American Residential Announces Expected Loss for the Fourth Quarter and the Year.HOUSTON--(BUSINESS WIRE)--Jan. 20, 1999--American Residential Services, Inc. (NYSE NYSE See: New York Stock Exchange :ARS), a leading provider of residential and commercial heating, air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. , plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum and electrical services Electrical service, in building wiring, refers to the wiring that connects the electric utility's cables in the street to the building. Specifically, electrical service is the wiring from the street, through the meter and up to the panelboard, but no farther. , today reported that the Company will have a loss for the fourth quarter which is materially below consensus analyst estimates and which is expected to result in a net loss for the full year ended December 31, 1998. The Company also expects to take a charge in the fourth quarter primarily due to severance costs related to overhead reductions. ARS is discussing with its bank group the possibility of making certain amendments to the covenants in its credit facility which are necessitated by anticipated results in the fourth quarter. "The Company announced in September 1998 that several operating problems existed which would result in disappointing performance," stated Tom Amonett, President and Chief Executive Officer. "At that time, the Company outlined its plan to improve productivity in particular operations. While these particular locations are still under-performing, we have implemented numerous changes that we believe will result in improvements in 1999." American Residential Services is engaged principally in providing comprehensive maintenance, repair, replacement and new equipment installation services for heating, air conditioning, plumbing, electrical, indoor air quality Indoor Air Quality (IAQ) deals with the content of interior air that could affect health and comfort of building occupants. The IAQ may be compromised by microbial contaminants (mold, bacteria), chemicals (such as carbon monoxide, radon), allergens, or any mass or energy stressor systems and major home appliances, primarily in existing homes, homes under construction and commercial buildings. This press 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current plans and expectations of ARS and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, competition, weather conditions and risks of operations and integration of newly acquired businesses. |
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