Corrpro Announces Results for First Quarter of Fiscal 2001.Business Editors MEDINA, Ohio--(BUSINESS WIRE)--July 20, 2000 Corrpro Companies, Inc. (NYSE NYSE See: New York Stock Exchange :CO), the leading provider of corrosion protection engineering services, systems and equipment, today reported results for its fiscal 2001 first quarter which ended June June: see month. 30, 2000. Revenues for the quarter totaled $40.8 million, which is flat with the prior year results of $40.9 million. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. totaled 33.6% compared to 33.4% in the prior-year first quarter. 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. for the quarter totaled $2.1 million compared to $3.7 million in the prior-year period. The decrease is the result of higher operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. levels. For the quarter, the Company generated net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.4 million or $0.05 per share on a 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. basis, compared to $1.5 million or $0.18 per share in the prior-year period. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Commenting on the announcement, Joseph W. Rog, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "Our business is gaining positive momentum as we move into our seasonally busier period of the year. Although the first quarter started off slowly, we experienced improving results each month. We are particularly pleased with our gross profit margins, which improved to 33.6% for the quarter. As expected, our operating results continue to be impacted by the investments we have made in our sales and marketing functions, which have contributed to the higher operating expense levels. We are, however, starting to see some favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results from these investments and remain confident regarding the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. impact of these initiatives. Going forward, we expect continued improvement particularly in the second half of the fiscal year." A replay of the Company's fiscal year 2001 first quarter conference call will be available at www.vcall.com beginning July July: see month. 20, 2000 for a 90-day period. Corrpro, headquartered in Medina, Ohio Medina [məˈdaɪnə] is a city in Medina County, Ohio, United States. The population was 25,139 at the 2000 census. The 2004 projected population was estimated at 28,536. , with over 60 offices worldwide, is the leading provider of corrosion control engineering services, systems and equipment to the infrastructure, environmental and energy markets around the world. Corrpro is the leading provider of cathodic protection Cathodic protection (CP) is a technique to control the corrosion of a metal surface by making that surface the cathode of an electrochemical cell. It is a method used to protect metal structures from corrosion. systems and engineering services, as well as the leading supplier of corrosion protection services relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc coatings, non-destructive testing, pipeline integrity and reinforced concrete reinforced concrete Concrete in which steel is embedded in such a manner that the two materials act together in resisting forces. The reinforcing steel—rods, bars, or mesh—absorbs the tensile, shear, and sometimes the compressive stresses in a concrete structures. This press release contains certain statements, including those relating to expectations regarding sales and marketing initiatives and earnings and growth plans that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors which might affect such forward-looking statements include the Company's mix of products and services, timing of jobs, the availability and value of larger jobs, the impact of weather on the Company's operations, the Company's ability to successfully integrate and develop acquired businesses in a timely manner, the Company's ability to successfully execute its sales and marketing initiatives, the impact of energy prices on the Company's and its customers' businesses, and the impact of existing, new or changed regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. initiatives. Additional factors that may affect the Company's business and performance are set forth in the Company's filings with the Securities and Exchange Commission.
CORRPRO COMPANIES, INC.
Consolidated Income Statement Data
(In Thousands, Except Per Share Amounts)
(UNAUDITED)
For the Three
Months Ended
June 30,
---------------------------
2000 1999
---------- ----------
Revenues:
Domestic Core Operations $ 25,999 $ 24,761
Canadian Operations 5,148 5,430
Middle East Operations 3,037 3,887
Other Operations 6,576 6,846
---------- ----------
40,760 40,924
Cost of sales 27,045 27,272
---------- ----------
Gross profit 13,715 13,652
Selling, general & administrative
expenses 11,660 9,951
---------- ----------
Operating income 2,055 3,701
Interest expense 1,456 1,266
---------- ----------
Income from continuing operations
before income taxes 599 2,435
Provision for income taxes 239 974
---------- ----------
Income from continuing operations 360 1,461
Discontinued operations:
Loss from operations, net -- (52)
---------- ----------
Net income $ 360 $ 1,409
========== ==========
Earnings per share - Basic:
Income from continuing
operations $ 0.05 $ 0.19
Discontinued operations:
Loss from operations, net -- (0.01)
---------- ----------
Net income $ 0.05 $ 0.18
========== ==========
Earnings per share - Diluted:
Income from continuing
operations $ 0.05 $ 0.18
Discontinued operations:
Loss from operations, net -- --
---------- ----------
Net income $ 0.05 $ 0.18
========== ==========
Weighted average shares -
Basic 7,687 7,706
Diluted 7,748 8,007
Supplemental financial information -
Depreciation and amortization 1,372 1,348
CORRPRO COMPANIES, INC.
Consolidated Balance Sheet Data
(In Thousands)
(UNAUDITED)
June 30, March 31,
2000 2000
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,048 $ 1,965
Accounts receivable, net 40,840 38,561
Inventories 23,855 24,118
Other current assets 11,613 9,203
---------- ----------
Total current assets 78,356 73,847
Property, plant and equipment, net 15,828 16,153
Other assets 49,582 50,864
---------- ----------
TOTAL ASSETS $ 143,766 $ 140,864
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings and current
portion of long-term debt $ 2,114 $ 1,316
Accounts payable 14,642 15,157
Accrued expenses and other 8,164 7,891
---------- ----------
Total current liabilities 24,920 24,364
Long-term debt, net of current
portion 63,966 61,070
Other long-term liabilities 1,312 1,195
Total shareholders' equity 53,568 54,235
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 143,766 $ 140,864
========== ==========
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