Sorry again about ECGOF. Can anyone short it? Here's the news:
American Eco 1998 Record Sales up 36% to $300 million, takes non-recurring charges of $1.73 per-share
HOUSTON, Feb. 25 /CNW/ - AMERICAN ECO CORPORATION (NASDAQ:ECGOF, TSE:ECX)
announced US dollar results for the year ended November 30th, 1998.
1998 revenues were up 36% to $300.0 million from $220.5 million in 1997.
Operating Income before non-recurring charges and interest was $0.26 per
share.
American Eco took non-recurring charges for 1998 of $36.3 million or
$1.73 per share which was made up of: the write down of the investment in
Dominion Bridge Corporation of $13.7 million; reduction in investment in US
Industrial Services Inc. of $7.0 million; reduction of its share in joint
ventures of $4.6 million; severance costs of $3.2 million; debt extinguishment
cost of $2.4 million; and other write downs and charges of $5.4 million.
Net loss after all charges was $30.2 million or $1.44 per share. American
Eco has retained a shareholders' equity of $90.2 million. The weighted average
number of shares was 20,965,383.
American Eco had approximately $22.0 million in cash with no bank debt,
and a current ratio of 4:1, sufficient to finance significant growth in its
1999 revenues. Current contract backlog is approximately $275.0 million.
American Eco, President & CEO Michael E. McGinnis, stated, ''For 1999,
American Eco SG&A is significantly leaner, margins are firm and revenues
continue to be up quarter to quarter. Conservatively, management expects
internal growth to be up a minimum of 20% and earnings in the range of $0.30
per share for the year.''
Mr. McGinnis further stated, ''Management has elected not to proceed with
a deposit due February 28, 1999, for its announced agreement to acquire an
option to purchase up to 1.0 million shares from outside shareholders at
US$3.50 per share, due to the current low market price for American Eco
shares.''
American Eco is a leading North American provider of single-source
industrial support and specialty fabrication services in the energy, pulp &
paper, and power generating industries.
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.
%SEDAR: 00004464E
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For further information: Cindy Jackson, Director of Investor Relations,
Houston, Texas, (888) 774-3246, www.americaneco.com
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