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USX - DELHI GROUP ANNOUNCES THIRD QUARTER PRO FORMA FINANCIAL RESULTS

USX - DELHI GROUP ANNOUNCES THIRD QUARTER PRO FORMA FINANCIAL RESULTS
 PITTSBURGH, Oct. 27 /PRNewswire/ -- USX Corporation (NYSE: X) Board Chairman Charles A. Corry announced third quarter 1992 pro forma results for the USX - Delhi Group (NYSE: DGP).
 Net income for the Delhi Group was $3.2 million, or $.23 per share compared with a net loss of $1.9 million or $.13 per share in the third quarter of 1991. Third quarter sales were $106.3 million compared with $87.2 million in the same quarter of 1991.
 The Delhi Group reported third quarter 1992 operating income of $7.8 million compared with a breakeven in the prior-year quarter.
 Corry noted, "The Delhi Group benefitted from higher industrywide natural gas prices which contributed to improved margins and from strong natural gas liquids sales volumes and prices."
 USX - Delhi Group Common Stock was issued on Oct. 2, 1992. Third quarter 1992 pro forma Delhi Group results are being reported in order to provide holders of Delhi Stock with information concerning the Delhi Group's performance. Effective with the fourth quarter of 1992, actual Delhi Group results will be reported on a basis comparable to the pro forma results.
 Corry announced that the board of directors had declared a dividend of 5 cents per share on USX - Delhi Group Common Stock, payable Dec. 10, 1992, to stockholders of record at the close of business Nov. 6, 1992. Prior thereto, the directors also declared a dividend of $.9875 per share on USX Corporation's adjustable rate cumulative preferred stock, payable Dec. 31, 1992, to stockholders of record at the close of business Dec. 1, 1992.
 USX - Delhi Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, follow.
 USX - DELHI GROUP
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Third Qtr. Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $106.3 $ 87.2
 Total operating costs (98.5) (87.2)
 Operating income 7.8 -
 Other income (loss) .3 (.4)
 Net interest and other financial costs (.6) -
 Total income (loss) before taxes on income. 7.5 (.4)
 Less provision (credit) for estimated
 income taxes 2.7 (.1)
 NET INCOME (LOSS) $ 4.8 $ (.3)
 PRO FORMA INCOME DATA:
 Pro forma net income (loss) applicable to
 Delhi Stock $ 3.2 $ (1.9)
 Pro forma net income (loss) applicable to
 outstanding Delhi Stock 2.0 (1.2)
 Pro forma net income (loss) per share
 applicable to outstanding Delhi Stock .23 (.13)
 USX - DELHI GROUP
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Nine Months Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 320.9 $ 293.8
 Total operating costs (295.7) (272.3)
 Operating income 25.2 21.5
 Other income (loss) 1.3 .7
 Net interest and other financial costs (2.0) (.5)
 Total income (loss) before taxes on income. 24.5 21.7
 Less provision (credit) for estimated
 income taxes 8.8 7.7
 NET INCOME (LOSS) $ 15.7 $ 14.0
 PRO FORMA INCOME DATA:
 Pro forma net income (loss) applicable to
 Delhi Stock $ 10.8 $ 9.1
 Pro forma net income (loss) applicable to
 outstanding Delhi Stock 6.9 5.9
 Pro forma net income (loss) per share
 applicable to outstanding Delhi Stock .77 .65
 CONDENSED BALANCE SHEET (Unaudited)
 September 30, 1992
 (In Millions) As Adjusted(A) Historical
 ASSETS
 Cash and cash equivalents $ 13.2 $ -
 Receivables - net 10.2 10.2
 Inventories 10.5 10.5
 Other current assets 5.2 5.2
 Total current assets 39.1 25.9
 Property, plant and equipment - net. 514.4 514.4
 Other assets 18.5 18.5
 Total $572.0 $558.8
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities $121.7 $ 96.2
 Long-term debt 92.3 -
 Other liabilities 181.9 182.4
 Total liabilities 395.9 278.6
 Preferred stock 2.5 -
 USX equity investment - 280.2
 Common stockholders' equity 173.6 -
 Total $572.0 $558.8
 CONDENSED BALANCE SHEET (Unaudited)
 December 31, 1991
 (In Millions) Historical
 ASSETS
 Cash and cash equivalents $ -
 Receivables - net 22.4
 Inventories 10.9
 Other current assets 1.3
 Total current assets 34.6
 Property, plant and equipment - net 530.6
 Other assets 18.6
 Total $583.8
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities $ 90.5
 Long-term debt -
 Other liabilities 185.4
 Total liabilities 275.9
 Preferred stock -
 USX equity investment 307.9
 Common stockholders' equity -
 Total $583.8
 (A) As adjusted to give effect to the public offering of Delhi Stock and the creation of the Delhi Group.
