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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 1, 2007
ALEXANDER & BALDWIN, INC.
(Exact name of registrant as specified in its charter)
Hawaii 0-565 99-0032630
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
- ---------------------------- ------------------------ ----------------
of incorporation) Identification No.)
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822 Bishop Street, P. O. Box 3440
Honolulu, Hawaii 96801
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(Address of principal executive office and zip code)
(808) 525-6611
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(Registrant's telephone number, including area code)
Not Applicable
--------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
_
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
_
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
_
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
_
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
- ---------------------------------------------------------
Alexander & Baldwin, Inc. issued a press release on February 1, 2007,
announcing its 2006 fourth quarter and full year consolidated earnings.
This information, attached as Exhibit 99.1, is being furnished to the SEC
pursuant to Item 2.02 of Form 8-K.
Item 9.01 Financial Statements and Exhibits
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(d) Exhibits
--------
99.1 Press Release announcing 2006 fourth quarter and
full year consolidated earnings issued on February 1,
2007.
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date:
ALEXANDER & BALDWIN, INC.
/s/ Christopher J. Benjamin
--------------------------------
Christopher J. Benjamin
Senior Vice President,
Chief Financial Officer and
Treasurer
For further information, contact:
Kevin L. Halloran, Director, Corporate Finance and Investor Relations
Phone 808-525-8422
E-mail: khalloran@abinc.com
HOLD FOR RELEASE:
8 A.M. EASTERN DAYLIGHT TIME
Thursday, February 1, 2007
A&B REPORTS 2006 NET INCOME OF $122.5 MILLION, $2.81 PER SHARE
--------------------------------------------------------------
4th Quarter Net Income of $27.0 Million, up 15%
Honolulu (February 1, 2007)--Alexander & Baldwin, Inc. (NASDAQ:ALEX)
today reported that net income for the full year 2006 was $122,500,000, or $2.81
per diluted share. Net income for the full year 2005 was $126,000,000, or $2.86
per diluted share. Revenue for the full year 2006 was $1,607,000,000 compared
with revenue of $1,602,800,000 for the full year 2005.
Net income for the fourth quarter of 2006 was $27,000,000, or $0.63 per
diluted share. Net income in the fourth quarter of 2005 was $23,400,000, or
$0.53 per diluted share. Revenue for the fourth quarter of 2006 was
$406,000,000, compared with revenue of $397,100,000 for the fourth quarter of
2005.
COMMENTS ON QUARTER, 2006 FULL YEAR AND OUTLOOK
"2006 was a good year for Alexander & Baldwin, and it ended on a
particularly positive note, providing momentum and a firm foundation for growth
in the coming year," said Allen Doane, chairman and chief executive officer of
Alexander & Baldwin, Inc. (A&B). "Our integrated logistics unit achieved a
year-over-year increase of 44 percent in operating profits, while our real
estate sales and leasing segments also posted solid, double-digit gains. Matson
earned its stripes once again with the successful launch of its Guam and China
service. Net income, which was only marginally below last year's, was
gratifying, especially in light of the significant gap in earnings created
by the expiration of the APL Alliance. In short, we exceeded our expectations
for the year and are confident in our opportunities for continued success in
2007 and beyond."
"In the fourth quarter, Matson's Ocean Transportation
operating profit bested its prior year performance by $5.9 million, due
principally to the profitable, expedited ocean transport service from China. The
momentum of this service affirms our belief that Matson has established a
superior reputation in China less than a year after its entry into that
burgeoning marketplace. Not surprisingly, others are taking note. Drewry
Shipping Consultants recently monitored vessel calls for 65 carriers for the
period from April to September 2006 and identified Matson as the world's best
on-time carrier, thanks in part to its 100% on-time transpacific service
performance. In Hawaii and Guam, challenging market conditions led to a fall in
volume for the quarter and the year, most notably in construction materials and
automobile carriage. Despite the decline in volume, however, cargo mix and
underlying yields were favorable and portend moderate earnings growth in 2007."
"Matson Integrated Logistics (MIL) again produced an extraordinary
quarter and year, realizing increases in operating profit of $1.4 million and
$6.4 million, respectively, in those periods. We attribute this success to
improved yields and margins, and strong volume growth in the highway and
expedited segments. In 2007, we expect MIL to extend its national footprint,
expand its expedited service offerings, and deliver continued earnings growth."
