-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KOOGZPKTHGrAebQA/Y9BeofAupUnZoJWVj8mGBhj7MqUhmvho4DFDFGqOT/yOcHQ DFj643wle/79+gHFLqRsbg== 0000909518-99-000316.txt : 19990517 0000909518-99-000316.hdr.sgml : 19990517 ACCESSION NUMBER: 0000909518-99-000316 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED INDUSTRIAL CORP /DE/ CENTRAL INDEX KEY: 0000101271 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 952081809 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-04252 FILM NUMBER: 99622072 BUSINESS ADDRESS: STREET 1: 18 E 48TH ST CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2127528787 MAIL ADDRESS: STREET 1: 18 E 48TH STREET CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: TOPP INDUSTRIES CORP DATE OF NAME CHANGE: 19710510 FORMER COMPANY: FORMER CONFORMED NAME: HAYES MANUFACTURING CORP DATE OF NAME CHANGE: 19660911 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1999 -------------- [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ To _____________ Commission file number #1-4252 UNITED INDUSTRIAL CORPORATION --------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 95-2081809 - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) (I.R.S. Identification No.) 570 Lexington Avenue, New York, NY 10022 ---------------------------------------------------- (Address of principal executive offices) Not Applicable ------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No ___ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 12,270,013 shares of common stock as of May 3, 1999. UNITED INDUSTRIAL CORPORATION INDEX
Page # Part I - Financial Information ------ Item 1. Financial Statements Consolidated Condensed Balance Sheets - Unaudited March 31, 1999 and December 31, 1998 1 Consolidated Condensed Statements of Operations - Three Months Ended March 31, 1999 and 1998 2 Consolidated Condensed Statements of Cash Flows Three Months Ended March 31, 1999 and 1998 3 Notes to Consolidated Condensed Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 Item 3. Qualitative and Quantitative Disclosures about Market Risk 9 PART II - Other Information 10
PART I - FINANCIAL INFORMATION ITEM I - FINANCIAL STATEMENTS UNITED INDUSTRIAL CORPORATION & SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in Thousands)
MARCH 31 DECEMBER 31 1999 1998 ------------ ------------- ASSETS (Unaudited) Current Assets Cash & cash equivalents $ 16,558 $ 21,126 Marketable securities 5,884 4,702 Trade receivables 37,107 34,316 Inventories Finished goods & work-in-process 24,981 20,151 Materials & supplies 3,597 3,418 -------- -------- 28,578 23,569 Deferred income taxes 5,452 5,451 Prepaid expenses & other current assets 8,754 8,295 -------- -------- Total Current Assets 102,333 97,459 Other assets 56,649 56,421 Property & equipment - less allowances for depreciation (1999-$84,146; 1998-$82,643) $ 30,884 30,566 -------- -------- $189,866 $184,446 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 11,166 $ 12,235 Accrued employee compensation & taxes 8,823 8,320 Customer advances 13,739 4,303 Federal income taxes 2,258 2,973 Other liabilities 5,074 8,255 Provision for contract losses 3,853 4,558 -------- -------- Total Current Liabilities 44,913 40,644 Long-term liabilities 4,115 4,175 Deferred income taxes 6,933 7,050 Postretirement benefits other than pensions 23,276 23,136 Shareholders' Equity Common stock $1.00 par value Authorized - 30,000,000 shares; outstanding 12,268,013 and 12,250,063 shares - 1999 and 1998 (net of shares in treasury) 14,374 14,374 Additional capital 89,542 89,583 Retained earnings 23,337 22,249 Treasury stock, at cost, 2,106,135 at 1999 and 2,124,085 shares at 1998 (16,624) (16,765) -------- -------- 110,629 109,441 -------- -------- $189,866 $184,446 ======== ========
See accompanying notes 1 UNITED INDUSTRIAL CORPORATION & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts)
Three Months Ended March 31 --------------------------- 1999 1998 * ------------ ----------- (Unaudited) Net sales $ 47,070 $ 47,227 Operating costs & expenses Cost of sales 32,015 33,825 Selling & administrative 10,989 10,203 Other expense (income) - net 1,010 (91) Interest expense 23 108 Interest income (619) (575) -------- -------- 43,418 43,470 -------- -------- Income before income taxes 3,652 3,757 Income taxes 1,338 1,434 -------- -------- Net income $ 2,314 $ 2,323 ======== ======== Net earnings per share: Basic $ .19 $ .19 ===== ----- Diluted $ .19 $ .18 ===== -----
See accompanying notes *Reclassified to conform with 1998 classifications 2 UNITED INDUSTRIAL CORPORATION & SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
