Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: Bob Biersack who wrote (54097)	5/29/2002 9:40:35 AM
From: Frederick Langford	Read Replies (1) \| Respond to of 208838

Press Release EASI SOURCE: Engineered Support Systems, Inc. Engineered Support Posts Record Quarterly Operating Earnings and Raises Estimates * Net Earnings from Continuing Operations Advances 51% to $6.6 Million * Second Quarter EPS from Continuing Operations Up 39% to $.61 vs. $.44 in 2001 * Increases EPS Guidance from Continuing Operations to $2.40 to $2.45 for Fiscal 2002 * Contract Backlog Grows to Over $1.2 Billion Including Recent Acquisition ST. LOUIS, Mo., May 29 /PRNewswire-FirstCall/ -- Engineered Support Systems, Inc. (Nasdaq: EASI - News) reported record second quarter net earnings from continuing operations of $6.6 million, or $.61 per diluted share, for the quarter ended April 30, 2002, compared to $4.4 million, or $.44 per diluted share, for the same period last year. Net revenues for the current quarter were $91.8 million compared to $94.5 million reported for the second quarter of last year, according to Michael F. Shanahan, Sr., Chairman and CEO. Second quarter operating income from continuing operations of a record $11.5 million was 28% above the $8.9 million for the same quarter in the prior year. As a percentage of net revenues, operating income from continuing operations was 12.5% for the current quarter as compared to 9.5% for the second quarter of fiscal 2001. Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the current quarter totaled a record $12.8 million, or 13.9% of net revenues, for the current quarter. Net earnings from continuing operations for the second quarter rose 51% to a record $6.6 million (7.2% of net revenues) compared to $4.4 million (4.6% of net revenues) last year. Higher contract gross margins, reduced interest expense and the impact of an accounting change related to the amortization of goodwill contributed to the significant improvement in reported results. During the quarter, the Company continued to generate significant free cash flow (cash flow from operations less capital expenditures) of $13.5 million. Net bank debt (total debt less cash) dropped to $31.2 million at quarter-end resulting in a debt to total capitalization rate of 20.1% at April 30, 2002 compared to 36.4% at the beginning of the year. This low level of leverage provides ample borrowing capacity to be utilized to pursue accretive acquisition opportunities. Due to the continued poor financial performance of its Plastic Products business segment, during the second quarter the Company's Board of Directors approved a plan of disposal for this non-core business operation. Based upon the prevailing difficult market conditions in the injection-molded plastics industry and the valuations of similar transactions, the Company recorded an after-tax non-cash charge of $3.1 million, or $0.29 per diluted share, during the second quarter to reduce the Plastic Products segment's assets to their estimated net realizable value. The provision includes the estimated costs of disposal via a negotiated sale transaction. Accordingly, the historical results of the Plastics Products segment have been reclassified in the Condensed Consolidated Statements of Income as a discontinued operation in all periods presented. The Company's adoption of Statements of Financial Accounting Standards (SFAS) No. 141 and 142, "Goodwill and Other Intangible Assets," effective November 1, 2001, contributed $0.8 million to operating income, $0.5 million to net income and $.05 to diluted earnings per share in the second quarter resulting from discontinuing the amortization of goodwill.... biz.yahoo.com Fred