Did you ever say "I wish I could buy a stock at the bottom of a turnaround"... Take a look at the chart for OMEG and your wish may be answered... The volume and price is up... The company has restructured is business to be more efficient and profitable... The Street seems to agree...
Jim
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Tuesday November 12 12:49 PM EDT
Omega Environmental, Inc. posts 6.4% revenue gain in second quarter
BOTHELL, Wash.--(BUSINESS WIRE)--November 12, 1996--
- Environmental and Petroleum Divisions Report Over $16 Million in New
Business; BNY Financial Corporation Increases Company's Credit Facility
Omega Environmental, Inc. (Nasdaq National Market: OMEG), the only nationwide, one-stop source for equipment and
services for the petroleum marketing industry, today announced sales for the second quarter ended September 30, 1996 rose
6.4% to $40.6 million compared to $38.2 million for the second quarter of fiscal 1996. For the first six months of fiscal l997,
revenues increased to $79.8 million from $78.6 million a year ago. Revenues in the prior year periods included several
operating divisions that have since been discontinued or downsized under the Company's ongoing restructuring program.
The Company reported a net loss of $222,000, or ($0.01) per share, for the second quarter of fiscal 1997 versus a net loss
of $7,000, or ($0.00) per share, for the comparable quarter of fiscal 1996. For the six months ended September 30, 1996
the Company reported a net loss of ($0.02) per share compared to a net loss of ($0.01) per share in the prior year.
Omega Chairman and Chief Executive Officer Louis J. Tedesco said that the net loss for the period ended September 30,
1996 is primarily due to increased expenses, including interest related to the Company's restructuring activities and charges
related to discontinued operations.
"Our move from a holding company coordinating individual operating companies within a single geographic area into one
company with two operating divisions organized along functional lines is proceeding," said Tedesco. "This year is the year of
transition, consolidation and implementation of a new strategic plan. As we move forward, Omega Environmental, Inc. is
emerging with a clear focus on its bottom line and market leadership as the country's premier provider of services to the retail
and commercial petroleum products marketing industry. While our share price has come under pressure, our financial position
is improved. Working capital is in excess of $24 million and long-term debt is down from the beginning of this fiscal year. I am
also pleased to report that BNY Financial Corporation, the Company's primary lender, has increased the cap on our
revolving credit facility from $20 million to $25 million."
Tedesco also noted that the Company has recently been awarded a number of significant contracts, increasing the backlogs of
both its Environmental Services and Petroleum Services Divisions.
The Environmental Services Division performed over 200 site assessments in Texas in the Company's second fiscal quarter.
Additional remediation sites in Texas and South Carolina were added, boosting Omega's backlog to more than 1,500
contracts. Internationally, Omega's joint venture in Spain was awarded multi-million dollar environmental clean-up projects in
Barcelona and Malaga.
The Petroleum Services Division increased its National Accounts bookings during the quarter with over $16 million in
contracts being awarded, the largest a $4.2 million multi-year installation contract for the Virginia Department of
Transportation. Omega also won significant contracts from Amoco, AT&T, Avis, Chevron, Disney, General Motors, GTE
and the State of Georgia.
"The contracts won by both our Environmental Services and Petroleum Services Divisions are evidence that the Company
remains a leader in providing services to retail and commercial petroleum fueling facilities throughout the United States,"
Tedesco concluded.
Omega Environmental, Inc. is the first national provider of products and services to the fueling facility industry. The Company
operates two divisions in six regions of the U.S. and in Mexico, providing equipment, parts, service, underground and
aboveground storage tank service, construction, environmental assessment and remediation, including project management
and financial services for all of the above.
Matters discussed in this news release contain forward-looking statements that involve risks and uncertainties. The Company's
results may differ significantly from the results indicated by forward-looking statements. Factors that might cause such
differences include, but are not limited to, (i) general economic and regulatory changes; (ii) construction risks, including
weather; (iii) competition and (iv) the Company's ability to successfully reorganize operations. These and other risks are
detailed from time to time in the Company's SEC reports, including Form 10-K, S-3 and 10-Q for the quarter ended
September 30, 1996.
Omega Environmental, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands except per share data)
(unaudited)
Three months ended Six months ended
September 30, September 30,
1996 1995 1996 1995
Sales $ 40,628 $ 38,179 $ 79,841 $ 78,588
Cost of sales 32,371 29,967 63,747 62,395
Gross profit 8,257 8,212 16,094 16,193
Operating expenses:
Selling, general
and administrative 7,845 7,432 15,396 15,109
Amortization of goodwill 421 487 830 978
Total operating expenses 8,266 7,919 16,226 16,087
Operating income (loss) (9) 293 (132) 106
Other Income (expense):
Interest income 60 149 90 277
Interest expense (619) (517) (1,392) (912)
Other, net 346 68 429 179
Total other income (expense) (213) (300) (873) (456)
Net loss $ (222) $ (7) $ (1,005) $ (350)
Net loss per common share $ (0.01) $(0.00)$ (0.02) $ (0.01)
Weighted average number of
common shares outstanding 42,678 34,216 41,401 33,599
CONTACT: Omega Environmental, Inc
Louis J. Tedesco, 206/486-4800
or
MWW/STRATEGIC COMMUNICATIONS, INC.
Robert Swadosh (rswadosh@mww.com)
Richard Tauberman (rtauberm@mww.com)
201/507-9500 |
