SEC Filing - Brink's Company

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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 29, 1998 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, VA (ADDRESS OF PRINCIPAL 23058-4229 EXECUTIVE OFFICES) (ZIP CODE) (804) 553-3600 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

Item 5. Other Events The Pittston Company has announced earnings for the first quarter of 1998 for its Brink's Group, Burlington Group and Minerals Group. Press releases dated April 29, 1998, are filed as exhibits to this report and are incorporated herein by reference. EXHIBITS 99(a) Registrant's Brink's Group press release dated April 29, 1998. 99(b) Registrant's Burlington Group press release dated April 29, 1998. 99(c) Registrant's Minerals Group press release dated April 29, 1998. 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 ________________________________ Secretary Dated: April 29, 1998

EXHIBITS Exhibit Description - ------- ----------- 99(a) Registrant's Brink's Group press release dated April 29, 1998 99(b) Registrant's Burlington Group press release dated April 29, 1998 99(c) Registrant's Minerals Group press release dated April 29, 1998

PITTSTON BRINK'S GROUP EARNS $.44 PER SHARE IN THE FIRST QUARTER Richmond, VA - April 29, 1998 - Pittston Brink's Group reported net income of $17.0 million, or $.44 per share, in the first quarter ended March 31, 1998 compared to $15.3 million, or $.40 per share earned in the first quarter of 1997. Combined first quarter revenues of Brink's, Incorporated and Brink's Home Security, Inc. increased 23% to $310.3 million. Included in the current quarter results was a pre-tax charge of $2.0 million or $.03 per share for the Brink's Group's share of expenses relating to a retirement agreement between The Pittston Company and its former chairman and CEO. BRINK'S, INCORPORATED (BRINK'S) Brink's worldwide consolidated revenues increased 25% to $261.9 million in the quarter. Operating profits amounted to $21.9 million, 39% greater than recorded in the prior year due to improvements in all geographic regions. Revenues from North American operations (United States and Canada) were $129.4 million in the quarter, 17% higher than in the comparable period in 1997. Operating profits for the quarter increased 30% to $10.1 million primarily due to improved results achieved by armored car operations, which include ATM services. 1

Revenues and operating profits from Latin American operations and affiliates were $76.5 million and $10.7 million, respectively, in the quarter, 28% and 44% higher than in the comparable 1997 periods. The increase in revenues and operating profits includes three months of consolidated revenues and profits from the acquired operation in Venezuela versus only two months of consolidated revenues and profits in the 1997 quarter, as well as strong results in Venezuela and Colombia which were partially offset by start-up operations in Argentina. Revenues and operating profits from European operations and affiliates amounted to $49.8 million and $0.8 million, respectively, in the quarter, 53% and 119% higher than in the comparable 1997 periods. The increase in revenues was largely due to the acquisition, in the quarter, of nearly all the remaining shares of its affiliate in France. The increase in operating profits reflects improved results from operations in France, as well as the increased ownership, partially offset by losses in the Belgium operation related to industry-wide labor unrest. Revenues and operating profits from Asia/Pacific operations and affiliates were $6.3 million and $0.4 million, respectively, in the quarter. Revenues were essentially unchanged over the comparable 1997 period and operating profits increased $0.1 million. 2

BRINK'S HOME SECURITY, INC. Brink's Home Security's revenues totaled $48.4 million in the first quarter 1998, a 15% increase over the year earlier period. Operating profits increased 6% to $13.5 million. Operating profit from monitoring and service operations increased 18% to $17.2 million as a result of the increased subscriber base and higher average monthly monitoring fees for existing subscribers. The net loss on marketing, sales and installation activities increased to $3.7 million from $1.8 million in the first quarter of 1997. The increase was primarily due to higher marketing and sales expense in response to the current competitive environment. Brink's Home Security installed nearly 27,000 new subscribers during the quarter and the subscriber base totaled over 528,000 on March 31, 1998, a 14% increase from a year earlier. As a result of the growth in subscribers and higher average monitoring fees per subscriber, annualized recurring revenues increased 21% to $160 million as of March 31, 1998. Brink's Home Security's disconnect rate in the quarter was 7.4%. Brink's Home Security entered new markets in Providence, Rhode Island and Wilmington, Delaware during the quarter. 3

FINANCIAL-CONSOLIDATED The Pittston Company (the "Company") reported consolidated revenues of $862.7 million in the first quarter ended March 31, 1998 compared to $781.7 million for the comparable period in 1997. Net income was $12.8 million compared to $21.3 million in the prior year's quarter. Consolidated cash flow from operating activities totaled $21.7 million for the first quarter ended March 31, 1998. Total debt at March 31, 1998 was $378.5 million. During the first quarter of 1998, under the share repurchase programs authorized by the Board of Directors of the Company, the Company purchased 177,532 shares of Pittston Burlington Group Common Stock at a cost of $3.5 million and 355 shares of its Series C Convertible Preferred Stock at a cost of $0.1 million. As of March 31, 1998, the Company had remaining authority to purchase over time 1 million shares of Pittston Minerals Group Common Stock, 1.1 million shares of Pittston Brink's Group Common Stock, 0.9 million shares of Pittston Burlington Group Common Stock and an additional $24.2 million of its Series C Convertible Preferred Stock. The aggregate purchase price limitation for all common stock purchases was $21.4 million at March 31, 1998. * * * * * * * * * * 4

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), global freight transportation and logistics management services through BAX Global Inc. (Pittston Burlington Group) and mining and minerals exploration through Pittston Coal Company and Pittston Mineral Ventures (Pittston Minerals Group). Copies of the Pittston Burlington Group and Pittston Minerals Group earnings releases are available upon request. 5

PITTSTON BRINK'S GROUP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) BRINK'S, INCORPORATED Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING REVENUES North America (United States & Canada) $ 129,367 110,772 Latin America 76,492 59,696 Europe 49,813 32,628 Asia/Pacific 6,251 6,103 - ------------------------------------------------------------------------------------------------------------------------------------ Total operating revenues $ 261,923 209,199 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING PROFIT North America (United States & Canada) $ 10,067 7,754 Latin America 10,677 7,437 Europe 825 376 Asia/Pacific 350 234 - ------------------------------------------------------------------------------------------------------------------------------------ Total operating profit $ 21,919 15,801 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ DEPRECIATION AND AMORTIZATION $ 8,419 7,547 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ BRINK'S HOME SECURITY, INC. Quarter Ended March 31 (DOLLARS IN THOUSANDS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING REVENUES $ 48,410 42,185 - ------------------ OPERATING PROFIT (LOSS) Monitoring and service $ 17,182 14,590 Net marketing, sales and installation (3,680) (1,811) - ------------------------------------------------------------------------------------------------------------------------------------ Total operating profit $ 13,502 12,779 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ DEPRECIATION AND AMORTIZATION $ 8,802 6,666 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED RECURRING REVENUES (a) $ 160,422 132,598 Number of subscribers: Beginning of period 511,532 446,505 Installations 26,750 25,590 Disconnects (9,675) (8,088) - ------------------------------------------------------------------------------------------------------------------------------------ End of period 528,607 464,007 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ (a) Annualized recurring revenues are calculated based on the number of subscribers at period end multiplied by the average fee per subscriber received in the last month of the period for monitoring, maintenance and related services.

