SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_______________________
Date of Report
(Date of earliest
event reported): June 11, 1996
Christiana Companies, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 1-3846 95-1928079
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
777 East Wisconsin Avenue, Suite 3380
(Address of principal executive offices including zip code)
(414) 291-9000
(Registrant's telephone number)
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Item 5. Other Events.
The press release attached as Exhibit 99 is incorporated by
reference herein.
<PAGE>
SIGNATURES
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.
CHRISTIANA COMPANIES, INC.
Date: June 11, 1996 By:/s/ William T. Donovan
William T. Donovan
Executive Vice President
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EXHIBIT INDEX
Exhibit No. Description
99 Press Release dated June 11, 1996
EXHIBIT 99
CHRISTIANA ACCOUNTING CHANGE
PERMITS INCLUSION OF EVI EARNINGS:
NINE MONTHS EARNINGS TO BE RESTATED TO
$0.64 PER SHARE VS. $0.49 PREVIOUSLY REPORTED
Milwaukee, Wisconsin - - Christiana Companies, Inc. (NYSE:CST)
today announced a change in accounting for its investment in Energy
Ventures, Inc. (NYSE:EVI). Christiana will now report on these
holdings using the equity method. The change results in Christiana
directly reporting its proportionate share of EVI's earnings, less a
provision for deferred tax, in its financial statements. To date,
Christiana has accounted for its investment in EVI by reflecting the fair
value of these securities on its balance sheet and has not accounted for
Christiana's proportionate share of EVI's earnings. Christiana's net
earnings for the first three quarters and nine months ended March 31, 1996
will be restated. The effect of this restatement is an increase in
reported net earnings for the period from $2,543,000 or $0.49 per share to
$3,316,000 or $0.64 per share.
As previously announced, on June 30, 1995, Christiana completed
a tax free merger of its 60% owned subsidiary, Prideco, Inc. into EVI and
received 1,035,858 shares of EVI common stock. Concurrent with the
Prideco merger, Christiana invested an additional $13,291,000 purchasing
912,873 EVI shares from EVI and from Prideco's minority shareholders.
Total EVI share holdings are 1,948,731, representing a 10.5% ownership
interest.
Christiana has continued to review the accounting for its
holdings in EVI since the date of the merger and, based on a number of
factors including the nature of its relationship with EVI, has now
concluded that the equity method of accounting is most appropriate.
Generally accepted accounting principles require that prior
period financial statements be restated when the equity method is applied
to an investment previously accounted for under the cost method. The
table below shows the impact this change will have on the Statement of
Operations for each of the quarters in fiscal 1996. The change will also
result in elimination of the market value adjustments for unrealized
appreciation of the investment in EVI and the related impact on deferred
tax liability from the Company's Consolidated Balance Sheets. The
restatement will be reflected in the Company's year end June 30, 1996
financial statements.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
9/30/95 12/31/95 3/31/96 3/31/96
<S> <C> <C> <C> <C>
Earnings before income taxes,
as previously reported $2,290,000 $ 844,000 $1,105,000 $4,239,000
Adjustment for equity earnings 404,000 405,000 405,000 1,214,000
--------- --------- --------- ---------
Restated earnings before income
taxes 2,694,000 1,249,000 1,510,000 5,453,000
Restated income tax provision 1,056,000 489,000 592,000 2,137,000
---------- ---------- ---------- ----------
Restated net earnings $1,638,000 $ 760,000 $ 918,000 $3,316,000
========= ========= ========= =========
Restated net earnings per share $0.32 $0.14 $0.18 $0.64
======== ======== ======== ========
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