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ENVIRONMENTAL ELEMENTS ANNOUNCES THIRD QUARTER RESULTS

 BALTIMORE, Jan. 26 /PRNewswire/ -- Environmental Elements Corporation (NYSE: EEC) today announced operating results for its third quarter ended Dec. 31, 1992.
 The company reported a loss from continuing operations of $2,820,000 (($.40) per share) for the quarter ended Dec. 31, 1992, compared to income of $884,000 ($.13 per share) for the third quarter last year. Income from discontinued operations showed a profit of $.02 per share, equal to last year's results. Sales for the third quarter were $18.6 million vs. $19.8 million last year. Contract bookings for the quarter were $21.0 million, compared to $41.5 million last year. Backlog stood at $63.6 million at quarter end vs. $72.3 million a year ago and $64.7 million at the beginning of the quarter.
 For the nine months ended Dec. 31, 1992, the company reported a loss from continuing operations of $6,720,000 (($.95) per share) vs. income of $4,298,000 ($.61 per share) last year. Sales for the first nine months of the fiscal year were $58.5 million compared to $70.1 million last year.
 F. Bradford Smith, president and chief executive officer commented, "Operating results for the quarter and the past nine months are very disappointing. Sales continue to be affected by low order volume in both the industrial and the utility markets. Gross margin levels have been affected by pricing pressure and by increased costs on certain projects. Contract bookings, which were essentially flat with the second quarter, reflect continuing reluctance of industrial customers to firmly commit projects and continued weakness in the utility market.
 "As we noted in our second quarter report, we have focused a great deal of attention on the increased contract costs we have incurred this year. In addition to lower than expected total order levels, the difficult markets of the past eighteen months have also resulted in our acceptance of a number of fast track or complex projects on which costs have exceeded our estimates. This, coupled with the absorption of a group of new technologies and the external business pressure imposed by a weak economy, have contributed to poor operating results this year.
 "We are currently executing the first contracts for our new wet and dry electrostatic precipitator technologies and expect commitments on the first two contracts involving our circulating fluid bed dry scrubber technology in the near future. Although these contracts are not large and will not be major contributors to near-term earnings, they do represent initial market acceptance of our new technologies.
 "We believe we have worked through most of the contracts which caused our problems, and we have identified and are addressing the internal operating issues these problems exposed. We expect operating results in our fourth quarter ending in March to improve and continue to believe we can return to profitability next year."
 Environmental Elements Corporation, a leading air pollution control systems supplier for more than forty-five years, designs and supplies electrostatic precipitator, fabric filter, flue gas conditioning, flue gas desulfurization, acid gas cleaning and continuous emissions monitoring systems. Environmental Elements' systems enable a broad range of customers in the power generation, pulp and paper, waste to energy, rock products, metals and petrochemical industries to operate their facilities in compliance with particulate and gaseous emissions standards.
 ENVIRONMENTAL ELEMENTS CORPORATION
 Summary Consolidated Financial Data
 (In thousands, except per-share amounts)
 Periods Three Months Nine Months
 Dec. 31 1992 1991 1992 1991
 Sales $18,579 $19,750 $58,472 $70,116
 Cost of sales 17,752 15,782 54,814 56,478
 Gross Profit 827 3,968 3,658 13,638
 Operating expenses:
 Selling 1,654 1,371 4,728 3,875
 General and administrative 2,025 1,832 5,612 5,775
 Total 3,679 3,203 10,340 9,650
 Operating Income (Loss) (2,852) 765 (6,682) 3,988
 Interest income, net 44 178 13 655
 Other income (expense), net (12) 31 (32) (24)
 Income (Loss) from
 Continuing Operations
 before Income Taxes (2,820) 974 (6,701) 4,619
 Provision for income taxes --- 90 19 321
 Income (Loss) from
 Continuing Operations (2,820) 884 (6,720) 4,298
 Gain on disposal
 of discontinued
 operations, net 148 149 520 586
 Net Income (Loss) $(2,672) $1,033 $(6,200) $4,884
 Per share of common stock and common stock equivalents:
 Income (loss) from
 continuing operations $(.40) $.13 $(.95) $.61
 Income from
 discontinued operations .02 .02 .07 .08
 Net Income (Loss) $(.38) $.15 $(.88) $.69
 Average shares outstanding 7,034 7,042 7,046 7,040
 Backlog, end of period $63,640 $72,300 --- ---
 -0- 1/26/93
 /CONTACT: John S. Lalley Jr. director, investor relations and corporate communications of Environmental Elements, 410-368-7340/
 (EEC)


CO: Environmental Elements Corporation ST: Maryland IN: SU: ERN

MP -- PH003 -- 8914 01/26/93 08:42 EST
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Date:Jan 26, 1993
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