ATG Announces Record 1999 Results; Improvements in 1999 Position ATG for Strong 2000.Business Editors FREMONT, Calif.--(BUSINESS WIRE)--March 15, 2000 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 ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay and mixed waste treatment services, today announced record results for the year ended December 31, 1999. Revenue for the fourth quarter of 1999 ended December 31, 1999 was $15.0 million, an increase of 3% from the $14.6 million recorded in the comparable quarter of 1998. The company recorded pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $1.8 million, or $0.12 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 fourth quarter of 1999 excluding a one-time, after-tax charge of $816,000. This compares to net income of $2.1 million, or $0.15 per fully diluted share, in the comparable quarter of 1998. In the fourth quarter of 1999, the company recorded a one-time charge of $1.4 million, or $816,000 after taxes, as a provision related primarily to the slow payment of government contracts completed prior to 1999. The company expects that it will eventually be paid for work already performed, and going forward the company does not expect to record additional charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the referenced contracts. Net income for the fourth quarter of 1999 was $965,000, or $0.07 per fully diluted share, including the above-mentioned charge, compared with $2.1 million, or $0.14 per fully diluted share, in the fourth quarter of 1998. Fourth quarter 1999 revenues were negatively impacted by the slow start up of the company's Safglas operation, a delay in a field service project that is currently pending Nuclear Regulatory Commission Nuclear Regulatory Commission (NRC), an independent U.S. government commission, created by the Energy Reorganization Act of 1974 and charged with licensing and regulating civilian use of nuclear energy to protect the public and the environment. approval, and rain delays that interfered with the company's field service business. Twelve Month Results For the full year ended December 31, 1999, revenues were $60.7 million, an increase of 69% from the $35.9 million recorded in 1998. The company recorded pro forma net income of $6.0 million, or $0.41 per fully diluted share, in 1999, excluding the fourth quarter 1999 charge, compared to pro forma net income of $5.3 million, or $0.38 per fully diluted share, in 1998. Net income for 1999 was $5.2 million, or $0.35 per fully diluted share, including the fourth quarter 1999 charge, compared with $5.1 million, or $0.38 per fully diluted share, in 1998. The increase in revenue from 1998 to 1999 was principally attributable to an increase in volume of ATG's waste processing services. Waste processing services include the company's fixed operations located in 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. and Oak Ridge, Tennessee Oak Ridge is an incorporated city in Anderson and Roane Counties in East Tennessee, about 25 miles northwest of Knoxville. Oak Ridge's population was 27,387 people at the 2000 census. . Waste processing services accounted for $46.9 million, or 77%, of revenue in 1999 versus $18.9 million, or 53%, of revenue in 1998. The increase in revenue from waste processing services is attributable to both an increase in revenues from the company's Richland operations, as well as the impact of the new operations acquired in Oak Ridge Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. at the end of 1998. Lower margins in the company's field services business negatively impacted net income in 1999 causing net income to increase only slightly when compared to 1998. Sales, general and administrative expenses as a percentage of revenue increased as well during 1999, as a result of strengthening the company's personnel and upgrading other infrastructure to accommodate ATG's planned increase in future business activity. Net income for 1999 was further impacted by an increase in net interest expense, as the company's increased business activity required debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay during the year to support its working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . "Although we had some temporary setbacks in the fourth quarter of this year, we finished the year with record revenues and profits, excluding the one time charge," said Doreen Chiu, President and Chief Executive Officer of ATG. "We achieved many milestones in 1999 which we believe position ATG for solid growth in the coming year and beyond. For instance, we improved the efficiency of our Tennessee operations, which now provide excellent volume reduction for resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. generated by nuclear power plants. And, during the summer we received the most comprehensive mixed waste permit in the country putting us years ahead of any competition entering the marketplace. "Going into 2000 our focus remains on further improving our business and providing increasing value to our customers. Initiatives already underway include completion of our mixed waste facility, developing new technologies through partnerships or acquisitions, closing several large contracts currently on the table, and furthering our international efforts, particularly in Asia," said Chiu. "These initiatives, combined with our clear and ongoing leadership in comprehensive leadership in mixed waste capability, provide the basis for our expectations to significantly grow our operations and improve our financial results in 2000." New Contract for DOE Waste Earlier today the company also announced that it has been awarded a new three-year contract by Bechtel Jacobs Bechtel Jacobs Company LLC is a limited liability partnership of Bechtel and Jacobs Engineering Group that serves as the primary contractor to the U.S. Department of Energy (DOE) for waste management and environmental remediation activities on DOE-managed federal government Company LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control for the transportation, processing, and disposal of various types of low-level radioactive wastes Noun 1. low-level radioactive waste - (medicine) radioactive waste consisting of objects that have been briefly exposed to radioactivity (as in certain medical tests) from all five Department of Energy (DOE) Oak Ridge, Tennessee operations. The indefinite quantity Noun 1. indefinite quantity - an estimated quantity quantity, measure, amount - how much there is or how many there are of something that you can quantify contract has two one-year options and amounts to up to $22.1 million over the full five-years. 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 announcement contains 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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 amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
---- ---- ---- ----
Revenue $ 15,041 $ 14,611 $ 60,662 $ 35,900
Cost of revenue 8,352 9,044 36,359 19,816
-------- -------- -------- --------
Gross profit 6,689 5,567 24,303 16,084
Sales, general &
administrative
expenses(a) 4,741 2,396 14,565 7,832
Stock-based
compensation expense 30 30 120 120
-------- -------- -------- --------
Operating income 1,918 3,141 9,618 8,132
-------- -------- -------- --------
Net interest income
(expense) (309) 34 (996) 173
-------- -------- -------- --------
Income before
provision for
taxes 1,609 3,175 8,622 8,305
Provision for
income taxes 644 1,104 3,449 3,156
-------- -------- -------- --------
Net income $ 965 $ 2,071 $ 5,173 $ 5,149
======== ======== ======== ========
Net income per
share(a)
Basic $ 0.07 $ 0.15 $ 0.37 $ 0.40
Fully diluted $ 0.07 $ 0.14 $ 0.35 $ 0.38
Weighted average
shares
Basic 14,067 13,804 14,048 12,975
Fully diluted 14,504 14,480 14,596 13,698
(a) Includes a fourth quarter 1999 charge in the amount of $1.4
million, or $816,000 after taxes, related primarily to slow payment of
government contracts completed prior to 1999.
ATG Inc.
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
1999 1998
---------- ----------
(Unaudited)
Assets:
Cash and cash equivalents $ 18,790 $ 3,789
Receivables 22,671 22,561
Property and equipment, net 80,143 42,988
Intangible and other assets, net 14,038 10,231
-------- --------
$135,642 $ 79,569
======== ========
Liabilities and shareholders' equity:
Accounts payable and accruals $ 29,637 $ 16,095
Debt 59,346 22,729
Shareholders' equity 46,659 40,745
-------- --------
$135,642 $ 79,569
======== ========
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