 The following notes are an integral part of these financial statements.
 USX - DELHI GROUP
 SELECTED NOTES TO CONDENSED FINANCIAL STATEMENTS
 On Oct. 2, 1992, USX sold 9,000,000 shares of a new class of common stock, USX - Delhi Group Common Stock (Delhi Stock), which is intended to reflect the performance of the Delhi Group. The Delhi Group includes the businesses of the Delhi Gas Pipeline Corporation and certain related companies which are engaged in the purchasing, gathering, processing, transporting and marketing of natural gas, which were previously included in the Marathon Group.
 The USX Board of Directors designated 14,000,000 shares of Delhi Stock as the total number of shares of Delhi Stock which it deems to represent 100 percent of the common stockholders' equity value of USX attributable to the Delhi Group. The Delhi Fraction is the percentage interest in the Delhi Group represented by the shares of Delhi Stock that are outstanding at any particular time and, based on the initial sale of 9,000,000 shares, is 64.29 percent. The Marathon Group financial statements will initially reflect a Retained Interest of 35.71 percent in the Delhi Group. Net proceeds from the sale will be directly reflected in the Marathon Group financial statements in the fourth quarter of 1992.
 The condensed financial statements of the Delhi Group include the combined historical results of operations and financial position for the businesses included in the Delhi Group. These condensed financial statements should be read in connection with the condensed consolidated financial statements of USX.
 The pro forma income data is based on the assumption that the new capital structure of the Delhi Group determined as of June 30, 1992, was in effect as of Jan. 1, 1991. The historical net income has been adjusted to reflect the weighted average effects of all USX financial activities assumed to be attributed to the Delhi Group, the change in total income before taxes due to recognition of these adjustments and the assumed effects of attributed preferred stock. Pro forma net income applicable to outstanding Delhi Stock represents the pro forma net income applicable to Delhi Stock multiplied by the initial Delhi Fraction of 64.29 percent. The pro forma net income per share applicable to outstanding Delhi Stock is calculated by dividing the pro forma net income applicable to outstanding Delhi Stock by the average number of shares outstanding, which assumes the 9,000,000 shares initially sold were outstanding in all periods presented.
 The as-adjusted balance sheet is based on the assumption that the capital structure of the Delhi Group was in effect on Sept. 30, 1992. Balance sheet adjustments were made to reflect the elimination of USX's historical equity investment; the USX common stockholders' equity value attributed to the 14,000,000 shares of Delhi Stock deemed to represent 100 percent of the common stockholders'equity of the Delhi Group; and the attributions of corporate financial activities, primarily cash and cash equivalents, short-term and long-term debt and preferred stock.
