NORTH AMERICAN VENTURES, INC. ANNOUNCES THIRD QUARTER RESULTS
MONTVALE, N.J., Nov. 15 /PRNewswire/ -- North American Ventures, Inc. (NASDAQ: NAVI) announced today the results of its operations for the quarter ended Sept. 29, 1991.
The company's net sales from its wholly owned subsidiary, Butler Service Group, Inc. ("BSG"), were $59.4 million for the third quarter 1991, 18 percent below the $72.0 million sales recorded in the same period last year. Overall lower sales resulted in a net loss of nearly $1.5 million, or 5 cents per share, for the third quarter this year, compared with net income of $1.0 million, or 4 cents per share, for the same quarter last year.
Net sales for the nine months ended Sept. 29, 1991 were $189.7 million, a 19 percent decline from last year's nine-month sales of $235.5 million. The net loss of $3.3 million, or 12 cents per share, for the first nine months of 1991 contrasted with net income of $2.8 million, or 11 cents per share, for the same period last year.
The company's overall financial condition remains generally strong, in spite of the lower operating performance, with a current ratio of 2.25. During the quarter, BSG's revolving credit facility was increased to $18.7 million and extended to Jan. 3, 1993.
Generally unfavorable economic conditions and weakness in the contract services industry continued to affect most of the company's business units and regions as average billable headcount was 16 percent lower than the same period last year. The current period net operating loss reflected the impact of fixed operating costs on the lower sales volume. The company has continued to implement a number of programs toward reducing its overall fixed costs.
The company's chairman, Edward M. Kopko, stated, "We believe that the downsizing by major corporations is an indicator of potential future need for the types of services we provide. As companies seek to maintain smaller permanent staffs, they are expected to turn more to outside contracting to fulfill their work requirements. We are positioned to serve this need."
Butler Service Group, Inc., is a leading domestic and international contract technical services and telecommunications services company. It is principally engaged in the location, recruitment and hiring of a wide variety of skilled engineers and technical personnel to provide services, on a temporary basis, to industrial corporations and other organizations throughout the U.S. and abroad.
NORTH AMERICAN VENTURES, INC.
Summary of Operations
(in thousands except share and per share data)
13 Weeks ended 39 Weeks ended
9/29/91 9/30/90 9/29/91 9/30/90
Net sales $59,388 $72,025 $189,740 $235,500
Cost of services sold 57,276 67,117 181,670 220,436
Income (loss) from operations (1,384) 1,269 (2,873) 4,053
Net income (loss) (1,451) 1,014 (3,285) 2,826
Net income (loss)
per share (5 cents) 4 cents (12 cents) 11 cents
outstanding 26,513,334 25,632,228 26,514,654 25,895,100
SELECTED BALANCE SHEET INFORMATION
(in thousands except share data)
Total current assets $44,315 $53,178
Total assets 72,619 82,234
Total current liabilities 19,697 23,655
Total liabilities 36,073 40,950
Stockholders' equity 36,546 41,284
Issued & outstanding shares 26,485,005 25,406,220
/CONTACT: Cathy D. Shea of North American Ventures, 201-573-8000/
(NAVI) CO: North American Ventures, Inc.; Butler Service Group, Inc. ST: New Jersey IN: TLS SU: ERN KM-DD -- NE013 -- 1633 11/15/91 14:54 EST