ITS ANNOUNCES SECOND QUARTER RESULTS
ITS ANNOUNCES SECOND QUARTER RESULTS HOUSTON, March 30 /PRNewswire/ -- International Testing Services,
Inc. (OTC: ITSS) (ITS) announced today that it had income before extraordinary gain for the three months ended Jan. 31, 1992 of $1,000 or breakeven on a per share basis compared to a loss of $62,000 for the three months ended Jan. 31, 1991. For the six months ended Jan. 31, 1992, ITS had income before extraordinary gain of $194,000 or $0.08 per share compared to a loss of $165,000 for the six months ended Jan. 31, 1991.
ITS was formed in July 1990 to acquire and operate Technical Welding Laboratory, Inc. (TWL), Edwards Pipeline Testing, Inc. (EPT) and Century Inspection, Inc. (Century). Since these acquisitions were effective for accounting purposes on March 31, 1991, ITS had no revenues during the second quarter and first six months ended Jan. 31, 1991 and its earnings per share for these prior year periods were not meaningful. In addition to completing the acquisitions of TWL, EPT and Century, ITS completed an initial public offering of stock during August 1991 and closed the acquisition of Cleveland X-Ray Inspection, Inc. (Cleveland) on Dec. 31, 1991. On a pro forma basis, presented as if the Cleveland acquisition and the offering had occurred at the beginning of fiscal 1992, income before extraordinary gain was $444,000 or $0.19 per share on revenues of $14,965,000 for the first six months of fiscal year 1992. These results compared to income before extraordinary gain of $537,000 or $0.23 per share on revenues of $8,598,000 for the first six months of fiscal 1991 based on a pro forma presentation which assumes the acquisitions of TWL, EPT and Century and the completion of the offering at the beginning of fiscal 1991. "Pro forma revenues and gross profit during both the second quarter and six months ended Jan. 31, 1992 show increases over comparable pro forma results for the same periods last year," said William Flesner, ITS president and chief executive officer. "While most of the increases are due to the impact of the Cleveland acquisition, both our in-plant NDT and pipeline x-ray inspection service segments had higher revenues," added Flesner. In commenting on the breakeven results for the second quarter, Flesner said, "We had previously predicted that earnings would be flat for the second quarter due to increased G&A expenses associated with the establishment of corporate offices to support the company's plans for acquisition and growth and expenses related to becoming a public company." ITS, with headquarters in Houston, is an environmental and safety company engaged in non-destructive testing services for the petrochemical, refining and pipeline industries. ITS's common stock is listed on the Pacific Stock Exchange (symbol ITS) and over-the-counter on NASDAQ (symbol ITSS). INTERNATIONAL TESTING SERVICES, INC. Consolidated Statements of Operations (In thousands, except per share amounts - Unaudited) Periods ended Three Months Six Months Jan. 31 1992 1991 1992 1991 Revenues $4,164 -- $9,896 -- Direct costs 3,046 -- 6,967 -- Subcontract costs 32 -- 487 -- Gross profit 1,086 -- 2,442 -- General and administrative expenses 953 53 1,876 156 Operating income (loss) 128 (53) 566 (156) Other expenses: Interest expense 107 9 241 9 Other, net 4 -- 12 -- Income (loss) before income taxes and extraordinary gain 17 (62) 313 (165) Provision for income taxes 16 -- 119 -- Income (loss) before extraordinary gain 1 (62) 194 (165) Extraordinary gain -- -- 26 -- Net income (loss) 1 $(62) $220 $(165) Shares outstanding 2,454 2,353 Income per common share before extraordinary gain -- (A) $0.08 (A) Net income per common share -- (A) $0.09 (A) (A) Earnings per share data have been omitted as not meaningful because of the significant changes in the company's equity occurring in August and September of 1991. -0- 3/30/92 /CONTACT: Tammy Winders of International Testing Services, 713-591-8880/ (ITSS) CO: International Testing Services, Inc. ST: Texas IN: SU: ERN SM -- NY101 -- 3125 03/30/92 18:03 EST
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|Date:||Mar 30, 1992|
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