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ENDEVCO REPORTS HIGHER REVENUES AND NET INCOME FOR THIRD QUARTER 1991

ENDEVCO REPORTS HIGHER REVENUES AND NET INCOME FOR THIRD QUARTER 1991
    DALLAS, Nov. 14 /PRNewswire/ -- Endevco, Inc. (AMEX: EI) today reported higher gross margin (sales less cost of sales) and higher net income applicable to common stock for the third quarter of 1991 compared to the same quarter of 1990.  Net income applicable to common stock was $1,839,000 ($.24 per share, $.21 per share fully diluted) compared to a net loss of $356,000 ($.05 per share) for the same quarter of 1990.
    Third quarter 1991 gross margin from its processing and refining segment increased $1,103,000 compared to the same quarter last year. The recent acquisition of the Claiborne processing facility contributed $989,000 of this increase.  The processing and refining margin increase was offset by a decrease of $939,000 in the margins from its gas transportation segment.  This decrease was primarily the result of lower volumes and margins attainable on the Mississippi system due to lower gas prices, reduced drilling, stronger industry competition within gas markets and a rate structure change by one of the interstate pipelines.
    Endevco recorded a one-time pre-tax gain of $3.7 million in the third quarter of 1991, in connection with its sale of Endevco Industrial Gas Sales Company ("Endevco Industrial") to First Reserve Gas Storage Inc. of Greenwich, Connecticut.  Endevco Industrial was a 50 percent owner in Hattiesburg Gas Storage Company.  Endevco retained its storage capacity and its rights to future Hattiesburg expansions, since the company continues to believe that gas storage will play an important role in the future.
    Financial performance for the nine months ended Sept. 30, 1991 was adversely affected by poor first quarter 1991 results.  Revenues for the nine months ended Sept. 30, 1991 increased but operating earnings and working capital from operations declined compared to the same period in 1990.  Net income was higher due to the $3.7 million pre-tax gain recognized on the sale of Endevco Industrial.
    A comparison of key financial results is shown below:
                             ENDEVCO, INC.
                     Selected Financial Highlights
                (In thousands, except per share amounts)
    Periods ended          Three Months            Nine Months
     Sept. 30;            1991        1990        1991        1990
    Revenues           $ 48,877     $ 46,290    $146,424    $137,867
    Expenses             48,343       44,858     143,242     133,301
    Operating earnings      534        1,432       3,182       4,566
    Interest &
     other (expense)       (536)      (1,240)     (3,879)     (3,890)
    Gain on sale of
     subsidiary           3,689           --       3,689          --
    Income tax
     (expense) benefit   (1,373)         (73)     (1,218)       (282)
    Net income (loss)     2,314          119       1,774         394
    Preferred dividend
     requirements          (475)        (475)     (1,425)     (1,425)
    Net income (loss)
     applicable to
     common stock         1,839         (356)        349      (1,031)
    Net income (loss) Per
     Common and Common
     Share Equivalent:
      Primary               .24         (.05)        .05        (.14)
      Fully diluted         .21         (.05)        .05        (.14)
    Gross margin on sales 7,317        7,153      20,031      21,633
    Working capital
     provided by continuing
     operations           1,593        1,898       4,873       5,891
    Cash provided (used)
     by continuing
     operations           1,990        3,970       4,047       1,640
    Debt restructure by year end 1991 remains a high priority for the company and it has commenced negotiations with its lenders to restructure its debt.  However, the company continues to be current on all of its debt obligations.
    Endevco is a gas transportation and processing company. The company's gas transportation segment includes gathering, transmission, marketing and storage of natural gas.  The processing segment includes gas liquids recovery, gas treating and petroleum refining.
    -0-      11/14/91
    /CONTACT:  James W. Bryant, chairman, or Jack W. Young, executive vice president, both of Endevco, 214-691-5536/
    (EI) CO:  Endevco, Inc. ST:  Texas IN:  OIL SU:  ERN JT -- NY033 -- 4336 11/14/91 10:27 EST
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Publication:PR Newswire
Date:Nov 14, 1991
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