"The real estate leasing segment continues to grow through acquisition,
superior occupancy levels and increases in lease rents. These factors led to a
22 percent increase in operating profit for the quarter and a 15 percent
increase for the year. Our portfolio occupancy now stands at 98 percent, and
additions made to the portfolio in growing markets such as Sacramento,
California enhance the value of this business segment."
"Fourth quarter 2006 real estate sales operating profit was $10.5
million, driven primarily by the sale of the Lanihau Shopping Center in
Kailua-Kona, Hawaii and sales at our joint venture Kai Malu residential
development in Wailea, Maui. Full-year operating profit increased by 13 percent
in 2006. While we are encouraged by sales at Kai Malu in particular, and in the
progress of other development projects such as Keola La'i, we also acknowledge
that a changing residential real estate environment in Hawaii may affect the
timing of sales at certain projects in our pipeline. Nevertheless, we expect a
solid 2007."
"In 2006, our Agribusiness group was negatively impacted by a
production shortfall that caused a fourth quarter loss and reduced full-year
earnings. However, on a comparable basis and absent a favorable federal
government relief payment in 2005, operating profits grew modestly in 2006.
Looking forward, we expect further, modest profitability in 2007."
Detailed segment analyses of A&B's operations are offered below:
TRANSPORTATION--OCEAN TRANSPORTATION
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Quarter Ended December 31
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Dollars in Millions 2006 2005 Change
- --------------------------------------------------------------------
Revenue $ 239.7 $ 223.6 7%
Operating Profit $ 28.7 $ 22.8 26%
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Operating Profit Margin 12.0% 10.2%
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Volume (Units)
- --------------------------------------------------------------------
Hawaii Containers 42,200 44,300 -5%
Hawaii Automobiles 26,000 37,200 -30%
Guam Containers 3,700 4,100 -10%
China Containers 13,000 -- NM
- --------------------------------------------------------------------
For the fourth quarter of 2006, Ocean Transportation revenue of $239.7
million was $16.1 million, or 7 percent, higher than the fourth quarter of 2005.
This increase was due to the establishment of the China service in early 2006,
increases in fuel surcharge revenues, and favorable revenue yields from our
cargo mix, which were partially offset by lower volumes in the Hawaii and Guam
services and the loss of charter revenue due to the expiration of the APL
Alliance. Total Hawaii container volume was down 5 percent from the fourth
quarter of 2005 due to moderation in general economic growth. Total Hawaii
automobile volume was down 30 percent for the quarter due to a reduction in auto
retail sales and a reduction in auto manufacturer incentives for rental car
fleet sales, which resulted in reduced auto volume to Hawaii.
Operating profit of $28.7 million was $5.9 million, or 26 percent,
higher than in the fourth quarter of 2005. This increase is explained primarily
by gains from the China service and improved yields in the Hawaii service, which
were offset by the loss of charter profits due to the expiration of the APL
Alliance, lower Hawaii volume, increases in fuel consumption, equipment control
and leasing expenses, and increased terminal handling costs.
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Year Ended December 31
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Dollars in Millions 2006 2005 Change
- --------------------------------------------------------------------
Revenue $ 945.8 $ 878.3 8%
Operating Profit $ 105.6 $ 128.0 -18%
- --------------------------------------------------------------------
Operating Profit Margin 11.2% 14.6%
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Volume (Units)
- --------------------------------------------------------------------
Hawaii Containers 173,200 175,800 -1%
Hawaii Automobiles 118,700 148,100 -20%
Guam Containers 15,100 16,600 -9%
China Containers 32,700 -- NM
- --------------------------------------------------------------------
For the full year 2006, Ocean Transportation revenue of $945.8 million
was $67.5 million, or 8 percent, higher than for the full year 2005, due to a
number of factors including introduction of the China service, increases in fuel
surcharge revenues and improvements in revenue yields and cargo mix in the
Hawaii market, partially offset by the loss of APL charter revenue and Hawaii
volume. Total Hawaii container volume decreased by 1 percent, while Hawaii
automobile volume was 20 percent lower, for the same reasons cited for the
quarter.
For the full year 2006, Ocean Transportation operating profit of $105.6
million was $22.4 million, or 18 percent, lower than for the full year 2005.
