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 PHILADELPHIA, Jan. 10 /PRNewswire/ -- O'Brien Environmental Energy (AMEX: OBS), a leading energy project developer, today reported results for the fourth quarter and year ended June 30, 1993, and for the first quarter of the fiscal year ending June 30, 1994.
 Fourth quarter loss for fiscal 1993 was $15,699,000 or 93 cents per share on revenues of $21,187,000, compared with net income of $715,000 or four cents per share on revenues of $26,332,000 in the fourth quarter of fiscal 1992.
 For fiscal 1993, the company lost $13,711,000 or 82 cents per share on revenues of $97,692,000, compared with net income of $850,000 or six cents per share on revenues of $100,115,000 in fiscal 1992.
 First quarter loss for fiscal 1994 was $2,190,000 or 13 cents per share on revenues of $29,650,000, compared with net income of $2,964,000 or 18 cents per share on revenues Of $27,184,000 in the first quarter of 1993.
 The company also announced that losses for the second quarter, ended Dec. 31, 1993, are estimated at between $5 million and $6 million on revenues of approximately $21 million.
 Joel Cooperman, vice president of finance, said, "The losses for the fourth quarter of fiscal 1993 and the first six months of fiscal 1994 total approximately $24 million. Of this loss, approximately 10 percent is related to an FASB 109 tax provision and 65 percent is related to non-recurring charges, insurance claims not yet collected and restructuring-related writedowns."
 Cooperman went on to say, "The loss for fiscal 1993 is lower than the $15 million to $20 million originally estimated in September 1993 because the company included only $3 million of the aggregate $10 million FASB 109 provision in fiscal 1993. The remaining provision of $7 million has been retroactively included in fiscal 1992, fiscal 1991 and fiscal 1990. Had the company elected to take the entire loss resulting from the implementation of FASB 109 in fiscal 1993, the year end loss would total approximately $20 million."
 He stated that, "The decision of how to equitably reflect the FASB 109 charge as well as the non-recurring charges and restructuring activities primarily accounted for the delay in release of these numbers. Now that this is completed, we expect the auditors to complete their audit and anticipate that the Form 10-K for fiscal 1993 will be filed with the Securities and Exchange Commission during the week of Jan. 24, 1994. The Form 10-Q for the first quarter of fiscal 1994 is expected to be filed by the end of February."
 He noted that there have been several recent positive developments: the company has settled on three of its five project-related lawsuits with Hawker Siddeley (the Newark Boxboard settlement was previously announced in July 1993); in October 1993, the company settled its Hartford and Artesia project litigation with the majority of the settlement funds being provided by the company's partner in these projects; in November 1993, the company announced a $5 million financing with a private investor; in January 1994, the company entered into an agreement with National Westminster Advisory to seek refinancing of the Newark project under more favorable terms than are in place; the company has recently been awarded two new projects, the first of which is a 14 megawatt Demand-Side Management Project with the Philadelphia Airport Authority; the second project is a Landfill BioGas Project with the Hackensack Meadowlands Development Corp.; the company is reducing overhead by the elimination of staff as part of a restructuring program; the company entered into an option to exclusively negotiate the sale of the major portion of its BioGas Division to a third party; the company received a term sheet to finance the $50 million Grays Ferry Phase I Cogeneration Project. Furthermore, the company continues to work with Salomon Brothers in the restructuring of its business and with NatWest in the refinancing of the Newark project. Particulars of these transactions will be announced after the completion of the Form 10-K.
 "We are pleased that these losses are behind us. Since refinancing and restructuring efforts may have a positive impact on the third and fourth quarter fiscal 1994 results, the company is not in a position to make any projections for the balance of the fiscal year at this time," Cooperman added.
 Comparative Analysis
 Periods ended Three Months Year
 June 30 1993 1992 1993 1992
 Revenues $21,187,000 $26,332,000 $97,692,000 $100,115,000
 Income (loss)
 before income
 tax (14,949,000) 1,465,000 (10,633,000) 3,850,000
 Income tax (750,000) (750,000) (3,078,000) (3,000,000)
 Net income
 (loss) (15,699,000) 715,000 (13,711,000) 850,000
 Earnings (loss)
 per share ($.93) $.04 ($.82) $.06
 Average number
 of shares
 outstanding 16,855,000 16,776,000 16,821,000 14,911,000
 Comparative Analysis (Unaudited)
 Three months ended Sept. 30 1993 1992
 Revenues $29,650,000 $27,184,000
 Income (loss) before
 income taxes (1,440,000) 3,714,000
 Income tax (750,000) (750,000)
 Net income (loss) (2,190,000) 2,964,000
 Earnings (loss)
 per share ($.13) $.18
 Average number of shares
 outstanding 16,871,000 16,786,000
 -0- 1/10/94
 /CONTACT: Andy Goldwater of O'Brien Environmental Energy, 215-627-5500/

CO: O'Brien Environmental Energy ST: Pennsylvania IN: ENV SU: ERN

CK-WB -- NY096 -- 0768 01/10/94 18:45 EST
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Publication:PR Newswire
Date:Jan 10, 1994

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