Ed, here you go. Enjoy. Jeff
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USFilter Announces Record Fiscal Third Quarter Earnings and Backlog
PALM DESERT, Calif., Feb. 2 /PRNewswire/ -- United States Filter
Corporation (NYSE: USF) today reported revenues for its third quarter ended
December 31, 1998 of $1,225,109,000, an increase of 26% over the year ago
quarterly revenues of $969,513,000. Net income was a record $63,491,000 vs. a
loss of ($389,255,000) for last year's third quarter. Basic earnings per
share was $0.37 for the quarter, compared with a loss of ($2.63) for the same
quarter last year. Diluted earnings per share was $0.36 vs. last year's
($2.63). Diluted weighted average number of shares outstanding was
187,056,000, up from 147,763,000 in the prior year. Total backlog grew to a
record $1,024,924,000 from $972,731,000 for the same period last year.
The Company said that gross profit margin for the quarter was 29.7% up
from 27.7%, last year and that operating margin improved to 9.9% from last
year's loss. Revenues for the most recent nine months were $3,570,322,000 vs.
$2,700,807,000 for the same period last year with diluted loss per share of
($0.19) vs. a loss of ($2.32) for the previous nine month period. The Company
released the following summary of results of the operations of its five
operating groups:
-- Water and Wastewater Group revenues were $532,098,000 for the three
months ended December 31, 1998 compared to $412,471,000 in the prior year,
up 29%. Gross profit margins and operating margins were 31.8% and 11.5%,
respectively, compared to 29.9% and 8.9% in the prior year. Water and
Wastewater Group backlog was $767,562,000 at December 31, 1998. The
Company indicated its outsourcing and privatization group continues to
grow with over 1 billion gallons of water per day treated through its
contract operations. Internal growth for the period was approximately
8.7%.
-- WaterWorks Distribution Group revenues were $243,361,000 for the
quarter as compared to $218,334,000 in the prior year, up 11%. Gross
profit margins and operating margins were 20.0% and 5.6%, respectively,
vs. 19.3% and 4.9% last year. The WaterWorks Distribution Group does not
report backlog, as its revenues are not derived from long-term contracts.
Internal growth was approximately 7.2% for the quarter.
-- Industrial Products Group revenues were $234,343,000 for the three
months as compared to $169,338,000 in the prior year, up 38%. Gross
profit margins and operating margins were 25.1% and 8.3%, respectively,
vs. 21.3% and 6.4% in the prior fiscal year. Backlog for the quarter was
199,629,000 at December 31, 1998. Internal growth was a negative (19%)
for the quarter. This reflects the groups exposure to the
microelectronics business.
-- Consumer and Commercial Group revenues were $126,734,000 for the three
months ended December 31, 1998 as compared to $117,689,000 in the prior
year, up 8%. Gross profit margins and operating margins were 44.9% and
16.0%, respectively, compared to 42.9% and 13.3% in the prior year. The
group does not report backlog, as its revenues are not derived from long-
term contracts. Internal growth for the period was approximately 7.1%.
-- Filtration and Separations Group revenues were $88,573,000 for the
quarter. Gross profit margins and operating profit margins were 33.3% and
8.1%, respectively. Backlog for the group was $57,733,000 at December 31,
1998. Prior year comparisons for this group are not meaningful as the
Company's acquisition of Memtec Limited occurred late in the third
quarter of the prior fiscal year and was accounted for as a purchase.
"During calendar 1998, USFilter began to ramp up its efforts in electronic
commerce on the World Wide Web, exploiting the growing importance of the World
Wide Web as a marketing and sales channel," said Richard J. Heckmann,
Chairman, and CEO of USFilter. "Efforts were focused on two key areas: the
generation of qualified sales leads and the direct sale of products. We have
generated more than $100 million in sales from electronic commerce initiatives
during calendar 1998, and we expect e-commerce to be a rapidly growing part of
the business," he said.
USFilter is the leading global provider of commercial, industrial,
municipal and residential water and wastewater treatment systems, products and
services. USFilter has the industry's largest network of sales, service and
manufacturing facilities through over 2,000 locations in 94 countries.
USFilter is also a leading provider of outsourced water services, including
the operation of water and wastewater treatment systems at customer sites. It
is also actively involved in the development of privatization initiatives for
municipal water treatment facilities in the United States and around the
world. USFilter, which is based in Palm Desert, CA, invites you to visit its
web site at usfilter.com.
