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AIR & WATER TECHNOLOGIES REPORTS FOURTH QUARTER EARNINGS PER SHARE OF 3 CENTS

 AIR & WATER TECHNOLOGIES REPORTS FOURTH QUARTER EARNINGS
 PER SHARE OF 3 CENTS
 BRANCHBURG, N.J., Dec. 18 /PRNewswire/ - Air & Water Technologies Corporation (AMEX: AWT), a leading environmental treatment and services company, reported net income before extraordinary items of $.7 million for the quarter ended Oct. 31, 1991 or 3 cents per share compared to $2.7 million or 12 cents per share in the prior year. For the year ended Oct. 31, 1991, the company reported a net loss before extraordinary items of $25.9 million or $1.15 per share. In the prior year, the company reported net income before extraordinary items of $6.5 million or 35 cents per share.
 Included in the 1991 results is a pre-tax $16 million restructuring charge recognized in the second quarter relating primarily to the reorganization of the company and the merger with Metcalf & Eddy Companies Inc., which was approved by Metcalf & Eddy shareholders on Oct. 31, 1991. The 1990 results included a $2.8 million or 15 cents per share gain from the issuance of Metcalf & Eddy common stock. Prior to the merger, discussed above, Metcalf & Eddy was an 82 percent owned subsidiary. Also included in the 1990 results is an extraordinary loss of $26.5 million ($1.41 per share) related to the net costs associated with the retirement of all the company's Senior Extendible Notes and Senior Subordinated Debentures. The 12-month per share results include 28 cents and 30 cents in 1991 and 1990, respectively, of non-cash charges related to goodwill amortization.
 In the fourth quarter, the Company registered increased sales volume and margins over the third quarter ended July 31, 1991, making the fourth quarter the Company's best for 1991. The full-year results for 1991 compared to 1990 have been impacted by planned spending, particularly in marketing, and bid and proposal costs associated with the Company's air pollution control business; delays in the award of contracts; continued weakness in the private sector economy as well as significant fiscal problems being experienced by many cities and towns; and the shutdown of Metcalf & Eddy's Puerto Rican operation.
 Eckardt C. Beck, chairman, president, and chief executive officer of AWT pointed to encouraging signs in the Company's pipeline of opportunities and growth of approximately $30 million in the Company's backlog during the second half of the year as positive trends for 1992. "Despite the tremendous recessionary pressures on American business in 1991, AWT did experience growth in the key indicators of bid opportunities and backlog, particularly in the second half of the year. While the recession contributed to uncertainty in the timing of many contract awards, we saw significant levels of activity, particularly with utility clients and the federal Departments of Defense and Energy. Heightened activity in these areas may be attributed to the Clean Air Act Amendments passed in late 1990 and aggressive hazardous waste and military base closure activities at the federal level." Beck continued, "the rate of activity in 1992 will certainly be influenced by the overall economy and any antirecessionary changes in fiscal policy, tax policy or other actions to drive the cost of capital down could have a positive impact on our business."
 In addition to the positive trends in the pipeline of bid opportunities and backlog, Mr. Beck cited several other highlights of fiscal 1991. "At the end of the fiscal year, we completed the purchase of all outstanding shares of common stock of Metcalf & Eddy Companies Inc. During fiscal 1991, in anticipation of the merger, we also completed a reorganization of the Company to allow us to capitalize on the marketing leverage and operating efficiencies across all AWT operating units. With this reorganization, we are well positioned for anticipated growth in our markets in the 1990s."
 Air & Water Technologies Corporation, through its operating units Research-Cottrell, Inc., Metcalf & Eddy Companies Inc., and Residuals Management provides a broad range of services in the areas of air pollution control, water resource management, and waste by-product disposal and reuse. Through its AWT Capital group, the Company also provides services relating to the financing of environmental facilities and systems.
 AIR & WATER TECHNOLOGIES CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands except per share data; unaudited)
 Three Months Ended 12 Months Ended
 10/31/91 10/31/90 10/31/91 10/31/90
 Sales $178,943 $178,190 $657,482 $610,473
 Cost of sales 131,384 129,745 487,520 437,892
 Gross margin 47,559 48,445 169,962 172,581
 Selling, general and
 administrative expenses 38,768 36,558 151,255 123,105
 Amortization of goodwill 1,586 1,442 6,183 5,577
 Restructuring charge --- --- 16,000 ---
 Operating income (loss) 7,205 10,445 (3,476) 43,899
 Interest expense (5,617) (5,614) (21,973) (34,064)
 Interest income 305 1,298 2,620 5,409
 Gain on issuance of
 subsidiary stock --- --- --- 2,776
 Other expense, net (250) (418) (1,091) (677)
 Income (loss) before income
 taxes, minority interest,
 and extraordinary item 1,643 5,711 (23,920) 17,343
 Provision for income taxes 591 2,689 2,065 8,306
 Minority interest (374) (372) 90 (2,532)
 Net income (loss) before
 extraordinary item 678 2,650 (25,895) 6,505
 Extraordinary item --- 1,116 --- (26,490)
 Net income (loss) $678 $3,766 $(25,895) $(19,985)
 Net income (loss) per share:
 Before extraordinary
 item 3 cents 12 cents $(1.15) 35 cents
 Extraordinary item --- 5 cents --- $(1.41)
 Net income (loss) 3 cents 17 cents $(1.15) $(1.06)
 Weighted number of
 shares outstanding 22,446 22,427 22,437 18,854
 -0- 12/18/91
 /CONTACT: Lucinda Edmonds, vice president-corporate communications, of Air & Water Technologies, 617-245-1484/
 (AWT) CO: Air & Water Technologies, Inc. ST: New Jersey; Massachusetts IN: CHM SU: ERN


PB-SH -- NE009 -- 3612 12/18/91 17:24 EST
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Date:Dec 18, 1991
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