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INTERNATIONAL TECHNOLOGY ANNOUNCES FISCAL YEAR 1992 RESULTS

 INTERNATIONAL TECHNOLOGY ANNOUNCES FISCAL YEAR 1992 RESULTS
 TORRANCE, Calif., May 21 /PRNewswire/ -- International Technology Corporation (IT) (NYSE: ITX) announced today revenues from continuing operations of $420.5 million for the fiscal year ended March 31, 1992. For the year, IT reported income from continuing operations of $8.9 million, or 27 cents per share, compared with $14.6 million, or 44 cents per share for the prior year. Income from continuing operations for fiscal year 1992 included several nonrecurring items, including charges related to the defense and ultimate settlement of the Cal Nev pipeline rupture lawsuits of $4.2 million ($2.9 million recorded in the fourth quarter) and restructuring costs of $7.0 million recorded in the fourth quarter. Also included is a nonrecurring gain previously reported in the second quarter from the sale of the company's investment in Excel Limited common stock of $7.3 million. Excluding these nonrecurring items, income from continuing operations would have been $12.5 million or 37 cents per share for fiscal year 1992.
 Financial results have been reclassified to reflect the recently sold manufacturing operations of Pollution Control Systems (PCS) as discontinued operations. Income from the discontinued manufacturing operations of PCS for fiscal year 1992 was $2.1 million or 6 cents per share ($1.3 million or 4 cents per share in 1991) and the gain from disposition was $13.1 million or 39 cents per share. In addition, the company recorded an increase in the provision for loss on disposition of its discontinued transportation, treatment and disposal business of $32.7 million (net of related tax benefits) or 98 cents per share in the fourth quarter of fiscal year 1992. The provision for the loss included the write-off of IT's investment of $30.4 million in the disposal and transportation operations of Laidlaw Environmental Services of California (Laidlaw). The remaining loss represents expected costs related to sites for which IT has been named as a potentially responsible party (PRP) and an anticipated increase in costs related to the closure of IT's disposal sites in Northern California, principally due to delays in the regulatory approval process. Although the exercise price of IT's investment in Laidlaw is based on a formula related to Laidlaw's cumulative earnings through Aug. 31, 1992, Laidlaw's continued negative operating trends indicate it is not likely that their operating results would improve to allow the recovery of any significant portion of the carrying value of the investment. Overall, the company reported a net loss for fiscal year 1992 of $8.6 million or 26 cents per share.
 For the fourth quarter of fiscal year 1992, IT revenues from continuing operations were $109.0 million, compared with revenues of $100.2 million for the same quarter of the prior year. The company also had a loss from continuing operations of $6.7 million, or 20 cents per share, compared with income of $3.0 million, or 9 cents per share, for the same period of the prior year. The loss included the nonrecurring charges related to litigation and restructuring discussed above. Excluding these nonrecurring charges, income from continuing operations in the quarter would have been $2.2 million or 7 cents per share.
 The restructuring charge was a result of a comprehensive evaluation of operational capacity, productivity and overhead costs. Actions resulting from this evaluation included staff reductions, facility closures of unproductive engineering and lab facilities, related asset write-offs, and strengthening of senior operating management in our engineering, laboratory and sales organizations. In addition, several organization changes were implemented to focus on pollution control engineering, groundwater services (UST), air, and RCRA corrective action programs which are emerging key market areas within Environmental Engineering and Services.
 All of the company's business areas reflect a continuing shift to higher government revenues as a result of increased spending and IT's successful DOD and DOE government programs. Environmental Engineering and Services utilization and operating margins returned to expected levels in the fourth quarter. Operating margins also improved in the quarter in Analytical Services, principally due to improved results in the radiochemical labs. Construction and Remediation Services performed well during the year; however, the fourth quarter results were lower than expected due to seasonal operations in the Northeast and the impact of the recessionary climate which persisted in the West.
 As a result of the nonrecurring charges recorded in the fourth quarter, the company is not in compliance with certain covenants of its secured debt and revolving credit agreements. Modifications to credit agreements which would allow the company to maintain compliance with amended terms are currently being negotiated with IT's lenders.
 In connection with a secondary public offering on April 1, 1992, the company sold its options in Exel Limited resulting in a pretax gain of $3.5 million which will be reported in the first quarter of fiscal year 1993.
 "During the fourth quarter, management addressed operating and overhead costs issues and resolved other uncertainties, positioning the company for improved operating results in fiscal year 1993," said Murray H. Hutchison, chairman and chief executive officer. "The completion of the sale of the manufacturing operations of PCS is consistent with IT's long-term strategy and provided increased liquidity."
 International Technology Corporation. based in Torrance, Calif, is a leading environmental management company providing services to government and industry.
 INTERNATIONAL TECHNOLOGY CORPORATION
 Condensed Consolidated Statements of Income
 (In thousands, except per share data)
 Periods ended: Quarter Fiscal year
 March 31 1992 1991 1992 1991
 (Unaudited)
 Revenue $108,970 $100,213 $420,453 $373,085
 Operating income (loss) (4,742) 5,520 12,047 24,844
 Other income -- -- 7,285 --
 Interest expense, net (2,688) (2,106) (9,610) (7,438)
 income (loss) from continuing
 operations before income
 taxes (7,430) 3,414 9,722 17,406
 Provision (benefit) for
 income taxes (757) 413 827 2,788
 Income (loss) from
 continuing operations (6,673) 3,001 8,895 14,618
 Discontinued operations
 (net of income taxes):
 Income (loss) from operations:
 Pollution control
 manufacturing (806) 381 2,147 1,293
 Gain (loss) control from
 disposition:
 Pollution control
 manufacturing 13,088 -- 13,088 --
 Transportation, treatment
 and disposal (32,720) -- (32,720) --
 Net income (loss) (27,111) 3,382 (8,590) $15,911
 Net income (loss) per share:
 Continuing operations ($0.20) $ 0.09 $0.27 $0.44
 Discontinued operations (0.02) 0.01 0.06 0.04
 From operations (0.59) -- (0.59) --
 From dispositions (0.81) 0.10 0.26 0.48
 Average common and common
 equivalent shares outstanding
 (in thousands) 33,363 33,559 33,425 33,401
 -0- 5/21/92
 /CONTACT: Pat Boldt or Anthony J. DeLuca of International Technology, 310-378-9933/
 (ITX) CO: International Technology Corporation ST: California IN: SU: ERN


TQ-TS -- NY008 -- 2652 05/21/92 09:02 EDT
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Date:May 21, 1992
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