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F&E RESOURCE SYSTEMS TECHNOLOGY ANNOUNCES 1991 EARNINGS

 F&E RESOURCE SYSTEMS TECHNOLOGY ANNOUNCES 1991 EARNINGS
 LAUREL, Md., April 9 /PRNewswire/ -- F&E Resource Systems Technology, Inc. (FERST) (NASDAQ: FERS) today announced earnings for the year ended Dec. 31, 1991. Net earnings for the year were $511,000, or 10 cents per share, compared to a net loss of $373,539, or 9 cents per share, for 1990.
 In reporting earnings, Ronald W. Pickett, president and CEO noted: "I am pleased to report to our stockholders that our company has returned to profitability. We recognized several years ago that our incinerator business, while a viable technology, would not allow the growth in sales and earnings we believed necessary. Expanding our scope to include the development and operation of recycling and composting systems was an important step that now appears to have taken hold.
 "During 1991 we obtained $42 million in funding and began construction of our Baltimore solid waste recycling and composting facility. With receipt of the developer's fee on this project our operations have turned the corner. Our next project, development and operation of a facility in Prince George's County, Md., similar to the Baltimore project, is moving forward. We anticipate that financing will be received shortly with construction beginning soon thereafter.
 "Also in 1991 we acquired approximatley 421 acres in St. Mary's County, Md., to support our Baltimore and Prince George's operations and for use as a Forest Products Recycling Facility and Land Clearing Debris Landfill. To cap a very positive year, our common shares are now traded on NASDAQ. In early 1992 our conditional listing, provided us in late 1991, was upgraded to regular listing status."
 F&E Resource Systems Technology, Inc., is a developer of recycling and composting facilities. The company is traded on NASDAQ under the symbol FERS.
 F&E RESOURCE SYSTEMS TECHNOLOGY, INC.
 Consolidated Statements of Operations
 Years Ended Dec. 31,
 1991 1990 1989
 REVENUES
 Development Income(B) $1,550,182 $ -- $ --
 Sales of Replacement
 Parts 204,156 285,559 310,293
 Total 1,754,338 285,559 310,293
 EXPENSES
 Operating Expenses 593,103 105,189 128,313
 Selling, General
 and Administrative 540,810 490,264 364,975
 Interest Expense 70,341 55,598 29,829
 Other Expense (Income) 39,040 8,047 (46,735)
 Total 1,243,294 659,098 476,382
 Income (Loss)
 Before Income Taxes 511,044 (373,539) (166,089)
 Income Tax Expense(C) -- -- --
 NET EARNINGS (LOSS) $ 511,044 $(373,539) $(166,089)
 Earnings (Loss) Per Share
 (Primary and Fully
 Diluted) $.10 $(.09) $(.04)
 Weighted Average
 Number of shares
 outstanding 5,155,567 4,371,840 4,049,340
 The accompanying notes are an integral part of these statements.
 F&E RESOURCE SYSTEMS TECHNOLOGY, INC.,
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (A) -- Summary of Accounting Policies:
 The consolidated financial statements include the accounts of F&E Resource Systems Technology, Inc. (FERST), and its wholly owned subsidiaries: F&E Resource Systems Technology for Baltimore, Inc.; FERST for St. Mary's, Inc.; F&E Resource Systems Technology for Prince George's, Inc.; FERST O&M, Inc.; PG FERST O&M, Inc.; and Chemical Road Investments, Inc., as well as the accounts of Baltimore FERST Limited Partnership (the "Partnership") in which FERST's subsidiary, FERST for Baltimore, Inc., is a general partner (collectively "The Company"). Significant inter-company transactions have been eliminated in consolidation.
 (B) -- Development Income:
 Baltimore FERST Limited Partnership was formed in July 1991 for the purpose of building a municipal solid waste recycling and composting facility in Baltimore. The limited partners loaned the partnership $7.1 million and an additional $35.5 million was borrowed from the Maryland Energy Financing Administration. The partnership has contracted with T.S.A.S.C., Inc., to construct the facility through a turnkey agreement at a fixed price of $28,250,000. FERST O&M, Inc., will operate and maintain the facility for a period of five years at a contract price of $2.2 million during the initial year, renewable at the option of the partnership. The partnership also has contracted with Browning-Ferris, Inc., for the supply of waste to the facility on a put-or-pay basis for a period of 15 years.
 In connection with the beginning of construction of the Baltimore facility, the company received a development fee of $1.4 million as reimbursement for efforts expended prior to formation of the limited partnership. Deferred project costs relating to these efforts in the amount of $517,000 were charged to expense. In addition, the company will receive $10,000 per month plus reimbursement for general and administrative expenses associated with project construction monitoring. Development fees amounting to $268,000 were also received in connection with the St. Mary's Project.
 A portion of the development fees received is allocable to the company's ownership interest in the profits and losses of the partnership (14 percent at Dec. 31, 1991) which as been deferred in consolidation. These fees will be amortized into income over the depreciable life of the facility once construction is completed.
 (C) -- Income Taxes:
 The company adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," effective with the year ended Dec. 31, 1991. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant. At Dec. 31, 1991, the company had net operating loss carry-forwards of approximately $900,000. The deferred tax asset related to this carryforward in the amount of $350,000 was fully reserved; therefore there was no effect on the results of operations for the year ended Dec. 31, 1991.
 -0- 4/9/92
 /CONTACT: Ronald W. Pickett, president and CEO, or James S. Schaefer, chief financial officer, F&E Resource Systems Technology, 410-354-3000/
 (FERS) CO: F&E Resource Systems Technology, Inc. ST: Maryland IN: SU: ERN


DC -- DC043 -- 7000 04/09/92 17:53 EDT
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Date:Apr 9, 1992
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