Corrpro announces fiscal 1996 results and new bank credit facility.MEDINA, Ohio--(BUSINESS WIRE)--May 29, 1996--Corrpro Companies, Inc. (NYSE-CO) today reported results for its fourth quarter and fiscal year which ended March 31, 1996. In addition, the Company announced that it has entered into a new bank credit facility with a three-bank group. Revenues for the fourth quarter totaled $32.9 million compared with $34.0 million for the prior year fourth quarter, a decrease of 3.1%. During the fourth quarter, the Company recorded unusual charges totaling approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.5 million which primarily consisted of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related legal expenses as well as costs associated with the consolidation of a manufacturing facility. Excluding the impact of the unusual charges, the Company generated pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $.3 million compared with a pretax loss pretax loss A loss reported before tax benefits are considered. of $1.6 million in the prior year fourth quarter. As a result of the unusual charges, the Company incurred a loss before extraordinary charge of $1.7 million or $.25 per share. In addition, the Company incurred an extraordinary charge of $70,000 or $.01 per share during the current year fourth quarter which related to the early retirement of bank debt. Net loss for the fourth quarter totaled $1.7 million or $.26 per share compared with a net loss of $1.4 million or $.21 per share in the prior year fourth quarter. Revenues for fiscal 1996 totaled $140.5 million compared with $126.0 million for fiscal 1995, an increase of 11.5%. Excluding the impact of two acquisitions which occurred in the second and third quarters of fiscal 1995, revenues increased approximately 1.4%. During fiscal 1996, the Company recorded unusual charges totaling approximately $4.4 million which primarily consisted of litigation related legal expenses. Excluding the impact of the unusual charges, the Company incurred a pretax loss of $2.7 million compared with pretax income of $5.3 million in fiscal 1995. The current year loss was incurred primarily during the first quarter. For fiscal 1996, the Company incurred a loss before extraordinary charge of $5.1 million or $.83 per share. Net loss for fiscal 1996 totaled $5.2 million or $.84 per share (including $.01 per share relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the extraordinary charge discussed above) compared with net income of $2.8 million or $.43 per share in fiscal 1995. As previously announced, the fourth quarter is seasonally the Company's lowest revenue quarter. In addition, the current year fourth quarter revenues were negatively impacted by unusually severe winter weather in parts of the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , resulting in certain engineering and construction projects being delayed to future periods. 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. continued to show improvement as compared to the first half of fiscal 1996. Overall, gross margins for the fourth quarter totaled 26.5% compared to 21.5% for the first half of fiscal 1996 and 27.1% during the third quarter. The slight decline from the third quarter is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk , in part, to proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. lower service sales during the fourth quarter. Gross margins on service sales are higher than those relating to product sales. Service margins totaled 27.4% for the fourth quarter compared to 24.7% for the first half of fiscal 1996 and 29.7% during the third quarter. Fourth quarter service margins were impacted by severe winter weather in Canada which negatively impacted the profitability of a large project completed during the quarter. Gross margins on product sales continued to improve on a trailing quarter basis. Such margins totaled 25.8% for the fourth quarter, compared to 18.9% for the first half of fiscal 1996 and 24.3% during the third quarter. Product margins were positively impacted by improved margins at the Company's Corrtherm 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. operation during the fourth quarter. The Company continues to take corrective cor·rec·tive adj. Counteracting or modifying what is malfunctioning, undesirable, or injurious. n. An agent that corrects. corrective, n cost and pricing actions with respect to both service and product sales, in order to improve gross margins further. 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. dollars remained relatively flat between the third and fourth quarters, as the Company continued to realize the benefit of the cost reduction measures implemented during the first half of fiscal 1996. The Company continues to pursue opportunities to decrease its 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. further. The Company also announced that it has entered into a new $37.5 million bank credit facility with a three-bank group. Borrowings under the credit facility are currently limited to borrowing base amounts defined in the agreement. The credit facility consists of a three-year revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to and a four-year term loan. Initial borrowings under the new credit facility were used to repay domestic bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . Commenting on the announcements, Joseph W. Rog, Chairman of the Board, President and Chief Executive Officer, stated, "Fiscal 1996 was an extremely difficult period for the Company; however, we are pleased with the progress we have made during the second half of the year and believe that we have the majority of our significant operating problems behind us. As a result of our efforts, we were able to generate pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income before unusual charges during the fourth quarter despite the fact that revenues were negatively impacted by the poor weather conditions. Our new domestic bank credit facility has improved our financial flexibility; however, we continue to place significant emphasis on further improving our cash flow. During the fourth quarter we reduced borrowings under our domestic revolver by $1.2 million. This is in addition to the $3.7 million reduction which was achieved during the third quarter." 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 50 offices worldwide, is the leading provider of corrosion control engineering services, systems and equipment to the infrastructure, environmental and energy markets throughout the world. Corrpro is the worldwide leading supplier 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 a leading supplier of rectifiers, a key power supply component in cathodic protection systems. In addition, Corrpro is the worldwide leader in maritime cathodic protection, corrosion monitoring systems and the manufacturing of anodes for cathodic protection systems. -0-
CORRPRO COMPANIES, INC.
