dealt with, including the decision to exit a product line (JT8 engine) that was suffering from weak market conditions. There were also one time additional interest expense and other extraordinary costs, as previously discussed, connected with our recent financing that also had to be accommodated this quarter. The fourth quarter will show operating earnings improvement and the outlook for 1994 continues to strengthen. Our acquisition program is exceeding our projections and will also make a substantial impact on 1994 revenues and earnings."
 UNC Incorporated, listed on the New York Stock Exchange, is engaged in the manufacturing and remanufacturing of jet engine and aircraft components; the overhaul of aircraft accessories, aircraft engines and industrial gas turbine engines; the refurbishment and overhaul of helicopters; and in providing aircraft maintenance and pilot training contract services.
 UNC Incorporated & Subsidiaries
 Balance Sheet
 (Dollars in thousands)
 Periods ended Sept. 30, 1993 Dec. 31, 1992
 Cash and marketable securities $15,008 $1,968
 Receivables 87,363 71,809
 Inventories 104,439 94,682
 Other current Assets 42,180 23,381
 Total Current assets 248,990 191,840
 Net, discontinued assets 18,430 18,534
 Net, property, plant
 and equipment 69,295 57,857
 Other assets 135,804 116,154
 Total Assets $472,519 $384,385
 Liabilities and Shareholders' Equity
 Current portion of long-term debt $6,866 $158
 Other current liabilities 67,767 61,561
 Total current liabilies 74,633 61,719
 Long-term debt, less current portion
 Revolving Sr. Bank Debt,
 prime +1/2 percent 18,500 27,000
 9 1/8 percent Sr. Notes 100,000 ---
 11 1/2 percent Sr. Sub. Debt --- 23,521
 7 1/2 percent Conv. Debt 69,000 69,000
 Other 6,284 6,044
 Total long-term debt 193,784 125,565
 Other liabilities 39,686 41,462
 Total liabilities 308,103 228,746
 Shareholders' equity 164,416 155,639
 Total liabilities and
 shareholders' equity $472,519 $385,385
 UNC Incorporated & Subsidiaries
 Summary of Earnings
 Period Ending Sept. 30, 1993
 (Dollars in thousands, except per share amount)
 Periods ended Sept. 30 Three Months Nine Months
 1993 1992 1993 1992
 Total Sales $105,529 $95,285 $283,242 $169,033
 Operating Income $2,341 $6,603 $15,490 $19,130
 Net Interest Expense (4,011) (2,874) (10,063) (8,847)
 Pretax Earnings (Loss) (2,136) $3,425 4,284 9,838
 Tax Provision 5,838 (193) 4,554 (1,476)
 Extraordinary Item (532) --- (532) ---
 Net Earnings 3,170 3,232 8,306 8,362
 Earnings per Share $0.18 $0.18 $0.48 $0.48
 Average Shares 17,381 17,285 17,346 17,273
 -0- 10/28/93
 /CONTACT: Gregory M. Bubb of UNC Incorporated, 410-266-7333/

CO: UNC Incorporated ST: Maryland IN: AIR SU: ERN

JM -- PH005 -- 7704 10/28/93 08:11 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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