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 NORWOOD, Mass., Nov. 18 /PRNewswire/ -- Groundwater Technology, Inc. (NASDAQ-NMS: GWTI), a leading environmental consulting and remediation firm, today reported second quarter and six month results for the period ending Oct. 30, 1993.
 Gross revenues for the second quarter of fiscal 1994 were $43.2 million, compared to gross revenues of $43 million in the same quarter last year, restated for discontinuation of manufacturing operations. Net revenues were $30.2 million for the three month period, down 6% from $32.2 million for the corresponding period last year. Net income for the three month period was $803,000, or 11 cents per share, compared to $1.8 million, or 24 cents per share, for the same period last year.
 For the six months ended October 30, 1993, gross revenues were $83.3 million, down 5 percent from $88 million a year earlier. Net revenues for the first six months of fiscal 1994 were $59.2 million, an 11 percent decrease from $66.7 million for the same period in fiscal 1993. A loss of $3.6 million, or 46 cents per share, for the first six months of fiscal 1994 (of which 22 cents relates to the loss from discontinued operations recorded in the first quarter) compares with earnings of $3.9 million, or 50 cents per share, for the same period last year.
 Management noted that the gross revenues reported for the second quarter reverses the trend of the past five quarters in which gross revenues declined from the same period of the prior year. Furthermore, the 8 percent increase in gross revenues in the second quarter from $40.1 million in the first quarter represents the first such increase, quarter over quarter, since the fourth quarter of fiscal 1992.
 Commenting on the second quarter results, Walter C. Barber, chief executive officer and chairman stated, "We are cautious in our optimism regarding the second quarter results. The increase in gross revenues, as well as our ability to earn operating income while we continue to reduce costs in connection with the restructuring plan announced at the end of the first quarter are positive signs. We are particularly pleased with recent information which documents improved utilization and productivity in our operations. While the market remains difficult, we are confident that through continued management attention to the execution of the reorganization plan and the sustained commitment of our dedicated employees, the company will achieve the goals identified in our first quarter release."
 The company has an ongoing Stock Repurchase Program which authorizes the repurchase of up to 2,800,000 shares of its common stock from time to time through open market purchases. The company has purchased approximately 781,500 shares since the beginning of this program of which approximately 155,000 were purchased during the second quarter.
 (In thousands, except per share amounts)
 Thirteen weeks ended Twenty-six weeks ended
 Oct. 30, Oct. 31, Oct. 30, Oct. 31,
 1993 1992(a) 1993 1992(a)
 Gross revenue $43,168 $42,998 $83,258 $87,990
 Cost of subcon-
 tracted services 12,943 10,800 24,015 21,288
 Net revenue 30,225 32,198 59,243 66,702
 Cost of net revenue 20,407 19,738 40,035 40,551
 Gross profit 9,818 12,460 19,208 6,151
 Selling, general and
 administrative (9,531) (9,672) (18,880) (19,824)
 Provision for restruct-
 uring and consolidation -- -- (5,000) --
 Licenses and other inc. 445 54 768 157
 Inc. (loss) from
 continuing operations 732 2,842 (3,904) 6,484
 Investment income, net 483 409 849 855
 Other inc. (expense), net 77 35 72 91
 Inc. (loss) from
 continuing opers. before
 provision for inc. taxes 1,292 3,286 (2,983) 7,430
 Provision (benefit) for
 income taxes 489 1,284 (1,094) 2,904
 Inc. (loss) from
 continuing operations 803 2,002 (1,889) 4,526
 Loss from opers. of
 discontinued manufact-
 uring opers., net of
 tax benefit -- (160) (605) (581)
 Loss on disposal of
 manufacturing opers.,
 net of tax benefit -- -- (1,058) --
 Net income (loss) $803 $1,842 $(3,552) $3,945
 Earnings (loss) per
 common share:
 Income (loss) from
 continuing opers. .11 .26 (.24) .57
 Loss from
 discontinued opers. -- (.02) (.22) (.07)
 Total $.11 $.24 $(.46) $.50
 Weighted avg. shares
 outstanding 7,610 7,763 7,647 7,852
 (a) - Reflects reclassification of costs from selling, general and administrative to cost of net revenue for certain costs related to direct labor personnel.
 - Reflects reclassification of discontinued manufacturing operations.
 -0- 11/18/93
 /CONTACT: Robert E. Sliney, Jr., chief financial officer of Groundwater Technology, 617-769-7600/

CO: Groundwater Technology, Inc. ST: Massachusetts IN: ENV SU: ERN

DJ -- NE003 -- 5859 11/18/93 08:27 EST
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Publication:PR Newswire
Date:Nov 18, 1993

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