Baker Reports 2000 Financial Results; Core Businesses Post Strong Performance.Business Editors NOTE TO MEDIA: Photo is available in a Smart News Release(TM) on Business Wire's Home Page at www.businesswire.com and at www.newstream.com PITTSBURGH--(BUSINESS WIRE)--Feb. 19, 2001 Michael Baker Corporation Michael Baker Corporation is an engineering and energy management corporation headquartered in the Pittsburgh suburb of Moon Township, Pennsylvania. Its headquarters is located in Airside Business Park, an office park near the Pittsburgh International Airport that the company (AMEX AMEX See: American Stock Exchange :BKR BKR Baker BKR Birkirkara (postal locality, Malta) BKR Breaker BKR Broadcast Key Rotation BKR Best-Known Recipe ) today reported significantly improved financial results for the year 2000, including a 93 percent increase in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in its core businesses without corporate overhead allocations. For the year, the company achieved net income of $5.4 million, or 65 cents per basic and 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. share, on total contract revenues of $391 million, compared with a net loss of ($8.2) million, or ($1.00) cents per basic and diluted share, on revenues of $506 million in 1999. The current year's results include a non-recurring pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $6.8 million, or approximately 41 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. , related to the recent judgement in the ADF (1) (Application Development Facility) An IBM programmer-oriented mainframe application generator that runs under IMS. (2) (Automatic Document Feeder) A paper stacker that feeds one sheet of paper at a time into the unit. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , which is currently under appeal, while the 1999 results include pre-tax charges of $ 13.2 million, related primarily to the company's former construction businesses. The company's core Engineering and Energy business posted strong operating results and margin improvement in 2000. For the year, these two businesses achieved operating income of $19.5 million on revenues of $349 million, compared with 1999 operating income of $10.1 million on revenues of $282 million. The combined operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for these businesses was 5.6 percent. Total backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for the continuing businesses at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 was $502 million, compared to $417 million for these same businesses at year-end 1999. Commenting on the results company's 2000 performance, Donald P. Fusilli fu·sil·li n. Pasta in short spirals or corkscrews. [Italian, from pl. diminutive of fuso, spindle, from Latin f  sus.] , president and chief operating officer Chief Operating Officer (COO)The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said: "We are certainly pleased with the performance of our core businesses in 2000, and in particular the improvement in our margins. Both our Engineering and Energy markets remain strong, and we look forward to continuing our growth in 2001." Richard L. Shaw, chairman and chief executive officer, concluded that, "We have substantially completed the objectives we set a little over a year ago to strengthen the company. While we are disappointed with the ADF judgement and its impact on our 2000 results, our financial position remains healthy and we have adequate resources to fund our future growth." Michael Baker Corporation (www.mbakercorp.com) provides engineering and energy expertise for public and private sector clients worldwide. The firm's primary services include architecture, engineering design for the transportation and civil infrastructure markets, operation and maintenance of oil and gas production facilities, environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, and construction management for building and highway projects. Baker employs more than 3,600 in over 30 offices across 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. and internationally. (The above information includes certain forward looking statements concerning future operations and performance of the Company. Forward looking statements are subject to market, operating and economic risks and uncertainties that may cause the Company's actual results in future periods to be materially different from the performance suggested above. Factors that may cause such differences include, among others: increased competition; increased costs; changes in general market conditions; changes in anticipated levels of government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. on infrastructure; and changes in loan relationships or sources. Such forward looking statements are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions 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.) Financial Summary (Unaudited, amounts in thousands except earnings per share) Fourth Quarter Operating Results 2000 1999 -------------------------------- ---- ---- Total contract revenues $ 92,303 $ 127,038 Gross profit $ 9,475 $ 5,237 Loss from operations $ (1,052) $ (7,394) Loss before taxes $ (1,257) $ (8,120) Net loss $ (1,227) $ (6,435) Basic weighted average shares outstanding 8,255 8,181 Basic net loss per share $ (0.15) $ (0.79) Diluted net loss per share $ (0.15) $ (0.79) ---------------------------------------------------------------------- Twelve Month Operating Results 2000 1999 ------------------------------ ---- ---- Total contract revenues $ 390,710 $ 506,012 Gross profit $ 52,081 $ 40,739 Income/(loss) from operations $ 10,725 $ (8,175) Income/(loss) before taxes $ 10,972 $ (9,241) Net income/(loss) $ 5,376 $ (8,164) Basic weighted average shares outstanding 8,209 8,175 Basic net income/(loss) per share $ 0.65 $ (1.00) Diluted net income/(loss) per share $ 0.65 $ (1.00) ---------------------------------------------------------------------- Backlog @ 12/31/00 @ 12/31/99 ------- ---------- ---------- Total(1) $ 502,205 $ 417,100 (1) Excludes Construction Businesses and Baker Support Services, which have either been wound down or sold. Condensed Balance Sheet At 12/31/00 At 12/31/99 ----------------------- ----------- ----------- ASSETS Cash and cash equivalents $ 9,122 $ 3,685 Short term investments 8,999 - Receivables 68,042 77,374 Costs in excess of billings 16,105 20,803 Prepaid expenses and other 5,846 7,363 ---------------------------------------------------------------------- Total current assets 108,114 109,225 Property, plant and equipment, net 10,058 17,120 Goodwill and other intangible assets, net 10,846 14,563 Other assets 4,339 8,283 ---------------------------------------------------------------------- Total assets $ 133,357 $ 149,191 ---------------------------------------------------------------------- ---------------------------------------------------------------------- LIABILITIES & SHAREHOLDERS' EQUITY Accounts payable and short-term debt $ 27,914 $ 32,388 Accrued compensation and insurance 15,018 18,346 Other accrued expenses 38,305 24,553 Billings in excess of costs 1,155 8,455 ---------------------------------------------------------------------- Total current liabilities 82,392 83,742 Long-term debt 51 14,867 Other 585 5,783 ---------------------------------------------------------------------- Total liabilities 83,028 104,392 ---------------------------------------------------------------------- Common Stock and Series B Common Stock 8,570 8,485 Additional paid-in capital 37,488 37,084 Retained earnings 6,324 1,283 Less - Treasury shares (2,053) (2,053) ---------------------------------------------------------------------- Total shareholders' investment 50,329 44,799 ---------------------------------------------------------------------- Total liabilities & S/H investment $ 133,357 $ 149,191 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Note: A Photo is available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. 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