Leucadia National Corporation
) posted robust first-quarter 2012 earnings per share of $1.97
compared with 5 cents reported in the year-ago quarter. Results
also surpassed the Zacks Consensus Estimate of 40 cents.
In the reported quarter, revenue reached $2.4 billion compared
with $284.0 million in the year-ago quarter. The massive jump was
attributable to addition of revenue contribution from National Beef
Packaging Company, LLC.
Leucadia acquired a controlling interest in National Beef
Packing Company, LLC in December 2011 and thus the company added a
new segment 'Beef Processing Services' to its portfolio.
During the quarter, revenue from Beef Processing Services
segment accounted for 73.9% of total revenue and settled at roughly
$1.8 billion. Revenue from the Manufacturing segment was
approximately $61.7 million, down 3.3% year over year and accounted
for 2.5% of total revenue. Oil and Gas Drilling segment accounted
for about 1.6% of revenue and was $39.0 million.
Revenue generated from the Gaming Entertainment Operations was
roughly 1.3% of total revenue, and stood at $32.1 million, while
revenue of $3.4 million from the Domestic Real Estate segment
accounted for 0.14% of total revenue.
Revenue from the Medical Product Development segment was $74
thousand. Proceeds from Other operations were $19.0 million, up
from $16.1 million in the year-ago quarter and accounted for about
0.78% of total revenue, while the Corporate segment revenue of
$477.0 million accounted for about 19.7% of total revenue.
Expenses in the quarter showed a drastic hike from a mere $204.5
million in the first quarter of 2011 to approximately $2.1 billion
in the reported quarter. The massive increase stems from $1.8
billion cost of sale related to the company's beef processing
services. In relation to revenue, expenses represented 85.2%
compared with 72.0%in the year-ago quarter.
Exiting the first quarter, Leucadia's cash and cash equivalents
jumped 21.8% sequentially to $205.3 million while its long-term
debt plummeted 24.0% to $1,425.2 million from $1,875.6 million in
the previous quarter.
Cash flow from operating activities was a net outflow of $42.7
million for the first quarter of 2012, an increase from $17.8
million outflow reported in the year-ago quarter. Spending on
property, equipment and leasehold improvements came in at $18.6
million versus $4.1 million in the comparable quarter last
Leucadia is engaged in manufacturing, telecommunications, oil
and gas drilling services, property management and services, gaming
entertainment, real estate activities, medical product development
operations and various other investment-related activities in the
United States. The company faces competition from other companies
Apollo Investment Corporation
The Blackstone Group
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LEUCADIA NATL (LUK): Free Stock Analysis Report
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