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):
April 3, 1997
THE PITTSTON COMPANY
(Exact Name of registrant as specified in its charter)
Virginia 1-9148 54-1317776
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
1000 Virginia Center Parkway
P. O. Box 4229
Glen Allen, Virginia 23058-4229
(Address of principal (Zip Code)
executive offices)
(804)553-3600
(Registrant's telephone number, including area code)
Item 5. Other Events
On April 3, 1997, Brink's, Incorporated, a wholly-owned
subsidiary of The Pittston Company ("Registrant"), issued a press
release, filed as an exhibit to this report and incorporated
herein by reference.
EXHIBITS
99(a) Registrant's Brink's Group press release dated April 3,
1997.
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 hereunto duly authorized.
THE PITTSTON COMPANY
(Registrant)
By /s/ Austin F. Reed
Vice President, General Counsel
and Secretary
Dated: April 8, 1997
EXHIBITS
Exhibit Description
99(a) Registrant's Brink's Group
press release dated April 3, 1997
Exhibit 99(a)
BRINK'S EXPECTS FIRST QUARTER EARNINGS
TO EXCEED ANALYSTS ESTIMATES
Richmond, VA. April 3, 1997 - Michael T. Dan, President and
Chief Executive Officer, commented today that first quarter
earnings of the Pittston Brink's Group (NYSE-PZB) are likely to
exceed current analysts' consensus estimate of $.35 per share.
The Group's complete financial results will be released on or
about April 24, 1997. Pittston Brink's Group is the class of
common stock of The Pittston Company which reflects the
performance of Brink's Incorporated and Brink's Home Security,
Inc.
Brink's Incorporated continues to benefit from strong demand in
North America for its high quality security services,
particularly from the rapidly growing automatic teller machine
servicing market. Internationally, the previously announced
increased ownership in Brink's affiliates in Venezuela, Peru, The
Netherlands and Hong Kong have begun to meaningfully enhance
international operating profits as planned. Michael Dan
commented "Overall earnings performance of Brink's Incorporated
is significantly ahead of last year. We are extremely pleased
with our progress in implementing Brink's strategy of increasing
its ownership positions in affiliates around the world. While
the strong operating profits from these affiliates will initially
be largely offset with higher interest expense related to the
acquisition debt, net earnings are expected to improve further as
debt and the related interest expense are reduced."
Brink's Home Security, Inc. (BHS), the second largest home
security company in the U.S., continues to expand in the presence
of increased competitive pressures from companies offering
homeowners security systems with no installation fees. Although
BHS's rate of subscriber growth has slowed from last year,
revenues are growing at an attractive rate; operating margins are
expected to remain in the mid to upper 20% range; and cash
margins on recurring revenues are expected to be consistent with
last year. As a result, BHS continues to generate high levels of
operating earnings and very attractive returns on invested
capital.
BHS continues to experience what it believes is one of the
highest customer retention rates in the industry. Almost 50%
of its customers installed more than ten years ago remain as
subscribers. BHS's depreciation practices, which were
established early in BHS's experience, have the effect of
essentially entirely depreciating capitalized subscriber
installation expenditures within eight years. Accordingly, many
subscribers are no longer being depreciated, while other
subscribers are being depreciated on an accelerated basis. In
order to more accurately match depreciation expense with revenue
generated from customers over the demonstrated customer
experience, BHS is adjusting its annual depreciation rate for
capitalized subscribers' installation costs. BHS will continue
its practice of fully depreciating any remaining capitalized
costs in the year subscribers disconnect or no longer desire
service. This change is expected to reduce 1997 depreciation
expense for capitalized installation costs by approximately $7
million to an estimated $28 million, approximately the same
depreciation expense recorded in 1996.
The Pittston Brink's Group has continued its stock repurchase
program by purchasing 153,000 common shares during the first
quarter of 1997 at a total cost of $4.0 million. The company has
remaining authority to purchase an additional 1.1 million shares.
**********
Pittston Brink's Group Common Stock (NYSE-PZB), Pittston
Burlington Group Common Stock (NYSE-PZX) and Pittston Minerals
Group Common Stock (NYSE-PZM), represent the three classes of
common stock of The Pittston Company, a diversified company with
interests in security services through Brink's, Incorporated and
Brink's Home Security, Inc. (Pittston Brink's Group) and global
freight transportation and logistics management services through
Burlington Air Express Inc. (Pittston Burlington Group), and coal
and gold mining (Pittston Minerals Group).