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UNR INDUSTRIES, INC. REPORTS FIRST QUARTER RESULTS

 CHICAGO, April 22 /PRNewswire/ -- UNR Industries, Inc. (NASDAQ: UNRI; MSE) reported that net sales in the first quarter of 1993 were $83.5 million, up 6 percent from the $79.1 million reported in the first quarter of 1992.
 Operating income for the quarter was $4.3 million, down 26 percent from the $5.8 million reported in 1992.
 Net income for the same period was $2.6 million or $.06 per share as compared to $5.9 million or $.13 per share in the prior year.
 Thomas A. Gildehaus, President and Chief Executive Officer, stated, "Despite a six percent increase in sales, operating income for the first quarter was down by $1.5 million from the first quarter of 1992. This decline in operating income was largely the result of steel costs at our Leavitt Tube and Material Handling Divisions rising at a rate faster than the divisions could pass these costs on to their customers, causing a temporary decline in gross margins. Selling price increases have been instituted at Leavitt Tube and we are optimistic about the balance of the year.
 "The decline in net income is attributable largely to a non- recurring $2.1 million ($.05 per share) tax benefit recorded in the first quarter of 1992. As a result of tax regulations issued in December of 1992, the Company recorded a tax benefit of $90 million or $1.99 per share in the fourth quarter of 1992. The 1993 income tax provision of $1.5 million represents a non-cash charge for the Company's effective tax rate. This amount is being amortized against the $90 million deferred tax asset previously recorded."
 UNR Industries, Inc. is a diversified company producing welded steel tubing, shopping carts, stainless steel sinks, towers and shelters for communication and other uses, and material handling products and systems.
 UNR INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED STATEMENTS OF INCOME
 (unaudited)
 (in thousands except per share data)
 FOR THE THREE
 MONTHS ENDED MARCH 31
 1993 1992
 Net sales $83,539 $79,114
 Gross profit 15,367 16,438
 Operating Income 4,310 5,849
 Interest income (expense), net (226) 566
 Income from continuing
 operations before taxes 4,084 6,415
 Income tax provision 1,500 2,540
 Income tax benefit derived from
 Trust expenditures - (2,100)
 Income from continuing
 operations $ 2,584 $ 5,975
 Discontinued operations loss,
 net of tax benefit - (75)
 Net Income $ 2,584 $ 5,900
 Net Income per share:
 Continuing operations $ .06 $ .13
 Discontinued operations - -
 Net Income per share $ .06 $ .13
 UNR INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (unaudited)
 (in thousands)
 MARCH 31 DECEMBER 31
 1993 1992
 ASSETS
 Cash $ 12,132 $ 112,220
 Accounts receivable 44,371 38,407
 Notes receivable from
 insurance companies 8,432 8,316
 Inventories(A) 62,748 61,292
 Deferred income taxes 63,000 63,000
 Prepaid expenses 2,574 2,725
 Total Current Assets $ 193,257 $ 285,960
 Plant and equipment, net 70,400 71,288
 Deferred income taxes 22,500 24,000
 Net assets of discontinued
 operations 15,709 13,341
 Other assets 226 248
 Total Assets $ 302,092 $ 394,837
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Dividends payable $ - $ 100,255
 Other current liabilities 39,070 34,994
 Long-term liabilities 25,116 26,607
 Stockholders' equity 237,906 232,981
 Total Liabilities and
 Stockholders' Equity $ 302,092 $ 394,837
 (A) Net of reserve for LIFO valuation of inventories of $7.9 million and $7.1 million at March 31, 1993 and December 31, 1992, respectively.
 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 $5.5 million of expenditures were made by the Trust in the first quarter of 1992, and the related tax benefits were recorded by the Company. This 1992 tax benefit of $2.1 million is presented in the accompanying Statement of Income as "Income tax benefit derived from Trust expenditures."
 The Section 468B regulations deal with the tax treatment of the Company's 1989 transferof 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 the fourth quarter of 1992.
 (2) On February 1, 1993, the Company paid 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" in the accompanying balance sheets. The Company has entered into a letter of intent to sell the Midwest Steel Division assets to L.B. Foster Company.
 (4) The interim determination of inventories under the LIFO method is based on the management's estimates of the expected year-end inventory levels and costs and as such, interim financial results are subject to final year-end inventory amounts.
 -0- 4/22/93
 /CONTACT: Henry Grey of UNR Industries, Inc., 312-341-1234/
 (UNRI)


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

DH-JG -- DE022 -- 9412 04/22/93 11:56 EDT
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Date:Apr 22, 1993
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