Printer Friendly

UNR COMPLETES RECORD YEAR

 CHICAGO, March 4 /PRNewswire/ -- UNR Industries, Inc. (NASDAQ: UNRI; MSE) reported that 1992 sales from continuing operations were $336.3 million, up from $301.2 million last year, and the highest in the Company's history.
 Operating income from continuing operations for the year, was $30.4 million, up from $22.7 million in the prior year.
 Net income from continuing operations for 1992 was $129.9 million or $2.88 per share, compared to $19.4 million or $.43 per share in the prior year. The 1992 results include a tax benefit of $90.0 million or $1.99 per share as a result of recent tax regulations which entitle the Company to a tax deduction for the 29.4 million shares of UNR stock transferred to the UNR Asbestos-Disease Claims Trust in 1989. The 1992 results also include an after-tax amount of $8.1 million or $.18 per share as a result of a litigation settlement with one of the Company's previous insurance carriers.
 After a small loss incurred by discontinued operations and an after-tax provision of $6.2 million made for estimated losses on their disposal, UNR reported net income of $123.7 million or $2.74 per share in 1992, as compared to net income of $16.6 million or $.37 per share in 1991.
 Fourth quarter sales from continuing operations increased to $84.1 million, up from $78.7 million in 1991. Operating income for the quarter was $7.7 million as compared to $8.6 million in the prior year. Net income from continuing operations in the 1992 fourth quarter was $97.3 million or $2.15 per share, compared to $7.1 million or $.16 per share in the prior year. The increase includes the tax benefit of $90.0 million or $1.99 per share discussed above. After previously mentioned loss and estimated loss on disposal of discontinued operations, the Company reported net income for the fourth quarter of $91.1 million or $2.01 per share, as compared to $5.2 million or $.12 per share in 1991.
 President and CEO Thomas A. Gildehaus stated, "We are pleased with our 1992 operating results, which were achieved in a relatively flat economic environment. Our 1992 fourth quarter operating income was 10 percent below the same quarter last year, principally because of slightly reduced margins at our Leavitt Tube Division, and somewhat lower income from our Rohn Division, which had record fourth quarter earnings in 1991. While recently announced steel price increases will have a modest negative impact on our 1993 first quarter operating results, we are optimistic about 1993 full year's earnings prospects."
 Mr. Gildehaus further stated, "A strategic review of all of our operations in 1992 resulted in a decision to focus our resources and future growth on our core manufacturing operations. Accordingly, we decided to divest our non-manufacturing operations of Midwest CATV and Midwest Steel, since neither company fits within our strategic focus on core, value-added manufacturing operations of transforming steel and other materials into specialized end use products."
 UNR Industries, Inc. is a diversified company producing welded steel tubing, shopping carts, stainless sinks, towers and shelters for communication and other uses, and material handling products and systems.
 UNR Industries, Inc.
 Notes to Financial Statements
 (1) On December 21, 1992, the Internal Revenue Service issued final regulations under Section 468B "Special Rules for Designated Settlement Funds." Prior to the issuance of these tax regulations, the Company had significant unrecorded net operating loss carry-forwards resulting from extraordinary reorganization charges included in the 1989 Statement of Income. Through 1992, these charges were deducted for income tax purposes only to the extent expenditures were actually made by the UNR Asbestos-Disease Claims Trust. Approximately $31.8 million, $5.9 million and $2.7 million of expenditures have been made by the Trust, in 1992, 1991 and 1990 respectively, and the related tax benefits have been recorded by the Company in the corresponding periods.
 The Section 468B regulations deal with the tax treatment of the Company's 1989 transfer of 29.4 million shares of UNR stock to the UNR Asbestos-Disease Claims Trust. Based on these regulations, the Company and Trust will treat the Trust as a Qualified Settlement Fund on January 1, 1993, which entitles the Company to a tax deduction equivalent to the value of the stock held by the Trust on that date. This deduction will substantially reduce the Company's 1993 income tax liability and will also generate tax loss carry-backs and carry- forwards. The Company expects to receive Federal and state income tax refunds of approximately $54 million in 1994 as a result of the carry- backs. Future expenditures by the Trust will no longer be deductible by the Company. Based on these developments, the Company recorded a tax benefit (net of a valuation allowance of approximately $20 million) of $90 million, or $1.99 per share in 1992.
 (2) On December 3, 1992 and December 18, 1992, the Company declared a regular cash dividend of $.20 and an extraordinary cash dividend of $2.00 per share, respectively, to stockholders of record as of the close of business on
January 15, 1993. On January 15, 1992, the Company paid a regular cash dividend of $.20 and an extraordinary cash dividend of $1.00 per share to stockholders of record as of the close of business on December 31, 1991.
 (3) On March 4, 1993, the Company decided to divest itself of its Midwest CATV Division (a distributor of products to the cable television industry) and its Midwest Steel Division (a distributor of rail and trackwork). The net assets of these operations have been reclassified to "Net assets of discontinued operations." Estimated loss on dispositions includes an after-tax $6.2 million provision for this matter, which includes a write-down of these assets to estimated net realizable values and the estimated costs of disposing of these operations.
 Net sales from discontinued operations were $54.4 million, $52.4 million, and $79.0 million in 1992, 1991 and 1990, respectively.
 (4) The accompanying 1992 Statement of Income includes a $13.0 million pre-tax insurance recovery ($8.1 million after-tax), or $.18 per share, as a result of a litigation settlement reached in June, 1992, with one of the Company's previous insurance carriers. These amounts represent the present value of payments due over a three year period, net of certain costs.
 UNR INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED STATEMENTS OF INCOME
 (unaudited)
 (In thousands)
 Three Months Ended Dec. 31 Twelve Months Ended Dec. 31
 1992 1991 1992 1991
 Net sales from continuing
 operations $84,139 $78,679 $336,306 $301,199
 Gross Profit 18,553 20,343 73,061 66,508
 Operating income 7,700 8,582 30,380 22,702
 Insurance recovery --- --- 13,000 ---
 Interest income, net 146 432 1,134 4,847
 Income from continuing
 operations before taxes 7,846 9,014 44,514 27,549
 Income tax provision
 (benefit) (89,500) 1,900 (85,400) 8,100
 Income from continuing
 operations $97,346 $7,114 $129,914 $19,449
 Discontinued operations:
 Loss from operations (23) (1,939) (31) (2,881)
 Estimated loss on
 dispositions (6,200) --- (6,200) ---
 Net Income $91,123 $5,175 $123,683 $16,568
 Net income per share:
 Continuing operations $ 2.15 $ .16 $ 2.88 $ .43
 Discontinued operations:
 Loss from operations --- (.04) --- (.06)
 Estimated loss on
 dispositions (.14) --- (.14) ---
 Net Income per share $ 2.01 $ .12 $ 2.74 $ .37
 UNR INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands)
 DECEMBER 31 DECEMBER 31
 1992 1991
 ASSETS
 Cash $ 112,220 $ 93,799
 Accounts receivable 38,407 46,666
 Notes receivable-
 insurance companies 8,316 ---
 Inventories(a) 61,292 62,664
 Current deferred income taxes 63,000 ---
 Prepaid expenses 2,725 2,917
 Total Current Assets $ 285,960 $ 206,046
 Plant and equipment, net 71,288 74,826
 Non-current deferred
 income taxes 24,000 ---
 Net assets of discontinued
 operations 13,341 27,776
 Other assets-primarily
 receivable from insurance
 companies in 1991 248 29,965
 Total Assets $ 394,837 $ 338,613
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Dividends payable $ 100,255 $ 53,745
 Other current liabilities 34,994 34,514
 Long-term liabilities 26,607 30,082
 Deferred income taxes --- 14,000
 Stockholders' equity 232,981 206,272
 Total Liabilities and
 Stockholders' Equity $ 394,837 $ 338,613
 (a) -- Net of reserve for LIFO valuation of inventories of $7.1 million and $6.8 million at December 31, 1992, and 1991, respectively.
 -0- 3/4/93
 /CONTACT: Henry Grey of UNR Industries, Inc., 312-341-1234/
 (UNRI)


