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Pinkerton's Says Earnings Dropped 6% in 4th Quarter

REGIONAL EARNINGS

February 02, 1993

Pinkerton's Inc., the Van Nuys-based provider of security guards and services, said earnings fell 6% for its fiscal fourth quarter that ended Dec. 25, to $5 million from $5.3 in the comparable period a year earlier.

The decline in profit, which reflected the company's lackluster earnings for all of last year, came on a 5% increase in quarterly revenue, to $218 million from $208.2 million a year earlier.

For the 12 months that ended Dec. 25, Pinkerton's earnings tumbled 32%, to $8.6 million from $12.6 million. That was despite posting record revenue of $703.7 million for last year, up 10% from $637.8 million a year earlier.

Thomas W. Wathen, chairman and chief executive officer, said gains in revenue last year came from operations acquired in late 1991. But he said expenses from those operations also put pressure on earnings, as did increased competition and reduced demand for investigative services.

In addition, Pinkerton's earnings for fiscal 1992 were reduced by a $2.5-million charge ($1.5 million after-tax) recorded in the third quarter for severance, health and retirement benefits, and other costs associated with a management realignment.

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