UNR INDUSTRIES, INC. REPORTS THIRD-QUARTER RESULTS
UNR INDUSTRIES, INC. REPORTS THIRD-QUARTER RESULTS CHICAGO, Oct. 21 /PRNewswire/ -- UNR Industries, Inc.
(NASDAQ/MSE: UNRI) today reported that sales in the third quarter of 1992 were $102.4 million, up 14.2 percent from $89.7 million in the third quarter of 1991. Net income for the quarter was $10.4 million or $.23 per share, compared to $4.5 million or $.10 per share reported last year. Operating income for the third quarter was $8.8 million, up 54.6 percent from the prior year's third-quarter results of $5.7 million. Sales and operating income were the highest recorded for any third quarter in the company's history.
Sales for the nine months ended Sept. 30, 1992, were $293.0 million, up 11.6 percent from $262.5 million reported for the same period last year. Net income was $32.6 million or $.72 per share, compared to $11.4 million or $.25 per share in 1991. The 1992 results include an after-tax amount of $8.1 million or $.18 per share, the result of a litigation settlement with one of the company's previous insurance carriers recorded in the second quarter. Thomas A. Gildehaus, the company's president and chief executive officer, stated, "We are pleased with our record third-quarter and year- to-date results. Despite the slow economic recovery and extremely competitive pricing, our Leavitt Tube and Commercial Products divisions reported strong third-quarter operating results. A 67-percent sales increase achieved in the third quarter by our Unarco Material Handling Division is very encouraging. While operating profitably for the third quarter and year to date, the Unarco Material Handling Division has been unable to achieve acceptable operating margins because of severe pricing pressures. SG&A expenses have decreased due to further cost-reduction efforts across the company." 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. It also is a distributor of rail and track accessories and products for the cable television industry. UNR INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF INCOME (unaudited; in thousands except per-share data) Three Months Ended Nine Months Ended Sept. 30 Sept. 30 1992 1991 1992 1991 Net sales $102,449 $89,741 $292,994 $262,516 Gross profit 21,807 19,899 61,855 53,485 Operating income 8,824 5,706 22,657 12,562 Insurance recovery --- --- 13,000 --- Interest income, net 194 1,190 1,003 4,431 Income before taxes 9,018 6,896 36,660 16,993 Income tax (benefit) (1,400) 2,400 4,100 5,600 Net income $10,418 $4,496 $32,560 $11,393 Net income per share $.23 $.10 $.72 $.25 UNR INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited; in thousands) Sept. 30, 1992 Dec. 31, 1991 Assets Cash $93,403 $93,799 Accounts receivable 57,103 56,701 Notes receivable-insurance companies 10,671 --- Inventories(a) 75,574 77,322 Prepaid expenses 2,149 2,901 Total current assets 238,900 230,723 Plant and equipment, net 76,733 80,163 Other assets 749 30,483 Total assets $316,382 $341,369 Liabilities and stockholders' equity Current liabilities $43,280 $91,015 Long-term liabilities 27,987 30,082 Deferred income taxes 5,000 14,000 Stockholders' equity 240,115 206,272 Total liabilities and stockholders' equity $316,382 $341,369 (a) Net of reserve for LIFO valuation of inventories of $9.3 million and $9.2 million at Sept. 30, 1992, and Dec. 31, 1991, respectively. UNR INDUSTRIES, INC. NOTES TO FINANCIAL STATEMENTS (1) For financial reporting purposes, the company has unrecorded net operating loss carry-forwards of approximately $150 million resulting from the extraordinary reorganization charges included in the 1989 Statement of Income. To date these charges were deducted for income tax purposes to the extent expenditures were actually made by the UNR Asbestos-Disease Claims Trust. Approximately $26.8 million and $2.8 million of expenditures have been made by the Trust in the first nine months of 1992 and 1991, respectively, and the related tax benefits have been recorded by the company in those respective periods. Future deductions should continue to result in a reduction of the company's current tax liability and expense and may also generate tax loss carry- backs or carry-forwards. The timing of future distributions is undeterminable. Net operating losses resulting from the payment of tort claims could be subject to the limitations of Section 382 of the Internal Revenue Code. On Feb. 14, 1992, the Internal Revenue Service issued proposed regulations under Section 468B, "Special Rules for Designated Settlement Funds." The IRS has reserved the right to issue final regulations which will specifically deal with transferors of stock to funds and has invited comments. The final regulations are not expected to have an adverse impact with respect to the net operating loss carry-forward, but may affect the timing and amount of the company's deductions for the years beginning with 1989. (2) On Jan. 15, 1992, the company paid a regular cash dividend of $.20 and an extraordinary cash dividend of $1 per share to stockholders of record as of the close of business on Dec. 31, 1991. (3) The 1992 nine-month 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. (4) On July 15, 1992, the company received approximately $25.8 million pursuant to a 1989 settlement agreement entered into by UNR and another insurance company. The money had been held by the insurance company until certain conditions in the settlement agreement were satisfied. (5) 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- 10/21/92 /CONTACT: Henry Grey of UNR Industries, 312-341-1234/ (UNRI) CO: UNR Industries, Inc. ST: Illinois IN: SU: ERN
ML -- DE005 -- 2739 10/21/92 09:44 EDT
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|Date:||Oct 21, 1992|
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