PITTSTON BRINK'S GROUP STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 PER SHARE AMOUNTS) 1998 1997 - --------------------------------------------------------------------------------------------------------------------- Operating revenues $ 310,333 251,384 - --------------------------------------------------------------------------------------------------------------------- Operating expenses 233,432 187,908 Selling, general and administrative expenses 46,555 36,063 - --------------------------------------------------------------------------------------------------------------------- Total costs and expenses 279,987 223,971 - --------------------------------------------------------------------------------------------------------------------- Other operating income (expense), net 986 (621) - --------------------------------------------------------------------------------------------------------------------- Operating profit 31,332 26,792 Interest income 864 653 Interest expense (3,815) (2,239) Other expense, net (1,337) (1,658) - --------------------------------------------------------------------------------------------------------------------- Income before income taxes 27,044 23,548 Provision for income taxes 10,007 8,242 - --------------------------------------------------------------------------------------------------------------------- Net income $ 17,037 15,306 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Net income per common share: Basic $ .44 .40 Diluted .44 .40 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Weighted average common shares outstanding: Basic 38,477 38,189 Diluted 39,081 38,608 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- SEGMENT INFORMATION Operating revenues: Brink's $ 261,923 209,199 BHS 48,410 42,185 - --------------------------------------------------------------------------------------------------------------------- Total operating revenues $ 310,333 251,384 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Operating profit: Brink's $ 21,919 15,801 BHS 13,502 12,779 - --------------------------------------------------------------------------------------------------------------------- Segment operating profit 35,421 28,580 General corporate expense (4,089) (1,788) - --------------------------------------------------------------------------------------------------------------------- Total operating profit $ 31,332 26,792 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON BRINK'S GROUP CONDENSED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 42,862 37,694 Accounts receivable, net of estimated amounts uncollectible 235,162 160,912 Inventories and other current assets 48,732 48,518 - ------------------------------------------------------------------------------------------------------------------- Total current assets 326,756 247,124 Property, plant and equipment, at cost, net of accumulated depreciation and amortization 400,212 346,672 Intangibles, net of accumulated amortization 45,434 18,510 Other assets 69,227 80,024 - ------------------------------------------------------------------------------------------------------------------- Total assets $ 841,629 692,330 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities $ 253,527 178,348 Long-term debt, less current maturities 92,412 38,682 Other liabilities 97,289 94,820 - ------------------------------------------------------------------------------------------------------------------- Total liabilities 443,228 311,850 Shareholder's equity 398,401 380,480 - ------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $ 841,629 692,330 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON BRINK'S GROUP STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - -------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net income $ 17,037 15,306 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 17,278 14,260 Other, net 6,096 5,036 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: (Increase) decrease in receivables (11,792) 2,572 Increase in inventories and other current assets (4,040) (3,888) Increase (decrease) in current liabilities 3,333 (6,015) Other, net (5,033) (4,461) - -------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 22,879 22,810 - -------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (31,866) (26,367) Proceeds from disposal of property, plant and equipment 77 2,291 Acquisitions, net of cash acquired 224 (53,303) Other, net 163 10,558 - -------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (31,402) (66,821) - -------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to debt 2,702 45,080 Payments from Minerals Group 11,238 11,685 Share and other equity activity, net (249) (3,809) - -------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 13,691 52,956 - -------------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 5,168 8,945 Cash and cash equivalents at beginning of period 37,694 20,012 - -------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 42,862 28,957 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES PITTSTON BRINK'S GROUP NOTES TO FINANCIAL INFORMATION (1) The Pittston Company (the "Company") has three classes of common stock: Pittston Brink's Group Common Stock ("Brink's Stock"), Pittston Burlington Group Common Stock ("Burlington Stock") and Pittston Minerals Group Common Stock ("Minerals Stock"), which were designed to provide shareholders with separate securities reflecting the performance of the Pittston Brink's Group (the "Brink's Group"), Pittston Burlington Group (the "Burlington Group") and Pittston Minerals Group (the "Minerals Group"), respectively, without diminishing the benefits of remaining a single corporation or precluding future transactions affecting any of the Groups. The financial information for the Brink's Group includes the results of the Company's Brink's, Incorporated ("Brink's") and Brink's Home Security, Inc. ("BHS") businesses. It is prepared using the amounts included in the Company's consolidated financial statements. Accordingly, the Company's consolidated financial statements must be read in connection with the Brink's Group's financial data. (2) Under the share repurchase program authorized by the Board of Directors of the Company, the Company purchased shares in the periods presented as follows: Quarter Ended Quarter Ended March 31 March 31 (Dollars in millions) 1998 1997 - ------------------------------------------------------------------------------------------------------------ Brink's Stock: Shares -- 153,000 Cost $ -- 4.0 Convertible Preferred Stock: Shares 355 -- Cost $ 0.1 -- Excess carrying amount (a) $ 0.02 -- (a) The excess of the carrying amount of the Convertible Preferred Stock over the cash paid to holders for repurchases made during the periods. This amount is deducted from preferred dividends in the Company's Statement of Operations. (3) The Brink's Group adopted Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income," in the first quarter of 1998. SFAS No. 130 established standards for the reporting and display of comprehensive income and its components in financial statements. Comprehensive income generally represents all changes in shareholders' equity except those resulting from investments by or distributions to shareholders. Total comprehensive income, which is composed of net income and foreign currency translation adjustments, for the quarters ended March 31, 1998 and 1997 was $15.3 million and $11.2 million, respectively.

(4) During the first quarter ended March 31, 1998, the Brink's Group had the following noncash investing and financing activities in connection with the acquisition of nearly all of the remaining shares of its affiliate in France: (Dollars in millions) Quarter Ended March 31, 1998 - ----------------------------------------------------------------------------------------------------------------------- Noncash investing and financing activities: Debt assumed $ 41.4 Net assets acquired by incurring directly related liabilities 27.6 - ----------------------------------------------------------------------------------------------------------------------- Total noncash investing and financing activities $ 69.0 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- (5) Certain prior period amounts have been reclassified to conform to the current period's financial statement presentation. (6) Financial information for the Minerals Group, which includes the results of the Pittston Coal Company and Pittston Mineral Ventures operations, and the Burlington Group which includes the results of the Company's BAX Global Inc. business, is available upon request.

