EIF HOLDINGS ANNOUNCES INTERNATIONAL CAPITAL INVESTMENT OF $2,000,000
CITY OF INDUSTRY, Calif., Oct. 28 /PRNewswire/ -- Richard Austin, the chief executive officer of EIF Holdings Inc. (EIFH) today announced the completion of an agreement with a European investment group to provide EIFH with $2,000,000 capital equity investment. The funds will be used to retire company debt and to proceed with the acquisition of Metalclad Insulation Corp. and Metalclad Environmental Contractors, two wholly owned subsidiaries of Metalclad Corp. (MTLC). This infusion will also qualify EIF Holdings Inc. for a listing on the American Stock Exchange which is planned for November. P.W. Stephens Contractors Inc., a wholly owned subsidiary of EIF Holdings Inc. and its subsidiary P.W. Stephens Residential Inc. today announced that it will integrate both the operations and the sales forces of its previously separate commercial and residential branches. The company currently operates four commercial branches and seven residential branches in California. Under the new plan, the company will consolidate into seven California branches all of which will offer commercial, industrial and residential abatement services. "Over the past seven years, we have grown into two separate companies each specializing in servicing a different type of abatement customer," said P.W. Stephens Chief Executive Officer Richard Austin in announcing the plan. "Our residential company developed into a very dynamic sales and marketing organization and grew to be the largest residential abatement specialist in the entire United States while our commercial company grew to be strong in the technical field by developing excellent operational and estimating capabilities. Today, the changing requirements of our customers make it advantageous for us to combine the two companies. The combination of sales experience and operational expertise allows us to meet the needs of our customers more efficiently while lowering costs by allowing us to close branches where territories overlap geographically. This should increase profitability for EIFH." In San Diego, the company has been awarded an asbestos abatement contract worth $725,000 for Union Bank. Also in Honolulu, the company has begun abatement at the Aloha Tower Waterfront with a contract worth $225,000.
Hawaii continues to be a strong operational branch of the company; however, the continued weakness in the California economy may reduce earnings in the third quarter.
"In reevaluating the seasonality of our subsidiaries, we have found that past performance cannot be used to project trends in revenues on a seasonal basis," said Chief Operating Officer/President Grant Kidani. "However, in recent years, revenues have tended to be greater in the second quarter and, to a lesser extent, in the fourth quarter. We believe this to be the result of a combination of factors, including government funding, budgeting, weather, catastrophic seasons such as fire and hurricane season, real estate industry cycles, and school holiday schedules. The third quarter results will not in any way reflect a continued downtown in our business since contracts have already increased in the fourth quarter." The company also confirms its annual meeting scheduled for Nov. 8, 1993, at The Marriott Courtyard in Hacienda Heights, Calif. (10 a.m. local time). EIF Holdings Inc. "EIFH" is an environmental health, safety and construction company whose goals are to maximize shareholder return through profitable growth and acquisitions. P.W. Stephens is one of the oldest and most experienced environmental contractors in the country. The company specializes in asbestos abatement and lead paint removal. -0- 10/28/93 /CONTACT: Financial Telesis Inc., EIFH Investor Relations, 808-595-0721, or 800-545-0721/
CO: EIF Holdings Inc. ST: California IN: ENV SU:
EH-JB -- LA018 -- 7863 10/28/93 11:39 EDT
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|Date:||Oct 28, 1993|
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