Corrpro Announces Results for Third Quarter of Fiscal 2000.Business Editors MEDINA, Ohio--(BUSINESS WIRE)--Jan. 27, 2000 Revenues Rose Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 19%, Excluding UST USt Umsatzsteuer (German: Tax) UST Underground Storage Tank UST University of St. Thomas (Minnesota, Texas) UST University of Santo Tomas (Manila, Philippines) Business 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 2000 third quarter and nine-month period ended December December: see month. 31, 1999. Third Quarter Summary - Revenues totaled $45.7 million, down 4.4%. The decline resulted from lower revenues relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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) market. UST revenues for the third quarter totaled $0.8 million compared with $10.0 million in the prior-year period. - Excluding the impact of the expected decline in the UST market, third quarter revenues increased 18.9%. - 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 totaled $1.7 million compared to $2.7 million in the prior-year period, a decrease of 37.8%. Earnings 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 totaled $0.22 compared to $0.33 in the prior-year period, a decrease of 33.3%. - 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. were 31.8% compared with 34.3% in the prior-year period. The prior year margins benefited from the significant amount of high margin UST work that was completed during the period. The lower margin percentages also relate to the Middle East operations, which had a large contract in progress, that contributed to that segments 108% increase in revenues but resulted in lower gross profit margins. - 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. totaled $10.4 million compared to $10.8 million, a decrease of 4.1%. - 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. totaled $4.2 million, or 9.1% of revenues, down 25.2% from $5.6 million last year. - 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.
(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 ) totaled $5.5 million or 11.9% of revenues, down 18.4% versus last year. - Interest expense totaled $1.4 million compared to $1.0 million. This increase relates primarily to the Company's use of debt to finance the acquisitions that were completed over the past year. - Working capital levels were reduced by $2.9 million between September September: see month. and December 1999 and total debt was reduced by $3.5 million during the quarter. The Company's actual third quarter results are in line with expected results announced on January January: see month. 13, 2000. Fiscal 2000 revenues include the results of the following acquisitions subsequent to the effective dates of the transactions: Corrpro Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , effective July July: see month. 1, 1998; Basco, effective August 1, 1998; D.C. Corrosion, effective March 1, 1999; CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International Coating Systems (CSI), effective April 1, 1999 and Corexco, effective October October: see month. 15, 1999. The results of these acquisitions, in total, are no longer separable sep·a·ra·ble adj. Possible to separate: separable sheets of paper. sep as they have been integrated into the Company's operations. Joseph W. Rog, Chairman of the Board, President and Chief Executive Officer of Corrpro elaborated on the quarterly results stating, &uot;During the third quarter we continued to be faced with difficult year-over-year comparisons as the prior year results clearly benefited from the UST 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. mandate A judicial command, order, or precept, written or oral, from a court; a direction that a court has the authority to give and an individual is bound to obey. A mandate might be issued upon the decision of an appeal, which directs that a particular action be taken, or upon a . In addition, we are still experiencing weakness in the energy sector of our business as we have not yet benefited from recent higher energy prices. Despite these challenges, there are still a number of positive factors that should not be overlooked. First, excluding the impact of the UST market, our revenues for the third quarter were up approximately 19% as we have continued to be successful in growing our targeted markets. In addition, as we move into fiscal 2001, we expect our customers in the energy sector to increase expenditures which should have a positive impact on our business. &uot;In order to further capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the successful formula we have used to grow our targeted markets, we are pushing these same sales and marketing strategies out to other areas of our business. In order to accelerate this process, we have added four seasoned sales and marketing professionals to drive our efforts and focus on those areas that present exceptional business opportunities. We are very excited about the prospects of this initiative and believe it will allow us to achieve 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. , sustainable growth.