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USX-DELHI GROUP ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

 PITTSBURGH, Jan. 26 /PRNewswire/ -- USX Corporation (NYSE: X) Board Chairman Charles A. Corry announced fourth quarter 1992 net income for the USX-Delhi Group (NYSE: DGP) of $3.1 million, or $.22 per share on sales of $136.9 million. Pro forma results for the fourth quarter of 1991 reflected a net loss of $8.3 million, or $.59 per share on sales of $129.5 million.
 Fourth quarter 1991 results included an $18.7 million pretax impairment of a partnership investment.
 The Delhi Group reported pro forma income before the cumulative effect of the change in accounting principle for the year 1992 of $13.7 million or $.98 per share, compared with $.8 million or $.06 per share in 1991. Sales totaled $457.8 million in 1992 versus $423.2 million in 1991. The $17.9 million cumulative effect of adopting Statement of Financial Accounting Standards 109 "Accounting for Income Taxes" is reported as a favorable change in accounting principle.
 Fourth quarter operating income for the Delhi Group totaled $7.4 million compared with operating income of $9.5 million in the fourth quarter of 1991. Fourth quarter 1991 operating income includes the favorable impact of a $4.0 million contract buyout. Excluding the effect of the buyout, fourth quarter 1992 operating income improved by $1.9 million from the prior year quarter due primarily to increased margins on natural gas purchased from producers and sold to customers. Fourth quarter 1992 operating income also benefited from lower operating and other expenses. Operating income for the year 1992 was $32.6 million, an increase of $1.6 million from 1991.
 Corry noted, "The Delhi Group posted an improved performance in 1992 as operating and other expenses declined and natural gas throughput and natural gas liquids sales volumes increased from the prior year. We see significant growth potential with the implementation of the new FERC Order 636 which provides Delhi with greater access to gas supplies and the opportunity to expand beyond its traditional markets in Texas and Oklahoma. When the opportunities afforded by FERC Order 636 are coupled with the prospect of increased throughput resulting from the demand for environmentally clean natural gas, Delhi's outlook appears bright."
 USX-Delhi Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, are attached.
 USX-DELHI GROUP
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Fourth Qtr. Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 136.9 $ 129.5
 Total operating costs (129.5) (120.0)
 Operating income 7.4 9.5
 Other income (loss) .4 (19.4)
 Net interest and other financial costs (2.6) (.1)
 TOTAL INCOME (LOSS) BEFORE INCOME TAXES AND
 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
 PRINCIPLE 5.2 (10.0)
 Less provision (credit) for estimated
 income taxes 2.1 (3.2)
 TOTAL INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 3.1 (6.8)
 Cumulative effect of change in accounting
 principle -- --
 NET INCOME 3.1 $ (6.8)
 Dividends on preferred stock -- --
 Net income applicable to Retained
 Interest (1.1) --
 NET INCOME APPLICABLE TO OUTSTANDING DELHI
 STOCK $ 2.0 --
 CONDENSED STATEMENT OF INCOME (Unaudited)
 Year Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 457.8 $ 423.2
 Total operating costs (425.2) (392.2)
 Operating income 32.6 31.0
 Other income (loss) 1.7 (18.7)
 Net interest and other financial costs (4.6) (.6)
 TOTAL INCOME (LOSS) BEFORE INCOME TAXES AND
 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
 PRINCIPLE 29.7 11.7
 Less provision (credit) for estimated
 income taxes 11.1 4.5
 TOTAL INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 18.6 7.2
 Cumulative effect of change in accounting
 principle 17.9 --
 NET INCOME 36.5 $ 7.2
 Fourth Qtr. Ended
 December 31
 1992
 Income data: Actual
 Income before cumulative effect of
 change in accounting principle $ 3.1
 Income before cumulative effect of
 change in accounting principle
 applicable to outstanding Delhi Stock $ 2.0
 Per common share data: Actual
 Primary:
 Weighted average shares, in thousands 9,001
 Total income before cumulative effect
 of change in accounting principle $ .22
 Net income .22
 Dividends paid .05
 4th Qtr. Ended Year Ended
 December 31 December 31
 1991 1992 1991
 Income data: Pro Forma
 Income before cumulative effect of
 change in accounting principle $ (8.3) $ 13.7 $ .8
 Income before cumulative effect of
 change in accounting principle
 applicable to outstanding Delhi
 Stock $ (5.3) $ 8.8 $ .5
 Per common share data: Pro Forma
 Primary:
 Weighted average shares, in thousands 9,000 9,000 9,000
 Total income before cumulative effect
 of change in accounting principle $ (.59) $ .98 $ .06
 Net income n/a n/a n/a
 Dividends paid n/a n/a n/a
 n/a not applicable
 The following notes are an integral part of these financial statements.
