USTMAN Technologies Inc. Reports Financial Results For the Second Quarter and First Six Months of Fiscal 1998
Second-Quarter Sales Increase 17 Percent
LAKEWOOD, Colo.--(BUSINESS WIRE)--Feb. 19, 1998--USTMAN Technologies Inc. (Nasdaq:USTX - news), the leading provider of statistical inventory reconciliation (SIR) services in the United States, reported financial results for the second quarter and first six months of fiscal 1998, ended Dec. 31, 1997.
For the second quarter, sales were up 17 percent to $1,521,000, the net loss was $498,000 and the net loss per basic share was 3 cents. By comparison, sales were $1,300,000, the net loss was $244,000 and the net loss per basic share was 2 cents for the same period last year.
For the first six months, sales were up 8 percent to $3,081,000, the net loss was $1,046,000 and the net loss per basic share was 5 cents. By comparison, sales were $2,848,000, the net loss was $1,002,000 and the net loss per basic share was 10 cents for the same period last year.
The increase in sales in the second quarter and six months reflects growth in the company's core business of SIR services for underground storage tank management, along with the merger with Watson General Corp. in May 1997 and, to a lesser extent, the acquisition of Advanced Tank Certification Inc. (ATC) in December 1997.
Cost of sales and general and administrative expenses are trending down as percentages of sales due to efficiencies being realized from the consolidation of the three businesses, but the net loss was higher due to increases in depreciation and amortization, interest and transition expenses, which have minimized the effects of those changes on the bottom line.
''The second quarter was a period of intense activity for USTMAN as we largely completed the restructuring resulting from the Watson General merger, while acquiring ATC and beginning a new round of internal consolidation,'' said Dan Cook, president and chief executive officer.
''The results were valuable, however, as the combined companies became the undisputed leader in SIR services in the United States with 54,000 underground storage tanks under contract.''
Cook noted that sales for the second quarter would have been $1,663,000 with gross profit of $1,095,000 and a net loss of $63,000 or 1 cent per basic share for continuing operations, assuming consolidation of ATC for the full quarter and elimination of one-time expenses as well as operations discontinued subsequent to Dec. 31, 1997.
''We are positioning USTMAN to exploit what industry observers believe will be heightened demand for SIR services as the December 1998 EPA compliance requirement for underground storage tanks nears,'' said Cook.
USTMAN Technologies, with more than 54,000 underground storage tanks under contract, is the largest provider of critical information to
owners of underground storage tanks through SIR and remote tank monitoring.
SIR is a preferred method of detecting leaks in storage systems and of managing liquid inventory held in storage tanks. It is fully approved for purposes of compliance with EPA leak-detection regulations, which cover nearly every underground storage tank in the United States.
Except for the historical information contained in this release, the other statements in this release are forward-looking statements that involve risks and uncertainties, including without limitations, the company's ability to sell its products, the timely negotiations of new contracts, the level of increased sales with existing customers, as well as such other risks as from time to time may be detailed in the company's Securities and Exchange Commission reports. |
