ATG Announces Third Quarter 2000 Results.
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 14, 2000
ATG Inc. (Nasdaq:ATGC), a leading provider of low-level radioactive and low-level mixed waste treatment services, today announced results for its third quarter ended September 30, 2000.
Revenue for the third quarter of 2000 was $10.8 million compared with $16.6 million in the comparable quarter of 1999. Net income for the third quarter was $72,000, or $0.00 per fully diluted share in the third quarter of 2000, compared to net income of $1.4 million, or $0.10 per fully diluted share in the comparable quarter of 1999.
Revenue and gross margin in the 2000 third quarter continued to be negatively impacted by the Company's shutdown of its older thermal resin treatment process in order to transition to its more cost-effective Resin Decon Technology (RDT).
"As expected, our decreased revenues and gross margin in the third 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 pleased to announce that our Tennessee facility has resumed accepting resin receipts in the fourth quarter as we have made substantial progress in the transition to the RDT treatment process.
"We are making good progress in the Low Level Mixed Waste (LLMW) treatment facility equipment start-up and testing and we anticipate that we will commence commercial operations in late December. We look forward to bringing our new facility online and anticipate that it will have a positive impact on our operations," said Chiu. "Also as previously announced, we completed Phase II of our Low Level Radioactive Waste (LLRW) thermal facility equipment upgrade that brought increased capacity online at the end of the third quarter.
"We are now entering the homestretch with the completion of our LLMW treatment facility, the start-up of our RDT process, and the increased capacity of our LLRW thermal facility. The future looks very bright for ATG as we continue to execute the strategic initiatives we set earlier this year," concluded Chiu.
For the nine months ended September 30, 2000, revenue was $33.0 million compared with $45.6 million for the same period in 1999. ATG's year-to-date net loss was $1.6 million, or ($0.10) per share, compared with net income of $4.2 million, or $0.29 per fully diluted share, for the first nine months of 1999. As previously reported, the nine months ended September 30, 2000, includes a pre-tax $2.4 million restructuring charge related to the Tennessee plant consolidation and workforce reduction and an $841,000 gain from the sale and leaseback of the Company's corporate offices.
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 Nov. 14, 2000. Investors will have the opportunity to listen to the conference call over the Internet through Vcall at www.vcall.com. To listen to the live call, go to the web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call at www.vcall.com.
About ATG Inc.
ATG Inc. is a leading provider of environmental technologies, hazardous and radioactive waste management services. The Company offers comprehensive thermal and non-thermal treatment solutions for hazardous, radioactive and mixed wastes. The Company's Fixed Facilities Division and Engineering and Construction Division provide waste management and environmental restoration services for commercial, institutional and government clients such as nuclear power plants, medical facilities, research institutions, and the U.S. Departments of Defense and Energy.
This news release may contain forward-looking statements pursuant to the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involves risks and uncertainties, including, without limitation, the Company's new products and services, competition, and various factors set forth under "Factors Affecting Future Operating Results" in the Company's annual report on Form 10-K and such other risks detailed from time to time in the Company's other reports filed with the Securities and Exchange Commission.
ATG INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Nine Months Ended Sep. 30, Ended Sep. 30, 2000 1999 2000 1999 Revenue $ 10,823 $ 16,617 $ 33,046 $ 45,621 Cost of revenue 6,468 10,457 20,341 28,007 Gross profit 4,355 6,160 12,705 17,614 Sales, general & administrative expenses 4,131 3,594 12,092 9,824 Stock-based compensation expense -- 30 32 90 Restructuring charge -- -- 2,400 -- Operating income 224 2,536 (1,819) 7,700 Other income 421 -- 841 -- Net interest income (expense) (525) (196) (1,642) (687) Income before provision for taxes 120 2,340 (2,620) 7,013 Provision (benefit) for income taxes 48 936 (1,048) 2,805 Net income (loss) $ 72 $ 1,404 $(1,572) $ 4,208 Net income (loss) per share Basic $ 0.00 $ 0.10 $ (0.10) $ 0.30 Fully diluted $ 0.00 $ 0.10 $ (0.10) $ 0.29 Weighted average shares Basic 16,792 14,053 15,024 14,040 Fully diluted 17,317 14,556 15,024 14,624 ATG INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, December 31, 2000 1999 (Unaudited) Current assets: Cash and cash equivalents $ 1,170 $ 2,776 Accounts receivable, net 22,519 24,488 Prepayments and other current assets 4,364 5,396 Total current assets 28,053 32,660 Property and equipment, net 99,421 80,428 Restricted cash 1,038 16,014 Intangible assets, net 2,163 2,203 Other assets, net 5,043 4,774 Total assets $ 135,718 $ 136,079 Current liabilities: Short-term borrowings $ 25,250 $ 1,721 Current portion of long-term debt and capital leases 4,336 4,259 Accounts payable 10,738 11,649 Accrued liabilities 9,241 15,197 Total current liabilities 49,565 32,826 Long-term debt and capitalized leases, net 35,909 56,595 Total liabilities 85,474 89,421 Common stock 47,264 42,137 Deferred compensation -- (32) Retained earnings 2,980 4,553 Total shareholders' equity 50,244 46,658 Total liabilities and shareholders' equity $ 135,718 $ 136,079
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|Date:||Nov 14, 2000|
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