 USX - DELHI GROUP
 SUPPLEMENTAL STATISTICS
 ($'s in Millions)
 Third Quarter Nine Months
 Ended Ended
 September 30 September 30
 1992 1991 1992 1991
 SALES $106.3 $ 87.2 $320.9 $293.8
 GROSS MARGIN
 Gas Sales Margin $ 20.5 $ 17.9 $ 68.3 $ 68.5
 Transportation Margin 3.7 3.1 10.6 10.2
 Systems Margin 24.2 21.0 78.9 78.7
 Gas Processing Margin 8.9 6.1 21.5 20.1
 Total Gross Margin $ 33.1 $ 27.1 $100.4 $ 98.8
 OPERATING INCOME (LOSS) $ 7.8 $ - $ 25.2 $ 21.5
 CAPITAL EXPENDITURES $ 6.0 $ 4.1 $ 13.3 $ 9.5
 OPERATING STATISTICS
 Natural Gas Throughput:
 Natural Gas Sales (A) 511.4 522.6 558.2 532.3
 Transportation (A) 272.1 186.2 271.2 210.0
 Systems Throughput 783.5 708.8 829.4 742.3
 Partnerships - equity
 share (A) 34.4 36.4 27.3 37.9
 Total Throughput 817.9 745.2 856.7 780.2
 Natural Gas Liquids Sales (B) 16.2 14.1 16.9 14.8
 (A) MMCFPD
 (B) 000 BPD
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Third Qtr. Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 4,650 $ 4,767
 Total operating costs (4,538) (4,626)
 Operating income 112 141
 Other income (loss) 4 24
 Net interest and other financial costs (99) (98)
 Total income (loss) before taxes on income 17 67
 Less provision (credit) for estimated
 income taxes - United States (11) 30
 - Foreign 18 9
 NET INCOME (LOSS) 10 28
 Dividends on preferred stock (3) (2)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ 7 $ 26
 Common share data - Marathon Stock
 Net income $ 15 $ 22
 Primary net income per share .05 .08
 Fully diluted net income per share .05(A) .08(A)
 Dividends paid per share .35 .35
 Common share data - Steel Stock
 Net income (loss) $ (8) $ 4
 Primary net income (loss) per share (.13) .09
 Fully diluted net income (loss) per share (.13)(A) .09(A)
 Dividends paid per share .25 .25
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Nine Months Ended
 September 30
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 13,238 $ 13,952
 Total operating costs (12,738) (13,897)
 Operating income 500 55
 Other income (loss) (1) 38
 Net interest and other financial costs (141) (344)
 Total income (loss) before taxes on income 358 (251)
 Less provision (credit) for estimated
 income taxes - United States 66 (77)
 - Foreign 28 10
 NET INCOME (LOSS) 264 (184)
 Dividends on preferred stock (7) (7)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ 257 $ (191)
 Common share data - Marathon Stock
 Net income $ 273 $ 153
 Primary net income per share .97 .60
 Fully diluted net income per share .97 .60(A)
 Dividends paid per share 1.05 .96
 Common share data - Steel Stock
 Net income (loss) $ (16) $ (344)
 Primary net income (loss) per share (.29) (6.75)
 Fully diluted net income (loss) per share (.29)(A) (6.75)(A)
 Dividends paid per share .75 .69
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 856 $ 279
 Receivables - net 1,066 1,098
 Inventories 2,152 1,858
 Other current assets 118 101
 Total current assets 4,192 3,336
 Property, plant and
 equipment - net 11,628 11,593
 Other assets 2,280 2,110
 Total $18,100 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 September 30 December 31
 (In Millions) 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 4,125 $ 3,551
 Long-term debt 5,788 5,921
 Other liabilities 2,479 2,580
 Total liabilities 12,392 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 5,603 4,882
 Total $18,100 $17,039
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 The following notes are an integral part of these financial statements.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 SELECTED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 The financial information for the Marathon Group and the U. S. Steel Group, taken together, includes all accounts which comprise the corresponding consolidated financial information for USX.
 The numbers of shares used in the computation of earnings per share were as follows:
 (In Thousands)
 Third Quarter Ended
 September 30
 1992 1991
 Marathon Stock - primary 285,184 256,417
 - fully diluted 285,184 256,422
 Steel Stock - primary 59,388 51,064
 - fully diluted 59,388 51,078
 (In Thousands)
 Nine Months Ended
 September 30
 1992 1991
 Marathon Stock - primary 282,559 255,238
 - fully diluted 288,805 255,249
 Steel Stock - primary 54,492 50,935
 - fully diluted 54,492 50,935
 In the first nine months of 1992, the inventory market valuation reserve was reduced by $160 million to $100 million, which increased operating income and net income by $160 million ($38 million in the third quarter of 1992).
 The Board of Directors approved restructuring actions involving the disposition of nonstrategic domestic exploration and production properties, which resulted in a $115 million pretax charge to operating income in the second quarter of 1992. In the first quarter of 1991, operating income included a $346 million pretax charge for a number of restructuring actions primarily related to steel operations.
 Pretax income in the first nine months of 1992 included the settlement of a production tax refund claim for the years 1982 through 1985. The refund resulted in a credit to operating income of $119 million as well as interest income of $177 million in the second quarter of 1992. Net interest and other financial costs in the third quarter of 1991 included $26 million of interest income related to prior years' production taxes. Other income also included a $19 million impairment of a 25 percent interest in a natural gas transmission partnership recognized in the first quarter of 1992.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income. The inventory market valuation credit is excluded from the determination of the U.S. income tax provision since the adjusted book inventory value exceeds the tax inventory value.
 USX sold 25 million shares of Marathon Stock to the public for net proceeds of $541 million and 8.05 million shares of Steel Stock to the public for net proceeds of $198 million in the first and second quarters of 1992, respectively.
 Following approval by the common stockholders, the USX Certificate of Incorporation was amended on Sept. 30, 1992, to provide for the issuance of a new class of common stock, USX - Delhi Group Common Stock (Delhi Stock), which is intended to reflect the performance of the Delhi Group. The Delhi Group consists of the Delhi Gas Pipeline Corporation and certain related companies which are engaged in the purchasing, gathering, processing, transporting and marketing of natural gas. On Oct. 2, 1992, USX sold 9,000,000 shares of Delhi Stock. Net proceeds of $136 million from the sale will be recognized in the fourth quarter of 1992.
 USX plans to adopt two new accounting standards in the fourth quarter which will result in the first three quarters of 1992 being restated. Statement of Financial Accounting Standard No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," requires accrual of future retiree medical and life insurance benefits. The immediate recognition of the transition obligation measured as of Jan. 1, 1992, will be reported as a change in accounting principle and will decrease USX's previously reported first quarter 1992 net income by approximately $1.2 billion, net of tax. USX's ongoing pretax operating costs will also increase under this standard. For 1992, this annual increase is estimated at $70 million which will also be reflected in the restated quarterly results.
 The second accounting standard, Statement of Financial Accounting Standard No. 109, "Accounting for Income Taxes," requires a liability approach for measuring deferred income taxes. The estimated cumulative effect of adopting this standard as of Jan. 1, 1992, is in the range of $300 million to $500 million, which will also be reported as a change in accounting principle and will decrease previously reported first quarter 1992 net income. In addition, the estimated incremental 1992 income tax expense associated with adoption of the new standard is approximately $60 million, which will also be reflected in the restated quarterly results.
 Cash flows will not be affected by the adoption of these two accounting standards. The amounts disclosed are subject to revision based on continuing evaluation of certain provisions of the standards and fourth quarter transactions.
 /delval/
 -0- 10/27/92
 /CONTACT: W.E. Keslar or D.H. Herring of USX Corporation, 412-433-6870/
 (DGP X MRO) CO: USX Corporation; USX - Delhi Group; USX - Marathon Group ST: Pennsylvania IN: OIL MNG SU: ERN


JT -- PG004 -- 5415 10/27/92 12:50 EST
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