Pinkerton's Inc., an Encino provider of security services under the Pinkerton Security & Investigation Services name, reported an 8% increase in first-quarter earnings.
However, the $1.33-million profit in the quarter that ended March 25 included a net, after-tax gain of $1.3 million from the settlement of lawsuits, Pinkerton's said.
Apart from the gain, start-up costs of new accounts and additional expenses to expand its security force for General Motors Corp. reduced profits in the quarter, the company said. Profit margins were also hurt by price competition, the company said, which limited its ability to raise prices to offset higher insurance and payroll tax costs.
A year ago, Pinkerton's earned $1.23 million. The company's revenue in the latest quarter was $191.5 million, up 17% from $164.3 million in revenue the previous year.