THE PITTSTON COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 PER SHARE AMOUNTS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales $ 149,898 158,883 Operating revenues 712,766 622,793 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales and operating revenues 862,664 781,676 - ------------------------------------------------------------------------------------------------------------------------------------ Cost of sales 144,164 153,412 Operating expenses 595,771 518,819 Selling, general and administrative expenses 99,256 75,643 - ------------------------------------------------------------------------------------------------------------------------------------ Total costs and expenses 839,191 747,874 - ------------------------------------------------------------------------------------------------------------------------------------ Other operating income, net 3,027 3,576 - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit 26,500 37,378 Interest income 1,181 1,019 Interest expense (7,384) (5,564) Other expense, net (1,435) (2,389) - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 18,862 30,444 Provision for income taxes 6,034 9,103 - ------------------------------------------------------------------------------------------------------------------------------------ Net income 12,828 21,341 Preferred stock dividends, net (864) (901) - ------------------------------------------------------------------------------------------------------------------------------------ Net income attributed to common shares $ 11,964 20,440 - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON BRINK'S GROUP: Net income attributed to common shares $ 17,037 15,306 - ------------------------------------------------------------------------------------------------------------------------------------ Net income per common share: Basic $ .44 .40 Diluted .44 .40 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 38,477 38,189 Diluted 39,081 38,608 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON BURLINGTON GROUP: Net (loss) income attributed to common shares $ (2,966) 5,088 - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) income per common share: Basic $ (.15) .26 Diluted (.15) .26 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 19,477 19,406 Diluted 19,477 19,820 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON MINERALS GROUP: Net (loss) income attributed to common shares $ (2,107) 46 - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) income per common share: Basic $ (.26) .01 Diluted (.26) .01 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 8,225 8,002 Diluted 8,225 8,059 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - ----------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 72,615 69,878 Accounts receivable, net of estimated amounts uncollectible 617,433 531,317 Inventories and other current assets 134,220 125,610 - ----------------------------------------------------------------------------------------------------------------------- Total current assets 824,268 726,805 Property, plant and equipment, at cost, net of accumulated depreciation, depletion and amortization 718,673 647,642 Intangibles, net of accumulated amortization 328,443 301,395 Other assets 306,971 320,102 - ----------------------------------------------------------------------------------------------------------------------- Total assets $ 2,178,355 1,995,944 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 716,287 643,673 Long-term debt, less current maturities 299,476 191,812 Postretirement benefits other than pensions 233,399 231,451 Workers' compensation and other claims 101,979 106,378 Other liabilities 130,697 137,012 - ----------------------------------------------------------------------------------------------------------------------- Total liabilities 1,481,838 1,310,326 Shareholders' equity 696,517 685,618 - ----------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 2,178,355 1,995,944 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - --------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net income $ 12,828 21,341 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 33,878 30,139 Provision for aircraft heavy maintenance 8,733 8,186 Provision for deferred income taxes 2,115 2,328 Other, net 7,519 5,309 Changes in operating assets and liabilities net of effects of acquisitions and dispositions: Increase in receivables (12,381) (10,471) Increase in inventories and other current assets (2,798) (17,107) Decrease in current liabilities (17,399) (7,897) Other, net (10,789) (8,033) - --------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 21,706 23,795 - --------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (60,705) (40,032) Proceeds from disposal of property, plant and equipment 421 3,940 Aircraft heavy maintenance (9,659) (9,473) Acquisitions and related contingent payments, net of cash acquired 224 (54,094) Other, net (4,182) 13,901 - --------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (73,901) (85,758) - --------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to debt 61,265 80,834 Share and other equity activity, net (6,333) (9,261) - --------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 54,932 71,573 - --------------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 2,737 9,610 Cash and cash equivalents at beginning of period 69,878 41,217 - --------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 72,615 50,827 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON BURLINGTON GROUP REPORTS FIRST QUARTER RESULTS Richmond, VA - April 29, 1998 - Pittston Burlington Group reported a net loss of $3.0 million, or $.15 per share, in the first quarter ended March 31, 1998. A year earlier, net income of $5.1 million, or $.26 per share, was reported. Consolidated worldwide revenues totaled $402.4 million, an 8% increase over the $371.4 million reported in the prior year's quarter. Operating losses were $3.7 million in the first quarter compared to profits of $9.0 million a year earlier. Included in the current quarter was a pre-tax charge of $2.0 million or $.06 per share for Burlington Group's share of expenses relating to a retirement agreement between The Pittston Company and its former chairman and CEO. The first quarter also included a net pre-tax charge of approximately $3.5 million ($1.9 million international and $1.6 million Intra-U.S.) related to incremental technology expenditures, including Year 2000 expenses, partially offset by several non-recurring items. INTERNATIONAL BAX Global's international revenues rose 9% in the first quarter to $254 million from $233 million in the comparable 1997 period. International expedited freight services revenues increased 4% to $206 million due to higher volumes 1

partially offset by lower yields (revenue per pound) reflecting a change in mix with less export traffic to Asian markets as well as the absence of fuel surcharges. Other international revenues, which consist primarily of customs clearances, logistics and ocean services, rose 37% to $48 million largely due to growth in ocean services and the rapid growth of BAX logistics activities. International operating profits, excluding the previously mentioned net charge of $1.9 million, amounted to $7.3 million in the first quarter, an 11% increase over the $6.6 million earned in the first quarter of 1997. The increase was primarily due to improved U.S. export margins. INTRA-U.S. In the first quarter, BAX Global's intra-U.S. expedited freight services revenues increased 8% to $147 million, mainly reflecting higher volumes. Intra-U.S. operating losses, excluding the previously mentioned net charge of $1.6 million, were $3.4 million compared to an operating profit of $4.1 million in the first quarter a year ago. The operating loss in the first quarter was mainly due to higher transportation costs reflecting decisions to enhance service levels. Transportation costs were also impacted by service disruptions caused mainly by equipment problems which were resolved during the quarter. 2

