Printer Friendly

AIR & WATER TECHNOLOGIES REPORTS RECORD HIGHS IN NEW ORDERS AND BACKLOG

AIR & WATER TECHNOLOGIES REPORTS RECORD HIGHS IN NEW ORDERS AND BACKLOG
 BRANCHBURG, N.J., Sept. 3 /PRNewswire/ -- Air & Water Technologies Corporation (AMEX: AWT), a leading environmental treatment and services company, released its results for the quarter ended July 31, 1992, including record highs in new orders and backlog. The company reported operating income of $3.1 million for the quarter, compared to $4.7 million in the third quarter of the prior year. The company recorded a net loss before extraordinary item for the third quarter of $2.3 million or 9 cents per share compared to a net loss before extraordinary item of $.7 million or 3 cents per share in the same quarter of the prior year. For the nine months ended July 31, 1992, the company reported operating income of $16.8 million compared to an operating loss of $10.7 million in prior period. The 1991 results included a one-time $16 million pre- tax restructuring charge (68 cents per share after tax) relating to costs associated with various integration initiatives and expenses relating to the merger between the company and Metcalf & Eddy Companies Inc. which was subsequently completed on Oct. 31, 1991. For the nine months ended July 31, 1992, the company recorded a net loss of $2.5 million or 10 cents per share compared to a net loss of $26.6 million or $1.18 per share for the corresponding period of the prior year. The nine-month per share results for both periods include 20 cents of non-cash charges related to goodwill amortization.
 The company's operating income has been impacted negatively by planned spending to support bids, proposals, and other marketing activities as well as to maintain capacity to carry out work currently in backlog, selections, and outstanding proposals. That planned investment has resulted in a 31 percent increase in new orders through the first nine months of 1992 compared to 1991. New orders through nine months are equal to 95 percent of all orders booked in all of 1991. Year-to-date new orders of $625 million excludes more than $200 million of additional work where the company has been selected by clients and is concluding either contract negotiations or the scope of task orders from existing contracts. Backlog of $855 million is approximately $95 million higher than at the beginning of the fiscal year.
 According to Eckardt C. Beck, chairman, president and chief executive officer of AWT, "the strong growth in orders and backlog demonstrates the success our products and services are having in a recessionary-impacted, competitive market. We believe that Research- Cottrell has captured a dominant market share of the awards resulting from the Clean Air Act Amendments of 1990 in the key product lines of electrostatic precipitator rebuilds, continuous emissions monitors (KVB/Analect division), and chimneys (Custodis division). We are also pleased with early successes Metcalf & Eddy has experienced in the large federal government market for facility closure and clean-up work at Department of Defense and Department of Energy installations."
 Beck stated that the company "continues to experience unprecedented growth in opportunities. The investment we have made in our expense profile provides us with the capability to capitalize on those opportunities as well as our market position and sustain a reasonable amount of growth going forward without significant increases in spending. Our sales profile should improve in the fall and winter as backlog moves into sales. Performance will be impacted, however, by the rate at which clients move forward with their planned capital spending and release of projects, as well as by the mix of product line awards in the company's various market segments."
 Beck characterized the company's business environment as "one of more mixed signals. While we see tremendous growth potential, we also continue to see, as I have reported for the last six quarters, a desire on the part of our clients to defer capital spending, which we interpret as due to recessionary pressures and regulatory uncertainty. On a market segment basis," said Beck, "we are disappointed by the continuing instability in the air pollution control market as utilities have delayed their capital spending to comply with the Clean Air Act Amendments. In the industrial market, our clients continue to delay basic capital spending given the economic recession. We are encouraged, however, by the rate at which the Departments of Defense and Energy have been releasing contracts and funding."
 Air & Water Technologies Corporation, through its operating units, Research-Cottrell, Metcalf & Eddy, 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


For the Three- and Nine-Month Periods Ending July 31, 1992 and 1991
 (in thousands, except per share data)
 (unaudited)
 Three Months Nine Months
 ending July 31 ending July 31
 1992 1991 1992 1991
 Sales $183,702 $157,203 $511,122 $478,539
 Cost of Sales 135,243 115,732 373,139 356,136
 Gross Margin 48,459 41,471 137,983 122,403
 Selling, general and
 administrative expenses 43,709 35,257 116,112 112,487
 Amortization of goodwill 1,684 1,540 5,054 4,597
 Restructuring charge --- --- --- 16,000
 Operating income (loss) 3,066 4,674 16,817 (10,681)
 Interest expense (5,688) (5,449) (16,895) (16,356)
 Interest income 183 783 657 2,315
 Other expense, net (633) (303) (1,668) (841)
 Loss before income taxes,
 minority interest and
 extraordinary item (3,072) (295) (1,089) (25,563)
 Income tax provision (benefit) (786) 351 1,224 1,474
 Minority interest (45) (24) (197) 464
 Loss before
 extraordinary item (2,331) (670) (2,510) (26,573)
 Extraordinary item (1,103) --- --- ---
 Net loss $(3,434) $(670) $(2,510)$(26,573)
 Net loss per share:
 Before extraordinary item (9 cents) (3 cents)(10 cents) $(1.18)
 Extraordinary item (4 cents) --- --- ---
 Net loss per share (13 cents) (3 cents)(10 cents) $(1.18)
 Weighted average number of
 shares outstanding 24,821 22,438 24,811 22,434
 -0- 9/3/92
 /CONTACT: Lucinda Edmonds of Air & Water Technologies Corporation, 617-245-1484/
 (AWT) CO: Air & Water Technologies Corporation ST: New Jersey, Massachusetts IN: SU: ERN


CN -- NE012 -- 6716 09/03/92 18:36 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 3, 1992
Words:1055
Previous Article:EDUCATION ALTERNATIVES TO ANALYZE PALM BEACH CITY SCHOOLS
Next Article:KAISER PERMANENTE ADVANCES $200,000 TO COMMUNITY CLINICS
Topics:


Related Articles
AIR & WATER TECHNOLOGIES REPORTS SECOND QUARTER OPERATING INCOME OF $6.6 MILLION
AIR & WATER TECHNOLOGIES REPORTS 1992 RESULTS OF OPERATIONS
AIR & WATER TECHNOLOGIES REPORTS FIRST QUARTER NET INCOME PER SHARE OF 2 CENTS
AIR & WATER TECHNOLOGIES ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
CET Environmental Services, Inc. Awarded $19 Million Air Force Contract
Met-Pro Corporation (AMEX: MPR) Today Announced Its Financial Results For the Quarter Ended 10/31/96
Met-Pro Corporation (AMEX: MPR) Today Announces Its Financial Results For the First Quarter Ended 4/30/97
Met-Pro Corporation (NYSE: MPR) Announces Its Financial Results For the Third Quarter Ended 10/31/98.
Environmental Elements Reports Strong Profitability On 29% Sales Increase for Fiscal Year.
Environmental Elements Reports Third Quarter Net Income; Backlog Increases 33%; $85,000 Profit Marks 10th in Past 12 Quarters.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters