Insilco Corporation Reports Second Quarter Net Income, Announces Share Repurchase Plan

Strategic Insights -

Insilco Corporation, a diversified manufacturer of industrial components, reported net income from continuing operations of $3.3 million or $0.33 per share for the second quarter ended June 30, 1995, compared to a net loss of $7.4 million or $0.77 per share in the same quarter last year. The company's sales were slightly lower at $167.2 million compared to $168.8 million in the second quarter of 1994. For the six months ended June 30, 1995, net income from continuing operations was $3.4 million or $0.33 per share, compared to a net loss from continuing operations of $22.7 million or $2.34 per share in the first half of 1994.

Key Takeaways:

  • Insilco Corporation reported net income from continuing operations of $3.3 million or $0.33 per share for the second quarter ended June 30, 1995, a significant improvement from a net loss of $7.4 million or $0.77 per share in the same quarter last year.
  • The company's sales were slightly lower at $167.2 million compared to $168.8 million in the second quarter of 1994, while sales for the first half were $288.6 million, up $5.4 million or 2% ahead of last year's first half.
  • Insilco's Technologies Group posted gains in earnings for the quarter, led by Stewart Connector Systems with a 21% rise in revenues in 1995 compared to 1994.
  • The company's Automotive Components Group sales and earnings contribution were roughly flat for the quarter, reflecting a softening in demand from OEM's and for aftermarket air conditioner condensers and radiators, largely attributable to a mild winter and spring.
  • Insilco announced its Board of Directors authorized the repurchase of up to $15 million in common stock, which may be made from time to time in the open market or in privately negotiated transactions.
  • The company recorded several non-recurring charges to operating income in the quarter, including a $4.6 million reserve for customer returns and uncollectible chargebacks at Rolodex, and a $1.6 million charge to adjust the net realizable value of inventory and related capital assets.
  • Insilco's results included a net favorable adjustment of $1.5 million related to resolution of several legal disputes dating to prior years, a favorable adjustment to its environmental liabilities of $3.6 million, a $1.6 million gain on the sale of idle corporate assets, and $0.5 million in equity income from Thermalex.

Statistics:

  • Net income from continuing operations: $3.3 million (1995) vs. -$7.4 million (1994)
  • Fully diluted earnings per share: $0.33 (1995) vs. -$0.77 (1994)
  • Sales: $167.2 million (1995) vs. $168.8 million (1994)
  • Sales for the first half: $288.6 million (1995) vs. $283.2 million (1994)
  • Cash flow before financing: $14.6 million (1995)
  • Goodwill amortization: $1.58 per share (1995) vs. $3.75 per share (1994)
  • Net interest expense: $4.0 million (1995) vs. $7.6 million (1994)
  • Reserve for customer returns and uncollectible chargebacks: $4.6 million (1995)
  • Charge to adjust the net realizable value of inventory and related capital assets: $1.6 million (1995)

Sources:

  • "Insilco Corporation Reports Second Quarter Net Income, Announces Share Repurchase Plan." Business Wire, July 31, 1995.
  • Insilco Corporation. Form 10-Q, June 30, 1995.