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ENVIROTEST SYSTEMS REPORTS THIRD QUARTER EARNINGS RESULTS; REVENUES AND OPERATING INCOME INCREASE FOR QUARTER AND NINE MONTH PERIOD

 TUCSON, Ariz., Aug. 16 /PRNewswire/ -- Envirotest Systems Corp. (NASDAQ: ENVI) today reported results for the third quarter ended June 30, 1993.
 The company achieved revenues of $22.2 million in 1993 third quarter, compared to revenues of $18.9 million in the year ago third quarter. Operating income for the 1993 third quarter was $5.6 million, compared to $3.9 million for the same period in 1992. Income before accounting for extraordinary items was $2.1 million, or $0.12 per share, compared to $904,000, or $.06 per share, in the 1992 third quarter.
 For the 1993 third quarter, the company reported a net loss of $.54, due to an extraordinary loss of $0.66 per share related to the early extinguishment of debt for the company's initial public offering consummated in April 1993. For the year ago third quarter, Envirotest reported a net loss of $0.05 due to an extraordinary loss of $0.11 per share, related to amending terms of certain indebtedness in 1992.
 Chester Davenport, chairman of Envirotest, said, "Our third quarter earnings are in line with our expectations. From quarter to quarter and in the fiscal year to date, we have shown improvement in both contract revenues and operating income.
 "As anticipated, however, our third quarter results were impacted by the company's initial public offering of $125,000,000 of debt and 3.4 million shares of equity securities and related transactions all of which were consummated in April 1993."
 For the nine months ended June 30, 1993, Envirotest's revenues increased to $63.8 million from $32.6 million, and operating income was up from $6.4 million to $15.5 million. Income before accounting for extraordinary items increased to $4.7 million, or $.29 per share, from $960,000, or $0.08 per share a year ago. Due to extraordinary items, for the nine month period, the company reported a net loss of $6.7 million, as compared to a net loss of $792,000 for the same period a year ago.
 Mr. Davenport said, "During this past quarter, several significant events occurred which enhance our competitive position in the marketplace.
 --The company acquired the exclusive worldwide licensing rights for Remote Sensing Technology (RST), the vehicle pollution testing technology developed at the University of Denver;
 --We settled to our satisfaction the litigation against Snap-on Tools Corporation, Sun Electric Corporation, Snap-on's Systems Control Inc. (SCI) and SCI's President F. Robert Miller; and
 --We signed a commitment letter with the Union Bank of Switzerland to provide a $100 million revolving senior credit facility, subject to negotiation and execution of definitive loan documents.
 Envirotest Systems Corp. is the leading provider of centralized vehicle emissions testing programs for states and municipalities. In addition, Envirotest is the only domestic provider of contractor- operated centralized testing services outside the United States.
 ENVIROTEST SYSTEMS CORP.
 Condensed Consolidated Statements Of Operations
 (Unaudited, in thousands except per share data)
 Periods ended Three months Nine months
 June 30, 1993 1992 1993 1992
 Contract revenues $22,167 $18,918 $63,854 $32,644
 Cost of services 12,451 9,567 37,727 18,438
 Gross profit 9,716 9,351 26,127 14,206
 SG&A expenses 3,307 2,158 8,242 3,827
 Amortization expense 810 766 2,432 1,460
 Consolidation expense --- 2,500 --- 2,500
 Operating income 5,599 3,927 15,453 6,419
 Other expense (income):
 Interest expense 3,343 3,209 9,901 5,635
 Other (183) (19) (195) (45)
 Minority interest (1,021) --- (2,076) ---
 Income bef. income taxes
 and extraordinary item 3,460 737 7,823 829
 Inc. tax expense (benefit) 1,395 (167) 3,118 (131)
 Inc. bef. extraord. item 2,065 904 4,705 960
 Extraord. loss - early
 extinguishment of debt,
 net of $7,295 and $1,120
 in income taxes 11,411 1,752 11,411 1,752
 Net loss ($9,346) ($848) ($6,706) ($792)
 Income (loss) per common share and
 common equivalent share:
 Inc. bef. extraord. item $0.12 $0.06 $0.29 $0.08
 Extraordinary item (0.66) (0.11) (0.69) (0.14)
 Net loss ($0.54) ($0.05) ($0.41) ($0.06)
 Weighted average common
 shares and common
 equivalent shares 17,340 15,512 16,507 12,457
 -0- 8/16/93
 /CONTACT: Robert Siegfried or Richard J. Wolff of Kekst and Company, 212-593-2655/
 (ENVI)


CO: Envirotest Systems Corp. ST: Arizona IN: SU: ERN

MP -- NY094 -- 3261 08/16/93 16:45 EDT
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Date:Aug 16, 1993
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