Sergio; KTIE was it the three amigos who were tracking this?
Monday July 27, 10:39 pm Eastern Time
Company Press Release
SOURCE: KTI, Inc.
KTI Announces 2nd Quarter Pretax Income of $3.7 Million
Up 375% on 101% Gain in Revenue. Diluted Pretax EPS Before Extraordinary Item $.30 vs. $.04.
GUTTENBERG, N.J., July 27 /PRNewswire/ -- KTI, Inc. (Nasdaq: KTIE - news) announced today a 375% increase in
second quarter pretax income to $3,683,000 or $.30 diluted pretax earnings per share before extraordinary item versus pretax
income of $776,000 or $.04 diluted earnings per share in the second quarter a year ago. Total revenue increased 101% to
$41.2 million from $20.5 million a year earlier.
KTI incurred extraordinary one time charges in the quarter totaling $495,000 or $.04 per share related to the write-off of
previously capitalized costs due to the early retirement of $45 million of the Penobscot Energy Recovery Company (PERC)
bonds and the replacement of a $22 million line of credit with the company's new $150 million credit facility with KeyBank.
Martin J. Sergi, president of KTI, Inc., said, ''This was a very strong and positive quarter for KTI. Our revenue doubled, but
our bottom line grew by 375%. The growth in net income, earnings per share and top line revenue is attributable to both
accretive acquisitions made over the past year as well as growth in our base business which was up 5.7% when compared with
the year-earlier quarter. We also strengthened our balance sheet, as our current ratio has improved from 1.6:1 at the end of last
year to 3:1 now. Our equity grew during the first half of the year by $7.4 million to over $80 million.
''In addition to our strong financial results, we signed a definitive agreement to acquire FCR, a national waste processing firm
with approximate annual revenues of $100 million; we acquired Multitrade, which operates three Virginia waste-to-energy
facilities; we completed a highly favorable restructuring of our utility contract for PERC in a complex transaction that
guaranteed us long-term power rates, a supply of municipal waste and an equity stake in Bangor Hydro Electric Co.; and we
agreed to acquire two New Jersey paper processors with annual revenues of approximately $20 million,'' Sergi said.
Sergi added, ''All the elements of our business strategy appear to be coming together. We hope to close FCR during the third
quarter once we have a determination under our Hart, Scott, Rodino filing. In the meantime, we expect to continue to benefit
from acquisition opportunities as well as internal growth.''
KTI has scheduled a conference call for Tuesday, July 28 at 2:00 p.m. EST. The call will be conducted by the senior
management of the company. Those wishing to participate in the call with senior members of the management team may do so
by calling 888-297-8841 any time after 1:50 am. on July 28. The pass code is 2624#.
For further information, contact Marty Sergi of KTI, Inc., 201-854-7777 or Frank N. Hawkins, Jr. or Julie Marshall, both of
Hawk Associates, Inc., 305-852-2383.
Copies of KTI press releases, SEC filings, current price quotes, stock charts, analysts' comments and other valuable
information for investors may be found on the website hawkassociates.com.
This release contains various 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 which represent the company's expectations or beliefs concerning future
events of the company's financial performance. These forward-looking statements are qualified by important factors that could
cause actual results to differ materially from those in the forward-looking statements. Results actually achieved may differ
materially from expected results included in these statements.
KTI, Inc.
Consolidated Statement of Operations
(in thousands, except share and per share amounts)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Waste-to-energy:
Electric power and steam $ 15,501 $ 10,704 $ 25,897 $ 20,212
Waste processing 8,933 7,906 17,032 15,723
Recycling 16,808 1,871 35,946 3,144
Total revenues 41,242 20,481 78,875 39,079
Costs and expenses:
Electric power, steam and
waste processing 13,439 11,256 23,904 21,751
Recycling 16,255 1,730 33,723 2,951
General and administrative 2,023 1,118 3,113 2,163
Depreciation and amortization 2,372 2,254 5,065 4,474
Interest, net 1,550 1,325 3,060 2,325
Total costs and expenses 35,639 17,683 68,865 33,664
Income before minority interest,
taxes and extraordinary item 5,603 2,798 10,010 5,415
Minority interest 1,920 26 2,989 381
Pre-acquisition earnings
of PERC - 1,996 - 2,899
Income before taxes and
extraordinary item 3,683 776 7,021 2,135
Income taxes 517 517
Income before extraordinary item 3,166 776 6,504 2,135
Loss on early extinguishment of
debt, net of minority interest
and taxes 495 - 495 -
Net income 2,671 776 6,009 2,135
Accretion and accrued and paid
dividends on preferred stock 468 499 977 499
Net income available to
common shareholders $ 2,203 $ 277 $ 5,032 $ 1,636
Earnings per common share:
Basic:
Income before taxes and
extraordinary item $0.33 $0.04 $0.64 $0.24
Income taxes $0.05 $0.00 $0.05 $0.00
Income before
extraordinary item $0.28 $0.04 $0.59 $0.24
Extraordinary item $0.05 $0.00 $0.05 $0.00
Net income $0.23 $0.04 $0.54 $0.24
Weighted average number of
shares used in calculation 9,614,163 6,984,926 9,424,451 6,868,993
Diluted:
Income before taxes and
extraordinary item $0.30 $0.04 $0.57 $0.23
Income taxes $0.04 $0.00 $0.04 $0.00
Income before extraordinary item $0.26 $0.04 $0.53 $0.23
Extraordinary item $0.04 $0.00 $0.04 $0.00
Net income $0.22 $0.04 $0.49 $0.23
Weighted average number of
shares used in calculation 12,344,172 7,260,467 12,275,785 7,219,758
SOURCE: KTI, Inc.
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