THREE MONTHS ENDED MARCH 31 1999 1998 -------- -------- OPERATING ACTIVITIES (Unaudited) - -------------------- Net income $ 2,314 $ 2,323 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,846 2,223 Deferred income taxes (118) 18 (Decrease) increase in contract loss provision (705) (193) Changes in operating assets and liabilities (2,570) (3,774) (Decrease) increase in federal income taxes (715) 943 -------- -------- Net Cash Provided by Operating Activities 52 1,540 INVESTING ACTIVITIES (Increase) decrease in marketable securities (1,182) 4,071 Purchase of property and equipment (1,946) (2,513) (Increase) decrease in other assets - net (389) (254) -------- -------- Net (Used in) Cash Provided by Investing Activities (3,517) 1,304 FINANCING ACTIVITIES Increase(decrease) in long-term liabilities 80 (404) Proceeds from exercise of stock options 43 87 Payments on long-term debt & borrowings - (208) Dividends (1,226) (1,225) -------- -------- Net Cash Used in Financing Activities (1,103) (1,750) -------- -------- (Decrease) increase in cash and cash equivalents (4,568) 1,094 Cash and cash equivalents at beginning of period 21,126 23,098 -------- -------- Cash and cash equivalents at end of period $ 16,558 $ 24,192 ======== ========
See accompanying notes 3 UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Condensed Financial Statements March 31, 1999 Note A - Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1999 are not necessarily indicative of the results that may be expected for the year ending December 31, 1999. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1998. Note B - Segment Information
Trans- Reconci- (dollars in thousands) Defense portation Energy Other liations Totals Three months ended March 31, 1999 ------- --------- ------ ----- -------- ------ - --------------------------------- Revenues from external customers $35,980 $ 2,650 $ 8,440 $ - $ - $47,070 Intersegment revenues 140 - - - (140) - Equity profit (loss) in ventures 84 (1,336) - - - (1,252) Segment profit (loss) 4,037 (1,143) 1,183 (426) - 3,651 Income before income taxes $ 3,651 ======= Three months ended March 31, 1998 Revenues from external customers $34,750 $ 2,456 $10,021 $ - $ - $47,227 Intersegment revenues 500 - - - (500) - Equity profit (loss) in ventures - (58) - - - (58) Segment profit (loss) 3,013 (408) 2,094 (942) - 3,757 Income before income taxes $ 3,757 =======
Note C - Dividends A quarterly dividend of $.10 per share is payable May 28, 1999. 4 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Forward Looking Information - --------------------------- This report contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," and variations of such words and similar expressions are intended to identify such forward looking statements which include, but are not limited to, projections of revenues, earnings, segment performance, cash flows and contract awards. These forward looking statements are subject to risks and uncertainties which could cause the Company's actual results or performance to differ materially from those expressed or implied in such statements. These risks and uncertainties include, but are not limited to, the following: the Company's successful execution of internal performance plans; performance issues with key suppliers, subcontractors and business partners; legal proceedings; product demand and market acceptance risks; the effect of economic conditions; the impact of competitive products and pricing; product development, commercialization and technological difficulties; capacity and supply constraints or difficulties; legislative or regulatory actions impacting the Company's energy segment and transportation business; changing priorities or reductions in the U.S. Government defense budget; contract continuation and future contract awards; U.S. and international military budget constraints and determinations; and the ability of the Company and third parties to address the Year 2000 issues adequately. Results of Operations - --------------------- Three months ended March 31, 1999 compared to three months ended March 31, 1998: Consolidated net sales decreased by $157,000 to $47,070,000 in the first quarter of 1999 as compared to $47,227,000 in the same period in 1998. The Energy segment sales decreased $1,581,000 or 16% to $8,440,000 in the first quarter of 1999 from $10,021,000 in the first quarter of 1998. Sales in the Defense segment increased $1,230,000 or 4% to $35,980,000 in the first quarter of 1999, from $34,750,000 in the same period in 1998 due primarily to a contract with the U.S. Air Force to upgrade Maintenance Training Devices for the C-17 aircraft. During the first quarter of 1998, Detroit Stoker Company, the Company's energy subsidiary recorded sales of $2,800,000 on an unusually large overseas project which was completed in 1998. Transportation segment sales increased $194,000 or 8% to $2,650,000 in the first quarter of 1999, from $2,456,000 in the first quarter of 1998. Gross margin increased to 32% in the first quarter of 1999 from 28.4% in the first quarter of 1998, primarily due to increases in the Defense and Transportation segments and partially offset by a decrease in the Energy segment. The decrease in the Energy segment resulted from product mix and lower sales volume. The lower gross margin in the Tranportation segment in the first quarter of 1998 primarily resulted from initial costs required to establish this business in its marketplace. Selling and administrative expenses for the three months ended March 31, 1999 increased $786,000 or 7.7% to $10,989,000 in the first quarter of 5 1999, from $10,203,000 in the first quarter of 1998. Beginning in 1999 the Corporate overhead allocation charged to the operating units was increased. Consequently, administrative