Allegheny Beverage Corp. reported improved earnings and revenue for its first quarter ended June 30 in the midst of a major restructuring program, but stressed that the results do not necessarily reflect earnings for the rest of the year.
This is partly because results from the quarter include only a portion of the savings the company expects from consolidation of its Macke and Servomation food service subsidiaries. The company acquired Servomation, a Connecticut-based firm, on May 14.
Earnings totaled $1.7 million (26 cents a share) compared with $381,000 (6 cents) in the first quarter of its 1984 fiscal year, the company said.
Revenue was $225.3 million, nearly double the $119.3 million achieved in the comparable three months the year before. The company said it recorded an after-tax gain of $68.2 million from the sale of its soft drink bottling subsidiary in May.
The Cheverly-based firm also announced it had filed a statement with the Securities and Exchange Commission proposing a public offering of $100 million principal amount of convertible senior subordinated debentures due in 2010. The offering will be used to repay a portion of the debt incurred in purchasing Servomation.
*Second-quarter earnings were up 15 percent at the Rouse Co., a Columbia-based real estate development firm.
The company said earnings before noncash charges from continuing operations for the three months ended June 30 were $8.9 million compared with $7.7 million for the same period a year ago. Earnings for the first six months of the year grew 20 percent to $17.1 million from $14.3 million, Rouse said. Noncash charges generally refer to depreciation costs and deferred taxes, a company spokesman said. He attributed the improvement in large part to increased interest from Rouse's cash investments.
After noncash charges were added, net earnings for the second quarter actually declined from $4.5 million (15 cents a share) to $2.9 million (9 cents), the spokesman said. He said, however, that, in management's opinion, the most important indicator of performance for the firm is earnings before noncash charges.