Mark IV Industries Inc. said today that its profits tumbled 86 percent during the third quarter, although the Amherst conglomerate's income from continuing operations rose by 2 percent.
Despite the slight increase in its income from continuing operations, Mark IV's net income fell because its profits during the third quarter last year included $44.1 million in one-time gains from securities repurchases and the sale of Blackstone Corp.
Mark IV's net income fell to $6.8 million, or 50 cents a share, during the quarter ended Nov. 30, compared to $50.1 million, or $3.38 per share, a year earlier, when the extraordinary items accounted for net income equal to 56 cents per share and discontinued operations added another $2.41 per share.
The company's net income during the third quarter of this year included a one-time gain of $700,000, or 5 cents a share, from gains Mark IV realized by purchasing some of its junk bond debt on the open market.
Mark IV's income from continuing operations, which gives a better picture of how the company's remaining operations are doing compared to last year, rose to $6.1 million, or 45 cents a share, from $6 million, or 41 cents a share, a year earlier.
Sales rose 11 percent to $228.4 million from $204.9 million.
For the first nine months of the year, Mark IV's net income fell 69 percent, partly because of the company's extraordinary gains, which equaled $9.5 million, or 61 cents a share. Discontinued operations accounted for profits equal to $2.20 per share last year.
The company's net income fell to $20.9 million, or $1.49 per share, compared with $66.4 million, or $4.24 per share, one year ago.
Mark IV's income from continuing operations before investment gains rose 4 percent to $19.6 million, or $1.40 per share, from $18.8 million, or $1.20 per share, a year earlier. The company had investment gains of $600,000, or 4 cents a share, during the first three quarters of this year, compared with $3.6 million, or 23 cents a share, a year ago.
Sales for the first three quarters rose 6 percent to $673.5 million from $634.3 million.