Baker Reports Strong First Quarter Financial Results.Business Editors PITTSBURGH--(BUSINESS WIRE)--April 24, 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 ) reported a 42 percent increase in earnings per share for the first quarter of 2001, driven primarily by the continued strong performance of its Energy business segment. For the quarter, Baker posted net income of $2.5 million, or $0.30 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 $93 million. This compares with net income of $1.8 million, or $0.21 per diluted share, on total contract revenues of $108 million in first-quarter 2000. The decline in year-over-year revenue is directly attributable to the sale or wind down of non-core businesses that occurred in 2000. Revenue from the continuing Engineering and Energy businesses increased 11 percent from the year ago quarter. The company's core Energy business posted first quarter 2001 increases in revenue and 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. of 37 percent and 82 percent, respectively, compared to the same period last year, due in large measure to an increase in revenues related to the OPCO OPCO Operating Company OPCo Ohio Power Company (SM) operations consolidation model Baker is employing 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 for providing comprehensive operation and maintenance services. The company's core Engineering business recorded slight declines in both operating income and revenue for the quarter as a result of weather-related delays in the initiation of certain projects and increased investment in business development activities directed toward the transportation, aviation and Department of Defense market segments. The company's non-core business, which continues to be wound down, produced operating income of $0.1 million on revenue of $0.5 million, compared to zero operating income on revenues of $25 million in first quarter 2000. Total backlog for the company was $507 million at March 31, 2001, compared to $502 million at year-end 2000. Significant contracts added to backlog in the first quarter included two construction management projects in Pennsylvania and a phase one OPCO contract with an independent producer in the Gulf of Mexico. Commenting on the results, 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. Donald P. Fusilli fu·sil·li n. Pasta in short spirals or corkscrews. [Italian, from pl. diminutive of fuso, spindle, from Latin f  sus.] , said, "We are pleased with the results of our
Energy segment, which continues to benefit from the strong worldwide oil
and gas market and the accelerated outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of operations and
maintenance activities by this sector. OPCO is performing well and
producing increased revenue and operating margins Operating MarginA ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that this growth in Energy will continue for the rest of this year." He added that the company is particularly encouraged by the recent announcement of Baker's selection to participate in the planning and conceptual engineering for a pipeline system to deliver natural gas from Alaska's North Slope North Slope, Alaska: see Alaska North Slope. to Canada and the Lower-48 states. "Our selection for this complex, multi-million dollar project is the result of Baker's long commitment to Alaska and our 'best in class' cold weather pipeline design capabilities. We are excited about the opportunity to work with our clients and partners to develop an innovative solution for this important project." Chairman and Chief Executive Officer Richard L. Shaw said that "these results clearly reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re the soundness of our strategy to concentrate on our core Engineering and Energy businesses. We can now focus our collective efforts on growing the organization and our people within this structure." 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 employs more than 3,700 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) First Quarter Operating Results 2001 2000 ------------------------------- ---- ---- Total contract revenues $ 92,623 $ 108,295 Gross profit $ 14,878 $ 14,815 Income from operations $ 4,413 $ 3,887 Income before taxes $ 4,524 $ 3,309 Net income $ 2,488 $ 1,754 Basic weighted average shares outstanding 8,277 8,189 Basic net income per share $ 0.30 $ 0.21 Diluted net income per share $ 0.30 $ 0.21 ---------------------------------------------------------------------- Backlog At 3/31/01 At 12/31/00 ------- ----------- ----------- Total $ 506,500 $ 501,900 Condensed Balance Sheet At 3/31/01 At 12/31/00 ----------------------- ---------- ----------- ASSETS Cash and cash equivalents $ 8,712 $ 9,122 Short-term investments - 8,999 Receivables 62,636 68,042 Costs in excess of billings 21,894 16,105 Prepaid expenses and other 7,858 7,335 ---------------------------------------------------------------------- Total current assets 101,100 109,603 Property, plant and equipment, net 10,137 10,058 Goodwill and other intangible assets, net 10,542 10,846 Other assets 15,741 2,850 ---------------------------------------------------------------------- Total assets $ 137,520 $ 133,357 ====================================================================== LIABILITIES & SHAREHOLDERS' EQUITY Accounts payable and short-term debt $ 24,802 $ 27,914 Accrued compensation and insurance 13,048 15,018 Other accrued expenses 30,855 36,125 Billings in excess of costs 1,548 1,155 ---------------------------------------------------------------------- Total current liabilities 70,253 80,212 Long-term debt 47 51 Other 14,128 2,765 ---------------------------------------------------------------------- Total liabilities 84,428 83,028 ---------------------------------------------------------------------- Common Stock and Series B Common Stock 8,593 8,570 Additional paid-in capital 37,602 37,488 Retained earnings 8,950 6,324 Less - Treasury shares (2,053) (2,053) ---------------------------------------------------------------------- Total shareholders' investment 53,092 50,329 ---------------------------------------------------------------------- Total liabilities & S/H investment $ 137,520 $ 133,357 ====================================================================== |
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