fees in the Other segment were reduced $556,000 related to the increase in such fees received and a like amount increased these costs in the operating segments. The Defense segment's selling and administrative expenses increased $1,116,000, or 16.81% to $7,753,000, in the first quarter of 1999 from $6,637,000 in the same period in 1998. The increase was primarily due to the increase in the Corporate administrative fee allocation, additional state tax on the sale of property and an increase in research and development expenses. The Transportation segment increased expenses by $235,000 in the first quarter of 1999 over the same period last year. Other expense net increased $1,101,000 to $1,010,000 net expense in the first quarter of 1999, from a net income of $91,000 in the first quarter of 1998. The first quarter of 1998 included a $345,000 gain related to sales of certain assets. Other expense in the Transportation segment increased $1,278,000 due to an increase in the equity loss in its Electric Transit, Inc. ("ETI") venture. ETI is owned 35% by AAI (a wholly owned subsidiary of the Company) and 65% by Skoda, a Czech Republic firm. The Transportation segment recorded 100% of the ETI loss of $1,336,000 in the first quarter of 1999 and in 1998 recorded its 35% equity loss in ETI of $58,000. (See Liquidity and Capital Resources discussion below.) Interest expense decreased by $85,000 due to reduced borrowings. Interest income increased by $44,000 due to advances to joint ventures. Net income was $2,314,000 or $.19 per diluted share in the first three months of 1999, compared to net income of $2,323,000 or $.18 per diluted share in the same period of 1998. Liquidity and Capital Resources - ------------------------------- Cash and cash equivalents decreased $4,568,000 to $16,558,000 at March 31, 1999 from $21,126,000 at December 31, 1998. In addition the Company's investments in marketable securities increased $1,182,000 to $5,884,000 at March 31, 1999 from $4,702,000 at December 31, 1998. Changes in operating assets and liabilities of $2,570,000 were offset by net income of $2,314,000. The major items contributing to the decrease in cash were the increase in marketable securities and dividends of $1,226,000. Receivables from Electric Transit, Inc. ("ETI") amounted to $23,265,000 at March 31, 1999 and $22,375,000 at December 31, 1998. The Company currently has no significant fixed commitment for capital expenditures. The Company expects that available cash and existing lines of credit will be sufficient to meet its cash requirements for the remainder of the calendar year. Its cash requirements consist primarily of its obligation to fund operations. In 1993, AAI Corporation, a wholly owned subsidiary of the Company ("AAI"), organized a new subsidiary, ETI, to manufacture electric trolley buses ("ETB's") for the U.S. market. In 1994 and again in 1995, ETI conveyed equity interests to Skoda, a Czech Republic firm. Consequently, ETI is owned 35% by AAI and 65% by Skoda and the Company had previously recorded its equity share of income or loss in ETI accordingly. Management has recently learned that Skoda will likely be unable to secure the necessary financing to execute its subcontract on the San Francisco 6 electric trolley bus program and to meet its funding obligations to ETI. This situation has reduced ETI's ability and willingness to continue to finance Skoda Ostrov s.r.o., Skoda's ETB manufacturing subsidiary which has the subcontract arrangement with ETI until this problem is alleviated. As a result, contract performance by ETI has been adversely affected. ETI and Skoda were until recently negotiating with a bank to obtain credit facilities that along with customer advances would have provided the funds necessary to meet the working capital requirements of both ETI and Skoda Ostrov. This bank has withdrawn from the negotiation, but has expressed a willingness to revisit an arrangement if the ownership of these entities should change. Due to Skoda's inability to fund ETI as required under ETI's shareholder agreement, AAI has assumed that responsibility in the entirety. Consequently, the loss representing a 100% share of the loss in ETI of $1.3 million or $839,000, net of tax, during the first quarter of 1999, has been provided for by AAI in the accompanying financial statements. This loss was primarily caused by cost growth on the Dayton ETB program during the current quarter. The delivery of these buses is expected to be completed during the third quarter of 1999. Skoda's production delays on the San Francisco project will likely diminish the profitability of that contract. Since sales and gross margin are recorded when the units are delivered, the delays in trolley bus deliveries will result in continued losses throughout 1999. Contract performance on the two electric trolley bus programs will now depend on AAI advancing working capital funds as required. In order to minimize delays and gain the ability to control the manufacture and delivery of the ETB's, AAI and Skoda have signed a letter of intent for AAI to acquire Skoda Ostrov and all of Skoda's shares in ETI. When consummated, the transaction will provide the Company