 USX-DELHI GROUP
 CONDENSED BALANCE SHEET (Unaudited)
 December 31
 (In Millions) 1992 1991
 ASSETS
 Cash and cash
 equivalents $ .1 $ --
 Receivables - net 12.2 22.4
 Inventories 8.4 10.9
 Other current assets 4.8 1.3
 Total current assets 25.5 34.6
 Property, plant and
 equipment - net 516.6 530.6
 Other assets 22.4 18.6
 Total $564.5 $583.8
 CONDENSED BALANCE SHEET (Unaudited)
 December 31
 (In Millions) 1992 1991
 LIABILITIES AND
 EQUITY
 Current liabilities $109.7 $ 90.5
 Long-term debt 92.5 --
 Other liabilities 166.2 185.4
 Total liabilities 368.4 275.9
 Preferred stock 2.5 --
 Common stockholders'
 equity 193.6 --
 USX equity investment -- 307.9
 Total $564.5 $583.8
 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. Beginning Oct. 2, 1992, the condensed financial statements of the Delhi Group include the results of operations and financial position for the businesses of Delhi Gas Pipeline Corporation and certain subsidiaries of USX, and a portion of the corporate assets, liabilities and related transactions that are not separately identified with ongoing operating units of USX. Prior to Oct. 2, 1992, the businesses of the Delhi Group were included in the Marathon Group (NYSE: MRO). These condensed financial statements should be read in connection with the condensed consolidated financial statements of USX.
 The USX Board of Directors designated 14,000,000 shares of Delhi Stock as the total number of shares of Delhi Stock which it deemed 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 9,005,500 outstanding shares as of Dec. 31, 1992, is approximately 64 percent. The Marathon Group financial statements reflect a Retained Interest of approximately 36 percent in the Delhi Group. Net proceeds from the sale of Delhi Stock were reflected in their entirety in the Marathon Group financial statements in the fourth quarter of 1992.
 Other income included an $18.7 million impairment of a 25 percent interest in a natural gas transmission partnership recognized in the fourth quarter of 1991.
 The provision for estimated U.S. income taxes for interim periods is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income.
 USX adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" in the fourth quarter of 1992, which requires a liability approach for measuring deferred income taxes and resulted in restatement of the first three quarters of 1992. The cumulative effect of adopting this standard is reported as a change in accounting principle effective Jan. 1, 1992, and increased 1992 first quarter net income of the Delhi Group by $17.9 million.
 The pro forma income data is based on the assumption that the new capital structure of the Delhi Group determined as of June 30, 1992, was in effect as of Jan. 1, 1991. The historical income before the cumulative effect of the change in accounting principle has been adjusted to reflect the weighted average effects of all USX financial activities assumed to be attributed to the Delhi Group, the change in income taxes due to recognition of these adjustments and the assumed effects of attributed preferred stock. Pro forma income before the cumulative effect of the change in accounting principle applicable to outstanding Delhi Stock represents pro forma income before the cumulative effect of the change in accounting principle less dividends on attributed preferred stock and income applicable to the Retained Interest. The pro forma income per share before the cumulative effect of the change in accounting principle applicable to outstanding Delhi Stock is based on the weighted average number of shares outstanding, which assumes the 9,000,000 shares initially sold were outstanding for all periods.
