American Residential Services, Inc. reports fourth quarter results at expectations.HOUSTON--(BUSINESS WIRE)--March 5, 1997--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 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 services, today reported results for fiscal 1996. 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 combined revenues for the year ended Dec. 31, 1996 were $139.2 million, up 21% from pro forma combined revenues of $114.6 million for the same period a year ago. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues for all businesses owned at year-end were approximately $220 million. Pro forma combined net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $3.9 million for 1996, or 42 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. , as expected, compared to $3.5 million, or 38 cents per share for 1995. For the fourth quarter of 1996, pro forma combined revenues were $40.9 million compared to $29.9 million for the same period a year ago. Pro forma combined net income from continuing operations was $0.9 million, or 10 cents per share for the fourth quarter compared to $0.8 million, or 9 cents per share for the fourth quarter of fiscal 1995. "Our 1996 earnings produced results consistent with our expectations, and we are confident about our 1997 prospects," commented Cliff Wright, President and Chief Executive Officer. "As we have brought new companies into ARS, our management has achieved a cohesiveness working together and a commitment towards making our Company, through our acquisition program, the premier national service provider." American Residential Services is the largest publicly held company 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. engaged primarily 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 and major home appliances for residential customers. 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 fourth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions and variations in stock prices, competition, and risks of operations and integration of the newly acquired businesses. -0-
AMERICAN RESIDENTIAL SERVICES, INC. AND SUBSIDIARIES
Pro Forma Combined Results of Operations(1)
(in thousands, except per share amounts)
Three Months Fiscal Year
Ended December 31, Ended December 31,
1996 1995 1996 1995
Revenues $40,903 $29,911 $139,164 $114,636
Gross Profit 11,490 7,884 37,731 29,416
Operating Income 1,895 1,482 7,089 6,011
Pro Forma Combined Net
Income From Continuing
Operations 942 848 3,884 3,475
Pro Forma Combined Earnings
per Share From Continuing
Operations $0.10 $0.09 $0.42 $0.38
Average Shares Outstanding 9,830 9,080 9,267 9,080
(1) Actual results of operations are not reflected in this
table, as the Company completed its acquisitions of its initial
group of operating companies (the "Founding Companies") on
Sept. 27, 1996, the date of the closing of the Company's initial public
offering. Pro forma combined results above include the results of
the Founding Companies, combined as of Jan. 1, 1995, adjusted for
compensation, rent and non-recurring charges for distributions, plus
the thirteen companies purchased by the Company in the fourth
quarter from their respective dates of acquisition. The pro forma
results exclude the pro forma effect of the six acquisitions
completed to date in the first quarter of 1997. Actual results of
the Company for the three months and fiscal year ended Dec. 31, 1996
reflect revenues of $40.9 million and $64.2 million, net
income/(loss) from continuing operations of $0.9 million and $(5.6)
million, and earnings/(loss) per share from continuing operations of
$0.10 and $(1.70), respectively.
CONTACT: American Residential Services, Inc., Houston Jennifer L. Tweeton, 713/599-9015 |
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