ROY F. WESTON, INC. ANNOUNCES 1991 REVENUE AND EARNINGS
ROY F. WESTON, INC. ANNOUNCES 1991 REVENUE AND EARNINGS WEST CHESTER, Pa., Feb. 19 /PRNewswire/ -- Roy F. Weston, Inc.
(NASDAQ: WSTNA) (Weston) today announced net income of $5.1 million for 1991, or $0.58 per share, compared to $2.28 million, or $0.27 per share in 1990, an increase of 124.4 percent.
The company reported record net revenues of $211.3 million, an increase of 18.1 percent over 1990 net revenues of $179 million. Gross revenues increased by 17.3 percent to $315 million from $268.5 million in 1990. Fourth quarter net income in 1991 was $1.3 million or $0.15 per share compared with $524,000 or $0.06 in the previous year. Net revenue rose 23.8 percent to $54.5 million compared with $44 million in the final quarter of 1990. Gross revenue increased 21.4 percent to $83 million from $68.4 million in the fourth quarter of 1990. New contract bookings for 1991 were up 24 percent over 1990. "We are pleased with Weston's strong performance in 1991. During the past year, we were able to manage marketplace shifts caused by the recession by maintaining an appropriate balance among our three major market sectors; federal, industrial and state and local governments," noted A. Frederick Thompson, Ph.D., P.E., chairman of the board. William J. Marrazzo, president and chief executive officer said, "The company did particularly well in the non-thermal side of our remediation/construction business, outperforming all other business groups. "Moreover, with the merger of our remediation/construction business with our concept design and engineering operation, I believe we are in an even better position to serve existing and future clients as the environmental market matures toward turnkey opportunities," Marrazzo said. "In the federal market, we strengthened our position with the U.S. Department of Defense (DOD) and U.S. Department of Energy (DOE) with significant contract awards. Particularly notable is our support of DOD in its base closure efforts at Pease AFB in New Hampshire, the first base to be closed under recent Congressional requirements. Also, we are progressing well on construction of an incinerator at the Rocky Mountain Arsenal in Denver, one of DOD's highest priority cleanups." During the year, Weston initiated work on 12 assignments under a three-year contract with EPA at Research Triangle Park in North Carolina. The contract, a direct result of Clean Air Act legislation, has a potential value of $5.9 million. Marrazzo stated that in spite of prevailing economic conditions, the Company did well in the industrial sector in 1991. There were several significant awards, including a major contract with Lockheed in Burbank, Calif., at a former aircraft manufacturing facility. During 1991, the company strengthened its analytical laboratory network with the purchase of the assets of Canonie Environmental Services Corp., in Stockton, Calif. In the fourth quarter Weston was awarded three contracts, potentially worth $10.3 million, with the Westinghouse Savannah River Co. in Aiken, S.C. to provide analytical laboratory services. "The impact of the recession was greatest in the state and local government market in 1991," Marrazzo said. "However, we made inroads into this market during 1991 by winning some significant contracts including a $1.2 million award to study solid waste generated by the City of Los Angeles. Additionally, we completed a solid waste management plan for the State of North Carolina." Another major win occurred in the fourth quarter when Weston was awarded a five-year $3.2 million contract for phase one work with George A. Tomasso Construction. Weston is performing environmental work in support of the I-91 modernization and bridge replacement project to help the State of Connecticut attain new federal highway standards. Weston's qualifications and experience for this project will be valuable as other states utilize funds from the Surface Transportation Act of 1991. Subsequent phase work could expand the Tomasso project significantly. "We are confident that our investment of time and capital to expand and upgrade our business systems and project management systems will provide our managers with the tools they need to more effectively control their activities and enhance the profitability of our projects," Marrazzo concluded. Weston is a full-service environmental engineering, design and consulting firm providing nationwide analytical laboratory services, consulting and engineering, remediation, facility construction and operations, technical information management and major program management services. The company is headquartered in West Chester, and operates a national network of 45 offices, including Los Angeles, Houston, Chicago, Atlanta, Boston, New York and Washington, D.C. ROY F. WESTON, INC. Earnings Summary (Unaudited; dollars and shares in thousands) Three months ended Dec. 31 1991 Pct. change 1990 Pct. change Gross revenues $83,035 152.3 $68,399 155.3 Direct project costs 28,511 52.3 24,357 55.3 Net revenues 54,524 100.0 44,042 100.0 Expenses: Direct salaries and other operating costs 45,377 83.2 36,663 83.2 General and administrative expenses 6,468 11.9 6,209 14.1 Total 51,845 95.1 42,872 97.3 Income from operations 2,679 4.9 1,170 2.7 Other income (expense) (470) (0.8) (282) (0.7) Income before income taxes 2,209 4.1 888 2.0 Provision for income taxes 862 1.6 364 0.8 Net income 1,347 2.5 524 1.2 Net income per common share $0.15 --- $0.06 --- Weighted average shares outstanding 8,945 --- 8,600 --- 12 months ended Dec. 31 1991 Pct. change 1990 Pct. change Gross revenues $314,992 149.1 $268,518 150.0 Direct project costs 103,713 49.1 89,565 50.0 Net revenues 211,279 100.0 178,953 100.0 Expenses: Direct salaries and other operating costs 172,963 81.8 147,970 82.7 General and administrative expenses 27,199 12.9 25,567 14.3 Total 200,162 94.7 173,537 97.0 Income from operations 11,117 5.3 5,416 3.0 Other income (expense) (2,399) (1.2) (1,547) (0.8) Income before income taxes 8,718 4.1 3,869 2.2 Provision for income taxes 3,596 1.7 1,586 0.9 Net income 5,122 2.4 2,283 1.3 Net income per common share $0.58 --- $0.27 --- Weighted average shares outstanding 8,807 --- 8,543 --- /delval/ -0- 2/19/92 /CONTACT: Robert W. Brandl, vice president and secretary of Roy F. Weston, 215-430-3038/ (WSTNA) CO: Roy F. Weston, Inc. ST: Pennsylvania IN: SU: ERN
JS -- PH030 -- 0520 02/19/92 14:03 EST
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|Date:||Feb 19, 1992|
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