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I have been following this company for a while-They finally are
turning a profit..I really got happy after I read this news release.
I feel more confident with an oil related stock than with a retailer.
DALLAS--(BUSINESS WIRE)--March 5, 1996--Kaneb Services, Inc.
(NYSE: KAB) today reported consolidated net income for the three
months and year ended December 31, 1995 of $1,230,000 and
$59,181,000, respectively, including, in the annual period, a
nonrecurring net gain totaling $54,157,000 on the sale in September
1995 of a portion of the Preference Units that it owns in Kaneb Pipe
Line Partners, L.P. (NYSE: KPP and KPU).
Consolidated net income for the three months ended December 31,
1995 represented a substantial improvement over the $113,000 for the
same period last year, which included losses from operations in
eastern Germany that were sold near the end of last year. For the
year ended December 31, 1995, consolidated net income excluding the
nonrecurring net gain was $5,024,000, up 147% over $2,035,000 for the
previous year.
There was a 500% improvement in net income excluding
the nonrecurring net gain applicable to common stock and after
preferred dividends. Consolidated revenues were $55,449,000 for the
three months ended December 31, 1995, up from $52,262,000 for the
same period last year. For the year ended December 31, 1995,
consolidated revenues were $212,062,000 compared to $208,722,000
during the prior year, which included the unprofitable operations in
eastern Germany that were sold near the end of last year.
John R. Barnes, Kaneb's Chairman and Chief Executive Officer,
said, "We had a very solid fourth quarter and year as operating
results continued to steadily improve as we expected in every area of
the Company. During the year, we strengthened our balance sheet with
the permanent retirement of $60,000,000 in debt, and we increased
shareholders' equity over $50,000,000 as a result of the sale of a
portion of our interest in our pipeline partnership. Subsequent to
the end of the year, we paid off another $6,000,000 in debt and
redeemed an expensive 12% preferred stock series that has been
costing us over $1,000,000 a year in cash dividends. Over the last
four months, we have reduced our total debt, excluding the pipeline
partnership's debt and subsidiary debt, from $90,000,000 to
$24,000,000. The positive effects of all these actions will continue
to benefit us in future years."
Kaneb Services, Inc. provides specialized industrial services,
including under pressure leak sealing, on-site machining, safety and
relief valve testing and repair, passive fire protection and fugitive
emissions inspections, to process plants worldwide through its
Furmanite group of companies. Kaneb provides pipeline engineering
services in eastern Germany and manages and operates all of the
pipelines and terminals owned by Kaneb Pipe Line Partners, L.P.
(NYSE: KPP and KPU). The Partnership's pipelines transport refined
petroleum products to destinations in nine midwestern states, and it
is the third largest independent liquids terminaling operation in the
United States.
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