During the second quarter, BAX Global anticipates completing the previously announced acquisition of the privately held Air Transport International LLC ("ATI"). The ATI acquisition is part of BAX Global's strategy to enhance the quality of its service offerings for its customers by increasing its control over flight operations. As previously announced, BAX Global's information technology expenditures, which will include substantial improvements to information systems, usual recurring capital costs and spending for Year 2000 compliance initiatives, have been reduced and are now currently estimated at approximately $60 million per year for 1998 and 1999. Additional details of the information technology and Year 2000 compliance initiatives are being further developed and implemented which, in turn, may have an impact on future reported results. BAX Global's operating results are expected to improve during the balance of 1998 as revenues typically increase during the seasonally stronger months and transportation costs are brought more in line with revenues. Michael T. Dan, President and CEO of The Pittston Company, stated "While we are disappointed with BAX's first quarter results, we are confident that as various improvement efforts are implemented, BAX Global will further strengthen its quality of service and provide improved returns for its shareholders. BAX Global's highest priorities in 1998 are 3

to continue to enhance its service quality and to improve information technology and financial performance." Effective May 4, 1998, the designation of Pittston Burlington Group Common Stock and the name of the Pittston Burlington Group will be changed to Pittston BAX Group Common Stock and Pittston BAX Group, respectively. All rights and privileges of the holders of such Stock will be otherwise unaffected by such changes. The stock will continue to trade on the New York Stock Exchange under the symbol "PZX". FINANCIAL-CONSOLIDATED The Pittston Company (the "Company") reported consolidated revenues of $862.7 million in the first quarter ended March 31, 1998 compared to $781.7 million for the comparable period in 1997. Net income was $12.8 million compared to $21.3 million in the prior year's quarter. Consolidated cash flow from operating activities totaled $21.7 million for the first quarter ended March 31, 1998. Total debt at March 31, 1998 was $378.5 million. During the first quarter of 1998, under the share repurchase programs authorized by the Board of Directors of the Company, the Company purchased 177,532 shares of Pittston Burlington Group Common Stock at a cost of $3.5 million and 355 shares of its Series C Convertible Preferred Stock at a cost of $0.1 million. 4

As of March 31, 1998, the Company had remaining authority to purchase over time 1 million shares of Pittston Minerals Group Common Stock, 1.1 million shares of Pittston Brink's Group Common Stock, 0.9 million shares of Pittston Burlington Group Common Stock and an additional $24.2 million of its Series C Convertible Preferred Stock. The aggregate purchase price limitation for all common stock purchases was $21.4 million at March 31, 1998. This release contains both historical and forward looking information. Statements regarding the expected outcome of 1998 full year results, information technology outlay projections, and the expected benefits from the ATI acquisition and BAX Global's improvements to information systems involve forward looking information which is subject to known and unknown risks, uncertainties and contingencies, which could cause actual results, performance or achievements to differ materially from those which are anticipated. Such risks, uncertainties and contingencies, many of which are beyond the control of the Burlington Group and The Pittston Company, include, but are not limited to, overall economic and business conditions, the demand for the BAX Global's services, pricing and other competitive factors in the industry, new government regulations and/or legislative initiatives, variations in costs or expenses, the consummation and successful integration of the ATI acquisition, changes in the scope of improvements to information systems and 5

Year 2000 initiatives, delays or problems in the implementation of Year 2000 initiatives by the Burlington Group and/or its suppliers and customers, and delays or problems in the design and implementation of improvements to information systems. * * * * * * * * * * Pittston Burlington Group Common Stock (NYSE-PZX), Pittston Brink's Group Common Stock (NYSE-PZB) 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 global freight transportation and logistics management services through BAX Global Inc. (Pittston Burlington Group), security services through Brink's, Incorporated and Brink's Home Security, Inc. (Pittston Brink's Group), and in mining and minerals exploration through Pittston Coal Company and Pittston Mineral Ventures (Pittston Minerals Group). Copies of the Pittston Brink's Group and Pittston Minerals Group earnings releases are available upon request. 6

PITTSTON BURLINGTON GROUP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) BAX GLOBAL INC. (IN THOUSANDS,EXCEPT Quarter Ended March 31 PER POUND/SHIPMENT AMOUNTS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------- OPERATING REVENUES Intra-U.S.: Expedited freight services $ 147,398 136,672 Other 945 1,721 - ------------------------------------------------------------------------------------------------------------------- Total Intra-U.S. 148,343 138,393 International: Expedited freight services(a) 206,452 198,129 Other 47,638 34,887 - ------------------------------------------------------------------------------------------------------------------- Total International 254,090 233,016 Total operating revenues $ 402,433 371,409 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT (LOSS) Intra-U.S. $ (4,977) 4,117 International 5,407 6,639 - ----------------------------------------------------------------------------------------------------------------- Total operating profit $ 430 10,756 - ----------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- Expedited freight services shipment growth rate(b) 1.2% (1.8%) Expedited freight services weight growth rate(b): Intra-U.S. 8.9% 0.8% International 8.8% 2.5% Worldwide 8.8% 1.7% - ----------------------------------------------------------------------------------------------------------------- Expedited freight services weight (millions of pounds) 381.5 350.5 Expedited freight services shipments (thousands) 1,290 1,275 - ----------------------------------------------------------------------------------------------------------------- Expedited freight services average: Yield (revenue per pound)(a) $ .928 .955 Revenue per shipment(a) $ 274 263 Weight per shipment (pounds) 296 275 - ----------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- (a) Prior period's international expedited freight revenues have been reclassified to conform to the current period classification. (b) Compared to the same period in the prior year.

