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CRSS ANNOUNCES YEAR END RESULTS AND COST REDUCTION PROGRAM

 CRSS ANNOUNCES YEAR END RESULTS AND COST REDUCTION PROGRAM
 HOUSTON, Aug. 19 /PRNewswire/ -- CRSS Inc. (NYSE: CRX) announced fiscal 1992 earnings as well as a program to lower costs and increase cost competitiveness. This program includes office space consolidations and personnel reductions resulting from the streamlining of administrative and operational functions attendant primarily to the design and construction services business and corporate operations.
 Commenting on the cost reduction program, Bruce Wilkinson, chairman and chief executive officer, stated, "The adverse effects and uncertainties of the current economic environment continue to challenge the operational structure of our design and construction services business. We feel the office consolidations and streamlining will result in future lower operating costs and, therefore, should have a positive effect on CRSS Services' cost competitiveness and operating margins."
 Wilkinson said the company recorded a special after-tax charge to fourth quarter fiscal 1992 earnings of $5.3 million or $0.40 per share. The special charge consists primarily of the accrued costs related to office lease consolidation, buyout and relocation costs and severance related expenses.
 Excluding the effect of the special charge, CRSS generated fourth quarter fiscal 1992 earnings from continuing operations of $0.02 per share, versus the corresponding prior period amount of $0.20 per share. Fiscal year 1992 earnings from continuing operations, excluding the effect of the special charge, were $0.32 per share versus the prior fiscal year amount of $0.77 per share. These amounts have been restated for the classification of the acid rain/pollution control segment as discontinued operations.
 The reduced earnings are due to the effects of delays in clients' timing of capital spending decisions, primarily as a result of the economic recession, coupled with continued competitive pressures on margins prevalent in the industry.
 Operating revenues for the fourth quarter of fiscal year 1992 were $59.0 million versus the prior period amount of $67.8 million. Operating revenues generated for fiscal year 1992 were $242.4 million versus prior year operating revenues of $276.7 million.
 CRSS achieved a 15 percent increase in backlog as result of strong fourth quarter sales in the Pulp and Paper, General Manufacturing and Public Institutional markets. Operating revenue backlog increased to $175 million at June 30, 1992, versus the March 31, 1992 amount of $153 million.
 Regarding the outlook for CRSS, Wilkinson stated, "Although the near-term results of CRSS Services will be closely tied to sales in the Pulp and Paper and Power markets, we are cautiously optimistic that our backlog growth is the beginning of an upward trend. Additionally, we continue to see significant growth opportunities for our power and cogeneration subsidiary, CRSS Capital, Inc., with increasing demand for independent power and cogeneration facilities and our related project financing capabilities."
 In conjunction with the previously announced decision to divest or distribute its NaTec Resources, Inc. stock holdings, CRSS has recorded a $16.9 million, or $1.26 per share, charge to fiscal 1992 results covering its exit from all acid rain/pollution control related investment holdings. The charge, which is reflected in the discontinued operations section of the statement of operations, consists of: CRSS' interest in the NaTec Resources fiscal year 1992 losses from operations equal to $1.9 million, or $0.14 per share and estimated losses during a prospective phase out period of $1.5 million, or $0.11 per share; and a provision for the estimated losses on disposal of the NaTec and Dravo Corporation stock holdings of $13.5 million, or $1.01 per share.
 CRSS, through it operating subsidiaries, is one of the largest design and construction services companies in the nation today. CRSS is also a leader in the independent power and cogeneration industry with its 81 percent ownership interest in CRSS Capital.
 CRSS INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (In thousands, except per share amounts)
 Period ended Three months Year ended
 June 30 1992 1991 1992 1991
 (unaudited)
 Gross revenues $111,911 $125,168 $456,272 $471,969
 Subcontract and procurement
 costs 52,882 57,403 213,900 195,297
 Operating revenues 59,029 67,765 242,372 276,672
 Costs and expenses 67,320 64,274 243,799 257,687
 Equity income in affiliates 1,162 776 5,027 2,360
 Operating income (loss)
 from continuing operations (7,129) 4,267 3,600 21,345
 Interest expense (1,999) (2,737) (8,049) (10,161)
 Non-operating income 1,384 1,180 4,108 5,477
 Earnings (loss) from
 continuing operations
 before income tax (7,744) 2,710 (341) 16,661
 Income tax expense (benefit) (2,618) 20 741 5,944
 Earnings (loss) from
 continuing operations (5,126) 2,690 (1,082) 10,717
 Earnings (loss) per common
 share from cont. opers. (A) (0.39) 0.20 (0.08) 0.77
 Loss from discont. opers. (15,399) (8,600) (16,910) (9,287)
 Loss per common share from
 discont. opers.(A) (1.16) (0.64) (1.26) (0.67)
 Net earnings (loss) (20,525) (5,910) (17,992) 1,430
 Net earnings (loss)
 per common share(A) (1.54) (0.44) (1.35) 0.10
 Weighted average shares
 outstanding 13,304 13,541 13,369 13,861
 Gross revenue backlog -- -- 465,732 477,853
 Operating revenue backlog -- -- 175,166 206,466
 (A) Fully diluted
 -0- 8/19/92
 /CONTACT: Bruce Wilkinson of CRSS, 713-552-2324/
 (CRX) CO: CRSS Inc. ST: Texas IN: SU: ERN


SM-OS -- NY011 -- 1281 08/19/92 10:48 EDT
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Date:Aug 19, 1992
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