 January 26, 1993
 USX-DELHI GROUP
 SUPPLEMENTAL STATISTICS
 ($'s in Millions)
 Fourth Quarter Year
 Ended Ended
 December 31 December 31
 1992 1991 1992 1991
 SALES $136.9 $129.5 $457.8 $423.2
 GROSS MARGIN
 Gas Sales Margin $ 27.8 $ 27.9 $ 96.1 $ 96.4
 Transportation Margin 4.2 3.8 14.8 14.0
 Systems Margin 32.0 31.7 110.9 110.4
 Gas Processing Margin 4.6 7.1 26.1 27.2
 Total Gross Margin $ 36.6 $ 38.8 $137.0 $137.6
 OPERATING INCOME (LOSS) $ 7.4 $ 9.5 $ 32.6 $ 31.0
 CAPITAL EXPENDITURES $ 13.3 $ 9.1 $ 26.6 $ 18.6
 OPERATING STATISTICS
 Natural Gas Throughput:
 Natural Gas Sales (A) 511.0 544.6 546.4 536.8
 Transportation (A) 316.7 254.2 282.6 221.7
 Systems Throughput 827.7 798.8 829.0 758.5
 Partnerships - equity share (A) 29.2 45.1 27.8 39.8
 Total Throughput 856.9 843.9 856.8 798.3
 Natural Gas Liquids Sales (B) 815.0 577.4 714.2 588.2
 (A) MMCFPD
 (B) 000 GAL PD
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Fourth Qtr. Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 4,603 $ 4,873
 Total operating costs (4,975) (5,187)
 Operating income (loss) (372) (314)
 Other income (loss) (30) 1
 Net interest and other financial costs (101) (127)
 TOTAL INCOME (LOSS) BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES (503) (440)
 Less provision (credit) for estimated
 income taxes - United States (171) (56)
 - Foreign 11 10
 TOTAL INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF CHANGES IN ACCOUNTING
 PRINCIPLES (343) (394)
 Cumulative effect of changes in accounting
 principles -- --
 NET INCOME (LOSS) (343) (394)
 Dividends on preferred stock (2) (2)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ (345) $ (396)
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 Year Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 SALES $ 17,841 $ 18,825
 Total operating costs (17,758) (19,084)
 Operating income (loss) 83 (259)
 Other income (loss) (30) 39
 Net interest and other financial costs (242) (471)
 TOTAL INCOME (LOSS) BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES (189) (691)
 Less provision (credit) for estimated
 income taxes - United States (64) (134)
 - Foreign 35 21
 TOTAL INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF CHANGES IN ACCOUNTING
 PRINCIPLES (160) (578)
 Cumulative effect of changes in accounting
 principles (1,666) --
 NET INCOME (LOSS) (1,826) (578)
 Dividends on preferred stock (9) (9)
 NET INCOME (LOSS) APPLICABLE TO COMMON
 STOCKS $ (1,835) $ (587)
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 December 31
 (In Millions) 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 57 $ 279
 Receivables - net 924 1,098
 Inventories 1,930 1,858
 Other current assets 189 101
 Total current assets 3,100 3,336
 Property, plant and
 equipment - net 11,759 11,593
 Other assets 2,393 2,110
 Total $17,252 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 December 31
 (In Millions) 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 3,470 $ 3,551
 Long-term debt 5,968 5,921
 Other liabilities 4,105 2,580
 Total liabilities 13,543 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 3,604 4,882
 Total $17,252 $17,039
 The following common share data and notes are an integral part of these financial statements.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 COMMON SHARE DATA (Unaudited) Fourth Qtr. Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 Common share data - Marathon Stock
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to Marathon Stock $ (121) $ (231)
 --Primary per share (.42) (.90)
 --Fully diluted per share (.42)(A) (.90)(A)
 Net income (loss) applicable to Marathon
 Stock (121) (231)
 --Primary per share (.42) (.90)
 --Fully diluted per share (.42)(A) (.90)(A)
 Dividends paid per share .17 .35
 Common share data - Steel Stock
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to Steel Stock $ (226) $ (165)
 --Primary per share (3.80) (3.25)
 --Fully diluted per share (3.80)(A) (3.25)(A)
 Net income (loss) applicable to Steel
 Stock (226) (165)
 --Primary per share (3.80) (3.25)
 --Fully diluted per share (3.80)(A) (3.25)(A)
 Dividends paid per share .25 .25
 COMMON SHARE DATA (Unaudited) Year Ended
 December 31
 (In Millions Except Per Share Data) 1992 1991
 Common share data - Marathon Stock
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to Marathon Stock $ 103 $ (78)
 --Primary per share .37 (.31)
 --Fully diluted per share .37(A) (.31)(A)
 Net income (loss) applicable to Marathon
 Stock (228) (78)
 --Primary per share (.80) (.31)
 --Fully diluted per share (.80)(A) (.31)(A)
 Dividends paid per share 1.22 1.31
 Common share data - Steel Stock
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to Steel Stock $ (274) $ (509)
 --Primary per share (4.92) (10.00)
 --Fully diluted per share (4.92)(A) (10.00)(A)
 Net income (loss) applicable to Steel
 Stock (1,609) (509)
 --Primary per share (28.85) (10.00)
 --Fully diluted per share (28.85)(A) (10.00)(A)
 Dividends paid per share 1.00 .94
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 COMMON SHARE DATA (Unaudited) continued
 4th Qtr Ended
 December 31
 1992
 Common share data - Delhi Stock
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to outstanding
 Delhi Stock $ 2.0
 --Primary per share .22
 Net income (loss) applicable to
 outstanding Delhi Stock 2.0
 --Primary per share .22
 Dividends paid per share .05
 4th Qtr. Ended Year Ended
 December 31 December 31
 1991 1992 1991
 Common share data - Delhi Stock Pro Forma
 Total income (loss) before cumulative
 effect of changes in accounting
 principles applicable to outstanding
 Delhi Stock $ (5.3) $ 8.8 $ .5
 --Primary per share (.59) .98 .06
 Net income (loss) applicable to
 outstanding Delhi Stock n/a n/a n/a
 --Primary per share n/a n/a n/a
 Dividends paid per share n/a n/a n/a
 n/a not applicable
 (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, the U.S. Steel Group and the Delhi Group, taken together, includes all accounts which comprise the corresponding consolidated financial information for USX.