PITTSTON BURLINGTON GROUP STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 PER SHARE AMOUNTS) 1998 1997 - -------------------------------------------------------------------------------------------------------------------------- Operating revenues $ 402,433 371,409 - -------------------------------------------------------------------------------------------------------------------------- Operating expenses 362,339 330,911 Selling, general and administrative expenses 43,614 32,171 - -------------------------------------------------------------------------------------------------------------------------- Total costs and expenses 405,953 363,082 - -------------------------------------------------------------------------------------------------------------------------- Other operating (expense) income, net (133) 649 - -------------------------------------------------------------------------------------------------------------------------- Operating (loss) profit (3,653) 8,976 Interest income 259 330 Interest expense (1,218) (946) Other expense, net (98) (281) - -------------------------------------------------------------------------------------------------------------------------- (Loss) income before income taxes (4,710) 8,079 (Credit) provision for income taxes (1,744) 2,991 - -------------------------------------------------------------------------------------------------------------------------- Net (loss) income $ (2,966) 5,088 - -------------------------------------------------------------------------------------------------------------------------- Net (loss) income per common share: Basic $ (.15) .26 Diluted (.15) .26 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- Weighted average common shares outstanding: Basic 19,477 19,406 Diluted 19,477 19,820 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- SEGMENT INFORMATION Operating revenues: BAX Global $ 402,433 371,409 - -------------------------------------------------------------------------------------------------------------------------- Operating profit: BAX Global $ 430 10,756 General corporate expense (4,083) (1,780) - -------------------------------------------------------------------------------------------------------------------------- Operating (loss) profit $ (3,653) 8,976 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON BURLINGTON GROUP CONDENSED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 27,570 28,790 Accounts receivable, net of estimated amounts uncollectible 302,168 306,806 Inventories and other current assets 20,777 19,568 - ------------------------------------------------------------------------------------------------------------------- Total current assets 350,515 355,164 Property, plant and equipment, at cost, net of accumulated depreciation and amortization 147,303 128,632 Intangibles, net of accumulated amortization 175,667 174,791 Other assets 47,013 42,856 - ------------------------------------------------------------------------------------------------------------------- Total assets $ 720,498 701,443 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities $ 320,154 312,065 Long-term debt, less current maturities 53,629 37,016 Other liabilities 27,721 28,652 - ------------------------------------------------------------------------------------------------------------------- Total liabilities 401,504 377,733 Shareholder's equity 318,994 323,710 - ------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $ 720,498 701,443 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON BURLINGTON GROUP STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - -------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net (loss) income $ (2,966) 5,088 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 7,667 6,959 Provision for aircraft heavy maintenance 8,733 8,186 Other, net 1,940 1,632 Changes in operating assets and liabilities: Decrease (increase) in receivables 15,903 (12,629) Increase in inventories and other current assets (2,070) (1,863) (Decrease) increase in current liabilities (9,795) 6,245 Other, net (1,969) 182 - -------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 17,443 13,800 - -------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (24,379) (6,207) Aircraft heavy maintenance (9,659) (9,473) Other, net (2,291) 2,221 - -------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (36,329) (13,459) - -------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to (reductions of) debt 21,381 (603) Payments from Minerals Group -- 6,002 Share and other equity activity, net (3,715) (3,367) - -------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 17,666 2,032 - -------------------------------------------------------------------------------------------------------------------- Net (decrease) increase in cash and cash equivalents (1,220) 2,373 Cash and cash equivalents at beginning of period 28,790 17,818 - -------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 27,570 20,191 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES PITTSTON BURLINGTON GROUP NOTES TO FINANCIAL INFORMATION (1) The Pittston Company (the "Company") has three classes of common stock: Pittston Brink's Group Common Stock ("Brink's Stock"), Pittston Burlington Group Common Stock ("Burlington Stock") and Pittston Minerals Group Common Stock ("Minerals Stock"), which were designed to provide shareholders with separate securities reflecting the performance of the Pittston Brink's Group (the "Brink's Group"), Pittston Burlington Group (the "Burlington Group") and Pittston Minerals Group (the "Minerals Group"), respectively, without diminishing the benefits of remaining a single corporation or precluding future transactions affecting any of the Groups. The financial information for the Burlington Group includes the results of the Company's BAX Global Inc. business. It is prepared using the amounts included in the Company's consolidated financial statements. Accordingly, the Company's consolidated financial statements must be read in connection with the Burlington Group's financial data. (2) Under the share repurchase program authorized by the Board of Directors of the Company, the Company purchased shares in the periods presented as follows: Quarter Ended Year Ended March 31 March 31 (Dollars in millions) 1998 1997 - ------------------------------------------------------------------------------------------------------- Burlington Stock: Shares 177,532 132,100 Cost $ 3.5 2.6 Convertible Preferred Stock: Shares 355 -- Cost $ 0.1 -- Excess carrying amount (a) $ 0.02 -- (a) The excess of the carrying amount of the Convertible Preferred Stock over the cash paid to holders for repurchases made during the periods. This amount is deducted from preferred dividends in the Company's Statement of Operations. (3) The Burlington Group adopted Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income," in the first quarter of 1998. SFAS No. 130 established standards for the reporting and display of comprehensive income and its components in financial statements. Comprehensive income generally represents all changes in shareholders' equity except those resulting from investments by or distributions to shareholders. Total comprehensive (loss) income, which is composed of net (loss) income and foreign currency translation adjustments, for the quarters ended March 31, 1998 and 1997 was ($2.6) million and $3.7 million, respectively. (4) Effective January 1, 1998, the Burlington Group implemented a new AICPA Statement of Position ("SOP") No. 98-1 "Accounting for the Costs of

Computer Software Developed for Internal Use". SOP 98-1 requires that certain costs related to the development or purchase of internal-use software be capitalized and amortized over the estimated useful life of the software. As a result of the implementation of SOP No. 98-1, net loss for the quarter ended March 31, 1998, included a benefit of approximately $0.8 million or $.04 per share for costs capitalized during the quarter which would have been expensed prior to the implementation of SOP 98-1. (5) During the first quarter ended March 31, 1998, the Company had the following noncash investing and financing activities in connection with the acquisition of nearly all of the remaining shares of its Brink's affiliate in France: (Dollars in millions) Quarter Ended March 31, 1998 - -------------------------------------------------------------------------------------------------------------------- Noncash investing and financing activities: Debt assumed $ 41.4 Net assets acquired by incurring directly related liabilities 27.6 - -------------------------------------------------------------------------------------------------------------------- Total noncash investing and financing activities $ 69.0 - -------------------------------------------------------------------------------------------------------------------- (6) Certain prior period amounts have been reclassified to conform to the current period's financial statement presentation. (7) Financial information for the Minerals Group, which includes the results of the Pittston Coal Company and Pittston Mineral Ventures operations, and the Brink's Group, which includes the results of the Company's Brink's, Incorporated and Brink's Home Security, Inc. businesses, is available upon request.

