Hello, David and all. The earnings results finally came out. It does not look good to me. Any comments?
Headline: Dominion Bridge Announces Fiscal 1997 Results
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MONTREAL--(BUSINESS WIRE)--Dec. 29, 1997--Dominion Bridge Corp.
(NASDAQ/NMS:DBCO)(VSE:DMO.U) today released its results for the
fiscal year ended Sept. 30, 1997.
Revenues increased 57% over 1996 to $568 million, reflecting a
full year's consolidation of the company's McConnell Dowell Corp.
and Davie Industries subsidiaries and strong growth in Steen
Contractor's pipeline division. The company achieved a turn-around
in cash flow from operations of $8.6 million from a cash flow
deficit of $4.7 million for fiscal 1996 to a positive cash flow
contribution of $3.9 million in fiscal 1997. Notwithstanding the
growth in revenues and the cash flow turn-around, the company
recorded a loss from continuing operations in fiscal 1997 of
$11.7 million or $0.41 per share, consisting of an operating profit
of $1.2 million and write-downs of $12.9 million for contracts
initiated in previous years and completed in fiscal 1997.
As previously announced, the company is in negotiations with a
number of parties regarding an acquisition of the company or a
significant equity infusion in the company. In light of these
developments, the company adopted a very conservative approach to
its financial statements. Further to the loss from operations, the
balance sheet includes a $4.2 million foreign currency adjustment
related to a decrease in the value of the currencies where the
company operates. The company took additional write-down and
expenses of $5.0 million comprising of investment in preferred
shares and miscellaneous adjustment. Despite the losses from
operations, the company incurred a $5.6 million tax expense related
to the company's income in McConnell Dowell Corp.'s Asia Pacific
operations, which cannot be offset against the company's losses in
its North American operations. As a result of these combined
factors, the consolidated net loss in fiscal 1997 rose to
$22.3 million or $0.77 per share.
Since the above negotiations with potential investors or
acquirers could have a substantial impact on the company, the company
has obtained a fifteen day extension in which to file its Form 10-K
Annual Report to the Securities and Exchange Commission in order to
permit the company to fully disclose the effects of such a
transaction.
Dominion Bridge was established in 1879. The company is active
in the international engineering and infrastructure markets. It
manages projects and operates facilities in North and South America,
Europe and the Asia Pacific. The company, together with its
subsidiaries, employs more than 6,500 people.
Dominion Bridge Corp.'s subsidiaries are Dominion Bridge Inc.,
Steen Becker Inc. and Davie Industries. Its Australian subsidiary,
McConnell Dowell Corp. is a major Asia Pacific engineering firm.
This news release is neither approved nor disapproved by the
Vancouver Stock Exchange.
CONTACT: Dominion Bridge Corp.
Francois Morin, 514/289-8688
or
Porter, LeVay & Rose Inc.
Michael Polyviou, 212/564-4700
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BUILDING/CONSTRUCTION EARNINGS
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