TENERA Announces Third Quarter Earnings.
Revenue for the nine months ended Sept. 30, 1995 was $18.3 million with pre-tax earnings of $789 thousand or $0.05 proforma net earnings per share, compared to revenue of $19.4 million and pre-tax earnings of $361 thousand (which included a special item increase to earnings of $500 thousand) or $0.02 proforma net earnings per share for the comparable period.
Although earnings through June 30, 1995 were not subject to corporate income taxes, due to the Conversion from partnership to corporate form on June 30, 1995, historical earnings per share information have been adjusted for proforma income taxes calculated at a 40% effective tax rate.
During the third quarter, the company received written contracts and orders that have an estimated value of $5.4 million. The contract activity primarily reflects the next three months' funding at the Department of Energy's Rocky Flats Environmental Technology Site ("Rocky Flats"), in addition and other ongoing work for clients serviced by the company's other operating groups.
Contracted backlog for current, active projects totals approximately $7.6 million as of Sept. 30, 1995, down from $10.6 million as of June 30, 1995. The major component of the decrease in backlog is the removal of $1.5 million in Government Service's contracts that lost funding at the end of the Government's fiscal year (Sept. 30). In addition, contracted backlog does not include approximately $9.1 million of identified work at Rocky Flats that has not yet been funded for 1996.
Commenting on the results to date, Michael Thomas, TENERA's chairman and chief executive officer, noted: "We remain focused this year on leveraging TENERA's strengths in the marketplace and creating value for our clients and Stockholders. We are pleased with our progress in many areas of our operations.
"We have reestablished a level of sustained profitability as demonstrated by the first three quarters' earnings; completed the conversion of TENERA into corporate form; won and started performance of a multi-year contract award for participation on the Performance Based Integrating Management Contract at Rocky Flats; and successfully recruited an additional 100 professional employees to meet the expanded commitments at Rocky Flats and elsewhere."
Thomas added, "We have continued to meet important contracted milestones in the ongoing Software Services group's installation of TENERA's Maintenance Control Program (MCP) at various Transit Authorities; achieved and maintained significantly improved performance in staff productivity in the Power Generation and Electric Utilities consulting groups; and advanced the relationship with our new financial banking institution."
"Our work is not done," Thomas went on to say, "as we have not yet seen the positive impact of revitalizing our sales and marketing processes. Considerable attention has been accorded to this important area and it is our intent to achieve growth in our contracted backlog on a sustainable and structured manner.
"During this year, we have begun a full-time, direct sales and marketing program concentrated on leveraging our success in the transportation marketplace. This focused effort is centered around maintenance application software and performance improvement consulting. While we have not yet realized the full benefits we expect from this approach, we are confident enough to begin extending this program into the power generation market."
"We remain committed to leverage opportunities," said Thomas, "to expand the value of our products and services delivered to clients, generate consistent operating profits, and enhance the reward of being Stockholders in TENERA."
TENERA, Inc., provides integrated management, consulting, and software solutions for utilities, the government, and large transportation corporations through offices in California, Colorado, Connecticut, Idaho, Maryland, New York, Tennessee and Washington. -0-
TENERA, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
Qtr Ended Qtr Ended Nine Months Nine Months 9/30/95 9/30/94 9/30/95 9/30/94
Revenue $7,249 $5,907 $18,257 $19,404 Direct Costs 5,033 3,666 11,497 11,668 General and Administrative Expenses 1,866 2,231 5,976 7,888 Other Income (Expenses) 1 (12) 10 (12) Special Item 0 0 0 500 Operating Income 351 (2) 794 336 Interest Income (Expense) 1 6 (5) 25 Pre-Tax Earnings 352 $4 789 $361 Income Tax Expense 141 141 Net Earnings $211 $648 Proforma Net EPS $0.02 $0.05 Wtd. Average Shares O/S 10,588 9,861
CONDENSED CONSOLIDATED BALANCE SHEETS AT SEPTEMBER 30, 1995
ASSETS Cash and Cash Equivalents $ 745 Accounts Receivable, Net 7,355 Other Current Assets 763 Total Current Assets 8,863 Property and Equipment, Net 368 Other Assets 47 Total Assets $9,278
LIABILITIES AND SHAREHOLDERS' EQUITY Accounts Payable $ 913 Accrued Compensation & Related Expenses 2,186 Income Taxes Payable 141 Total Current Liabilities 3,240 Total Non-Current Liabilities 25 Total Shareholders' Equity 6,013 Total Liabilities and Shareholders' Equity $9,278
CONTACT: TENERA, Inc.
Jeffrey Hazarian or James Robison, 415/536-4744
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|Date:||Oct 31, 1995|
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