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DRAVO CORPORATION ANNOUNCES EARNINGS

 DRAVO CORPORATION ANNOUNCES EARNINGS
 PITTSBURGH, Jan. 31 /PRNewswire/ -- Dravo Corporation


(NYSE: DRV) today announced financial results for the fourth quarter of 1991 which include a year-end provision for discontinued operations, as well as a substantial improvement in working capital achieved as a result of the successful restructuring of its short- and long-term debt facilities.
 Earnings for the fourth quarter of 1991 from continuing operations were $2.6 million, or 13 cents per common share, on revenue of $73.9 million. Comparable earnings for the same period a year ago were $2.3 million, or 11 cents per share, on revenue of $71.8 million.
 Because of a year-end $10.5 million provision for discontinued operations (net of a fourth quarter tax benefit of $0.5 million), Dravo's fourth quarter performance on a net earnings basis showed a loss of $7.9 million, or 58 cents per share. Last year's fourth quarter net earnings of $2.7 million, or 13 cents per share, included a 2-cents-per-share extraordinary gain resulting from the use of tax loss carryforwards which reduce tax liabilities.
 Earnings from continuing operations for 1991 as a whole totaled $12.3 million, or 65 cents per share, on revenue of $295.7 million. During 1990 Dravo reported earnings from continuing operations of $15.8 million, or 90 cents per share, on revenue of $295.9 million.
 Dravo's charges for discontinued operations resulted in a net loss for 1991 as a whole of $26.3 million, or $1.95 per share. Reported net earnings for 1990 of $19.7 million, or $1.16 per share, included an extraordinary gain of $3.9 million, or 26 cents per share, from the use of tax loss carryforwards.
 With regard to the $11 million pre-tax fourth-quarter expense provision, Carl A. Torbert Jr., Dravo's president and chief executive officer, explained that the amount provided includes a $3.7 million write-off of fees and expenses associated with the receipt in December of a cash payment of $10.8 million and the extinguishment of a $22 million contingent liability related to a marine equipment lease. The $10.8 million cash payment was used to reduce short-term debt. The $7.3 million balance of the provision provides for a settlement offer made to resolve a lawsuit, covers revised estimates of insurance liabilities and legal expenses.
 Torbert noted that the balance sheet ramifications of the year-end provision were mitigated by a $51 million increase in working capital achieved as a result of Dravo's debt refinancing.
 A three-year, $59 million revolving credit/letter of credit facility from a consortium of lenders which includes The Prudential Insurance Company of America, First Alabama Bank, Pittsburgh National Bank, and Continental Bank is included in the financing package. The refinancing reclassifies $51 million in current liabilities as long- term liabilities, increasing long-term debt to $89.7 million. "This new facility dramatically improves our working capital situation as we continue to move closer to the conclusion of our restructuring," commented Torbert, adding that, "the lengthened maturities associated with Dravo's restructured long-term debt are much more compatible with our long-term business plan."
 The agreement also delays until 1998 the commencement of the mandatory redemption requirement of Dravo's series D preferred stock, in exchange for an increased conversion based on a strike price of $12.50 per share. This increases the maximum conversion into common shares from 1.1 million to 1.6 million shares. Total debt outstanding at year's end was $94.4 million, compared to $108.7 million at the end of 1990 and $116.6 million at the end of the third quarter of 1991.
 Torbert described the debt restructuring as "the first step in our plan to finance expansion of our lime operations in response to opportunities stemming from the 1990 Clean Air Act Amendments. Looking ahead," Torbert continued, "we are optimistic about the prospects awaiting our two continuing operations. The acid rain opportunities for lime are well defined, and road building activity will increase dramatically in the coming years as a result of the 1991 Surface Transportation Assistance Act. Demand for our products should also improve as the country emerges from the current recession."
 At its regular January meeting, Dravo's board of directors declared a dividend of 61-7/8 cents on the $2.475 cumulative series B preference stock, and a dividend of $3.0875 per share on the series D cumulative convertible exchangeable stock, both payable April 1, 1992, to shareholders of record March 23, 1992.
 DRAVO CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Operations
 (unaudited, $ in 000's, except per share data)
 Period Ended Quarter Year
 Dec. 31, 1991 1990 1991 1990
 Revenue $73,917 $71,829 $295,684 $295,908
 Earnings before
 taxes from
 continuing opers. 3,199 2,660 16,118 19,743
 Provision for income
 taxes 609 315 3,868 3,902
 Earnings from
 continuing opers. 2,590 2,345 12,250 15,841
 Loss on disposal of
 discontinued
 opers., net (10,476) 0 (38,537) 0
 Earnings (loss)
 before extraord.
 item (7,886) 2,345 (26,287) 15,841
 Extraord. item 0 315 0 3,902
 Net earnings (loss) (7,886) 2,660 (26,287) 19,743
 Shares used in the
 computation of earns.
 per share 14,809 14,801 14,804 14,825
 Earnings (loss)
 per share:
 Continuing opers. $0.13 $0.11 $0.65 $0.90
 Discontinued opers. $(0.71) $0.00 $(2.60) $0.00
 Extraord. item $0.00 $0.02 $0.00 $0.26
 Total $(0.58) $0.13 $(1.95) $1.16
 DRAVO CORPORATION AND SUBSIDIARIES
 Condensed Balance Sheets
 (in thousands)
 Period Ended Dec. 31, 1991 1990
 (unaudited)
 Assets
 Current assets $109,176 $109,070
 Investments and other assets 31,121 62,788
 Property, plant and equip., net 128,911 127,939
 Total assets 269,208 299,797
 Liabilities and shareholders' equity
 Current liabilities 61,732 99,099
 Long-term notes 89,707 47,356
 Deferred revenue from future mineral
 production 0 7,342
 Other non-current liabilities 12,275 11,716
 Preference stock, convertible
 and redeemable 20,000 20,000
 Shareholders' equity 85,494 114,284
 Total liabilities and
 shareholders' equity 269,208 299,797
 -0- 1/31/92
 /CONTACT: Ron Sommer of Dravo Corporation, 412-566-5597/
 (DRV) CO: Dravo Corporation ST: Pennsylvania IN: MNG SU: ERN


JT-CD -- PG007 -- 5649 01/31/92 13:15 EST
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