This reduction is explained primarily by expense increases that more than offset
higher revenues. The primary expense increases include higher direct and
indirect fuel costs and higher terminal handling and equipment costs.
TRANSPORTATION--LOGISTICS SERVICES
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Quarter Ended December 31
- --------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- --------------------------------------------------------------------
Revenue $ 106.3 $120.4 -12%
Operating Profit $ 5.7 $ 4.3 33%
- --------------------------------------------------------------------
Operating Profit Margin 5.4% 3.6%
- --------------------------------------------------------------------
Logistics Services revenue in the fourth quarter of 2006 was $106.3
million, which was $14.1 million, or 12%, lower than the fourth quarter of 2005.
The revenue decline resulted from declines in rail volumes and lower rail
incentives by major carriers, partially offset by improved trucking and
expedited service sales.
Fourth quarter 2006 Logistics Services operating profit of $5.7 million
was $1.4 million, or 33 percent, higher than in the comparable period last year.
Gross margins per container were higher in all service lines, led by
improvements in international rail and freight transported by truck, but were
offset, in part, by higher general and administrative expenses. The operating
profit margin for Logistics Services was 5.4 percent in the fourth quarter of
2006, an improvement of 50% from the margin of 3.6 percent from the fourth
quarter of 2005.
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Year Ended December 31
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Dollars in Millions 2006 2005 Change
- --------------------------------------------------------------------
Revenue $ 444.2 $ 431.6 3%
Operating Profit $ 20.8 $ 14.4 44%
Operating Profit Margin 4.7% 3.3%
- --------------------------------------------------------------------
2006 Logistics Services revenue of $444.2 million was $12.6 million,
or 3 percent, higher than full-year revenue of 2005, as higher yields and
increases in freight transported by truck were partially offset by declines in
freight transported by rail.
2006 Logistics Services operating profit of $20.8 million was $6.4
million, or 44 percent, higher than in the comparable period last year. Similar
to the quarter, gross margins were higher in all lines but were offset, in part,
by higher operating expenses. It should be noted that the margins achieved in
2006 were significantly higher than in preceding periods and may not be
indicative of future results.
REAL ESTATE--LEASING
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Quarter Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 26.1 $ 23.2 13%
Operating Profit $ 13.5 $ 11.1 22%
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Operating Profit Margin 51.7% 47.8%
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Occupancy Rates
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Mainland 98% 95%
Hawaii 98% 93%
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Leasable Space (Million sq. ft.)
- ---------------------------------------------------------------------
Mainland 3.8 3.5 9%
Hawaii 1.5 1.6 -6%
- ---------------------------------------------------------------------
Real Estate Leasing revenue (before removing amounts treated as
discontinued operations) in the fourth quarter of 2006 was $26.1 million, which
was $2.9 million, or 13 percent, higher than the fourth quarter of 2005. Leasing
operating profit of $13.5 million was $2.4 million, or 22 percent, higher. The
improved revenue and operating profit resulted primarily from property
acquisitions, higher occupancy rates in both the mainland and Hawaii, and a
favorable construction claim settlement at our Pacific Guardian Life property.
- ---------------------------------------------------------------------
Year Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 100.6 $ 89.7 12%
Operating Profit $ 50.3 $ 43.7 15%
- --------------------------------------------------- -----------------
Operating Profit Margin 50.0% 48.7%
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Occupancy Rates
- ---------------------------------------------------------------------
Mainland 98% 95%
Hawaii 98% 93%
- ---------------------------------------------------------------------
2006 Leasing revenue (before removing amounts treated as discontinued
operations) of $100.6 million was $10.9 million, or 12 percent, higher than
revenues from the same period in 2005. The increase was due primarily to higher
occupancies and lease rates, the addition of five properties that were acquired
during or subsequent to 2005 and full year results from the Kunia Shopping
Center which was completed in November 2005. Leasing operating profit of $50.3
million was $6.6 million, or 15 percent, higher than the same period in 2005.
The improved operating profit resulted from the same factors listed above.
