WILLIAMS INDUSTRIES ANNOUNCES SECOND-QUARTER
RESULTS AND SALE OF SUBSIDIARY
FALLS CHURCH, Va., March 17 /PRNewswire/ -- Williams Industries, Inc. (NASDAQ: WMSI), a major provider of construction services to the industrial, commercial and institutional markets, today announced its operating results for the second quarter. The results, detailed below, indicate a strong improvement for the company over comparable quarters in prior years.
For the period which ended Jan. 31, 1991, revenues of $19,088,486 produced a loss of $445,881 or 18 cents per share. For the corresponding quarter in the previous year, there was a loss of $3,986,626 or $1.66 per share, on revenue of $19,586,742.
Frank E. Williams Jr., chairman and chief executive officer of Williams Industries, said that while the improvement did not bring the company "into the black" for the quarter, he felt that it was a "significant indication" that the company was well on the way to recovery and profitability.
"It is important to note," Williams said, "that even though the company has generated less revenue due to the downturn in construction markets and the weak economy, our gross profit margins have increased."
He cited the fact that for the six months ended Jan. 31, 1992, total revenues were $41,400,383 with a gross profit of $13,558,104, which produced a loss of 12 cents per share for the half-year. For the corresponding period last year, higher revenues of $42,724,095 produced a lower gross profit of $13,166,393, and a much greater loss per share of $1.76.
"Our first quarter in fiscal 1992 was a profitable one," Williams said, adding, "and our second quarters are historically bad because of weather and slower work levels. The second quarter of this year was dramatically impacted by the severe flooding and weather conditions in Texas and adjacent states, but we are hopeful that is behind us."
Williams also pointed out that the company had reduced its expenses by more than $6 million from the comparable period in the prior year. The six-month expense figure for 1992 was $13,946,676, compared to $20,005,165 in 1991.
"As I have stated previously," he said, "we are taking whatever steps necessary to consolidate operations and return this company to profitability."
The sale of Dominion Caisson Corporation, which was concluded on March 13 and will be reflected in the next quarter's results, is a part of the consolidation strategy.
The transaction, which involved a buy-out by Dominion management backed by financing from ITT Commercial Finance and Virginia Asset Financing Corporation, which packages Small Business Administration loans, was worth approximately $1.2 million to Williams Industries.
Williams said he believed the transaction would benefit both Williams Industries and the new Dominion owners. "The work performed by Dominion Caisson is very different from the type of work done by the other Williams Industries subsidiaries, so from our point of view, they really didn't fit in with our overall business plan. On the other hand, they do perform a much needed service and are quite likely to do well on their own," he added.
The proceeds of the transaction will be used by Williams Industries to reduce its bank debt.
The sale of Dominion Caisson is only one step of several ongoing efforts by Williams Industries, Inc. to focus on its core businesses, reduce its bank debt and return to profitability.
"Williams Industries had a profitable first quarter in fiscal 1992 and our second-quarter results are much stronger than normal. I am confident that we will have a profitable year and that the measures we have taken toward returning to our core operations will allow us to take full advantage of the new transportation funds," Williams concluded.
/CONTACT: Marianne V. Pastor of Williams Industries, 703-560-5196/
(WMSI) CO: Williams Industries Inc. ST: Virginia IN: CST SU: ERN SM-CK -- NY028 -- 8740 03/17/92 11:12 EST