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    MONTVALE, N.J., Aug. 5 /PRNewswire/ -- Butler International, Inc. (NASDAQ: BUTL) announced today higher sales and profits from continuing operations for the three and six months ended June 30, 1993 and a substantial improvement over last year.  At the same time, the company announced that the board approved a plan to discontinue certain business units involving heavy equipment telephone construction and asset reclamation that have been unprofitable due to negative market conditions.  The company said it will concentrate on its growing and profitable operations.
    Net sales from continuing operations for the three months ended June 30, 1993 were $75.3 million, compared with $63.4 million for the second quarter 1992, or a 19 percent increase.  Income from continuing operations was $510,000 in the second quarter 1993, or 9 cents per share, compared with a loss from continuing operations of $1.4 million, or (32 cents) per share, a year ago.  For the first six months of 1993, net sales from continuing operations of $150.0 million were 21 percent above the $124.4 million recorded in the first half of 1992.  Income from continuing operations of $1.1 million, or 20 cents per share, in the first half of 1993 was a significant turnaround from the $2.5 million loss, or (54 cents) per share, in the first six months of 1992.
    Sales growth for the current quarter was primarily attributable to an 11 percent increase in billable employees and an increase in average hourly billing rates as compared to last year.  Selling, general and administrative expenses were flat compared with a year ago.  The favorable variances were also helped by acquisitions completed since last year.
    Edward M. Kopko, CEO, stated, "The company's core operations continued their dramatic turnaround as evidenced by this quarter's significant earnings improvement over last year.  The decision to discontinue certain operations will allow the company to redeploy its assets and focus on its growing and profitable operations."
    As a result, a loss of $1.8 million from discontinued operations has been reflected in the second quarter and $2.2 million for the six months ended June 30, 1993 for losses incurred to date and a reserve for projected operating losses, severance and other costs.  After accounting for the discontinued operations, the net loss for the quarter was $1.3 million or (27 cents) per share as compared to $1.4 million or (32 cents) per share a year ago.  For the first half of 1993, the net loss was $1.2 million or (27 cents) per share vs. a net loss of $2.5 million or (56 cents) per share for 1992.
    In addition, in May the company acquired its 18 acre, 82,000 square foot corporate office complex in Montvale, N.J. for approximately $9 million.  The company financed this transaction principally through the assumption of an existing mortgage as well as issuing notes.  After the notes are retired, the company will realize approximately $1.5 million of cash-flow savings as contrasted with the escalating costs associated with its previous long-term rental agreement.
    Butler International, Inc. is a domestic and international contract technical services company.  It is principally engaged in the location, recruitment and hiring of a wide variety of skilled engineers and technical personnel to provide services, on a temporary basis, to industrial corporations and other organizations throughout the U.S. and abroad.
                      BUTLER INTERNATIONAL, INC.
                        Summary of Operations
          (in thousands except share and per share data)
                             Quarter Ended         Six Months Ended
                         June 30     June 28      June 30     June 28
                           1993        1992         1993        1992
    Net sales            $75,303     $63,356      $150,011    $124,444
    Cost of sales         64,076      55,043       129,513     107,830
    Gross margin          10,227       8,313        20,498      16,614
    SG&A                   9,036       9,150        17,885      17,888
    Income (loss) from
     continuing operations
     before depreciation/
     amortization          1,191        (837)        2,613      (1,274)
    Income (loss) from
     operations              510      (1,422)        1,055      (2,460)
    Income (loss) from
     operations           (1,800)        (18)       (2,227)        (74)
    Net income (loss)     (1,290)     (1,440)       (1,172)     (2,534)
    Income (loss) per
     operations          9 cents   (32 cents)     20 cents   (54 cents)
     operations        (36 cents)        ---     (47 cents)   (2 cents)
    Net (loss) income
     per share         (27 cents)  (32 cents)    (27 cents)  (56 cents)
    Average shares
     outstanding       4,992,368   4,496,377     4,743,426   4,496,377
                  Selected Balance Sheet Information
                   (in thousands except share data)
                             June 30, 1993           Dec. 31, 1992
    Total current assets        $46,676                $41,694
    Total assets                 83,673                 69,406
    Total current liabilities    16,462                 12,853
    Total liabilities            48,429                 35,758
    Stockholders' equity        $35,244                $33,648
    Issued and outstanding
     shares                   5,076,957              4,488,329
    -0-             08/05/93
    CONTACT:  Raymond J. Lacroix, 201-573-8000, or Richard E. Cooper, 212-826-9622, both of Butler International

-- NE007 -- X305 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993

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