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CRSS ANNOUNCES FIRST QUARTER RESULTS

 CRSS ANNOUNCES FIRST QUARTER RESULTS
 HOUSTON, Oct. 28 /PRNewswire/ -- CRSS Inc. (NYSE: CRX), announced


consolidated operating results for the first quarter of fiscal 1993.
 CRSS generated a loss from continuing operations for the three months ended Sept. 30, 1992 of $2.0 million, or $0.15 per share, on $54.0 million operating revenues, versus earnings from continuing operations of $1.8 million, or $0.14 per share, on $62.0 million operating revenues for the corresponding period of the prior fiscal year. The prior year earnings for the three months ended Sept. 30, 1991 of $1.8 million included a $0.7 million, or $0.05 per share, gain recognized by CRSS Capital, Inc., the power and cogeneration subsidiary, in conjunction with the sale of its interest in a developmental cogeneration project.
 The loss from operations of $2.0 million for the three months ended Sept. 30, 1992 is a result of (i) higher than expected severance related amounts associated with the cost reduction program announced in August 1992, (ii) the effects of delays, experienced by the design and construction services subsidiary, CRSS Services, Inc., in clients' timing of capital spending decisions, primarily as a result of the economic recession; and (iii) the continued competitive pressures on margins prevalent in the design and construction services industry.
 Operating revenue backlog of CRSS Services at Sept. 30, 1992 was $179 million, versus $175 million at June 30, 1992 and $193 million at Sept. 30, 1991. Gross revenue backlog at Sept. 30, 1992 was $530 million, versus $466 million at June 30, 1992 and $490 million at Sept. 30, 1991.
 Commenting on the quarterly results, Bruce Wilkinson, chairman and chief executive officer, stated, "Although our first quarter results were adversely impacted by the additional severance and excess personnel related costs, our cost reduction program is essential to returning our engineering and design group back to acceptable profitability levels. The first quarter results are consistent with expectations as outlined to the Wall Street Journal on Oct. 9, 1992."
 Additionally, Wilkinson stated, "We continue to challenge our operational structure in light of the current economic environment."
 On Oct. 27, 1992, CRSS Capital announced the completion of project development activities and term financing for a $70.6 million cogeneration facility at the Stone Container Corporation pulp and paper mill in Hopewell, Va. CRSS Capital and Catamount Energy, a wholly owned subsidiary of Central Vermont Public Service Corporation, each hold a 50 percent interest in the cogeneration project.
 Commenting on the Stone Container transaction, Wilkinson stated, "The Stone Container transaction represents CRSS Capital's second industrial project financing in the pulp and paper industry. The unique project structuring for the acquisition of the power sales agreement will allow Stone Container to redeploy capital from its investment in utility assets to other corporate purposes. Also, as the cogeneration project is currently in operation, CRSS Capital should realize significant operating earnings from the project on an ongoing basis."
 Additionally, Wilkinson added, "CRSS Capital's first industrial energy project financing, the $300 million Naheola cogeneration project, is expected to achieve operational acceptance by June 1993. CRSS Capital owns a 50 percent interest in the project in partnership with James River Corporation."
 The income generated by CRSS Capital in conjunction with the Stone Container transaction will contribute significantly to CRSS Inc.'s expected second quarter earnings of $0.20 to $0.24 per share.
 Regarding the outlook for CRSS, Wilkinson stated, "We remain optimistic about the design and construction services business and are encouraged by the anticipated benefits of our cost reduction program, the effects of the increase in quarterly backlog and the opportunities in the Pulp and Paper, Power and other markets served by CRSS Services. Additionally, the closing of the Stone Container transaction is another milestone in the expected growth and increasing contribution of CRSS Capital."
 In September 1992, CRS Sirrine Engineers, Inc., a subsidiary of CRSS Inc., was awarded the design and engineering contract for Weyerhaeuser's $50 million pulp converting plant in the Golden Triangle Industrial Park in Columbus, Miss. Weyerhaeuser's process for pulp converting will feature a proprietary technology that meets or exceeds all environmental regulatory requirements.
 In August 1992, CRS Sirrine Engineers was awarded the design engineering contract for Union Camp Corp.'s No. 15 recovery boiler project at its Savannah, Ga., paper mill. CRS Sirrine Engineers is responsible for all design and engineering outside the boiler island, including control systems, relocation of existing equipment and installation of auxiliary equipment and tankage. CRS Sirrine Engineers has served Union Camp for more than 50 years.
 CRSS, through its subsidiaries, is one of the largest design and construction services companies in the nation. CRSS is also a leader in the independent power and cogeneration industry, with its 81 percent ownership in CRSS Capital.
 CRSS INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (In thousands, except per share amounts, unaudited)
 Three months ended Sept. 30 1992 1991
 Gross revenues $118,204 $115,289
 Subcontract and procurement costs 64,236 53,293
 Operating revenues 53,968 61,996
 Costs and expenses:
 Direct 28,141 31,289
 Operating 29,140 27,898
 Total 57,281 59,187
 Equity income in affiliates 845 1,189
 Operating income (loss) from
 continuing operations (2,468) 3,998
 Non-operating income 1,031 924
 Interest expense (1,957) (2,027)
 Earnings (loss) from continuing
 operations before income tax (3,394) 2,895
 Income tax benefit (expense) 1,426 (1,083)
 Earnings (loss) from continuing operations (1,968) 1,812
 Earnings (loss) per common
 share from continuing operations(A) (0.15) 0.14
 Loss from discontinued operations -- (685)
 Loss per common share from
 discontinued operations(A) -- (0.05)
 Net earnings (loss) (1,968) 1,127
 Net earnings (loss) per common share(A) (0.15) 0.08
 Weighted average shares outstanding 13,356 13,381
 Gross revenue backlog 530,298 489,984
 Operating revenue backlog 179,474 192,557
 (A) Full diluted
 -0- 10/28/92
 /CONTACT: Bruce Wilkinson, 713-552-2324, or Bill Gardiner, 713-552-2160, both of CRSS, Inc./
 (CRX) CO: CRSS Inc. ST: Texas IN: CST SU: ERN


KD-OS -- NY030 -- 5904 10/28/92 10:42 EST
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