Interstate General's profits rose nearly sixfold in first half of '96

August 16, 1996|BY A SUN STAFF WRITER

Interstate General Co. Ltd. Partnership yesterday reported net income of $9.4 million for the first half of 1996, a nearly sixfold increase from the corresponding period last year.

The St. Charles-based real estate development firm attributed the increase -- to 91 cents a share from 13 cents a share -- primarily to the March sale of four apartment projects it controlled in Puerto Rico and $6.1 million in other land sales there. The multi-family sales generated $16 million for IGC.

Revenues for the six months ended June 30 increased 79 percent, to $38.7 million, the firm reported.

For the quarter ended June 30, IGC generated net income of $330,000, or 3 cents a share, compared with net income of $1.1 million, or 10 cents a share, in the comparable 1995 period. Revenues in the quarter were $13.8 million, which represented a 29 percent gain over 1995 second-quarter results.

The 39-year-old company's results were hurt during 1996's first half by a $5.4 million provision for Puerto Rican income taxes and by minority interest payouts.

Results eventually will be affected by a $3 million fine for federal wetlands violations, a liability that IGC received in June for filling in 70 acres of environmentally sensitive land in St. Charles from 1988 to 1993.

The company is appealing its conviction in the case.

Pub Date: 8/16/96

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