 USX adopted two new accounting standards in the fourth quarter of 1992 which resulted in restatement of the first three quarters of 1992. Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," requires accrual of future retiree medical and life insurance benefits. USX elected to recognize immediately the transition obligation which is reported as a change in accounting principle effective Jan. 1, 1992, and decreased 1992 net income by $1.306 billion, net of $764 million income tax effect. The increase to 1992 operating costs as a result of adopting this standard was $58 million.
 The second accounting standard, Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS No. 109), requires a liability approach for measuring deferred income decreased 1992 net income by $360 million.
 In addition, USX adopted AICPA Statement of Position 92-3, "Accounting for Foreclosed Assets," which requires that foreclosed assets be carried at the lower of fair value minus estimated costs to sell or cost. The adoption of this standard resulted in a charge to other income of $29 million in the fourth quarter of 1992.
 The numbers of shares used in the computation of earnings per share were as follows:
 (In Thousands)
 Fourth Quarter Ended
 December 31
 1992 1991
 Marathon Stock - primary 286,276 256,205
 - fully diluted 286,276 256,205
 Steel Stock - primary 59,551 50,989
 - fully diluted 59,551 50,989
 Pro Forma
 Delhi Stock - primary 9,001 9,000
 Year Ended
 December 31
 1992 1991
 Marathon Stock - primary 283,494 255,474
 - fully diluted 283,495 255,474
 Steel Stock - primary 55,764 50,948
 - fully diluted 55,764 50,948
 Year Ended
 December 31
 1992 1991
 Pro Forma
 Delhi Stock - primary 9,000 9,000
 Inventory market valuation charges (credits) totaled $(62) million and $260 million in 1992 and 1991, respectively ($98 million and $260 million in the fourth quarters of 1992 and 1991, respectively).
 In 1991, operating income included a $426 million charge ($80 million in the fourth quarter) for a number of restructuring actions primarily related to steel operations. Completion of these restructuring actions related to steel operations resulted in a $10 million charge in the fourth quarter of 1992. The Board of Directors also approved restructuring actions involving the disposition of nonstrategic domestic exploration and production properties, which resulted in a $115 million charge to operating income in the second quarter of 1992.
 Pretax income in 1992 included the settlement of a production tax refund claim for the years 1982 through 1985. The refund resulted in a credit to second quarter operating income of $119 million as well as interest income of $177 million. Net interest and other financial costs in the third quarter of 1991 included $26 million of interest income related to prior years' production taxes.
 The provision for estimated U.S. and foreign income taxes for interim periods is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income. Prior to the 1992 adoption of SFAS No. 109, the inventory market valuation adjustment was excluded from the determination of the U.S. income tax provision.
 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. USX sold 9,000,000 shares of Delhi Stock to the public for net proceeds of $136 million in the fourth quarter of 1992.
 USX also 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.
 /delval/
 -0- 1/26/93
 /CONTACT: W.E. Keslar or D.H. Herring, both of USX Corporation, 412-433-6870/
 (X DGP MRO)


CO: USX-Delhi Group ST: Pennsylvania IN: MNG OIL SU: ERN

CD -- PG005 -- 9104 01/26/93 13:13 EST
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