KASLER HOLDING COMPANY ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR-END 1994.HIGHLAND, Calif.--(BUSINESS WIRE)--Jan. 19, 1995--Kasler Holding Company (NYSE NYSE See: New York Stock Exchange :KAS) today announced financial results for the fourth quarter and twelve months ended November 30, 1994. For the fourth quarter of 1994, the Company reported a net loss of $872,000, or $0.03 per share, which included a previously announced extraordinary pre-tax charge of $7.9 million to reflect cost adjustments to current ongoing projects of its subsidiary Kasler Corporation; a writedown of the Company's equity investment in a real estate partnership; and additional costs associated with recent management changes. In the fourth quarter of 1993, the Company reported net earnings of $282,000, or $0.01 per share. Revenues for the fourth quarter of 1994 were $66 million, compared to revenues of $91.7 million for the comparable period in 1993. For the twelve months ended November 30, 1994, the Company reported net earnings of $657,000, or $0.02 per share, compared to net earnings of $6.9 million, or $0.39 per share, in 1993. Results for 1994 were impacted by the charge described above and additional project cost adjustments of approximately $1.8 million recorded earlier in the year. Revenues for 1994 were $258.7 million, compared to revenues of $210.2 million in 1993. The 1993 statement of earnings includes the operating results of Kasler from July 12, 1993, the date of the combination of WCG WCG World Cyber Games WCG Worldwide Church of God WCG World Community Grid WCG Wellington Caving Group (caving club in New Zealand) WCG Washington Calligraphers Guild WCG West Coast Grocery Holdings, Inc. and Kasler Corporation. Results for 1993 on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, assuming the combination had occurred at the beginning of 1993, would reflect earnings of $9 million, or $0.30 per share, on revenues of $278 million in 1993. The Company's backlog at November 30, 1994 was $158 million, a decrease of 42%, from $273 million at year-end 1993. Subsequent to the fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. , $56.2 million in new contract awards were added to the Company's backlog. John Wimberly, President and Chief Executive Officer, commented, "While the Company's 1994 results were impacted by the extraordinary charges taken in the fourth quarter, these steps are prudent from a financial point of view and will help put the Company on course toward achieving substantially improved results in 1995. Our new management team is implementing programs to make the Company more cost-effective and competitive, including instituting new budgeting and cost controls and assigning greater profit and loss accountability to our operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . The write-offs, while painful now, will enable us to better realize the benefit of these operating improvements in the future. "During 1994, bidding activities within our Kasler Corporation subsidiary's primary market, California, were very competitive, resulting in compressed gross margins. In addition, cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on several projects, resulting from delays and changes in the scope of work, and a substantial loss on the Denver Airport project further contributed to the $5.7 million net loss by the Kasler subsidiary. The Company is pursuing the recovery of these additional costs from the project owners, but we are unable to predict the extent and timing of any potential recovery. "The Company's other major operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Washington Contractors Group, was strongly profitable during 1994, as the result of successful mining and environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a projects. "As an additional part of our strategy to improve the Company's performance in the future, we have strengthened and expanded our estimating staff, enabling our subsidiaries to bid on a wider variety of projects than we have done historically. We are now looking at a wide range of opportunities for new work in both the private and public sectors," Mr. Wimberly said. New projects on which the Company will bid include construction contacts totaling $1.2 billion from the Metropolitan Water District's Domenigoni Reservoir Dam in Hemet, California Hemet is a city in Riverside County, California, United States. The population was 58,812 at the 2000 census. Each year, the city stages Ramona, formerly known as "The Ramona Pageant," the worlds largest outdoor play, based on Helen Hunt Jackson's novel Ramona. and the Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. Freeway earthquake-reconstruction contracts in Oakland, California “Oakland” redirects here. For other uses, see Oakland (disambiguation). Oakland (IPA: /ˈoʊklənd/), founded in 1852, is the eighth-largest city in the U.S. , which are expected to range from $500 million to $600 million. "Opportunities also exist in our other business sectors, particularly as environmental spending is expected to grow 6% this year. We expect there to be approximately $100 to $150 million in contracts in the mining sector, on which we will bid," he said. "Despite the 1994 results, the Company's balance sheet and cash position remain strong," concluded Mr. Wimberly. Kasler Holding Company, based in Highland, California Highland is a city in San Bernardino County, California, United States. The population was 44,605 at the 2000 census. It also refers to a geographical area of the City of San Bernardino (generally north of Highland Avenue and east of Del Rosa Avenue to the eastern city limits), , is a diversified diversified (di·verˑ·s construction company with operations in infrastructure, environmental remediation and contract mining markets serving both government and private customers in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . -0-
Financial Results
Kasler Holding Company
(In thousands, except share data)
Three Months Ended Twelve Months Ended
November 30, November 30,
Actual Results Actual Results Pro Forma Results
1994 1993 1994 1993(a) 1993(a)
Revenues $65,963 $91,746 $258,739 $210,184 $278,513 Net Earnings (Loss)(b) (872) 282 657 6,937 8,980 Earnings (Loss) Per Share (b) $ (.03) $ .01 $ .02 $ .39 $ .30 Average Shares Outstanding 29,425 29,452 29,435 17,815 29,484 (a) The Company's results for 1993 included the operating results of Kasler from July 12, 1993, when the business combination of WCG Holdings, Inc. and Kasler Corporation occurred, through November 30, 1993. Also presented are 1993 pro forma results assuming the combination had occurred at the beginning of 1993. (b) Includes a previously announced $7.9 million extraordinary pre-tax charge taken in the fourth quarter of 1994 to reflect cost adjustments to current ongoing projects of its Kasler Corporation subsidiary; a writedown of the Company's equity investment in a real estate partnership; and additional costs associated with recent management changes. CONTACT: Kasler Holding Company, Highland John Cash, CFO See Chief Financial Officer. Richard Guiss, IR (909) 884-4811 or Kekst and Company, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Wendi Kopsick, (212) 593-2655 |
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