ATG Announces 2000 Results.Business Editors FREMONT, Calif.--(BUSINESS WIRE)--April 5, 2001 ATG ATG antithymocyte globulin. lymphocyte immune globulin (antithymocyte globulin equine, ATG, ATG equine, LIG) Atgam Pharmacologic class: Immunoglobulin Therapeutic class: Immunosuppressant Inc. (Nasdaq:ATGC ATGC Adenine,Thymine, Guanine, & Cytosine ATGC Asiantaeth Trwyddedu Hywyr A Cherbydau (Welsh: Driver and Vehicle Licensing Agency, UK) ), a leading provider of low-level radioactive and low-level mixed waste treatment services, today announced results for the year ended December 31, 2000. Revenue for the fourth quarter of 2000 was $8.6 million compared with $15.0 million in the comparable quarter of 1999. Net loss for the fourth quarter of 2000 was $24.0 million, or $1.42 per share, compared to net income of $1.0 million, or $0.07 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the comparable quarter of 1999. The net loss includes plant abandonment expenses of $17.5 million, a $2.1 million provision for collection of doubtful accounts, and a $307,000 maintenance supply inventory write-down. Revenue and gross margin during the quarter were negatively impacted by $2.8 million of waste receipts received during the quarter that were not processed by the Company's Richland, Washington Richland is a city in Benton County in southeastern Washington, at the confluence of the Yakima River and the Columbia River. As of the 2000 census, the city population was 38,708, with a 2005 population estimate of 43,520. processing facilities. The Richland facility experienced production capacity constraints due to the inability of acquiring the second batch processing (1) Performing a particular operation automatically on a group of files all at once rather than manually opening, editing and saving one file at a time. For example, graphics software that converts a selection of images from one format to another would be a batch processing utility. unit (BPU BPU benzoylphenyl urea. ) that was scheduled for installation during the fourth quarter. The Company anticipates that the unit will be installed during the second quarter of 2001. Revenue and gross margin in the 2000 fourth quarter continued to be negatively impacted by the Company's shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of its Q-CEP thermal resin treatment process in order to transition to its more cost-effective Resin Decon Technology (RDT RDT 1. Renal dialysis treatment 2. Retinal damage threshold ). "The decreased revenues and gross margin in the fourth quarter continue to reflect the impact of our transition to a more cost-effective treatment process and our efforts to increase capacity," said Doreen Chiu, President and Chief Executive Officer of ATG. "We are disappointed that we could not timely install the second BPU and certain RDT equipment due to resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs challenges." "However, we are making good progress in the Low Level Mixed Waste (LLMW LLMW Low Level Mixed Waste ) treatment facility equipment start-up. We continue to make improvements to the process and to increase the processing rate as the GASVIT system has reached the 300 pound per hour milestone as of the end of March 2001. We look forward to ramping up our new facility to routine production and anticipate that it will have a positive impact on our operations," said Chiu. "The new BPU has arrived at our Richland facility and is presently undergoing on-site installation. We are finally in possession of this important piece of equipment that is necessary to effectively execute our business plan. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we are receiving financial support from our DOE client as we continue to demonstrate the success in LLMW processing," concluded Chiu. During the quarter ended June 30, 2000, the Company announced and completed a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, which included a workforce reduction of approximately 110 employees. The plan was primarily aimed at improving cost efficiencies and waste treatment processes. The Company recorded a $500,000 maintenance supply inventory write-down and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $1.9 million which included non cash charges of $800,000 for equipment taken out of service and abandoned. During the fourth quarter of 2000, the Company completed a review of the Tennessee fixed facilities concerning the utilization of a modified Q-CEP thermal treatment Thermal treatment is a term given to any waste treatment technology that involves high temperatures in the processing of the waste feedstock. This commonly, although not exclusively involves the combustion of waste materials. system for the processing of specialty niche waste streams. Due to the prohibitive pro·hib·i·tive also pro·hib·i·to·ry adj. 1. Prohibiting; forbidding: took prohibitive measures. 2. cost and the unknown prospect of success related to the proposed system modification, the Company formally abandoned the Q-CEP thermal treatment system during the fourth quarter of 2000 and recorded a non cash asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $14.1 million. In addition, the Company recorded non cash charges regarding the $1.4 million write-down of goodwill from its acquisition of the Q-CEP assets, a $307,000 maintenance supply inventory write-down that was charged to cost of revenue, and an $828,000 write-down of other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . Furthermore, a charge of $1.2 million was recorded for processing and disposal of secondary waste associated with the shutdown of the Q-CEP facility, of which $1.0 million remains unpaid at December 31, 2000. The Q-CEP thermal treatment process was developed for the treatment of ion exchange resins An ion exchange resin is an insoluble matrix (or support structure) normally in the form of small (1-2 mm diameter) beads, usually white or yellowish, fabricated from an organic polymer substrate. from nuclear power plants. The Company is continuing the pursuit of its non-thermal resin decontamination decontamination /de·con·tam·i·na·tion/ (de?kon-tam-i-na´shun) the freeing of a person or object of some contaminating substance, e.g., war gas, radioactive material, etc. de·con·tam·i·na·tion n. technology for the treatment of ion exchange resins. For the year ended December 31, 2000, revenue was $41.7 million compared with $60.7 million in 1999. ATG's year 2000 net loss was $25.5 million, or $1.65 per share, compared with net income of $5.2 million, or $0.35 per fully diluted share in 1999. The 2000 net loss includes the restructuring charge, plant abandonment expense, and other charges previously discussed. In addition, a $1.3 million gain was recorded from the sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. of the Company's corporate offices. The Company increased its provision for collection of doubtful accounts by $2.1 million, due primarily to the uncertainty of collection regarding a claim for additional services rendered. Dan Mutman recently resigned as Chief Financial Officer to pursue other interests and is currently working with the Company in a consulting capacity during the transition. Dennis Williamson is filling the position as Acting Chief Financial Officer. Mr. Williamson is a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. with broad financial experience and joined the Company as controller in January 2001. ATG will be holding an investor conference call to discuss the company's financial and operational results at 11:00 a.m. Eastern/8:00 a.m. Pacific on April 5, 2001. For those who cannot listen to the live broadcast, a replay will be available shortly after the call by telephone at 1-800-615-3210, passcode No. 5125099. About ATG Inc. ATG Inc. is a radioactive and hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. management company that offers comprehensive thermal and non-thermal treatment solutions for low-level radioactive and low-level mixed waste generated by commercial entities such as nuclear power plants, medical facilities and research institutions, both in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and overseas, and by the U.S. Departments of Defense and Energy. This news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors set forth under "Factors Affecting Future Operating Results" in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and such other risks detailed from time to time in the Company's other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events.
ATG INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenue $ 8,626 $ 15,041 $ 41,672 $ 60,662
Cost of revenue 7,758 8,352 28,599 36,359
-------- -------- -------- --------
Gross profit 868 6,689 13,073 24,303
Sales, general &
administrative expenses 7,457 4,741 19,549 14,565
Stock-based compensation
expense -- 30 32 120
Plant abandonment
expense 17,510 -- 17,510
Restructuring charge -- -- 1,900 --
-------- -------- -------- --------
Operating income (24,099) 1,918 (25,918) 9,618
Other income 420 -- 1,261 --
Net interest income
(expense) (1,144) (309) (2,786) (996)
-------- -------- -------- --------
Income before
provision for taxes (24,823) 1,609 (27,443) 8,622
Provision (benefit)
for income taxes (851) 644 (1,899) 3,449
-------- -------- -------- --------
Net income (loss) $(23,972) $ 965 $(25,544) $ 5,173
======== ======== ======== ========
Net income (loss)
per share
Basic $ (1.42) $ 0.07 $ (1.65) $ 0.37
Fully diluted $ (1.42) $ 0.07 $ (1.65) $ 0.35
Weighted average shares
Basic 16,888 14,067 15,494 14,048
Fully diluted 16,888 14,504 15,494 14,596
ATG INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2000 1999
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 351 $ 2,776
Accounts receivable, net 18,666 24,488
Prepayments and
other current assets 5,955 5,396
------------ ------------
Total current assets 24,972 32,660
Property and equipment, net 90,109 80,428
Restricted cash 452 16,014
Intangible assets, net 751 2,203
Other assets, net 4,657 4,774
------------ ------------
Total assets $ 120,941 $ 136,079
============ ============
Current liabilities:
Short-term borrowings $ 25,374 $ 1,721
Current portion of long-term
debt and capital leases 5,159 4,259
Accounts payable 16,160 11,649
Accrued liabilities 13,518 15,197
------------ ------------
Total current liabilities 60,211 32,826
Long-term debt and capitalized
leases, net 34,413 56,595
------------ ------------
Total liabilities 94,624 89,421
------------ ------------
Common stock 47,309 42,137
Deferred compensation -- (32)
Retained earnings (20,992) 4,553
------------ ------------
Total shareholders' equity 26,317 46,658
------------ ------------
Total liabilities and
shareholders' equity $ 120,941 $ 136,079
============ ============
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