Corrpro provides additional information on preliminary fiscal 1995 results.MEDINA, Ohio--(BUSINESS WIRE)--June 5, 1995--Corrpro Companies, Inc. (NYSE NYSE See: New York Stock Exchange :CO) announced last week, based on preliminary financial results, that a fourth-quarter loss and year end adjustments would lower earnings for fiscal 1995 to a range of $.40 to $.45 per share, substantially lower than analysts' estimates of $1.15 to $1.20 per share. Based on an ongoing review of preliminary results by the Company's accounting staff and independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. under the direction of the Audit Committee of the Board of Directors, the Company has determined that the fourth quarter loss is due to approximately $4 million of year end pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern adjustments related to carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of inventories, receivables and certain other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. , including a write-off of approximately $.5 million as a result of the failure of one of its subcontractors to complete a domestic project. The Company is continuing to review whether certain of these adjustments more appropriately should have been reported in the prior quarter or quarters. Also contributing to the loss were the continuation of the previously reported shift from higher margin engineering services to lower margin product sales, interest expense of approximately $.6 million due to financing of acquisitions and working capital needs, and significantly increasing selling, general and administrative expenses incurred in part in anticipation of increased revenues. Earnings for the full year also were lower than expected because substantial revenue growth has not yet materialized from the federal government regulations and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. concerning corrosion protection systems for underground storage tanks 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. ; from the protection of concrete structures, aboveground storage tanks, and marine vessels; and from the planned operations in Kazakhstan and Mexico. These were replaced in part by revenues generated from acquisitions, but the businesses acquired earned lower margins which, in some cases, were impacted adversely by substantial increases in raw material prices in the third and fourth quarters. To a lesser extent, revenues were replaced by sales of lower 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. products in the third and fourth quarters. In addition, earnings declined in the Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. operation.
Analysis of the Company's results has been made more difficult by the continuing integration of recently acquired businesses and the introduction of a new computer based information system in the third quarter. The Audit Committee is continuing to work, with the Company's independent auditors to review the Company's financial staffing and systems, and plans to report to the full Board later this week. The Company will release its audited financial results next week. Chairman Joseph W. Rog stated, ``These preliminary results are unexpected and disappointing. The Company's basic business remains sound, but, at a minimum, we will have to work harder to obtain higher margin business. In addition, our ability to integrate the operations of our acquired businesses and to manage the significant growth resulting from these acquisitions remain critical to our future success. We intend to focus on our existing business before making any further substantial acquisitions. We also must improve our accounting function and our information systems to keep pace with the demands arising from the growth of our business.'' 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. , and with over 50 fully staffed 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 U.S. and Canadian market share leader 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 which are applied to such structures as bridges, above-ground and underground storage tanks, parking garages, electric power plants, oil and gas pipelines, transit systems, water treatment systems, offshore oil rigs and ships. Corrpro is also the U.S. market share leader in rectifiers, a key power supply component in cathodic protection systems and the worldwide leader in the maritime cathodic protection market, corrosion monitoring systems and manufacturing of anodes for cathodic protection systems. CONTACT: Corrpro Companies, Inc., Medina Robert M. Adamov, 216/723-5082 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion