American Residential Announces Fiscal 1998 Results.HOUSTON--(BUSINESS WIRE)--March 26, 1999--American Residential Services Inc. (NYSE NYSE See: New York Stock Exchange :ARS ARS In currencies, this is the abbreviation for the Argentine Peso. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), 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 announced results for the quarter and year ended Dec. 31, 1998. Earlier in the week the Company announced an agreement providing for the acquisition of ARS by The ServiceMaster ServiceMaster (NYSE: SVM) is a Fortune 500 company that provides various services to residences and firms. Its headquarters are currently located in Downers Grove, Illinois, but the company announced on October 30, 2006 that it will be relocating the headquarters to Memphis, Company (NYSE:SVM SVM Support Vector Machines SVM School of Veterinary Medicine SVM Solaris Volume Manager SVM Space Vector Modulation SVM Storage Virtualization Manager (StoreAge) SVM Service Module (also abbreviated as S/M) ). The Company reported revenues of $136.5 million for the fourth quarter ended Dec. 31, 1998 compared to revenues of $109.7 million for the fourth quarter of fiscal 1997. Revenues for the year were $505.6 million compared to revenues of $381.6 million for fiscal 1997. In the fourth quarter of fiscal 1998, the Company recorded a special charge of $3.0 million related primarily to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges resulting from planned overhead reductions. Also in this period, ARS discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its air-conditioned air-con·di·tion tr.v. air-con·di·tioned, air-con·di·tion·ing, air-con·di·tions To subject to, provide with, or ventilate by air conditioning. Adj. 1. tent tent, portable shelter of canvas, skins, felt, matting, or other material usually supported by poles and used chiefly by nomads, hunters, and campers. Tents have been used by pastoral peoples since ancient times and are mentioned in the Old Testament and in Homer. rental business, which was acquired in a previous acquisition. The reported loss to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the rental business was $3.4 million, net of taxes, in the fourth quarter of fiscal 1998. Prior to these non-recurring charges the Company reported a net loss of $6.3 million, or 40 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the fourth quarter, and a net loss of $1.8 million, or 11 cents per share, for the fiscal 1998 year, compared to net income of $452 thousand, or two cents per share, and $11.0 million, or 77 cents per share, respectively, for the fourth quarter and fiscal year of 1997, before the fourth quarter of 1997 special charge of $24.2 million. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become before the charges mentioned above was $26.3 million for fiscal 1998. After accounting for all charges, the net loss for the fourth quarter of fiscal 1998 was $11.9 million, or 75 cents per share, compared to a net loss of $14.9 million, or 98 cents per share, for the same quarter last year. For the year, the net loss was $7.9 million, or 50 cents per share, compared to a net loss of $4.7 million, or 33 cents per share, for fiscal 1997. "In our efforts to intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our focus on internal performance going forward, we made several difficult decisions that added to the Company's poor results in the quarter, but will help make the operations more efficient going forward," commented Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Amonett, President and Chief Executive Officer. "We streamlined our top management structure and reduced staffing, giving our new management structure direct line responsibility. We are also moving ahead with the implementation of the TEAM Management System, which is effectively aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. the Company's operating procedures. Additionally, we have developed and implemented our plans-of-action for certain under-performing operations and are closely monitoring the results of those locations. We believe that the changes we have made will have a positive effect on fiscal 1999. We also believe that our merger into ServiceMaster will provide further operational efficiencies that would otherwise not be available in the near term." 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. TABLE TO FOLLOW
AMERICAN RESIDENTIAL SERVICES, INC. AND SUBSIDIARIES
Consolidated Results of Operations
(in thousands, except per share amounts)
For the Three Months For the Year
Ended December 31, Ended December 31,
-------------------- ------------------
1998 1997 1998 1997
------ ------ ------ ------
Revenues $136,536 $109,675 $505,562 $381,645
Cost of Services 112,210 81,631 389,269 275,514
-------- -------- -------- --------
Gross Profit 24,326 28,044 116,293 106,131
Selling, General
and Administrative
Expenses 30,630 25,167 103,310 80,742
Special Charge 3,045 24,194 4,315 24,194
-------- -------- -------- --------
Operating Income (Loss) (9,349) (21,317) 8,668 1,195
Interest Expense (3,962) (2,514) (13,405) (7,469)
Interest Income - 87 181 227
Other Income (Expense) (17) 161 696 836
-------- -------- -------- --------
Loss From Operations
before Income Taxes,
Discontinued Operations
and Extraordinary Item (13,328) (23,583) (3,860) (5,211)
Provision (Benefit) for
Income Taxes (4,821) (8,767) 60 (829)
-------- -------- -------- --------
Net Loss before
Discontinued Operations
and Extraordinary Item (8,507) (14,816) (3,920) (4,382)
Discontinued Operations:
Loss from Discontinued
Operations, Net of
Income Tax Benefit of
$126 and $72 for the
Fourth Quarter of 1998
and 1997 and $239 and
$172 for the Year
Ended 1998 and 1997 (286) (133) (495) (319)
Loss on Disposal, Net
Income Tax Benefit
of $665 (3,146) - (3,146) -
-------- -------- -------- --------
Loss from Discontinued
Operations (3,432) (133) (3,641) (319)
Net Loss before
Extraordinary Item (11,939) (14,949) (7,561) (4,701)
Extraordinary Item -
Loss on Refinancing of
Revolving Credit
Facility, Net of Income
Tax Benefit of $260 - - (300) -
-------- -------- -------- --------
Net Loss $(11,939) $(14,949) $(7,861) $(4,701)
======== ======== ======== ========
Diluted Weighted Average
Shares Outstanding 15,900 15,229 15,702 14,330
======== ======== ======== ========
Loss Per Share before
Discontinued Operations
and Extraordinary Item $(0.54) $(0.97) $(0.25) $(0.31)
Discontinued Operations (0.22) (0.01) (0.23) (0.02)
Extraordinary Item - - (0.02) -
-------- -------- -------- --------
Loss Per Share $(0.75) $(0.98) $(0.50) $(0.33)
======== ======== ======== ========
Proforma Income (Loss)
before Special
Charge, Discontinued
Operations and
Extraordinary Item $(6,313) $452 $(1,777) $10,986
======== ======== ======== ========
Proforma Diluted Earnings
(Loss) Per Share before
Special Charge,
Discontinued Operations
and Extraordinary Item $(0.40) $0.03 $(0.11) $0.77
======== ======== ======== ========
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 suggested or described in the forward-looking statements contained in this press release. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results, variations in stock prices, competition, weather conditions, risks of operations and integration of the newly acquired businesses. Additional information concerning factors that could cause actual results to differ from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC. |
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