REAL ESTATE--SALES
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Quarter Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 31.7 $ 26.7 19%
Operating Profit $ 10.5 $ 7.2 46%
Operating Profit Margin 33.1% 27.0%
- ---------------------------------------------------------------------
Fourth quarter 2006 Real Estate Sales revenue (before removing amounts
treated as discontinued operations) of $31.7 million was $5.0 million higher
than the fourth quarter of 2005. It is important to note that direct,
year-over-year comparison may not provide a consistent, measurable barometer of
real estate sales performance for the future. Sales, by virtue of the type of
asset class, geography and timing, are inherently episodic. Key sales, and thus
operating profit and margin, for the quarter were derived from the disposition
of a retail center in Kailua-Kona, Hawaii and initial closings at the company's
joint venture Kai Malu residential development in Wailea. Real Estate Sales
operating profit of $10.5 million was $3.3 million higher than the fourth
quarter of 2005. The improved margin for the quarter reflects the profits
associated with the joint venture, as joint ventures results are included in
operating profit but are not included in revenue.
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Year Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 97.3 $ 148.9 -35%
Operating Profit $ 49.7 $ 44.1 13%
Operating Profit Margin 51.1% 29.6%
- ---------------------------------------------------------------------
2006 Real Estate Sales revenue of $97.3 million was 35 percent lower
than the $148.9 million of revenue recorded in 2005. The decrease in revenue is
primarily attributable to the strong sales at Lanikea in Waikiki in 2005. Other
sales in 2005 included the sale of two mainland commercial properties, two
development parcels at Wailea, Alakea Corporate Tower, and various other land
and subdivision sales in Hawaii.
In 2006, the company sold two retail centers in Arizona, a commercial
property on the island of Hawaii, an office building on Maui, several commercial
properties on Maui and Oahu, and agricultural and vacant parcels on the island
of Kauai.
Real Estate Sales operating profit of $49.7 million was $5.6 million,
or 13 percent, higher than for the corresponding period in 2005. The 2005
results benefited from a $5.2 million fire insurance gain. Excluding this gain,
2006 operating profit increased 28% from the year earlier period. Operating
profit was significantly higher as a percentage of revenue because operating
profit also includes the Company's earnings from its real estate joint ventures.
The joint venture earnings in 2006 principally relate to the Hokua residential
condominium project in which sales of all 247 units were completed in the first
quarter and earnings from the Company's Kai Malu project in Wailea, Maui.
AGRIBUSINESS (formerly Food Products)
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Quarter Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 32.3 $ 34.0 -5%
Operating Profit (Loss) $ (3.3) $ 2.0 -265%
- ---------------------------------------------------------------------
Operating Profit Margin -10.2% 5.9%
- ---------------------------------------------------------------------
Tons Sugar Produced 42,900 52,400 -18%
- ---------------------------------------------------------------------
Fourth quarter 2006 Agribusiness revenue of $32.3 million was $1.7
million, or 5 percent, lower than in the same period of 2005. The decrease
reflects lower bulk raw sugar sales volume and prices, as well as lower power
sales volume. These decreases were partially offset by slight increases in Maui
Brand Sugar sales.
The fourth quarter 2006 Agribusiness operating loss was $3.3 million
compared to a $2.0 million operating profit in 2005. The significant decrease in
profitability was primarily the result of year-to-date increases made in the
quarter to the standard cost per sugar ton as a result of lower production
levels and to lower sugar prices in the quarter. The performance additionally
reflects expenditures related to repairs to an irrigation reservoir, offset
partially by better performance at Kauai Coffee Company.
- ---------------------------------------------------------------------
Year Ended December 31
- ---------------------------------------------------------------------
Dollars in Millions 2006 2005 Change
- ---------------------------------------------------------------------
Revenue $ 127.4 $ 123.2 3%
Operating Profit $ 6.9 $ 11.2 -38%
- ---------------------------------------------------------------------
Margin 5.4% 9.1%
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Tons Sugar Produced 173,600 192,700 -10%
- ---------------------------------------------------------------------
2006 Agribusiness revenue of $127.4 million was $4.2 million, or 3
percent, higher than in 2005. It should be noted that the company benefited from
a $5.5 million disaster relief payment in 2005. Excluding this relief, revenue
increased 8% for the year. The increase is attributable to increased sales in:
repair services and trucking revenue, power sales, equipment rentals, Maui Brand
Sugar and molasses, partially offset by lower bulk raw sugar sales.
2006 Agribusiness operating profit of $6.9 million was $4.3 million
less than 2005. Excluding the $5.5 million disaster relief payment received in
2005, operating profit increased 21%. The increase in operating profit includes
the effect of higher operating costs and repair costs for irrigation reservoirs.
