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CRSS ANNOUNCES SECOND QUARTER EARNINGS

 CRSS ANNOUNCES SECOND QUARTER EARNINGS
 HOUSTON, Jan. 29 /PRNewswire/ -- CRSS Inc. (NYSE: CRX) today


announced consolidated operating results for the second quarter and first half of fiscal 1992.
 Continuing Operations
 Earnings from continuing operations for the second quarter ended Dec. 31, 1991, were $1.0 million, or 7 cents per share, on $60 million operating revenues, versus earnings from continuing operations of $2.2 million, or 16 cents per share, on $68.3 million operating revenues for the corresponding quarter of the prior fiscal year.
 Earnings from continuing operations for the six months ended Dec. 31, 1991, were $2.1 million, or 16 cents per share, on $122.6 million operating revenues, versus earnings from continuing operations of $4.8 million, or 34 cents per share, on $136.3 million operating revenues for the corresponding six-month period of the prior fiscal year. The year-to-date fiscal 1992 earnings include a $0.7 million, or 5 cents per share, gain recognized by CRSS Capital, the power and cogeneration subsidiary, in connection with the sale of its interest in a developmental cogeneration project. The year-to-date fiscal 1991 earnings included $1.5 million, or 10 cents per share, in stock appreciation rights income. The special items noted above were incurred in the first quarters of fiscal 1992 and 1991, respectively.
 Operating revenue backlog at Dec. 31, 1991, was $166.6 million compared with $192.6 million at Sept. 30, 1991, and $182.0 million at Dec. 31, 1990.
 The decreases versus prior year in earnings, earnings per share, operating revenues and operating revenue backlog are attributable primarily to the continuing delays experienced by the design and construction services subsidiary, CRSS Services, Inc., in clients' timing of capital spending decisions, primarily as a consequence of the recession.
 The decreases in the earnings of CRSS Services have been partially offset by the increased equity earnings in affiliates which is primarily attributable to the growing contribution of CRSS Capital to the consolidated financial results of the company.
 Commenting on the second quarter results, Richard L. Daerr, president and chief operating officer, stated, "The persistence of recessionary conditions continues to impact the short-term results of CRSS Services. However, we remain optimistic about the significant growth opportunities for CRSS Services, CRSS Capital and NaTec Resources, Inc. (NASDAQ: NATC), our acid rain/pollution control affiliate."
 Operating revenue new orders totaled $28.3 million during the second quarter of fiscal 1992 and $71.5 million for the six months ended Dec. 31, 1991. The new orders consisted of various design, engineering and construction services projects primarily in the following strategic markets: Public/Institutional, Pulp and Paper, Coed but not contracted at Dec. 31, 1991, totaled $84 million, for which limited authorization to proceed on projects totaling $24 million was received in January.
 Gross revenues from continuing operations for the second quarter of fiscal 1992 were $105.8 million compared with $107.5 million for the corresponding quarter of the prior fiscal year. Gross revenues for the six months ended Dec. 31, 1991, were $221.7 million compared with $221.0 million for the corresponding period of the prior fiscal year.
 Gross revenue backlog at Dec. 31, 1991, was $527.2 million, versus $490 million at Sept. 30, 1991, and $383.5 million at Dec. 31, 1990. The increases in gross revenue and gross revenue backlog are due to an increase in the mix of projects with relatively higher levels of sub- contract and procurement pass-through costs.
 Consolidated Net Earnings
 Net earnings for the second quarter ended Dec. 31, 1991, were $1 million, or 7 cents per share, versus net earnings of $2.5 million, or 18 cents per share, for the corresponding period of the prior year. The prior period net earnings included $0.2 million, or 2 cents per share, attributable to the insurance operations which have since been classified as discontinued in conjunction with CRSS' July 1991 announced exit from the insurance business and pending sale of the primary insurance subsidiary, Global Insurance Company.
 Net earnings for the six months ended Dec. 31, 1991, were $2.1 million, or 16 cents per share, versus net earnings of $5.2 million, or 37 cents per share for the corresponding period of the prior year. The prior period net earnings included $0.4 million, or 3 cents per share, attributable to the discontinued insurance operations.
 In November 1991, CRS Sirrine Engineers, Inc., a subsidiary of CRSS Services, and BE&K, Inc., announced the formation of a new environmental services company, CRS Sirrine-BEK Environmental Services. The new company, which will begin operation in February 1992, will provide high technology, cost-effective solutions to the problems of air, water and non-hazardous solids emissions in the process, consumer products, semi- conductor, pulp and paper, power, and general manufacturing industries. The formation of CRSS Sirrine-BEK Environmental Services arises out of a long and successful relationship between the two companies on major industrial design and construction projects throughout the United States.
 In January 1992, a joint venture between CRSS Constructors, Inc., of Coral Gables, Fla., a subsidiary of CRSS Services, Kelsey Construction of Orlando, Fla., and Hardin Construction Group, Inc., of Atlanta, was awarded a multi-year contract to provide construction management services on the Phase III Expansion of the Orange County, Fla., Convention/Civic Center. The expansion, which has a total construction budget of $171.3 million, will include an exhibit hall, meeting rooms, lobbies and auditoriums, as well as food service, utility and parking areas.
 CRSS through its subsidiaries, is one of the largest and most diversified design and construction services companies in the nation today. CRSS is also involved in the independent power and cogeneration industry and has expanded through its controlling interest in NaTec Resources, Inc., into the acid rain/pollution control market.
 CRSS INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited, in thousands, except per share amounts)
 Periods ended Three Months Six Months
 Dec. 31 1991 1990 1991 1990
 Gross revenues $105,788 $107,535 $221,654 $221,019
 Subcontract and
 procurement costs 45,801 39,215 99,094 84,729
 Operating revenues 59,987 68,320 122,560 136,290
 Costs and expenses:
 Direct 31,023 33,505 63,245 67,922
 Operating 27,180 30,128 55,229 58,429
 Total 58,203 63,633 118,474 126,351
 Operating income from
 continuing operations 1,784 4,687 4,086 9,939
 Equity income in affiliates 1,373 278 2,562 354
 Non-operating income 999 1,891 1,923 3,398
 Interest expense (2,246) (2,619) (4,451) (4,761)
 Earnings from cont. opers.
 before income tax 1,910 4,237 4,120 8,930
 Income tax 936 2,011 2,019 4,115
 Earnings from cont. opers. $ 974 $ 2,226 $ 2,101 $ 4,815
 Earnings per common share from
 continuing operations(A) $0.07 $0.16 $0.16 $0.34
 Earnings from discont. opers. -- $ 236 -- $ 415
 Earnings per common share
 from discont. opers.(A) -- $0.02 -- $0.03
 Net earnings $ 974 $ 2,462 $ 2,101 $ 5,230
 Net earns. per common share(A) $0.07 $0.18 $0.16 $0.37
 Weighted average shares
 outstanding 13,342 13,810 13,418 14,179
 Gross revenue backlog $527,222 $383,518
 Operating revenue backlog $166,581 $182,002
 (A) -- Fully diluted.
 -0- 1/29/92
 /CONTACT: Steve Pierce of CRSS, 713-552-2158/
 (CRX) CO: CRSS Inc. ST: Texas IN: SU: ERN


GK-TS -- NY022 -- 4699 01/29/92 11:41 EST
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