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GZA GEOENVIRONMENTAL TECHNOLOGIES REPORTS THIRD QUARTER FY92 RESULTS

GZA GEOENVIRONMENTAL TECHNOLOGIES REPORTS THIRD QUARTER FY92 RESULTS
 NEWTON UPPER FALLS, Mass., Jan. 9 /PRNewswire/ -- GZA GeoEnvironmental Technologies, Inc. (NASDAQ: GZEA) today announced a restructuring of its operations and a downsizing of its indirect subsidiary, Grover Enterprises, Inc. that will result in a one-time accounting charge of 32 cents per share. The company is restructuring the reporting relationships of the senior management of its consulting/ engineering and remediation subsidiaries in order to more effectively integrate remedial design and remedial action services. The restructuring is part of a strategy to improve profitability by placing more emphasis on negotiated turnkey services in which a remedial action assignment is the natural outgrowth of a remedial design/consulting assignment.
 As a result of this shift in emphasis away from hard-bid remedial projects, the company will downsize its indirect subsidiary, Grover Enterprises, an earthwork and general contracting firm acquired in September of 1990. The one-time accounting charge reflects recognition of the expenses for the buy-out of leases, equipment writedowns, and other costs associated with this downsizing of Grover.
 Commenting on the restructuring and the downsizing of Grover Enterprises, Donald T. Goldberg, chief executive officer, stated: "The market for remedial action projects that fully utilize Grover's equipment has been slower to develop and more competitive than was originally contemplated. By reducing our equipment levels to more closely match our current needs, we can reduce our ongoing costs and improve long-term profitability. By building off our established consulting base and focusing on the remedial action assignments which are a natural follow-on to this consulting work, we plan to improve profitability. While this one-time charge represents a significant expense, we felt it necessary to take strong action now to effectively position the company for the long term."
 The company also released its earnings for the quarter and the nine months ended Nov. 30, 1991. Net revenues for the third quarter of fiscal 1992 were $9.1 million, compared to $8.6 million last year. The company reported a net loss, including the one-time charge, for the third quarter of $1.1 million or 31 cents per share, compared to net income of $429,000 or 12 cents per share, in the third quarter of last year. For the nine months ended Nov. 30, 1991, net revenues were $26.9 million compared to $26.5 million for the first nine months of last fiscal year. The net loss for the first nine months of fiscal 1992 was $1.5 million, or 40 cents per share, compared to net income of $1.7 million, or 46 cents per share, for the comparable nine-month period last year.
 The company attributed the decline in third quarter earnings primarily to the one-time charge associated with the restructuring of operations and the downsizing of the Grover Enterprises indirect subsidiary. In addition to this one-time charge, earnings for the year were also negatively affected by the following factors: (1) reduced utilization rates of the company's consulting staff largely due to the continuing negative effects of the recession; (2) costs associated with the company's opening of four new offices in the Southwest and New Jersey; (3) establishment of a $250,000 contingency reserve in the second quarter relating to a remediation subcontract in Kittery, Maine; and (4) charges in the second and third quarters totaling $630,000 for projected cost overruns on several projects, including the Kittery, Maine, subcontract.
 GZA GeoEnvironmental Technologies, Inc. provides a wide spectrum of environmental consulting and remediation services and geotechnical services to private sector companies and public agencies. The common stock of GZA GeoEnvironmental Technologies, Inc. is listed on the National Market System of NASDAQ, symbol GZEA.
 GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
 SUMMARY FINANCIAL DATA
 (Unaudited)
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 Nov. 30 Nov. 30
 1991 1990 1991 1990
 Net revenue $9,075 $8,635 $26,926 $26,481
 Income (loss)
 before income
 tax ($1,637) $697 ($2,181) $2,797
 Net income (loss) ($1,146) $429 ($1,483) $1,720
 Earnings (loss)
 per share (31 cents) 12 cents (40 cents) 46 cents
 Weighted average
 shares outstanding 3,714 3,714 3,714 3,719
 -0- 1/9/92
 /CONTACT: Kim Whelan of GZA GeoEnvironmental, 617-969-0700, x357/ CO: GZA GeoEnvironmental ST: Massachusetts IN: SU: ERN


SH-DD -- NE009 -- 8405 01/09/92 16:51 EST
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