Also, 2006 included one additional week compared to 2005 (53 weeks in 2006 vs.
52 weeks in 2005).
CORPORATE EXPENSE, OTHER
Fourth quarter 2006 corporate expenses of $7.0 million were $0.8
million, or 10 percent, lower than the fourth quarter of 2005. For the full
year, corporate expenses of $22.3 million were $1.9 million, or 8 percent lower,
than in 2005. Various reductions in general and administrative expenses more
than offset expenses associated with the adoption in 2006 of stock option
expense accounting.
BALANCE SHEET, CASH FLOW COMMENTS
Working capital was $28 million at December 31, 2006, a decrease of $21
million from the balance carried at the end of 2005. The decrease in working
capital was due primarily to higher balances on short-term borrowings and trade
payables and lower cash balances. Cash and cash equivalents totaled $45 million
at the end of the fourth quarter compared with $57 million at the beginning of
the year.
Cash Flows from Operating Activities totaled $98 million for 2006,
compared with $278 million 2005. This decrease was principally the result of
higher 2005 proceeds from the sale of units in the Company's Lanikea residential
high-rise project in Waikiki, higher 2006 income tax payments, higher
development expenditures for real estate inventory, and lower 2006 Matson
earnings, partially offset by proceeds received from the Company's Hokua joint
venture in 2006.
Cash Flows used in Investing Activities related to capital expenditures
were $281 million in 2006, compared with $231 million for 2005. These figures
include $147 million and $144 million in 2006 and 2005, respectively, for vessel
acquisitions. The balance of capital expenditures was related to real estate
activities and the purchase of transportation equipment for the new China
service.
Cash Flows from Financing Activities totaled $6 million for 2006 as
cash used for payments of dividends and share repurchases was offset by new
short-term and long-term borrowings. During the fourth quarter, the Company
completed its $63.2 million accelerated share repurchase (ASR), receiving an
additional 108,000 shares and bringing the total number of shares received
through the ASR to 1,454,000 for an average price of $43.48 per share. In total,
the company repurchased 1,654,000 shares in 2006 for an average price of $43.34
per share.
Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in
ocean transportation and intermodal services, through its subsidiaries, Matson
Navigation Company, Inc. and Matson Integrated Logistics, Inc.; in real estate,
through A&B Properties, Inc.; and in agribusiness, through Hawaiian Commercial
& Sugar Company and Kauai Coffee Company, Inc. Additional information about
A&B may be found at its web site: www.alexanderbaldwin.com.
Statements in this press release that are not historical facts are
"forward-looking statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, that involve a number of risks and uncertainties
that could cause actual results to differ materially from those contemplated by
the relevant forward-looking statement. These forward-looking statements are not
guarantees of future performance. This release should be read in conjunction
with our Annual Report on Form 10-K and our other filings with the SEC through
the date of this release, which identify important factors that could affect the
forward-looking statements in this release.
ALEXANDER & BALDWIN, INC.
-------------------------
2006 and 2005 Fourth-Quarter and Full-Year Results
--------------------------------------------------
2006 2005
---- ----
Three Months Ended December 31:
------------------------------
Revenue $406,000,000 $397,100,000
Income From Continuing Operations $22,000,000 $17,900,000
Discontinued Operations: Properties(1) $5,000,000 $5,500,000
Net Income $27,000,000 $23,400,000
Basic Share Earnings
Continuing Operations $0.52 $0.41
Net Income $0.64 $0.54
Diluted Share Earnings
Continuing Operations $0.51 $0.41
Net Income $0.63 $0.53
Average Basic Shares Outstanding 42,400,000 43,700,000
Average Diluted Shares Outstanding 42,900,000 44,100,000
Year Ended December 31:
----------------------
Revenue $1,607,000,000 $1,602,800,000
Income From Continuing Operations $96,000,000 $114,400,000
Discontinued Operations: Properties(1) $26,500,000 $11,600,000
Net Income $122,500,000 $126,000,000
Basic Share Earnings
Continuing Operations $2.22 $2.62
Net Income $2.84 $2.89
Diluted Share Earnings
Continuing Operations $2.20 $2.60
Net Income $2.81 $2.86
Average Basic Shares Outstanding 43,200,000 43,600,000
Average Diluted Shares Outstanding 43,600,000 44,000,000
(1) "Discontinued Operations: Properties" consists of sales, or intended sales,
of certain lands and buildings that are material and have separately
identifiable earnings and cash flows.
