American Residential Reports Third Quarter Results.HOUSTON--(BUSINESS WIRE)--Nov. 5, 1998--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 , electrical and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. services, today reported results for the quarter ended September September: see month. 30, 1998. Revenues for the three months ended September 30, 1998 were $138.8 million compared to revenues of $109.5 million for the same period last year. Net income for the quarter was $0.8 million, or 5 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. 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. , compared to net income of $3.6 million, or 24 cents per share fully diluted for the quarter ended September 30, 1997. For the nine month periods ended September 30, 1998 and 1997, revenues were $370.4 million and $272.8 million, respectively. Net income before 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 and extraordinary charges for the current nine month period was $4.9 million, or 32 cents per share fully diluted, compared to net income of $10.2 million, or 71 cents per share fully diluted for the nine months ended September 30, 1997. After accounting for a severance charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the resignation of a former senior executive and a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized loan costs related to the company's prior credit facility, both of which occurred in the second quarter of 1998, net income for the current nine month period was $4.1 million, or 26 cents per share fully diluted. 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 was $9.2 million for the quarter ended September 30, 1998 and $29.3 million (before the above mentioned charges) for the nine months ended September 30, 1998. "We are disappointed with the company's third quarter performance and, as we announced earlier, we have taken a number of steps to address the situation," stated 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 have streamlined our regional structure with a management team that has proven it can produce successful results. We have also realigned local management's focus on daily operating performance and internal growth. We will continue an intense management effort until all locations are operating at acceptable levels." 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 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. TABLE TO FOLLOW -0-
AMERICAN RESIDENTIAL SERVICES INC. AND SUBSIDIARIES
Consolidated Results of Operations
(in thousands, except per share amounts)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- -------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues $138,750 $109,500 $370,380 $272,781
Cost of Services 106,144 79,200 278,345 194,512
------- ------- ------- -------
Gross Profit 32,606 30,300 92,035 78,269
Selling, General and
Administrative
Expenses 26,430 21,925 73,091 56,051
Special Charge - - 1,270 -
------- ------- ------- -------
Operating Income 6,176 8,375 17,674 22,218
Interest Expense (3,716) (2,147) (9,443) (4,955)
Interest Income 31 56 201 140
Other Income (Expense) (99) 123 714 683
------- ------- ------- -------
Income From Operations
Before Income Taxes
And Extraordinary Item 2,392 6,407 9,146 18,086
Provision for Income
Taxes 1,627 2,819 4,768 7,838
------- ------- ------- -------
Net Income Before
Extraordinary Item 765 3,588 4,378 10,248
Extraordinary Item -
Loss on Refinancing of
Revolving Credit
Facility, Net of
Income Tax
Benefit of $260 - - (300) -
------- ------- ------- -------
Net Income $765 $3,588 4,078 $10,248
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Diluted Weighted
Average Shares
Outstanding 15,884 15,262 15,683 14,457
======= ======= ======= =======
Diluted Earnings Per
Share Before
Extraordinary Item $0.05 $0.24 $0.28 $0.71
======= ======= ======= =======
Diluted Earnings Per
Share $0.05 $0.24 $0.26 $0.71
======= ======= ======= =======
Net Income Before
Severance Charge and
Extraordinary Item $765 $3,588 $4,948 $10,248
======= ======= ======= =======
Diluted Earnings Per
Share Before Severance
Charge and
Extraordinary Item $0.05 $0.24 $0.32 $0.71
======= ======= ======= =======
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