with a 100% ownership-interest in ETI. The closing of the transaction is subject to execution and delivery of definitive documents and several closing conditions and, accordingly, no assurances can be given that this transaction will be consummated. If this transaction is not consummated and ETI and Skoda are unable to obtain alternative sources of financing, it is likely to have a material adverse effect on the Company's results of operations, liquidity and financial condition. Year 2000 - --------- The Year 2000 issue exists because many currently installed computer systems and software programs were designed to use only a two-digit date field. These date fields will need to accept four digits to distinguish 21st century dates from 20th century dates. Until the date fields are revised, the systems and programs could fail or give erroneous results when referencing dates subsequent to December 31, 1999. Such failures or errors could occur prior to the actual change in century. The Company is currently implementing a six phase plan to address this problem: Awareness, Assessment, Remediation, Validation/Test, Implementation, and Contingency Planning. The Awareness phase is a communication phase to inform employees, suppliers and customers of the Year 2000 issue. The Assessment phase is an inventory and analysis of 7 those systems which may have a problem. The Remediation phase is the correction phase for the problem. The Validation/Test phase is used to verify that corrections have been made properly and completely. The Implementation phase is to actually put the changed systems into production use. The Contingency Planning phase is the development of a plan to detail the Company's reactions to possible future scenarios concerning the Year 2000 issue. These plans are being implemented on both the Information Technology (IT) areas and the non-IT areas for the transition to the 21st century. IT areas include all computer system hardware and software. Non-IT areas include systems that have embedded computer chips or microprocessors. The Awareness and Assessment phases are complete for the IT and non-IT systems. The IT systems are estimated to be 95% complete in the Remediation phase and are expected to be completed through the Implementation phase by June 1999. Non-IT systems are estimated to be 95% complete in the Remediation phase and are expected to be completed through the Implementation phase by June 1999. Many of the Company's products do not require computer systems or do not perform any data processing. These products are currently compliant. Other products have been remediated and are currently compliant. Still other products cannot be remediated because they are based on obsolete computer systems. The Company is working on a case by case basis with its customers to alleviate Year 2000 issues with these products. Although the Company's products continue to undergo normal quality testing procedures, there can be no assurance that these products will contain all necessary date code changes. Any system malfunctions due to the onset of the Year 2000 and any disputes with customers relating to Year 2000 compliance could have a material adverse effect on the Company's business, financial condition or results of operations. The Company has contacted its IT suppliers asking for Year 2000 compliance statements and status. Each vendor has responded with information necessary to ensure their products compliance. The Company is in the pro cess of completing the steps necessary to make these hardware and software systems compliant by June 1999. Significant non-IT suppliers to the Company were contacted to determine their compliance during the fourth quarter of 1998. This is necessary to ensure that the Company's products are not delayed due to lack of parts or services. Also, embedded chips in process control equipment, lighting controls, and security systems are being inspected to assure that they will operate properly in the Year 2000. While the Company has not fully identified all the impacts of the Year 2000 issue or whether all related problems can be resolved without disrupting its business and incurring significant expense, the Company's current estimate is that the costs associated with the Year 2000 issue, and the consequences of incomplete or untimely resolution of the Year 2000 issue, will not have a material adverse effect on the Company's business, operating results or financial condition. The current estimate of the costs of remediating Year 2000 issues is $700,000. Of the $700,000 approximately $435,000 is budgeted to replace existing hardware and software and $265,000 is budgeted to fix or upgrade existing hardware or software. Of these budgets $550,000 has been spent to date. These costs are less than 10% of the normal IT budget for the Company. These costs are 8 being budgeted through the normal operating budgets of the Company and should not have a major impact on other IT projects or systems. The Company is currently in the process of identifying potential consequences to the Company if its IT and non-IT systems do not function properly on account of the Year 2000 issue (i.e., most reasonably likely worst case