Corrpro Announces Results for Fiscal 2000.Business Editors MEDINA, Ohio--(BUSINESS WIRE)--June 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 fourth quarter and fiscal year ended March 31, 2000. Revenues for the fourth quarter ended March 31, 2000 totaled $37.1 million which is flat with the prior year. Excluding the impact of the underground storage tank An Underground Storage Tank (UST), in United States environmental law, is a tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground. (UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) ) market, revenues for the fourth quarter increased 18.3%. For the fourth quarter, the Company incurred a loss 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 $3.3 million or $0.43 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 income of $0.7 million or $0.09 per share in the prior-year period. During the fourth quarter, the Company recorded a $2.0 million unusual charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the consolidation of its electronics product line and estimated future legal costs associated with two ongoing matters. Excluding the impact of this unusual charge, the loss from continuing operations would have totaled $0.28 per share. As previously announced, the fourth quarter results also include approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.4 million of additional unusual or non-recurring items. Excluding the impact of all unusual and non-recurring items, the fourth quarter loss from continuing operations would have totaled $0.09 per share on a diluted basis. Revenues for the year ended March 31, 2000 totaled $168.4 million, down 1.7%. Excluding the impact of the decline in the UST market, revenues for the year grew 13.7%. Income from continuing operations totaled $1.9 million or $0.25 per share on a diluted basis, compared to $8.0 million or $0.98 per share in the prior year. Excluding the impact of the $2.0 million unusual charge, income from continuing operations would have totaled $0.40 per share on a diluted basis. The Company has continued to be cash flow positive. For the year ended March 31, 2000, the company generated positive cash flow from continuing operations of $13.2 million. 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, amortization and the $2.0 million of unusual charges) totaled $16.7 million. 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, "While the results for fiscal year 2000 were disappointing, we believe the actions we have taken in recent months will be extremely beneficial to us, particularly in the long term. For example, we have been and are continuing to invest in the sales and marketing areas. In addition, we remain committed to the further development of new technology such as remote monitoring (protocol) remote monitoring - (RMON) A network management protocol that allows network information to be gathered at a single computer. Whereas SNMP gathers network data from a single type of Management Information Base (MIB), RMON 1 defines nine additional MIBs that provide a where we see significant opportunities. "There were some positive events in fiscal 2000 which should not be overlooked. First, we remained cash positive and generated approximately $13 million of cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Excluding the impact of the UST market, our revenues grew almost 14%. A large portion of this growth related to our targeted markets which currently represent approximately 24% of revenues and grew nearly 57% in fiscal 2000. Also, our position relative to our competition remained unchanged as our whole industry, in general, experienced some softness in fiscal 2000. "As we move into fiscal 2001, which began April 1, we continue to experience revenue levels below our expectations. At the same time, we have increased our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a result of our ongoing investment in areas such as sales and marketing and technology. Our 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. are expected to be in line with the prior years' first quarter levels, however, as a result of the increased 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, early indications are that the first quarter earnings will be below the prior years' on revenue levels which will be flat or slightly down. Notwithstanding the first quarter, the outlook is improving as we are beginning to experience some favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results from our sales and marketing initiatives and we expect gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. improving conditions particularly in the second half of the year" concluded Mr. Rog. A replay of the Company's fiscal year 2000 conference call will be available at www.vcall.com beginning June June: 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 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, new technology 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 To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution 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)
For the Three For the Twelve
Months Ended Months Ended
March 31, March 31,
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenues:
Domestic Core Operations $ 22,895 $ 23,373 $100,092 $108,083
Canadian Operations 4,633 3,114 24,816 16,039
Middle East Operations 3,509 2,373 16,858 11,542
Other Operations 6,112 8,376 26,676 35,716
-------- -------- -------- --------
37,149 37,236 168,442 171,380
Cost of sales 26,520 25,028 114,954 114,314
-------- -------- -------- --------
Gross profit 10,629 12,208 53,488 57,066
Selling, general &
administrative expenses 12,830 9,978 42,901 39,900
Unusual Items 2,000 -- 2,000 --
-------- -------- -------- --------
Operating income (4,201) 2,230 8,587 17,166
Interest expense 1,356 987 5,339 3,777
-------- -------- -------- --------
Income from continuing
operations before income
taxes (5,557) 1,243 3,248 13,389
Provision for income taxes (2,222) 498 1,299 5,356
-------- -------- -------- --------
Income from continuing
operations (3,335) 745 1,949 8,033
Discontinued operations:
Income (loss) from
operations, net (240) 118 (353) 462
Loss on disposal, net -- -- (4,264) (3,998)
Extraordinary charge,
net of tax benefit -- (246) -- (246)
-------- -------- -------- --------
Net income (loss) $ (3,575) $ 617 $ (2,668) $ 4,251
======== ======== ======== ========
Earnings per share - Basic:
Income from continuing
operations $ (0.43) $ 0.09 $ 0.25 $ 1.02
Discontinued operations:
Income (loss) from
operations, net (0.04) 0.02 $ (0.05) $ 0.06
Loss on disposal, net -- -- (0.55) (0.51)
Extraordinary charge,
net of tax benefit -- (0.03) -- (0.03)
-------- -------- -------- --------
Net Income (loss) $ (0.47) $ 0.08 $ (0.35) $ 0.54
======== ======== ======== ========
Earnings per share -
Diluted:
Income from continuing
operations $ (0.43) $ 0.09 $ 0.25 $ 0.98
Discontinued operations:
Income (loss) from
operations, net (0.04) 0.02 $ (0.05) 0.06
Loss on disposal, net -- -- (0.54) (0.49)
Extraordinary charge,
net of tax benefit -- (0.03) -- (0.03)
-------- -------- -------- --------
Net Income (loss) $ (0.47) $ 0.08 $ (0.34) $ 0.52
======== ======== ======== ========
Weighted average shares -
Basic 7,687 7,771 7,663 7,851
Diluted 7,687 8,158 7,824 8,224
Supplemental financial
information -
Depreciation and
amortization 2,254 1,299 6,090 4,356
CORRPRO COMPANIES, INC.
Consolidated Balance Sheet Data
(In Thousands)
March 31, March 31,
2000 1999
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,965 $ 3,957
Accounts receivable, net 38,561 47,232
Inventories 24,118 26,182
Other current assets 9,203 7,270
Net assets held for sale -- 5,110
-------- --------
Total current assets 73,847 89,751
Property, plant and equipment, net 16,153 13,647
Other assets 50,864 44,197
-------- --------
TOTAL ASSETS $140,864 $147,595
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings and current portion
of long-term debt $ 1,316 $ 2,235
Accounts payable 15,157 13,951
Accrued expenses and other 7,891 10,747
-------- --------
Total current liabilities 24,364 26,933
Long-term debt, net of current portion 61,070 60,864
Other long-term liabilities 1,195 1,742
Total shareholders' equity 54,235 58,056
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $140,864 $147,595
======== ========
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