Baker Reports 35 Percent EPS Growth in Second Quarter 2000.Business Editors PITTSBURGH--(BUSINESS WIRE)--July 25, 2000 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 a 35 percent increase in earnings per share for the second quarter of 2000 compared to the same period last year. The 2000 results include a $2 million gain from the sale in June June: see month. of the Baker Support Services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , Inc. (BSSI) subsidiary, which was partially offset by a non-recurring charge of $1.2 million related to the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of heavy equipment formerly used in the company's heavy and highway construction business. For the quarter, net income was $2.5 million, or 31 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. , on total contract revenues of $98 million, compared to net income of $1.9 million, or 23 cents per share, on total contract revenues of $134 million in second-quarter 1999. The lower revenue is directly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an 80 percent decrease in revenue from businesses which the company has wound down or sold in the past year, including its heavy and highway and buildings construction businesses, and BSSI. Additionally, while 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. was relatively flat in the current period compared to last year, operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 4.0 percent from 2.9 percent, driven primarily by a significantly improved performance in the company's domestic Energy operations and maintenance business. For the first six months of 2000, earnings per share rose 86 percent, and operating income increased 67 percent despite a 17 percent decrease in total contract revenues, compared to the first half of 1999. The financial results of the company's ongoing core businesses also showed considerable improvement over the same periods. In the Energy unit, total contract revenues grew 39 percent and operating income rose 192 percent, while the combined Engineering businesses had total contract revenue growth of 20 percent and an increase in operating income of 29 percent. Overall, operating margins in the ongoing businesses improved to 4.6 percent from 3.8 percent. At June 30, 2000, 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 ongoing businesses was $458 million compared to $417 million for these same 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. 1999. Funded backlog in Engineering was 4 percent lower using the comparable periods. Commenting on the results, Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a L. Shaw, chairman and and chief executive officer, said: "We are extremely pleased with our performance during the first half of 2000 and the promise it holds for our ongoing operations. The significant cash infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. we received from the BSSI sale allowed us to pay off the debt outstanding under our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and will help fuel our future growth. Under the leadership of Don Fusilli fu·sil·li n. Pasta in short spirals or corkscrews. [Italian, from pl. diminutive of fuso, spindle, from Latin f  sus.] , we have realigned our management team to
effectively carry out our strategic initiatives."
Michael Baker Corporation (www.mbakercorp.com) provides engineering and energy expertise for public and private sector clients worldwide. The firm's primary services include facilities design, engineering design for the transportation and civil infrastructure markets, operation and maintenance of oil and gas production facilities, and construction management for building and highway projects. Baker employs more than 3,200 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)
Second Quarter Operating Results 2000 1999
-------------------------------- ---- ----
Total contract revenues $ 97,762 $ 134,066
Gross profit $ 14,271 $ 15,885
Income from operations $ 3,882 $ 3,914
Income before taxes $ 4,726 $ 3,537
Net income $ 2,505 $ 1,875
Basic weighted average shares outstanding 8,191 8,173
Basic and diluted net income per share $ 0.31 $ 0.23
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Six Month Operating Results 2000 1999
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Total contract revenues $ 206,057 $ 249,185
Gross profit $ 29,086 $ 29,345
Income from operations $ 7,770 $ 4,655
Income before taxes $ 8,034 $ 4,317
Net income $ 4,258 $ 2,288
Basic weighted average shares outstanding 8,190 8,171
Basic and diluted net income per share $ 0.52 $ 0.28
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Backlog At 6/30/00 At 12/31/99
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Total(a) $ 458,300 $ 417,100
Funded (Engineering) $ 196,600 $ 204,000
(a) Excludes Construction Businesses and Baker Support Services, which
have either been wound down or sold.
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Condensed Balance Sheet At 6/30/00 At 12/31/99
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ASSETS
Cash and cash equivalents $ 3,889 $ 3,685
Receivables 67,882 77,964
Costs in excess of billings 20,196 20,803
Prepaid expenses and other 6,465 7,363
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Total current assets 98,432 109,815
Property, plant and equipment, net 11,908 17,120
Goodwill and other intangible assets, net 11,456 14,563
Other assets 3,503 7,693
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Total assets $ 125,299 $ 149,191
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LIABILITIES & SHAREHOLDERS' EQUITY
Accounts payable and short-term debt $ 24,907 $ 32,388
Accrued compensation and insurance 16,667 18,346
Other accrued expenses 22,945 19,453
Billings in excess of costs 3,873 13,555
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Total current liabilities 68,392 83,742
Long-term debt 2,264 14,867
Other 5,540 5,783
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Total liabilities 76,196 104,392
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Common Stock and Series B Common Stock 8,496 8,485
Additional paid-in capital 37,119 37,084
Retained earnings 5,541 1,283
Less - Treasury shares (2,053) (2,053)
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Total shareholders' investment 49,103 44,799
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Total liabilities & S/H investment $ 125,299 $ 149,191
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