Baker Reports First Quarter Financial Results.Business Editors PITTSBURGH--(BUSINESS WIRE)--April 25, 2002 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 financial results for the first quarter of 2002 consistent with the guidance provided by the company on March 21, 2002. For the quarter, Baker posted net income of $1.7 million, or 20 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 $96 million. This compares with net income of $2.5 million, or $0.30 per diluted share, on total contract revenues of $95 million in first-quarter 2001. The decline in year-over-year earnings is attributable primarily to delays in the commencement of certain engineering projects, weaker international results in the energy segment, higher medical benefit and workers compensation insurance costs, and pre-implementation expenses associated with a new Enterprise Resource Planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system. Despite the project delays, the company's core Engineering business recorded a slight increase in revenue and a 17 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. before corporate overhead compared to the same period last year. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , before corporate overhead, were 7.2 percent, compared to 6.3 percent in first quarter 2001. The company began to see several of the previously delayed projects start up or move into subsequent phases in the latter part of the first quarter and early in the second quarter and, as a result, expects this improvement in the Engineering segment to continue through the remainder of the year. Revenues in the Energy business were approximately even with first-quarter 2001, but operating income before corporate overhead declined significantly resulting in lower pre-corporate-overhead operating margins. Contributing to these results were the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of several older, higher margin contracts in the international division that were not renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. or renewed at lower margins, and weaker than normal sales both domestically and internationally. Presently in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , some key customers of the Energy business are altering their investment strategies. This market dynamic is causing the attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: of selected OPCO OPCO Operating Company OPCo Ohio Power Company (SM)-managed properties, which has not been offset by new sales. The company, however, recently announced a Phase One OPCO contract with J. M. Huber Huber may refer to:
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 was $534 million at March 31, 2002, compared to $510 million 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. 2001. Commenting on the results, President and Chief Executive Officer 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. said, "Historically, the first quarter has
been our most difficult and several factors in both segments contributed
to this year-over-year decline. Nevertheless, we are confident that our
business strategy of maximizing Energy's growth potential and
optimizing Engineering's performance will continue to demonstrate
the capacity to achieve our previously announced earnings per share
target of $1.40 to $1.45 for 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 4,200 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)
Operating Results For the quarter ended March 31
----------------- ------------------------------
(In thousands, except 2002 2001
earnings per share) ---- ----
Total contract revenues $95,922 $94,950
Gross profit $15,272 $15,349
Income from operations $ 3,160 $ 4,465
Income before taxes $ 3,146 $ 4,588
Net income $ 1,714 $ 2,488
Basic weighted average shares outstanding 8,286 8,277
Basic net income per share $ 0.21 $ 0.30
Diluted net income per share $ 0.20 $ 0.30
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Total Contract Revenues For the quarter ended March 31
----------------------- -------------------------------
(In millions) 2002 2001
---- ----
Engineering $ 58.3 $ 57.0
Energy 37.6 37.5
Non-Core - 0.5
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Total $ 95.9 $ 95.0
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Income from Operations For the quarter ended March 31
without Corporate Expenses allocated ------------------------------
------------------------------------
(In millions) 2002 2001
---- ----
Engineering $ 4.2 $ 3.6
Energy 1.7 2.8
Non-Core - 0.4
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Subtotal - segments 5.9 6.8
Corporate/Insurance (2.7) (2.3)
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Total $ 3.2 $ 4.5
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Backlog At 3/31/02 At 12/31/01
------- ---------- -----------
(In thousands)
Total $ 533,500 $ 509,600
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Condensed Balance Sheet At 3/31/02 At 12/31/01
----------------------- ---------- -----------
(In thousands)
ASSETS
Cash and cash equivalents $ 16,220 $ 18,482
Receivables 61,783 67,594
Costs in excess of billings 27,236 25,341
Litigation escrow 12,710 12,710
Prepaid expenses and other 4,541 4,673
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Total current assets 122,490 128,800
Property, plant and equipment, net 11,945 10,278
Goodwill and other intangible
assets, net 9,733 9,804
Other assets 3,788 2,748
----------------------------------------------------------------------
Total assets $ 147,956 $ 151,630
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LIABILITIES & SHAREHOLDERS' EQUITY
Accounts payable $ 20,160 $ 21,885
Accrued compensation and insurance 15,289 19,419
Other accrued expenses 30,810 28,687
Accrued litigation reserve 11,770 11,770
Billings in excess of costs 4,383 6,085
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Total current liabilities 82,412 87,846
Other 2,329 2,291
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Total liabilities 84,741 90,137
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Common Stock and Series B Common Stock 8,612 8,613
Additional paid-in capital 37,560 37,734
Other comprehensive loss (253) (266)
Retained earnings 19,559 17,845
Less - Treasury shares (2,263) (2,433)
----------------------------------------------------------------------
Total shareholders' investment 63,215 61,493
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Total liabilities & S/H investment $ 147,956 $ 151,630
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