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WACKENHUT REPORTS LOWER SECOND QUARTER NET INCOME ON INCREASED REVENUES

 CORAL GABLES, Fla., Aug. 2 /PRNewswire/ --The Wackenhut Corporation (NYSE: WAK) announced that net income for the second quarter was off 30.2 percent compared to the same period last year, while revenues increased over the comparable period by 6.1 percent.
 Revenues for the second quarter were $162,051,000, an increase over revenues of $152,719,000 for the second quarter of 1992. Net income declined from $1,931,000 for the second quarter of last year to $1,348,000 for the second quarter of 1993. For the first half of the year, revenues were $324,163,000, an increase of 7.2 percent, while earnings, before the cumulative effect of a change in accounting principle, was $3,207,000, a decline of 11.3 percent. Earnings per share (prior to the effect of change in accounting principle) was 42 cents, compared to 47 cents for the first two quarters of 1992.
 George R. Wackenhut, chairman of the board and chief executive officer of the corporation, said that the higher revenues in both the quarter and six month period came as a result of aggressive marketing in all operational areas, particularly in the domestic services group. Growth was recognized across all geographical regions, and international expansion continues to exceed expectations.
 In part, Wackenhut noted, the decline in net income for the second quarter was driven by the rapid revenue growth. "The corporation realized significant increases in expenses related to several large contracts that were awarded in the second quarter. Hiring and training costs are largely front loaded, and are recovered only later through the billing process." The chairman went on to explain that market factors, such as increased competitiveness and a sluggish economy added to the net income squeeze created by the increased volume of business. "Other factors," he continued, "included the negative impact that the rising costs of health insurance have had on a labor intensive industry such as ours."
 Also mentioned were losses associated with the restructuring of the corporation's technical subsidiary, ongoing investment in the electronic monitoring business, and poor operating results in the company's Canadian subsidiary. All these have been addressed, Wackenhut stated, and will have little continuing impact on the corporation for the remainder of the year.
 THE WACKENHUT CORPORATION
 SUMMARY OF THE QUARTER:
 Second Quarter 1993 1992 PERCENT
 CHANGE
 Revenues $162,051,000 $152,719,000 6.1
 Net Income $ 1,348,000 $ 1,931,000 (30.2)
 Earnings Per Share $ .18 $ .25
 PERCENT
 YEAR-TO-DATE 1993 1992 CHANGE
 Revenues $324,163,000 $302,320,000 7.2
 Income before cumulative
 effect of change in
 accounting principle $ 3,207,000 $ 3,616,000 (11.3)
 Cumulative effect of
 change in accounting
 principle --- $ 7,370,000
 Net Income $ 3,207,000 $ 10,986,000
 Earnings Per Share:
 Income before cumulative
 effect of change in
 accounting principle $ .42 $ .47
 Cumulative effect of
 change in accounting
 principle --- $ .95
 Net income $ .24 $1.42
 The board of directors, at its regular meeting on July 31, 1993, declared cash dividends of 9 cents per share for its Common Stock Series A (WAK) and the same amount for its Common Stock Series B (WAKB), payable on Sept. 1, 1993 to shareholders of record at the close of business on Aug. 16, 1993.
 The Wackenhut Corporation is one of the world's largest suppliers of security-related services. It has offices in over 125 U.S. locations and in 50 other countries on six continents. It was founded by George R. Wackenhut, a former Special Agent of the Federal Bureau of Investigation, in 1954.
 -0- 8/2/93
 /CONTACT: Patrick F. Cannan, director of corporate relations of The Wackenhut Corporation, 305-666-5656/
 (WAK)


CO: The Wackenhut Corporation ST: Florida IN: SU: ERN

RC-JB -- FL005 -- 8242 08/02/93 09:47 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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