&uot; Nine Month Summary - Revenues totaled $131.3 million, down 2.1% from $134.1 million. The decline results from lower revenues relating to the UST market. - Excluding the impact of the UST market, revenues for the nine months increased approximately 12.3%. - Income from continuing operations totaled $5.3 million compared to $7.3 million in the prior-year period, a decrease of 27.5%. Earnings per share on a diluted basis totaled $0.67 compared to $0.88 in the prior-year period, a decrease of 23.9%. - Gross profit margins were 32.6% compared with 33.4% in the prior-year period. - Operating expenses totaled $30.1 million compared to $29.9 million, an increase of less than 1%. - Operating income totaled $12.8 million, or 9.7% of revenues, down 14.4% from $14.9 million. - Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $16.6 million, or 12.7% of revenues, down 7.6% year-over-year. - Interest expense totaled $4.0 million compared to $2.8 million. This increase relates primarily to the Company's use of debt to finance the acquisitions that were completed over the past year. - During the second quarter the Company completed the disposition of its low-margin foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. operations in the UK and Asia. In his concluding remarks, Mr. Rog said, &uot;As fiscal year 2000 winds down, we remain on track to achieve the second best year in the Company's history. We are continuing to focus on the fundamentals of our business, which remain strong, as well as looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. opportunities to reduce overhead costs overhead costs see fixed costs. and improve cash flow. Our focus on cash flow has been successful and we were able to reduce debt by $3.5 million during the third quarter. The combination of our sales and marketing initiatives and the anticipated increased spending levels of our energy related customers should have a positive impact on our long-term business prospects.&uot; A replay of the Company's fiscal 2000 third quarter conference call will be available at www.vcall.com beginning on January 27, 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 its earnings and growth plans that constitute &uot;forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. statements&uot; 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 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. 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 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 acquired businesses in a timely manner, the Company's ability to successfully execute its sales and marketing initiatives, the actual impact of the passing of the underground storage tank upgrade deadline on the Company's business, the impact of energy prices on the Company's business and the impact of new or changed regulatory 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 For the Nine
Months Ended Months Ended
December 31, December 31,
----------------------------------------
1999 1998 1999 1998
-------- -------- -------- --------
Revenues:
Domestic Core Operations $26,914 $31,382 $77,197 $84,710
Canadian Operations 7,635 4,886 20,183 12,925
Middle East Operations 4,587 2,205 13,349 9,169
Other Operations 6,610 9,377 20,564 27,340
----- ----- ------ ------
45,746 47,850 131,293 134,144
Cost of sales 31,186 31,436 88,434 89,286
------ ------ ------ ------
Gross profit 14,560 16,414 42,859 44,858
Selling, general &
administrative expenses 10,386 10,833 30,071 29,922
------ ------ ------ ------
Operating income 4,174 5,581 12,788 14,936
Interest expense 1,352 1,041 3,983 2,790
----- ----- ----- -----
Income from continuing
operations before
income taxes 2,822 4,540 8,805 12,146
Provision for income
taxes 1,128 1,816 3,521 4,858
----- ----- ------ -----
Income from continuing
operations 1,694 2,724 5,284 7,288
Discontinued operations:
Income (loss) from
operations, net -- 109 (353) 344
Loss on disposal, net -- -- (4,024) (3,998)
------ ------ ------- -------
Net income $1,694 $2,833 $ 907 $ 3,634
====== ====== ===== =======
Earnings per share - Basic:
Income from continuing
operations $0.22 $0.35 $0.69 $0.93
Discontinued operations:
Income (loss) from
operations, net -- $0.01 ($0.05) $0.04
Loss on disposal, net -- -- ($0.52) ($0.51)
------- ------- ------- -------
Net Income $0.22 $0.36 $0.12 $0.46
====== ====== ===== =====
Earnings per share - Diluted
Income from
continuing operations $0.22 $0.33 $0.67 $0.88
Discontinued operations:
Income (loss) from
operations, net -- $0.02 ($0.04) $0.04
Loss on disposal, net -- -- ($0.51) ($0.48)
------- ------- ------- -------
Net Income $0.22 $0.35 $0.12 $0.44
===== ===== ===== =====
Weighted average shares -
Basic 7,643 7,812 7,655 7,879
Diluted 7,763 8,192 7,854 8,270
Supplemental financial information -
Depreciation and
amortization 1,279 1,103 3,837 3,057
CORRPRO COMPANIES, INC.
Consolidated Balance Sheet Data
(In Thousands)
(UNAUDITED)
December 31, March 31,
1999 1999
------------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,768 $ 3,957
Accounts receivable, net 46,236 47,232
Inventories 24,724 26,182
Other current assets 8,140 7,270
Net assets held for sale -- 5,110
------ -----
Total current assets 81,868 89,751
Property, plant and equipment, net 16,321 13,647
Other assets 51,175 44,197
------ ------
TOTAL ASSETS $ 149,364 $ 147,595
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings and current portion
of long-term debt $ 953 $ 2,235
Accounts payable 14,326 13,951
Accrued expenses and other 9,544 10,747
----- ------
Total current liabilities 24,823 26,933
Long-term debt, net of current portion 64,489 60,864
Other long-term liabilities 1,679 1,742
Total shareholders' equity 58,373 58,056
------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 149,364 $ 147,595
======= =======
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