THE PITTSTON COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - ---------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 72,615 69,878 Accounts receivable, net of estimated amounts uncollectible 617,433 531,317 Inventories and other current assets 134,220 125,610 - ---------------------------------------------------------------------------------------------------------------------- Total current assets 824,268 726,805 Property, plant and equipment, at cost, net of accumulated depreciation, depletion and amortization 718,673 647,642 Intangibles, net of accumulated amortization 328,443 301,395 Other assets 306,971 320,102 - ---------------------------------------------------------------------------------------------------------------------- Total assets $ 2,178,355 1,995,944 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 716,287 643,673 Long-term debt, less current maturities 299,476 191,812 Postretirement benefits other than pensions 233,399 231,451 Workers' compensation and other claims 101,979 106,378 Other liabilities 130,697 137,012 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities 1,481,838 1,310,326 Shareholders' equity 696,517 685,618 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 2,178,355 1,995,944 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - -------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net income $ 12,828 21,341 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 33,878 30,139 Provision for aircraft heavy maintenance 8,733 8,186 Provision for deferred income taxes 2,115 2,328 Other, net 7,519 5,309 Changes in operating assets and liabilities net of effects of acquisitions and dispositions: Increase in receivables (12,381) (10,471) Increase in inventories and other current assets (2,798) (17,107) Decrease in current liabilities (17,399) (7,897) Other, net (10,789) (8,033) - -------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 21,706 23,795 - -------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (60,705) (40,032) Proceeds from disposal of property, plant and equipment 421 3,940 Aircraft heavy maintenance (9,659) (9,473) Acquisitions and related contingent payments, net of cash acquired 224 (54,094) Other, net (4,182) 13,901 - -------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (73,901) (85,758) - -------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to debt 61,265 80,834 Share and other equity activity, net (6,333) (9,261) - -------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 54,932 71,573 - -------------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 2,737 9,610 Cash and cash equivalents at beginning of period 69,878 41,217 - -------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 72,615 50,827 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON MINERALS GROUP REPORTS FIRST QUARTER RESULTS Richmond, VA - April 29, 1998 - Pittston Minerals Group reported a net loss, before preferred dividends, of $1.2 million, or $.26 per common share, in the first quarter ended March 31, 1998. A year earlier the unit reported net income, before preferred dividends, of $0.9 million, or $.01 per common share. Included in the current quarter results was a pre-tax charge of $1.8 million or $.14 per share for Minerals Group's share of expenses relating to a retirement agreement between The Pittston Company and its former chairman and CEO. PITTSTON COAL COMPANY First quarter net sales were $145.9 million compared to $154.6 million in the same period a year ago. The coal segment's operating profit was $2.5 million in the first quarter compared to $3.6 million in the same period in 1997. Coal production totaled 3.6 million tons in the quarter compared to 4.1 million tons in last year's first quarter. During the first quarter, Pittston Coal Company sold 4.9 million tons of coal compared to 5.1 million tons in the first quarter of 1997. Cost of coal sold per ton declined to $27.29 in the first quarter 1998 compared with $27.65 a year earlier. Gross margins from coal operations improved to $2.37 per ton from $2.17 in the 1

prior year quarter, despite the weather-related loss of 85 unit shifts at the company's coal mines in late January and February and the deferral of some high-margin business due to railroad service disruption. In March, the United States Supreme Court affirmed a lower court ruling declaring the Harbor Maintenance Tax to be unconstitutional. This had an immediate $1.3 million favorable impact for past payments and will lower export coal costs in the future. Prices for metallurgical and steam coal were generally weak in the first quarter, as were prices for natural gas. Due to its long term contract position, Pittston Coal Company does not expect to participate significantly in the spot market for steam coal this year as its currently anticipated 1998 production is nearly fully committed. PITTSTON MINERAL VENTURES Pittston Mineral Ventures (PMV) reported a $47 thousand loss in the first quarter of 1998, compared to a $0.5 million loss in the same period the prior year. Operations at the Stawell gold mine, in which PMV has a combined 67% direct and indirect interest, improved markedly from a year ago with gold production increasing from 21,902 ounces to 22,312 ounces. Average cash costs of gold sold improved to US $206 per ounce from US $327 per ounce, which had been impacted by adverse 2

ground conditions in the first quarter of 1997, while realization declined from US $405 per ounce to US $355 per ounce. Equity earnings from PMV's interest in Mining Project Investors (MPI) in Australia were essentially unchanged from year ago levels. However, this was significantly below expectations due to the impact of depressed nickel prices on MPI's 50% owned Silver Swan nickel mine. Production volumes and costs at Silver Swan were in line with expectations. PMV is continuing its active gold exploration program in Australia and the Western United States with its partner, MPI. Drilling is currently underway on a possible surface gold resource within the boundaries of the Stawell gold tenements. However, no mine plan has been developed as of this time. FINANCIAL-CONSOLIDATED The Pittston Company (the "Company") reported consolidated revenues of $862.7 million in the first quarter ended March 31, 1998 compared to $781.7 million for the comparable period in 1997. Net income was $12.8 million compared to $21.3 million in the prior year's quarter. Consolidated cash flow from operating activities totaled $21.7 million for the first quarter ended March 31, 1998. Total debt at March 31, 1998 was $378.5 million. 3

During the first quarter of 1998, under the share repurchase programs authorized by the Board of Directors of the Company, the Company purchased 177,532 shares of Pittston Burlington Group Common Stock at a cost of $3.5 million and 355 shares of its Series C Convertible Preferred Stock at a cost of $0.1 million. As of March 31, 1998, the company had remaining authority to purchase over time 1 million shares of Pittston Minerals Group Common Stock, 1.1 million shares of Pittston Brink's Group Common Stock, 0.9 million shares of Pittston Burlington Group Common Stock and an additional $24.2 million of its Series C Convertible Preferred Stock. The aggregate purchase price limitation for all common stock purchase was $21.4 million at March 31, 1998. This release contains both historical and forward looking information. Statements regarding the future impact on export coal costs of the Harbor Maintenance Tax being declared unconstitutional, expectations concerning spot steam coal sales during 1998 and possible results from PMV's gold exploration program, involve forward looking information which is subject to known and unknown risks, uncertainties and contingencies, which could cause actual results, performance or achievements to differ materially from those which are anticipated. Such risks, uncertainties and contingencies, many of which are beyond the control of the Minerals Group and The Pittston Company include, but are not limited to, 4

overall economic and business conditions, the demand for the Minerals Group's products, geological conditions, pricing and other competitive factors in the industry, new government regulations and/or legislative initiatives, contractual disputes with customers and uncertainty regarding the ultimate results of exploration activity. * * * * * * * * * * Pittston Minerals Group Common Stock (NYSE-PZM), Pittston Brink's Group Common Stock (NYSE-PZB) and Pittston Burlington Group Common Stock (NYSE-PZX) represent the three classes of common stock of The Pittston Company, a diversified company with interests in mining and minerals exploration through Pittston Coal Company and Pittston Mineral Ventures (Pittston Minerals Group), 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 BAX Global Inc. (Pittston Burlington Group). Copies of the Pittston Brink's Group and Pittston Burlington Group earnings releases are available upon request. 5

PITTSTON MINERALS GROUP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) PITTSTON COAL COMPANY Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales $ 145,920 154,593 Operating profit $ 2,502 3,623 COAL SALES (Tons): Metallurgical 1,931 1,891 Utility and industrial 2,923 3,229 - ------------------------------------------------------------------------------------------------------------------------------------ Total coal sales 4,854 5,120 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PRODUCTION/PURCHASED (Tons): Deep 1,389 1,102 Surface 1,969 2,659 Contract 242 363 - ------------------------------------------------------------------------------------------------------------------------------------ 3,600 4,124 Purchased 965 1,340 - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,565 5,464 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended March 31 (IN THOUSANDS, EXCEPT PER TON DATA) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Net coal sales (a) $ 143,976 152,698 Current production cost of coal sold (a) 132,507 141,572 - ------------------------------------------------------------------------------------------------------------------------------------ Coal margin 11,469 11,126 Non-coal margin 616 717 Other operating income, net 2,329 3,705 - ------------------------------------------------------------------------------------------------------------------------------------ Margin and other income 14,414 15,548 - ------------------------------------------------------------------------------------------------------------------------------------ Other costs and expenses: Idle equipment and closed mines 703 307 Inactive employee cost 6,955 6,683 Selling, general and administrative expenses 4,254 4,935 - ------------------------------------------------------------------------------------------------------------------------------------ Total other costs and expenses 11,912 11,925 - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit $ 2,502 3,623 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Coal margin per ton: Realization $ 29.66 29.82 Current production costs 27.29 27.65 - ------------------------------------------------------------------------------------------------------------------------------------ Coal margin $ 2.37 2.17 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ (a) Excludes non-coal components.