Forward looking statements in this release, including, without limitation,
statements relating to the Company's plans, strategies, objectives,
expectations, intentions and adequacy of resources, are made pursuant to the
safe harbor provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by such
forward looking statements. These factors include, among others, the
following: general economic and business conditions; competition; success of
operating initiatives, advertising and promotional efforts; existence of
adverse publicity or litigation; changes in business strategy or plans;
quality of management; availability, terms and development of capital;
business abilities and judgment of personnel; changes in, or the failure to
comply with governmental regulations; and other factors described in filings
of the Company with the SEC. The Company undertakes no obligation to publicly
update or revise any forward looking statements, whether as a result of new
information, future events or otherwise.
UNITED STATES FILTER CORPORATION
CONSOLIDATED INCOME STATEMENTS
December 31, 1998
(Unaudited)
Three Months Nine Months
Ended December 31, Ended December 31,
1998 1997 1998 1997
(in thousands, except per share data)
Revenues $1,225,109 969,513 3,570,322 2,700,807
Cost of sales 861,690 700,740 2,511,304 1,996,804
Gross profit 363,419 268,773 1,059,018 704,003
Selling, general and
administrative expenses 241,652 189,419 709,231 520,085
Purchased in-process
research and development -- 319,675 3,558 319,675
Merger, restructuring,
acquisition and other
related charges -- 150,582 257,920 150,582
241,652 659,676 970,709 990,342
Operating income (loss) 121,767 (390,903) 88,309 (286,339)
Other income (expense):
Interest expense (29,999) (15,773) (85,180) (39,651)
Gain on disposition of
investment in affiliate -- -- -- 31,098
Interest income and
other, net 7,497 1,532 15,227 4,314
(22,502) (14,241) (69,953) (4,239)
Income (loss) before
income tax expense 99,265 (405,144) 18,356 (290,578)
Income tax expense (benefit) 35,774 (15,889) 50,051 25,819
Net income (loss) $63,491 (389,255) (31,695) (316,397)
Net income (loss) per
common share:
Basic $0.37 (2.63) (0.19) (2.32)
Diluted $0.36 (2.63) (0.19) (2.32)
Basic weighted average
number of shares outstanding 171,207 147,763 164,761 136,171
Diluted weighted average
number of shares outstanding 187,056 147,763 164,761 136,171
UNITED STATES FILTER CORPORATION
AND SUBSIDIARIES
SELECTED SEGMENT DATA
The following unaudited summary selected segment data is provided for
informational purposes only. The Company will implement the provisions of
Statement of Financial Accounting Standards No. 131 "Disclosures about
Segments of an Enterprise and Related Information" in connection with the
filing of its Annual Report on Form 10-K for the fiscal year ending March
31, 1999.
Three Months Nine Months
Ended December 31, Ended December 31,
1998 1997 1998 1997
(in thousands)
Revenues:
Water and Wastewater Group $532,098 412,471 1,480,888 1,136,132
Waterworks Distribution Group 243,361 218,334 761,160 682,433
Consumer and Commercial Group 126,734 117,689 404,241 276,019
Filtration and
Separations Group 88,573 51,681(b) 253,777 114,904(b)
Industrial Products Group 234,343 169,338 670,256 491,319
Consolidated 1,225,109 969,513 3,570,322 2,700,807
Gross profit:
Water and Wastewater Group 169,452 123,215 468,141 336,342
Waterworks Distribution Group 48,781 42,140 150,108 130,475
Consumer and Commercial Group 56,947 50,531 187,827 119,810
Filtration and
Separations Group 29,501 16,864(b) 89,002 35,308(b)
Industrial Products Group 58,738 36,023 163,940 82,068
Consolidated 363,419 268,773 1,059,018 704,003
Operating income: (a)
Water and Wastewater Group 61,302 36,637 161,762 91,568
Waterworks Distribution Group 13,635 10,735 46,108 36,512
Consumer and Commercial Group 20,236 15,696 63,987 36,653
Filtration and
Separations Group 7,189 5,392(b) 21,189 11,118(b)
Industrial Products Group 19,405 10,894 56,741 8,068
Consolidated $121,767 79,354 349,787 183,919
(a) Does not include one-time charges consisting of purchased in-process
research and development and merger, restructuring, acquisition and other
related charges.
(b) Does not include a full quarter of results of operations of Memtec
Limited, which was acquired in December 1997 and accounted for as a purchase.
SOURCE United States Filter Corporation
CO: United States Filter Corporation
ST: California
IN: ENV MNG UTI
SU: ERN
02/02/99 06:00 EST prnewswire.com
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