Consolidated Income Statement Data
(In Thousands, Except Per Share Amounts)
For the For the
Three Months Ended Twelve Months Ended
March 31, March 31,
__________________ ___________________
1996 1995 1996 1995
________ _______ ________ _______
Revenues:
Engineering &
construction
services $14,474 $14,804 $ 65,916 $ 62,395
Product sales 18,446 19,168 74,605 63,614
________ _______ ________ _______
32,920 33,972 140,521 126,009
Cost of sales:
Engineering &
construction
services 10,510 10,001 48,330 40,467
Product sales 13,694 16,395 58,306 48,759
________ _______ ________ _______
24,204 26,396 106,636 89,226
________ _______ ________ _______
Gross profit
margin 8,716 7,576 33,885 36,783
Selling,
general &
administrative
expenses 7,825 8,692 33,905 30,390
Unusual charges 2,538 -- 4,368 --
________ _______ ________ _______
Operating income
(loss) (1,647) (1,116) (4,388) 6,393
Interest expense (608) (500) (2,633) (1,112)
________ _______ ________ _______
Income (loss) before
income taxes and
extraordinary
charge (2,255) (1,616) (7,021) 5,281
Provision (benefit)
for income taxes (586) (234) (1,879) 2,445
________ _______ ________ _______
Income (loss) before
extraordinary
charge (1,669) (1,382) (5,142) 2,836
Extraordinary charge (70) -- (70) --
________ _______ ________ _______
Net income (loss) $(1,739) $(1,382) $ (5,212) $ 2,836
________ _______ ________ _______
________ _______ ________ _______
Earnings per share:
Income (loss)
before
extraordinary
charge $ (.25) $ (.21) $ (.83) $ .43
Extraordinary
charge (.01) -- (.01) --
________ _______ ________ _______
Net income (loss) $ (.26) $ (.21) $ (.84) $ .43
________ _______ ________ _______
________ _______ ________ _______
Weighted average
shares 6,559 6,468 6,212 6,667
________ _______ ________ _______
________ _______ ________ _______
CORRPRO COMPANIES, INC.
Consolidated Balance Sheet Data
(In Thousands)
March 31, March 31,
_________ _________
1996 1995
_________ _________
ASSETS
Current assets:
Cash $ 3,256 $ 1,385
Accounts receivable, net 30,257 34,930
Inventories 17,056 18,304
Other current assets 9,346 6,895
_________ _________
Total current assets 59,915 61,514
Property, plant and
equipment, net 20,615 21,385
Other assets 27,668 27,423
_________ _________
TOTAL ASSETS $108,198 $110,322
_________ _________
_________ _________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings
and current portion
of long-term debt $ 1,527 $ 2,595
Accounts payable 16,836 15,449
Accrued expenses and other 7,762 6,204
_________ _________
Total current liabilities 26,125 24,248
Long-term debt, net of current portion 26,616 25,869 Other long-term liabilities 674 78 Minority interest 502 4,067
Total shareholders' equity 54,281 56,060
_________ _________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $108,198 $110,322
_________ _________
_________ _________
CONTACT: Corrpro Companies, Inc., Medina Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. M. Adamov Adamov may refer to:
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