scenarios). Management expects to complete this process by mid 1999. If the Company determines that such consequences could have a material adverse effect on the business, operating results or financial condition, it intends to establish a contingency plan to address the most reasonably likely worst case scenarios. However, in cases beyond the control of the Company there could be some adverse effects. This would be particularly true if major infrastructure systems such as electric distribution grids or major telephone switching centers are disrupted by the Year 2000 issue. Every reasonable effort will be made to minimize these effects. The costs of the Company's year 2000 project and dates on which the Company believes it will complete such efforts are based on management's current best estimates, which were derived using numerous assumptions regarding future events. There can be no assurances that these estimates will prove to be accurate, and therefore actual results could differ materially from those anticipated. Specific factors that could cause material differences with actual results include, but are not limited to, the results of testing and the timeliness and effectiveness of remediation efforts of third parties. Contingent Matters - ------------------ Reference is made to Item 3. Legal Proceedings, in the annual report on Form 10-K for the year ended December 31, 1998, which is incorporated herein by reference. Item 3 - Qualitative and Quantitative Disclosures about Market Risk A portion of the Company's operations consists of manufacturing and sales activities in foreign jurisdictions, and some of these transactions are denominated in foreign currencies. As a result, the Company's financial results could be affected by changes in foreign exchange rates. To mitigate the effect of changes in these rates, the Company has entered into two foreign exchange contracts. There has been no material change in the firmly committed sales exposures and related derivative contracts from December 31, 1998. (See Item 7A - - Form 10-K for December 31, 1998.) 9 UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES PART II - Other Information Item 4 - Submission of Matters to a Vote of Security Holders (a) The Annual Meeting of Shareholders of the Registrant was held on May 11, 1999. (b) Richard R. Erkeneff and E. Donald Shapiro were elected directors at the meeting, for terms ending in 2002. The incumbent directors whose terms of office continued after the meeting are Edward C. Aldridge, Jr., Joseph S. Schneider, Harold S. Gelb and Susan Fein Zawel. (c) Voting for the election of directors of the Registrant: WITHHELD (including FOR broker non-votes) Richard R. Erkeneff 9,993,060 1,108,336 E. Donald Shapiro 9,992,316 1,109,080 Other Matters: 10,894,316 shares were voted in favor of the proposal to ratify the appointment of Ernst & Young LLP as independent auditors of the Registrant for 1999 with 145,633 shares voted against, 61,450 abstentions and 3 broker non-votes. 8,848,747 shares were voted in favor of adopting the 1994 Stock Option Plan, as amended, with 2,138,115 shares voted against, 114,528 abstentions and 12 broker nonvotes. Reference is made to the Registrant's Proxy Statement dated March 25, 1999 for its 1999 Annual Meeting for additional information concerning the matters voted on at the meeting. Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits 11 - Computation of Earnings per share 27 - Financial Data Schedule (b) The Registrant did not file any reports on Form 8-K during the quarter ended March 31, 1999. 10 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNITED INDUSTRIAL CORPORATION Date May 14, 1999 By: /s/ James H. Perry ------------ ------------------------------- James H. Perry Chief Financial Officer Vice President and Treasurer 11 UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES INDEX OF EXHIBITS FILED HEREWITH Exhibit No. Page - ----------- ---- 11 Computation of Earnings Per Share 13 27 Financial Data Schedule 14 12 EX-11 2 EXHIBIT 11 - Computation of Earnings Per Share Item 6(a) Exhibit 11 Computation of Earnings per Share United Industrial Corporation and Subsidiaries THREE MONTHS ENDED MARCH 31 --------------------------- 1999 1998 -------- -------- Net income $ 2,314,000 $ 2,323,000 =========== =========== Basic earnings per share: Weighted average shares 12,258,713 12,254,363 =========== =========== Effect of dilutive securities: Employee stock options $ 226,297 $ 344,542 =========== =========== Diluted earnings per share: Adjusted weighted-average and assumed conversions 12,485,010 12,598,905 =========== =========== Basic earnings per share $ .19 $ .19 ===== ===== Diluted earnings per share $ .19 $ .18 ===== ===== - -------------------------------------------------------------------------------- 13 EX-27 3
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS INCLUDED IN THE ACCOMPANYING FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1999 MAR-31-1999 16,558 5,884 37,107 0 28,578 102,333 115,030 84,146 189,866 44,913 4,115 0 0 14,374 96,255 189,866 47,070 47,689 32,015 43,004 1,010 0 23 3,652 1,338 2,314 0 0 0 2,314 .19 .19
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