Here's the earnings:
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Wednesday April 15, 5:16 pm Eastern Time
Company Press Release
American Eco First Quarter Revenues Up 29 percent to
$58.4 Million
HOUSTON--(BUSINESS WIRE)--April 15, 1998--American Eco Corp. (TSE:ECX. - news;
NASDAQ:ECGOF - news; BERLIN:AEOGR) American Eco Corporation announced the results of
its first quarter for the three-month period ending February 28, 1998. Revenues grew 29 percent to
US$58.4 million compared to US$45.2 million in the first quarter of 1997. Pretax earnings for 1998
were US$3.3 million, net earnings were US$2.2 million or US$0.11 basic per share compared to
US$3.5 million or US$0.25 basic earnings per share for the three months ended February 28, 1997.
The year ago quarter reflected no income tax provision as the company was utilizing net operating tax
losses, whereas the current period includes a tax provision of 35 percent or US$1.2 million. The above
quarterly results are unaudited.
Michael E. McGinnis, President & CEO of American Eco stated, ''With a record backlog of US$245.0
million, American Eco expects 1998 to be a strong year of approximately US$0.70 to US$0.80 per
share fully taxed as compared to US$0.77 per share in 1997 had it been reported on a comparably
taxed basis. Earnings are expected to improve in future quarters as management undertakes operating
improvements in our Chempower subsidiary, which did not achieve its budget in the first Quarter, with
slower turnaround activity in the power generating industry. The quarter also reflected non-recurring
costs related to our withdrawal from the acquisition of Dominion Bridge Corporation [Nasdaq:DBCO -
news]. This item decreased earnings by US$130,000 after tax. American Eco's first Quarter has
always tended to reflect some seasonal weakness. The remainder of 1998 should show stronger
earnings growth as we move into the construction and plant turnaround season.''
1st QUARTER COMPARISON (US Dollars):
1stQ - 1998 1stQ - 1997
------------- ------------
$ 58,434,000 Revenue $ 45,236,000
$ 3,321,000 Pre Tax Earnings $ 3,545,000
$ (1,162,000) Income Taxes $ Nil
$ 2,159,000 Net Income $ 3,545,000
20,009,244 Basic Av. Shares 14,432,926
24,538,540 Fully Diluted 17,755,735
US$ 0.11 EPS - Basic US$ 0.25
US$ 0.11 ully Diluted US$ 0.21
American Eco Shareholders Annual Meeting will be held at the Toronto Sheraton Center, on Thursday
May 28th, 1998 at 4:00pm EDT.
American Eco Corporation
Consolidated Statement of Income
For the Three Months Ended February 28th
(United States Dollars in Thousands)
(Unaudited)
1998 1997
-------- -------
REVENUE............................... $ 58,434 $ 45,236
----------- ----------
COSTS AND EXPENSES
Direct costs of revenue ......... 45,452 36,142
Selling, general and
administrative expenses ..... 7,869 4,228
Interest expense, net............ 760 415
Depreciation and amortization ... 1,032 906
----------- ----------
55,113 41,691
INCOME BEFORE PROVISION FOR INCOME TAXES 3,321 3,545
PROVISION FOR INCOME TAXES............. 1,162
-----------
NET INCOME............................ $ 2,159 $ 3,545
----------- ----------
----------- ----------
Earnings per common share
Basic........................... $ 0.11 $ 0.25
Fully diluted................... $ 0.11 $ 0.21
----------- ----------
----------- ----------
Weighted average number of shares
Basic.......................... 20,009,244 14,432,926
Fully diluted.................. 24,538,540 17,755,735
This release includes forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes
that its expectations are based on reasonable assumptions, it can give no assurance that such
expectations will be achieved. Important factors that could cause actual results to differ materially
from those in the forward looking statements made herein include the ability of the company to
continue to expand through acquisitions, the availability of capital to fund the company's expansion
program, the ability of the company to manage its expansion effectively, economic conditions that could
affect demand for the company's services, the ability of the company to complete projects profitably
and severe weather conditions that could delay projects. Due to such uncertainties and risks, readers
are cautioned not to place undue reliance on such forward-looking statements, which speak only as of
the date on which such statements are made. The company does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf of the company.
American Eco is a leading North American provider of single-source construction, management,
maintenance, specialty fabrication, and engineering services in the refining, petrochemical, utility, forest
products and offshore manufacturing industries.
Regards,Dave |