CO: UNR Industries, Inc. ST: Illinois IN: SU: ERN

ML-JG -- DE024 -- 2973 03/04/93 12:11 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:Mar 4, 1993
Words:1436
Previous Article:FIRST COLONY CORPORATION DECLARES QUARTERLY DIVIDEND
Next Article:CHRYSLER DECLARES DIVIDENDS
Topics:


Related Articles
UNR RECEIVES $25.8 MILLION PURSUANT TO PREVIOUS INSURANCE SETTLEMENT
UNR INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS
UNR INDUSTRIES, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
UNR INDUSTRIES RETAINS FINANCIAL ADVISER
UNR INDUSTRIES, INC. ANNOUNCES $1.20 EXTRAORDINARY DIVIDEND
UNR COMPLETES RECORD YEAR
UNR INDUSTRIES, INC. ANNOUNCES TERMINATION OF ACQUISITION DISCUSSIONS
UNR INDUSTRIES, INC. REPORTS FIRST QUARTER INCOME UP 68 PERCENT ON RECORD FIRST QUARTER SALES
UNR INDUSTRIES, INC. REPORTS RECORD THIRD QUARTER OPERATING INCOME
UNR INDUSTRIES, INC. ANNOUNCES AGREEMENT TO SELL ITS MATERIAL HANDLING DIVISION

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