Baker Reports 25 Percent EPS Gain for Third Quarter 2001.Business Editors PITTSBURGH--(BUSINESS WIRE)--Oct. 29, 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 strong financial performance for the third quarter of 2001, as 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. grew 40 percent and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose 25 percent compared to the year-ago period. Both of the company's continuing business segments, Engineering and Energy, posted revenue and operating income increases during the quarter. For the quarter, the company achieved net income of $2.9 million, or 35 cents per 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 $98 million. This compares with net income of $2.3 million, or 28 cents per diluted share, on revenues of $92 million in the third quarter of 2000. The current quarter does not include any revenue from the company's non-core businesses, while the 2000 quarter included $2.6 million in revenue from businesses which the company has wound down or sold. The third quarter operating results for the company's Engineering and Energy business segments showed considerable improvement over the prior periods. In Engineering, total contract revenues grew five percent and operating income before corporate overhead increased 31 percent. In Energy, total contract revenues grew 19 percent and operating income before corporate overhead rose 78 percent. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , before corporate overhead, were eight percent for Engineering and 11 percent for Energy. For the first nine months of 2001, net income was $8.5 million, or $1.01 cents per diluted share, on revenues of $291 million, compared to net income of $6.6 million, or 80 cents per diluted share, on revenues of $298 million for the first nine months of 2000. Engineering revenue grew 4 percent and operating income before corporate overhead increased 21 percent compared to the year-ago period, while Energy's revenue rose 30 percent and operating income before corporate overhead grew 98 percent on a comparable basis. During the third quarter, the company repurchased 24,300 shares of its stock at a cost of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $289,000 under the previously announced share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program. At September September: see month. 30, 2001, 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 company's businesses was $534 million compared to $522 million for these same businesses at June June: see month. 30, 2001. Commenting on the results, Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. P. Fusilli fu·sil·li n. Pasta in short spirals or corkscrews. [Italian, from pl. diminutive of fuso, spindle, from Latin f  sus.] , Jr., president and
chief executive officer, said: "We are pleased with these strong
results, and we are confident in our ability to meet our earnings
estimates for 2001. Our business is performing well, our operating
margins and backlog are improving, and we expect continued top and
bottom line growth in both segments for the remainder of the year."
Michael Baker Corporation (www.mbakercorp.com) provides engineering and energy expertise for public and private sector clients worldwide. The firm's primary services include engineering design for the transportation and civil infrastructure markets, operation and maintenance of oil and gas production facilities, architecture, 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 transportation projects. Baker has more than 3,800 employees 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)
Third Quarter Operating Results 2001 2000
------------------------------- ---- ----
Total contract revenues $ 98,387 $ 92,351
Gross profit $ 17,473 $ 13,521
Income from operations $ 5,608 $ 4,006
Income before taxes $ 5,501 $ 4,193
Net income $ 2,947 $ 2,344
Basic weighted average shares outstanding 8,306 8,203
Basic net income per share $ 0.35 $ 0.29
Diluted net income per share $ 0.35 $ 0.28
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Nine Month Operating Results 2001 2000
---------------------------- ---- ----
Total contract revenues $ 291,247 $ 298,407
Gross profit $ 49,538 $ 42,607
Income from operations $ 15,709 $ 11,777
Income before taxes $ 15,647 $ 12,227
Net income $ 8,528 $ 6,603
Basic weighted average shares outstanding 8,295 8,194
Basic net income per share $ 1.03 $ 0.81
Diluted net income per share $ 1.01 $ 0.80
For the three For the nine
months ended months ended
------------------- -------------------
9/30/01 9/30/00 9/30/01 9/30/00
-------- -------- -------- --------
Total Contract Revenues:
Engineering $ 60.6 $ 57.9 $ 178.8 $ 171.7
Energy 37.8 31.8 111.9 86.2
Non-Core - 2.6 0.5 40.5
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Subtotal - segments 98.4 92.3 291.2 298.4
Corporate/Insurance - 0.1 - -
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Total $ 98.4 $ 92.4 $ 291.2 $ 298.4
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For the three For the nine
months ended months ended
------------------- -------------------
9/30/01 9/30/00 9/30/01 9/30/00
-------- ------- -------- --------
Income/(Loss) from
Operations without
Corporate Expenses
allocated:
Engineering $ 5.1 $ 3.9 $ 14.2 $ 11.7
Energy 4.1 2.3 10.3 5.2
Non-Core (0.1) (0.3) 0.3 0.5
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Subtotal - segments 9.1 5.9 24.8 17.4
Corporate/Insurance (3.5) (1.9) (9.1) (5.6)
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Total $ 5.6 $ 4.0 $ 15.7 $ 11.8
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Backlog @ 9/30/01 @ 12/31/00
------- --------- ----------
Total $ 534,200 $ 501,900
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Condensed Balance Sheet At 9/30/01 At 12/31/00
----------------------- ---------- -----------
ASSETS
Cash and cash equivalents $ 9,801 $ 9,122
Short-term investments - 8,999
Receivables 72,273 68,042
Costs in excess of billings 26,531 20,486
Litigation escrow 12,710 -
Prepaid expenses and other 4,107 7,335
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Total current assets 125,422 113,984
Property, plant and
equipment, net 9,917 10,058
Goodwill and other intangible
assets, net 10,059 10,846
Other assets 3,838 2,850
---------------------------------------------------------------------
Total assets $ 149,236 $ 137,738
=====================================================================
LIABILITIES & SHAREHOLDERS' EQUITY
Accounts payable and short-term debt $ 21,905 $ 27,914
Accrued compensation and insurance 18,007 15,018
Other accrued expenses 29,926 24,791
Accrued litigation reserve 11,594 11,334
Billings in excess of costs 6,056 5,536
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Total current liabilities 87,488 84,593
Long-term debt 38 51
Other 2,721 2,765
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Total liabilities 90,247 87,409
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Common Stock and Series B Common Stock 8,613 8,570
Additional paid-in capital 37,727 37,488
Other comprehensive loss (195) (335)
Retained earnings 15,187 6,659
Less - Treasury shares (2,343) (2,053)
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Total shareholders' investment 58,989 50,329
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Total liabilities & shareholder's
investment $ 149,236 $ 137,738
=====================================================================
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