Business Editors
COLUMBIA, Md.--(BUSINESS WIRE)--Oct. 29, 1998--
Highlights
-- 3rd Qtr 98 Net Earnings Increased 32% to $1.9 million
-- 3rd Qtr 98 EPS $0.10 per share vs. $0.07 for 3rd Qtr 97
-- 3rd Qtr 98 Revenues Increased 8% to $39.4 million
GTS Duratek (DRTK - Nasdaq) Thursday announced a 32% increase in
net earnings for the three months ended Sept. 30, 1998 to $1,889,000,
or $0.10 per share, as compared to $1,432,000, or $0.07 per share for
the comparable period in 1997.
Revenues for the quarter increased 8% to $39,391,000 as compared
to $36,355,000 for the third quarter 1997.
Commenting on the quarter, Robert E. Prince, president and CEO
stated, "In terms of our processing operations, it appears that the
streamlining and cost savings measures we implemented mid-year have
begun to pay off. We believe changes in our approach to waste
processing production and scheduling at our Bear Creek facility
resulted in more flexibility and improved performance."
"Our participation in the Hanford Tank Waste Remediation contract
awarded to the BNFL team is now underway. Our efforts are initially
being directed towards technology development support, pilot melter
operations, full-scale melter system design and project staffing
support. We believe this project will contribute approximately $17-$20
million to the Company's revenue stream in 1999."
For the nine month period ended Sept. 30, 1998, net earnings were
$2,813,000, or $0.12 per share, as compared to a net loss of
($2,234,000), or ($0.27) per share, for the nine months ended 1997.
Revenues for the nine months ended 1998 were $115,432,000 as compared
to $86,316,000 for the comparable period 1997.
The year-to-date net loss for 1997 included a $5.2 million after
tax charge the Company took in the first quarter of 1997 for losses on
its Savannah River M-Area facility due to a decision to replace the
melter box.
Year-to-date revenues for 1998 increased by $29,116,000 over the
same period in the prior year due primarily to revenues generated from
the operations of The Scientific Ecology Group acquired in April of
1997.
GTS Duratek provides services and implements proprietary
technologies to protect people and the environment from the effects of
radiation and other hazards. Major areas include:
radioactive/hazardous waste stabilization, volume reduction,
separation, recycling; extensive radioactive waste management;
transportation; and radiological engineering services.
The Company has included in its periodic filings under the
Securities Exchange Act of 1934, including its Form 10-Q for the
quarter ended June 30, 1998, pursuant to the "safe harbor" provisions
contained in the Private Securities Litigation Reform Act of 1995,
certain cautionary statements which are intended to identify certain
important factors that could cause the Company's actual results to
differ materially from those contained in forward-looking statements
of the Company made by or on behalf of the Company.
Reference is made to such statements for a complete discussion of
those factors, which include the ability to manage the Company's
commercial waste processing operations and to obtain additional waste
processing contracts, the ability to extend the Savannah River M-Area
contract, future awards by the DOE and other governmental agencies,
public and political concerns surrounding radioactive waste clean-up
efforts, and the timing of contract awards, extensions, and
non-renewals in the technical support services area.
Also, as stated herein, the timing of contracting efforts, and
timing and success in new contract awards have affected
period-to-period comparisons and are expected to do so in the future.
-0-
*T
GTS DURATEK, INC. AND SUBSIDARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Ended September 30,
---------------------
1998 1997
---- ----
Revenues $39,390,989 $36,355,384
Cost of revenue 29,610,260 30,501,464
----------- -----------
Gross profit 9,780,729 5,853,920
Selling, general
and administrative expenses 6,394,003 4,428,846
--------- ----------
Income (loss) from operations 3,386,726 1,425,074
Interest income (expense), net (207,840) 51,779
---------- ----------
Income (loss) before
income taxes (benefit) and
proportionate share of
loss of joint venture 3,178,886 1,476,853
Income taxes (benefit) 1,240,044 -
--------- ----------
Income (loss) before proportionate
share of loss of joint venture 1,938,842 1,476,853
Proportionate share of loss of
joint venture (50,000) (45,000)
---------- ----------
Net income (loss) 1,888,842 1,431,853
Preferred stock dividends and
charges for accretion 376,770 375,951
--------- ----------
Net income (loss) attributable to
common stockholders $1,512,072 $1,055,902
========== ===========
Basic net income (loss) per share $0.11 $0.08
========== ===========
Diluted net income (loss) per share $0.10 $0.07
========== ===========
Basic weighted average
common stock outstanding 13,223,594 12,662,474
========== ===========
Diluted weighted average
common stock and dilutive
securities outstanding 20,838,002 19,644,644
========== ===========
Nine Months
Ended September 30,
---------------------
1998 1997
---- ----
Revenues $115,432,142 $86,316,446
Cost of revenue 91,108,701 79,273,311
------------ -----------
Gross profit 24,323,441 7,043,135
Selling, general
and administrative expenses 19,030,115 10,479,443
------------ -----------
Income (loss) from operations 5,293,326 (3,436,308)
Interest income (expense), net (463,240) 586,869
------------- -----------
Income (loss) before
income taxes (benefit) and
proportionate share of
loss of joint venture 4,830,086 (2,849,439)
Income taxes (benefit) 1,867,500 (750,000)
------------- -----------
Income (loss) before proportionate
share of loss of joint venture 2,962,586 (2,099,439)
Proportionate share of loss of
joint venture (150,000) (135,000)
------------- -----------
Net income (loss) 2,812,586 (2,234,439)
Preferred stock dividends and
charges for accretion 1,129,723 1,127,232
------------- -----------
Net income (loss) attributable to
common stockholders $1,682,863 ($3,361,671)
============= ============
Basic net income (loss) per share $0.13 ($0.27)
============= ============
Diluted net income (loss) per share $0.12 ($0.27)
============= ============
Basic weighted average
common stock outstanding 12,955,053 12,553,551
============= ============
Diluted weighted average
common stock and dilutive
securities outstanding 14,234,122 12,553,551
============= ============
*T
--30--SF/ph*
CONTACT: GTS Duratek
Diane R. Brown, Investor Relations
Robert F. Shawver, Exec. V.P.
410/312-5100 - www.gtsduratek.com
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