Nichols Research Corporation Announces Operating Results for the Year Ending August 31, 1999.HUNTSVILLE, Ala.--(BUSINESS WIRE)--Oct. 13, 1999-- Chris H. Horgen, Chairman of Nichols Research Corporation (Company)(Nasdaq: NRES NRES National Research Ethics Service (United Kingdom) NRES National Rail Enquiry Service (Great Britain) ), today released the operating results for the year and quarter ending August 31, 1999. Revenues were $452,009,000 and $124,969,000 for the year and quarter ended August 31, 1999, as compared to $427,043,000 and $127,516,000 for the year and quarter ended August 31, 1998, for an increase of 5.8 percent and a decrease of 2.0 percent, respectively. 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 operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the year and quarter ended August 31, 1999, were $27,920,000 and $8,506,000, as compared to $27,262,000 and $8,196,000 for the year and quarter ended August 31, 1998, for increases of 2.4 percent and 3.8 percent, respectively. Pro forma net income was $16,845,000 and $5,057,000, for the year and quarter ended August 31, 1999, as compared to $16,733,000 and $4,931,000 for the year and quarter ended August 31, 1998, for increases of 0.7 percent and 2.6 percent, respectively. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share, assuming dilution, were $1.18 and $.35 for the year and quarter ended August 31, 1999, as compared to $1.18 and $.35 for the year and quarter ended August 31, 1998, respectively. Results for the quarter and year ended August 31, 1999, included internal labor related expenses associated with the filing of a registration statement by Nichols TXEN Corporation, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Company, and the previously announced merger of the Company with Computer Sciences Corporation, of approximately $250,000 before tax. The Company has established November 16, 1999, as the date for the special meeting of the stockholders to vote on the merger. October 8, 1999 has been fixed as the record date for holders of the Company's common stock entitled to vote at the special meeting. Pro forma operating profits, net income, and earnings per common share, assuming dilution, for the year ended August 31, 1999, exclude a $4,297,000 pre-tax charge in the second quarter related to the impairment of goodwill associated with the Practice Management Services Division. Pro forma operating profits, net income, and earnings per common share, assuming dilution, for the year ended August 31, 1998, excludes a $2,000,000 pre-tax charge in the third quarter related to the write-off of purchased in-process research and development activities from the acquisition of Mnemonic Pronounced "ni-mon-ic." A memory aid. In programming, it is a name assigned to a machine function. For example, COM1 is the mnemonic assigned to serial port #1 on a PC. Programming languages are almost entirely mnemonics. Systems, Inc., a $226,000 pre-tax charge in the fourth quarter for merger expenses associated with Welkin Associates, Ltd. (accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. ), and a $1,900,000 pre-tax charge in the fourth quarter related to the impairment of certain intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with the company's insurance business activities. Including these charges, reported operating profits, net income, and earnings per common share, assuming dilution for the year ended August 31, 1999, were $23,623,000, $14,345,000, and $1.01 as compared to $23,136,000, $14,198,000, and $1.01 for the year ended August 31, 1998. The Company's backlog was approximately $1,231,903,000 including options of $882,417,000 at August 31, 1999, as compared to approximately $1,264,201,000 including options of $954,130,000 at August 31, 1998. New contract awards were approximately $425,896,000 for the year ended August 31, 1999, as compared to approximately $453,527,000 for the year ended August 31, 1998. Nichols Research Corporation, headquartered in Huntsville, Alabama Huntsville is the county seat of Madison County, Alabama. Huntsville is the largest city in northern Alabama in a region of a half-million people, with the city proper having 168,132 residents (2006 estimate). , provides information technology (IT) and technical services for the Department of Defense, federal civilian agencies, state government clients, and commercial clients. The Company has 30 locations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with approximately 3,000 employees. Additional information may be found at Nichols' web site: www.nichols.com. The Company's stock is traded under the Nasdaq market symbol: NRES. Except for historical information contained herein, this release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be generally identified as such because the content of the statement will usually contain words such as the Company or management "believes," "anticipates," "expects," "estimates," "plans," and words of similar import. Similarly, statements that describe the Company's future plans, objectives, goals or strategies are forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties are discussed in more detail in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended August 31, 1998, including the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Conditions and Results of Operations section of that Annual Report. |
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