Printer Friendly

CANONIE ENVIRONMENTAL SERVICES CORP. ANNOUNCES SECOND QUARTER LOSS RESULTING FROM ONE-TIME CHARGES AND RESTRUCTURING

 CANONIE ENVIRONMENTAL SERVICES CORP. ANNOUNCES SECOND QUARTER LOSS
 RESULTING FROM ONE-TIME CHARGES AND RESTRUCTURING
 PORTER, Ind., Oct. 14 /PRNewswire/ -- Canonie Environmental Services Corp. (NASDAQ: CANO) reported today a net loss for the quarter ended Aug. 31, 1992, of $1,199,000, or $0.21 per share associated with one- time charges and restructuring. Ongoing operations were essentially a breakeven for the quarter, compared with net income of $249,000 or $0.04 per share for the previous year's comparable quarter. Revenues were $18,896,000 for the quarter compared to $16,183,000 in the prior year's period, an increase of 16.8 percent.
 The company had a net loss for the six months ended Aug. 31, 1992, of $996,000, or $0.17 per share, compared to net income of $289,000, or $0.05 per share, in the comparable prior year's period. Revenues for the six months were $42,795,000, compared to $27,559,000 in the prior fiscal year's comparable period.
 During the second quarter, the company completed significant restructuring and implemented layoffs and transfers to improve future profitability and streamline resources consistent with the current recessionary trends in the industry. Staff levels were reduced from 360 at the beginning of the quarter to 303 at Aug. 31, 1992. The after-tax effect associated with the layoffs was an additional cost of approximately $287,000 or $0.05 per share. On an annualized basis, this should result in a reduction of overhead in an after-tax amount of $850,000 or $0.15 per share. In addition during the second quarter, the company took after-tax charges of $935,000, or $0.16 per share, in recognition of higher than anticipated costs on two major remediation projects.
 Thomas A. Donovan, Canonie's president, stated, "Because the bidding climate for onsite remediation work remains extremely competitive and projects continue to be delayed because of both regulatory and economic uncertainties, management has determined to focus on a more selective bidding strategy coupled with a corporate emphasis on providing engineering services to our preferred clients. This strategy should result in improved earnings and overhead reduction in the short-term, as well as provide a springboard for remediation projects when the economy recovers. Management recognizes the necessity of this change as the status quo is unacceptable to both our shareholders and employees. It was necessary at the end of August to make the difficult decision to reduce the size of the company and restructure management to correctly position the company in today's recessionary environment, as well as improving future earnings."
 Canonie Environmental Services Corp. provides comprehensive services throughout the United States for remediation of sites contaminated by hazardous materials. The firm provides its clients with a complete range of services, including assessing the regulatory, technical, and construction aspects of the problem; developing a strategic plan to solve the problem; and performing the necessary remediation and operation activities. Canonie Environmental Services Corp. believes it is one of the few companies capable of providing such a broad range of services. The company has performed work at numerous project sites nationwide, including the management and control of remediation activities at several Superfund sites.
 CANONIE ENVIRONMENTAL SERVICES CORP.
 CONSOLIDATED STATEMENTS OF INCOME
 (IN THOUSANDS, EXCEPT PER SHARE DATA)
 Three Months Ended Six Months Ended
 Aug. 31, Aug. 31,
 1992 1991 1992 1991
 Revenues $18,896 $16,183 $42,795 $27,559
 Cost of revenues 16,780 12,457 36,801 20,864
 Gross profit 2,116 3,726 5,994 6,693
 Operating expenses
 Selling, general and
 administrative expenses 4,071 3,255 7,573 6,117
 Income (loss) from
 operations (1,955) 471 (1,579) 578
 Interest income 21 220 33 472
 Minority interest 7 (21) 15 (32)
 Income (loss) before
 income taxes (1,927) 670 (1,531) 1,018
 Taxes on income
 (tax benefit from loss) (767) 258 (611) 401
 Income (loss) before
 losses of unconsolidated
 affiliates (1,160) 412 (920) 617
 Share in losses of
 unconsolidated affiliates (39) (163) (76) (328)
 Net income (loss) $(1,199) $249 $(996) $289
 Weighted average number
 of common shares
 outstanding 5,701 5,701 5,701 5,701
 Earnings per
 common share $(0.21) $0.04 $(0.17) $0.05
 -0- 10/14/92
 /CONTACT: Leo G. MacKeller, senior vice president - Administration & Finance, Canonie Environmental Services Corp., 219-926-8651/
 (CANO) CO: Canonie Environmental Services Corp. ST: Indiana IN: SU: ERN


SB-JR -- CL024 -- 0126 10/14/92 18:02 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:Oct 14, 1992
Words:738
Previous Article:ITALCABLE PRESENTS PRODUCTS, SERVICES IN SEMINAR AT ITALIAN TRADE COMMISSION
Next Article:HALL SHAREHOLDERS MEETING TO BE HELD NOVEMBER 2
Topics:


Related Articles
CANONIE ENVIRONMENTAL SERVICES CORP. REPORTS THIRD QUARTER RESULTS
APPLIED BIOSCIENCE INTERNATIONAL INC. REPORTS FOURTH QUARTER AND YEAR END FINANCIAL RESULTS
CANONIE ANNOUNCES FISCAL 1993 RESULTS
/C O R R E C T I O N -- CANONIE ANNOUNCES FISCAL 1993 RESULTS/
CANONIE ENVIRONMENTAL SERVICES CORP. ANNOUNCES FIRST QUARTER RESULTS
CANONIE ENVIRONMENTAL SERVICES CORP.ANNOUNCES SECOND QUARTER RESULTS
RIEDEL ANNOUNCES THIRD QUARTER RESULTS
CANONIE ENVIRONMENTAL SERVICES CORP. ANNOUNCES THIRD OUARTER RESULTS
SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION ANNOUNCES IMPROVED OPERATING RESULTS AND RECORD BACKLOG FOR FY ENDED FEBRUARY 28, 1995
SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION REPORTS OPERATING RESULTS FOR THE QUARTER ENDED AUGUST 31, 1995

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