PITTSTON MINERAL VENTURES (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 OUNCE AND PER OUNCE DATA) 1998 1997 - ------------------------------------------------------------------------------------------------------------------ Stawell Gold Mine: Gold sales $ 3,956 4,281 Other revenue 22 9 - ------------------------------------------------------------------------------------------------------------------ Net sales 3,978 4,290 Cost of sales (a) 2,671 3,631 Selling, general and administrative expenses (a) 291 298 - ------------------------------------------------------------------------------------------------------------------ Total costs and expenses 2,962 3,929 - ------------------------------------------------------------------------------------------------------------------ Operating profit - Stawell Gold Mine 1,016 361 Other operating expense, net (1,063) (816) - ------------------------------------------------------------------------------------------------------------------ Operating loss $ (47) (455) - ------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------ Stawell Gold Mine: Mineral Ventures' 50% direct share: Ounces sold 11,146 10,576 Ounces produced 11,156 10,951 Average per ounce sold (US$): Realization 355 405 Cash cost 206 327 - ------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------ (a) Excludes $908 of non-Stawell related selling, general and administrative expenses for the quarter ended March 31, 1998. Excludes $42 and $617 of non-Stawell related cost of sales and selling, general and administrative expenses for the quarter ended March 31, 1997. Such costs are reclassified to cost of sales and selling, general and administrative expenses in the Minerals Group statement of operations.

PITTSTON MINERALS GROUP STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 PER SHARE AMOUNTS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------- Net sales $ 149,898 158,883 - ------------------------------------------------------------------------------------------------------------------- Cost of sales 144,164 153,412 Selling, general and administrative expenses 9,087 7,409 - ------------------------------------------------------------------------------------------------------------------- Total costs and expenses 153,251 160,821 Other operating income, net 2,174 3,548 - ------------------------------------------------------------------------------------------------------------------- Operating (loss) profit (1,179) 1,610 Interest income 301 282 Interest expense (2,594) (2,625) Other expense, net -- (450) - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- Loss before income taxes (3,472) (1,183) Credit for income taxes (2,229) (2,130) - ------------------------------------------------------------------------------------------------------------------- Net (loss) income (1,243) 947 Preferred stock dividends, net (864) (901) - ------------------------------------------------------------------------------------------------------------------- Net (loss) income attributed to common shares $ (2,107) 46 - ------------------------------------------------------------------------------------------------------------------- Net (loss) income per common share: Basic $ (.26) .01 Diluted (.26) .01 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- Weighted average common shares outstanding: Basic 8,225 8,002 Diluted 8,225 8,059 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- SEGMENT INFORMATION Net sales: Coal Operations $ 145,920 154,593 Mineral Ventures 3,978 4,290 - ------------------------------------------------------------------------------------------------------------------- Net sales $ 149,898 158,883 - ------------------------------------------------------------------------------------------------------------------- Operating profit (loss): Coal Operations $ 2,502 3,623 Mineral Ventures (47) (455) - ------------------------------------------------------------------------------------------------------------------- Segment operating profit 2,455 3,168 General corporate expense (3,634) (1,558) - ------------------------------------------------------------------------------------------------------------------- Operating (loss) profit $ (1,179) 1,610 - ------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON MINERALS GROUP CONDENSED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - ----------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 2,183 3,394 Accounts receivable, net of estimated amounts uncollectible 80,103 63,599 Inventories and other current assets 72,944 65,527 - ----------------------------------------------------------------------------------------------------------------- Total current assets 155,230 132,520 Property, plant and equipment, at cost, net of accumulated depreciation, depletion and amortization 171,158 172,338 Coal supply contracts, net of accumulated amortization 36,590 41,703 Intangibles, net of accumulated amortization 107,342 108,094 Other assets 203,150 199,527 - ----------------------------------------------------------------------------------------------------------------- Total assets $ 673,470 654,182 - ----------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities $ 150,839 161,264 Long-term debt, less current maturities 153,435 116,114 Postretirement benefits other than pensions 225,601 223,836 Workers' compensation and other claims 87,784 92,857 Other liabilities 76,689 78,683 - ----------------------------------------------------------------------------------------------------------------- Total liabilities 694,348 672,754 Shareholder's equity (20,878) (18,572) - ----------------------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $ 673,470 654,182 - ----------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- See accompanying notes.

PITTSTON MINERALS GROUP STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - ----------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net (loss) income $ (1,243) 947 Adjustments to reconcile net (loss) income to net cash used by operating activities: Depreciation, depletion and amortization 8,933 8,920 Provision for deferred income taxes 1,612 2,001 Other, net (14) (1,032) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Increase in receivables (16,492) (414) Decrease (increase) in inventories and other current assets 3,312 (11,356) Decrease in current liabilities (10,937) (8,127) Other, net (3,787) (3,754) - ----------------------------------------------------------------------------------------------------------------- Net cash used by operating activities (18,616) (12,815) - ----------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (4,460) (7,458) Proceeds from disposal of property, plant and equipment 229 1,534 Acquisitions and related contingent payments, net of cash acquired -- (791) Other, net (1,939) 1,237 - ----------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (6,170) (5,478) - ----------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to debt 37,182 36,357 Payments to Burlington Group/Brink's Group, net (11,238) (17,687) Share and other equity activity, net (2,369) (2,085) - ----------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 23,575 16,585 - ----------------------------------------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (1,211) (1,708) Cash and cash equivalents at beginning of period 3,394 3,387 - ----------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 2,183 1,679 - ----------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES PITTSTON MINERALS GROUP NOTES TO FINANCIAL INFORMATION (1) The Pittston Company (the "Company") has three classes of common stock: Pittston Brink's Group Common Stock ("Brink's Stock"), Pittston Burlington Group Common Stock ("Burlington Stock") and Pittston Minerals Group Common Stock ("Minerals Stock"), which were designed to provide shareholders with separate securities reflecting the performance of the Pittston Brink's Group (the "Brink's Group"), Pittston Burlington Group (the "Burlington Group") and Pittston Minerals Group (the "Minerals Group"), respectively, without diminishing the benefits of remaining a single corporation or precluding future transactions affecting any of the Groups. The financial information for the Minerals Group includes the results of the Pittston Coal Company and Pittston Mineral Ventures operations of the Company. It is prepared using the amounts included in the Company's consolidated financial statements. Accordingly, the Company's consolidated financial statements must be read in connection with the Mineral Group's financial data. (2) Under the share repurchase program authorized by the Board of Directors of the Company, the Company purchased shares in the periods presented as follows: Quarter Ended Quarter Ended March 31 March 31 (Dollars in millions) 1998 1997 - --------------------------------------------------------------------------------------------------------- Convertible Preferred Stock: Shares 355 -- Cost $ .1 -- Excess carrying amount (a) $ 0.02 -- (a) The excess of the carrying amount of the Convertible Preferred Stock over the cash paid to holders for repurchases made during the periods. This amount is deducted from preferred dividends in the Company's Statement of Operations. (3) The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income," in the first quarter of 1998. SFAS No. 130 established standards for the reporting and display of comprehensive income and its components in financial statements. Comprehensive income generally represents all changes in shareholders' equity except those resulting from investments by or distributions to shareholders. Total comprehensive loss which is composed of net (loss) income attributable to common shares and foreign currency translation adjustments, for the quarters ended March 31, 1998 and 1997 was ($1.8) million and ($0.2) million, respectively. 11

(4) During the first quarter ended March 31, 1998, the Company had the following noncash investing and financing activities in connection with the acquisition of nearly all of the remaining shares of its Brink's affiliate in France: (Dollars in millions) Quarter Ended March 31, 1998 - -------------------------------------------------------------------------------------------------------------------- Noncash investing and financing activities: Debt assumed $ 41.4 Net assets acquired by incurring directly related liabilities 27.6 - -------------------------------------------------------------------------------------------------------------------- Total noncash investing and financing activities $ 69.0 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- (5) Certain prior period amounts have been reclassified to conform to the current period's financial statement presentation. (6) Financial information for the Brink's Group, which includes the results of the Company's Brink's, Incorporated and Brink's Home Security, Inc. businesses, and the Burlington Group, which includes the results of the Company's BAX Global Inc. business, is available upon request.

THE PITTSTON COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT Quarter Ended March 31 PER SHARE AMOUNTS) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales $ 149,898 158,883 Operating revenues 712,766 622,793 - ------------------------------------------------------------------------------------------------------------------------------------ Net sales and operating revenues 862,664 781,676 - ------------------------------------------------------------------------------------------------------------------------------------ Cost of sales 144,164 153,412 Operating expenses 595,771 518,819 Selling, general and administrative expenses 99,256 75,643 - ------------------------------------------------------------------------------------------------------------------------------------ Total costs and expenses 839,191 747,874 - ------------------------------------------------------------------------------------------------------------------------------------ Other operating income, net 3,027 3,576 - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit 26,500 37,378 Interest income 1,181 1,019 Interest expense (7,384) (5,564) Other expense, net (1,435) (2,389) - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 18,862 30,444 Provision for income taxes 6,034 9,103 - ------------------------------------------------------------------------------------------------------------------------------------ Net income 12,828 21,341 Preferred stock dividends, net (864) (901) - ------------------------------------------------------------------------------------------------------------------------------------ Net income attributed to common shares $ 11,964 20,440 - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON BRINK'S GROUP: Net income attributed to common shares $ 17,037 15,306 - ------------------------------------------------------------------------------------------------------------------------------------ Net income per common share: Basic $ .44 .40 Diluted .44 .40 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 38,477 38,189 Diluted 39,081 38,608 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON BURLINGTON GROUP: Net (loss) income attributed to common shares $ (2,966) 5,088 - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) income per common share: Basic $ (.15) .26 Diluted (.15) .26 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 19,477 19,406 Diluted 19,477 19,820 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ PITTSTON MINERALS GROUP: Net (loss) income attributed to common shares $ (2,107) 46 - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) income per common share: Basic $ (.26) .01 Diluted (.26) .01 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average common shares outstanding: Basic 8,225 8,002 Diluted 8,225 8,059 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31 December 31 (IN THOUSANDS) 1998 1997 - --------------------------------------------------------------------------------------------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 72,615 69,878 Accounts receivable, net of estimated amounts uncollectible 617,433 531,317 Inventories and other current assets 134,220 125,610 - --------------------------------------------------------------------------------------------------------------------- Total current assets 824,268 726,805 Property, plant and equipment, at cost, net of accumulated depreciation, depletion and amortization 718,673 647,642 Intangibles, net of accumulated amortization 328,443 301,395 Other assets 306,971 320,102 - --------------------------------------------------------------------------------------------------------------------- Total assets $ 2,178,355 1,995,944 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 716,287 643,673 Long-term debt, less current maturities 299,476 191,812 Postretirement benefits other than pensions 233,399 231,451 Workers' compensation and other claims 101,979 106,378 Other liabilities 130,697 137,012 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- Total liabilities 1,481,838 1,310,326 Shareholders' equity 696,517 685,618 - --------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 2,178,355 1,995,944 - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- See accompanying notes.

THE PITTSTON COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Quarter Ended March 31 (IN THOUSANDS) 1998 1997 - ---------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net income $ 12,828 21,341 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 33,878 30,139 Provision for aircraft heavy maintenance 8,733 8,186 Provision for deferred income taxes 2,115 2,328 Other, net 7,519 5,309 Changes in operating assets and liabilities net of effects of acquisitions and dispositions: Increase in receivables (12,381) (10,471) Increase in inventories and other current assets (2,798) (17,107) Decrease in current liabilities (17,399) (7,897) Other, net (10,789) (8,033) - ---------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 21,706 23,795 - ---------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Additions to property, plant and equipment (60,705) (40,032) Proceeds from disposal of property, plant and equipment 421 3,940 Aircraft heavy maintenance (9,659) (9,473) Acquisitions and related contingent payments, net of cash acquired 224 (54,094) Other, net (4,182) 13,901 - ---------------------------------------------------------------------------------------------------------------------- Net cash used by investing activities (73,901) (85,758) - ---------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Net additions to debt 61,265 80,834 Share and other equity activity, net (6,333) (9,261) - ---------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 54,932 71,573 - ---------------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 2,737 9,610 Cash and cash equivalents at beginning of period 69,878 41,217 - ---------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 72,615 50,827 - ---------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------- See accompanying notes.