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 Organizational Restructuring Will Positively Impact
 Operations Over The Next Year
 TORRANCE, Calif., May 20 /PRNewswire/ -- International Technology Corp. (NYSE: ITX) (IT) today announced that -- excluding special charges taken for such actions as operational restructuring, litigation settlement and additional reserves for the company's discontinued transportation, treatment and disposal business -- operating results for its fourth quarter were consistent with prior quarters' performance and results for both the quarter and the full year were substantially in-line with analysts' expectations.
 Robert B. Sheh, president and chief executive officer of IT, said, "Streamlining the organization, reducing costs and increasing marketing efficiency, combined with ongoing process improvements, are key parts of our plan to improve profitability and position IT as the market leader in environmental management. With our wealth of technical resources more focused on our core businesses, we will provide better services for our clients, increased value for our shareholders and greater satisfaction for our associates." Sheh added, "Complementary with our streamlining efforts, we are exploring options to reduce debt as well as improve our capital structure and liquidity to make IT more competitive and to provide opportunities for long-term growth. We will complete this activity during fiscal year 1994."
 Fourth Quarter Results
 In the quarter, IT revenues were $103.5 million, compared with revenues of $109.0 million for the same quarter of the prior year. The company had a loss from continuing operations of $4.7 million, or $.13 per share, compared with a loss of $6.7 million, or $.20 per share, for the same period of the prior year. Excluding special charges related to litigation and restructuring, income from continuing operations in the quarter was $1.9 million, or $.06 per share. Including $16.2 million of special charges, the net loss for the quarter was $11.5 million or $.33 per share.
 The company said that in its fourth quarter it:
 -- Realigned its organizational structure to better respond to the changing marketplace which is transitioning from study and assessment activities to remedial design engineering and remediation/construction. The company combined the operations of its environmental engineering, groundwater and remediation services businesses to form an integrated environmental services group. The new group will be organized into three regions led by senior managers with significant combined experience in the industry. Economies will be gained by the consolidation of offices and the elimination of excess capacity, duplicative operating management and administrative support overhead.
 -- Reorganized its business development resources into a matching regional structure to promote a more market-directed and efficient development effort.
 -- Refocused the company's resources on its U.S. business. As a result of this shift in emphasis, the company sold or closed several businesses/offices in Europe. The company, however, believes that, the international market will be strong long-term and is pursuing opportunities on a project basis. These actions resulted in a pretax restructuring charge of $8.4 million in the quarter.
 A pretax charge of $1 million was also incurred in the quarter related to legal and other administrative costs associated with shareholder litigation, including the previously announced settlement of a class action lawsuit.
 Additionally, the company recorded an increase in the provision for loss on disposition of its discontinued transportation, treatment and disposal business of $6.8 million. This increased provision principally relates to estimated additional costs resulting from delays in the regulatory approval process and associated closure plan revisions pertaining to the closure of IT's disposal sites in Northern California. During the quarter, the company completed closure of the Benson Ridge site and continued to make progress towards the closure of its two remaining sites.
 Sheh said that the company's fourth quarter operating results continue to reflect weakness in the economy, particularly in the commercial sector. "However, demand for government programs is expected to remain strong," he said. "IT is well-positioned to capitalize on this opportunity." Sheh added the company's backlog has remained at solid levels and is $391 million at March 31, 1993. He said continued cost containment efforts led to a reduction in selling, general and administrative expenses in the quarter.
 IT said that it has obtained waivers with respect to technical violations of certain covenants in its revolving credit facility resulting from the special charges taken in its fourth quarter and has begun negotiations with its banks concerning an amendment and extension of its credit facility which is scheduled to expire in July 1994. The company is also currently negotiating a modification to a similar covenant in its equipment loan agreement.
 Year-End Results
 For the year, revenues were $410.5 million, compared with prior- year revenues of $420.5 million. The loss from continuing operations -- including special pretax charges in the first, third and fourth quarters with a net effect of $14.2 million -- was $2.1 million or $.06 per share, compared with income of $8.9 million or $.27 per share for the prior year. Excluding special charges, income from continuing operations for the year was $8.0 million, or $.24 per share. The company reported net income for the year of $309,000, or $.01 per share. Included in this figure were losses from discontinued operations of $10.6 million and a gain from the cumulative effect of the adoption of SFAS 109 - accounting for income taxes, of $13.0 million. Last year, the company reported a net loss of $8.6 million, or $.26 per share, which included a $17.5 million net loss from discontinued operations.
 IT said its annual meeting of shareholders will be held Sept. 9, 1993, at the Sheraton Grande Hotel in Los Angeles.
 International Technology Corp., based in Torrance, is a leading environmental management company providing services to government and industry. The company's common stock is traded on the New York Stock Exchange under the symbol ITX.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 Quarter ended Fiscal year ended
 March 31, March 31,
 1993 1992 1993 1992
 Revenue $103,497 $108,970 $410,539 $420,453
 income (loss) (3,031)(a) (4,742)(b) 15,991(a) 12,047(b)
 Other income
 (expense), net (1,000) --- (5,798)(c) 7,285(d)
 Interest expense,
 net (2,622) (2,688) (11,115) (9,610)
 Income (loss)
 from continuing
 operations before
 income taxes (6,653) (7,430) (922) 9,722
 benefit for
 income taxes 2,000 757 (1,160) (827)
 Income (loss)
 from continuing
 operations (4,653) (6,673) (2,082) 8,895
 (net of income
 Income (loss)
 from operations:
 Pollution control
 manufacturing --- (806) --- 2,147
 Gain (loss)
 from disposition:
 Pollution control
 manufacturing --- 13,088 (3,809) 13,088
 and disposal (6,800) (32,720) (6,800) (32,720)
 Net income (loss)
 before cumulative
 effect of change
 in accounting for
 income taxes (11,453) (27,111) (12,691) (8,590)
 Cumulative effect
 of change in
 accounting for
 income taxes --- --- 13,000 ---
 Net income
 (loss) ($11,453) ($27,111) $309 ($8,590)
 Net income (loss)
 per share:
 operations ($.13) ($.20) ($.06) $.27
 From operations --- (.02) --- .06
 From disposition (.20) (.59) (.32) (.59)
 Total (.33) (.81) (.38) (.26)
 Cumulative effect
 of change in
 accounting for
 income taxes --- --- .39 ---
 Total ($.33) ($.81) $.01 ($.26)
 Average common
 and common
 equivalent shares
 (in thousands) 34,459 33,363 33,530 33,425
 (a) Includes $8,378 restructuring charge in the fourth quarter of fiscal year 1993.
 (b) Includes $6,997 restructuring charge in the fourth quarter of fiscal year 1992, and $4,200 charge related to settlement of Calnev lawsuit ($2,900 recorded in the fourth quarter of fiscal year 1992).
 (c) Includes a $3,483 gain from the sale of EXEL Ltd. stock options in the first quarter of fiscal year 1993 and $7,300 of charges related to the settlement of shareholder litigation ($6,300 in the third quarter of fiscal year 1993 and $1,000 in the fourth quarter) and $1,981 related to the writeoff of costs invested in a U.K. joint venture in the third quarter of fiscal year 1993.
 (d) Represents a $7,285 gain from the sale of EXEL common stock in the second quarter of fiscal year 1992.
 -0- 5/20/93
 /CONTACT: Anthony J. DeLuca or Pat Boldt of International Technology, 310-378-9933/

CO: International Technology Corp. ST: California IN: CPR SU: ERN

LS-JL -- LA015 -- 0588 05/20/93 08:16 EDT
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Publication:PR Newswire
Date:May 20, 1993

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