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DAMES & MOORE REPORTS RECORD FISCAL 1992 RESULTS; THE COMPANY SEES STRONGEST GROWTH IN SECOND HALF IN FISCAL 1993

 DAMES & MOORE REPORTS RECORD FISCAL 1992 RESULTS;
 THE COMPANY SEES STRONGEST GROWTH IN SECOND HALF IN FISCAL 1993
 LOS ANGELES, May 28 /PRNewswire/ -- Dames & Moore (NYSE: DM), international environmental and engineering consultants, reported record revenues and earnings for fiscal 1992, which ended March 27, 1992. Net revenues rose 10 percent, to $259,686,000 in fiscal 1992, compared with net revenues of $236,215,000 in fiscal 1991.
 Net income rose 33 percent in fiscal 1992 to $19,435,000, or $0.97 per share, compared with net income of $14,591,000, or $0.73 per share, in fiscal 1991.
 George D. Leal, chairman, president and chief executive officer, said that revenues in the most recent year were impacted by the recessionary economic environment in many of its markets which reduced revenue growth in comparison with the 32 percent growth reported in fiscal 1991. However, earnings increased 33 percent in fiscal 1992 because of improved staff utilization, tight expense control, a recovery in international operations and an increase in non-operating income, he said.
 Leal noted that Dames & Moore operated as a partnership prior to March 1992. As a partnership the company paid significant portions of its earnings to partners as cash bonuses. On completion of its initial public offering, the company adopted a new policy that will materially reduce future cash bonuses.
 "The previous compensation policy reduced reported earnings. Consequently, historical earnings will not be comparable to future earnings under the new policy," Leal said. "Therefore, we also are reporting pro forma results as if the present policy had been in effect in prior periods."
 On a pro forma basis, net income was $23,728,000, or $1.18 per share, in fiscal 1992, a $6,269,000, or 36 percent, increase over net income of $17,459,000, or $0.87 per share, in fiscal 1991.
 Operating Highlights
 Leal said that the recession slowed the growth of demand for the company's services in established geographical markets since mid-1990. Countering the slowed growth in existing offices were the contributions of seven new offices opened in fiscal 1992 and the full year's revenues from 19 offices opened in 1991, which made substantial contributions to revenues and earnings, he said.
 Leal cited other operating highlights of fiscal 1992, including:
 -- Improvement of international operations, which suffered a loss in fiscal 1991, to profitable performance in fiscal 1992; and
 -- Increasing Dames & Moore's ownership in its Canadian subsidiary from 50 percent to 80 percent. The subsidiary was renamed Dames & Moore, Canada.
 "In spite of reduced opportunity for growth because of the economic environment, Dames & Moore was able to achieve its business, financial and professional objectives and maintain its backlog going into the new year," Leal said.
 "The company is seeing the first signs of economic recovery in many parts of the United States, although business conditions in the Northeast and California remain soft, and the company's operations in Australia, a major international market, also continue to be affected by recession.
 "Management anticipates slow growth for the first six months of fiscal 1993, with prospects for more rapid growth in the second half of the year if the economy continues to recover," he said.
 Financial Strength Enhanced
 Leal said that Dames & Moore is in excellent financial condition for continued growth. At the end of fiscal 1992, cash reserves exceeded $30,000,000, and total debt had been reduced to $3,500,000.
 "We have a consistent five-year growth record in revenues and earnings," he said, "and we are committed to continuing growth on all levels -- increasing revenues, expanding our client base, broadening the spectrum of services provided to each client and expanding global operations." He added that Dames & Moore's growth is expected to come both from internal expansion, and from selected acquisitions to broaden the company's geographic coverage and its range of professional services.
 Explaining the company's strategy, Leal noted that Dames & Moore specializes in providing high-value, superior-quality services to private- and public-sector clients. The company's clients include more than 80 percent of the Fortune 100 U.S. industrial companies; federal, state and local agencies in the United States; and both private and governmental clients overseas.
 Environmental services generate 70 percent of Dames & Moore's revenues; these services include assessing site conditions and designing and implementing solutions to problems posed by hazardous waste, air and water pollution, facility permitting and regulatory compliance.
 The remaining 30 percent of revenues is from other specialized consulting and engineering services relating to civil and geotechnical engineering, water supply, and urban and transportation planning and design.
 More than 75 percent of the company's work is repeat customer business. More than 60 percent of its projects are sole-source or non- bid.
 Successful Public Offering
 Dames & Moore completed a $130,000,000 initial public offering of 6,500,000 shares of common stock in March 1992. Of the total, 2,500,000 shares were sold by the company and 4,000,000 shares were sold by selling shareholders. The company netted $44,000,000 from the offering. Underwriters were led by Kidder, Peabody & Co. Inc.; Goldman, Sachs & Co.; Smith Barney, Harris Upham & Co. Inc. and Oppenheimer & Co. Inc.
 Dames & Moore is a worldwide provider of comprehensive environmental and other specialized consulting and engineering services. It has 117 offices in 20 countries, staffed by approximately 3,300 professional and support personnel. In its 54 year history, Dames & Moore has completed more than 93,000 projects for more than 24,000 clients in more than 140 countries.
 DAMES & MOORE
 Summary of Operations
 Fiscal Year Ended
 March 27, March 29,
 1992 1991
 Net revenues $259,686,000 $236,215,000
 Operating income 30,660,000 25,274,000
 Net income $19,435,000 $14,591,000
 Earnings per share $0.97 $0.73
 Pro Forma net income(a) $23,728,000 $17,459,000
 Pro Forma earnings per share(a) $1.18 $0.87
 Weighted average number of
 shares outstanding 20,111,000 20,000,000
 (a) Pro forma net income and earnings per share reflect a material change in executive compensation that went into effect at the time of the initial public offering. The pro forma figures are included to enable comparison of fiscal 1992 earnings with future earnings, which will be reported with the new executive compensation policy in effect.
 -0- 5/28/92
 /CONTACT: Jill Tenney-Groswirth of Dames & Moore, 213-683-1560, ext. 268; or Tom Wick, Bill Coffin or John Muir, 818-783-2400, or Nick Farina or Donni Case, 312-266-7800, all of The Financial Relations Board for Dames & Moore/
 (DM) CO: Dames & Moore ST: California IN: CST SU: ERN


JL-KJ -- LA017 -- 4582 05/28/92 09:03 EDT
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Date:May 28, 1992
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