Industry Segment Data, Net Income
(In Millions, Except Per Share Amounts, Unaudited)
Three Months Ended Year Ended
------------------ ----------
December 31, December 31,
------------ ------------
2006 2005 2006 2005
---- ---- ---- ----
Revenue:
Transportation
Ocean Transportation $ 239.7 $ 223.6 $ 945.8 $ 878.3
Logistics Services 106.3 120.4 444.2 431.6
Real Estate
Leasing 26.1 23.2 100.6 89.7
Sales 31.7 26.7 97.3 148.9
Less Amounts Reported In
Discontinued Operations (28.0) (27.9) (94.1) (60.5)
Food Products 32.3 34.0 127.4 123.2
Reconciling Items (2.1) (2.9) (14.2) (8.4)
---------- ---------- ---------- ----------
Total Revenue $ 406.0 $ 397.1 $ 1,607.0 $ 1,602.8
========== ========== ========== ==========
Operating Profit, Net Income:
Transportation
Ocean Transportation $ 28.7 $ 22.8 $ 105.6 $ 128.0
Logistics Services 5.7 4.3 20.8 14.4
Real Estate
Leasing 13.5 11.1 50.3 43.7
Sales 10.5 7.2 49.7 44.1
Less Amounts Reported In
Discontinued Operations (8.1) (8.9) (42.7) (18.6)
Food Products (3.3) 2.0 6.9 11.2
---------- ---------- ---------- ----------
Total Operating Profit 47.0 38.5 190.6 222.8
Write-down of C&H - - - (2.3)
Interest Expense (4.8) (3.4) (15.0) (13.3)
Corporate Expenses (7.0) (7.8) (22.3) (24.1)
---------- ---------- ---------- ----------
Income From Continuing Operations
Before Income Taxes 35.2 27.3 153.3 183.1
Income Taxes (13.1) (9.4) (57.3) (68.7)
---------- ---------- ---------- ----------
Income From Continuing Operations 22.1 17.9 96.0 114.4
Discontinued Operations: Properties 4.9 5.5 26.5 11.6
---------- ---------- ---------- ----------
Net Income $ 27.0 $ 23.4 $ 122.5 $ 126.0
========== ========== ========== ==========
Basic Earnings Per Share, Continuing Operations $ 0.52 $ 0.41 $ 2.22 $ 2.63
Basic Earnings Per Share, Net Income $ 0.64 $ 0.54 $ 2.84 $ 2.89
Diluted Earnings Per Share, Continuing Operations $ 0.51 $ 0.41 $ 2.20 $ 2.60
Diluted Earnings Per Share, Net Income $ 0.63 $ 0.53 $ 2.81 $ 2.86
Basic Shares 42.4 43.7 43.2 43.6
Diluted Shares 42.8 44.1 43.6 44.0
Condensed Consolidated Balance Sheets
(In Millions)
December 31, December 31,
------------ ------------
2006 2005
---- ----
(Unaudited)
ASSETS
Current Assets $ 285 $ 303
Investments 149 154
Real Estate Developments 147 71
Property, Net 1,499 1,289
Capital Construction Fund 1 93
Other Assets 170 161
----------- -----------
Total $ 2,251 $ 2,071
=========== ===========
LIABILITIES & EQUITY
Current Liabilities $ 257 $ 254
Long-Term Debt 401 296
Liability for Benefit Plans 53 47
Other Long-Term Liabilities 71 45
Deferred Income Taxes 442 415
Shareholders' Equity 1,027 1,014
----------- -----------
Total $ 2,251 $ 2,071
=========== ===========
Consolidated Statements of Cash Flows Information
(In Millions)
Year Ended
----------
December 31,
------------
2006 2005
---- ----
(Unaudited)
Operating Cash Flows $ 98 $ 278
Capital Expenditures (281) (231)
CCF Withdrawals/(Deposits), Net 93 (69)
Proceeds from Issuance of 115 70
(Payment of) Debt, Net
Repurchase of Capital Stock (72) -
Dividends Paid (42) (39)
All Other, Net 77 6
----------- -----------
Increase/(Decrease) In Cash $ (12) $ 15
=========== ===========
Depreciation $ (85) $ (84)
=========== ===========
#####