AVONDALE INDUSTRIES REPORTS FIRST QUARTER RESULTS
AVONDALE INDUSTRIES REPORTS FIRST QUARTER RESULTS NEW ORLEANS, May 14 /PRNewswire/ -- Avondale Industries, Inc.
(NASDAQ-NMS: AVDL) today reported a loss of $504,000 for the first quarter of 1992 before a net ESOP contribution and income taxes compared with income of $1.4 million on the same basis in the year- earlier period.
After deducting a net ESOP contribution of $8.1 million, Avondale reported a net loss for the 1992 period of $8.6 million, or $.60 per share. In the first quarter of 1991, the company reported a net loss of $3.3 million, or $0.23 per share after a net ESOP contribution of $6.0 million and an income tax benefit of $1.3 million. Revenues for the three months ended March 31, totaled $175.6 million compared with $205.4 million for the year-earlier period. Albert L. Bossier Jr., chairman and chief executive officer, said: "We had expected operating results in the first quarter to be down from a year ago due principally to the contractual adjustments recognized at the end of 1991 on two U.S. Navy multi-ship contracts. We believe the remaining work on these contracts will be completed essentially on a break-even basis. Although we have filed formal requests with the Navy seeking reimbursement for cost overruns, the review process can require over a year before a decision is reached. In the interim, we are taking further steps to reduce administrative costs and to realize higher operating efficiency. "The release by the U.S. Navy of funds retained on some completed contracts has stabilized our cash position. The debt restructuring completed shortly after the close of the first quarter has further aided Avondale's financial condition. We are actively seeking settlement of the contract claims filed with the Navy, and our strategic focus is to capitalize on the company's modular construction expertise in obtaining a profitable backlog of new business." Bossier noted that the $8.1 million net ESOP contribution was effectively returned to Avondale as the final repayment of the company's loan to the ESOP in 1985 of approximately $190 million. Avondale Industries, Inc., headquarted in metro New Orleans, is one of the nation's leading marine fabricators. In addition to its shipbuilding operations, the company specializes in boat construction and is a major repair contractor for commercial and Navy ships. It is also involved in the modular construction of plants and components for a variety of land-based industries. AVONDALE INDUSTRIES, INC. (In thousands of dollars, except per share amounts) Quarter ended 3/31/92 3/31/91 Revenues $175,566 $205,391 Income (loss) before ESOP contributions and inc. taxes $ (504) $ 1,433 Net loss $ (8,645) $ (3,267) Loss per share of common stock $ (0.60) $ (0.23) -0- 5/14/92 /CONTACT: Thomas M. Kitchen of Avondale, 504-436-5237/ (AVDL) CO: Avondale Industries, Inc. ST: Louisiana IN: MAR SU: ERN
BR-EA -- AT015 -- 0466 05/14/92 17:16 EDT
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|Date:||May 14, 1992|
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