CHICAGO, Feb. 24 /PRNewswire/ -- Burns International Services Corporation
(NYSE: BOR) today reported earnings from continuing operations of $1.14 per
share on a diluted basis in 1999 compared with $0.64 per share in 1998. Full
year earnings per share after discontinued operations and extraordinary
charges were $0.59 in 1999 versus $1.21 in 1998.
Fourth quarter 1999 earnings were $0.26 per share compared with $0.35 per
share in the year ago quarter. Included in the fourth quarter of 1999 were
non-recurring expenses net of non-recurring income of $3.6 million pretax, or
$0.12 per share. The expenses, totaling $4.8 million, related to
reorganization and severance costs as well as other provisions related to the
United Kingdom industrial security and U.S. aviation security operations.
These expenses were partially offset by non-recurring income related to prior
divestitures.
Fourth quarter 1999 revenues increased 4.6 percent to $360.1 million
compared with $344.3 million in the fourth quarter of 1998. Full year 1999
revenues increased 4.2 percent to $1,378.6 million compared with $1,323.4
million for the full year 1998. Fourth quarter 1999 revenues for the core
U.S. industrial security business increased 7.2 percent over the prior year
quarter, while full year 1999 revenues increased 5.2 percent versus 1998.
Commentary on Quarterly Results
John A. Edwardson, chairman and chief executive officer, stated, "I
continue to be pleased with the momentum shown by our core domestic industrial
guard business, both in terms of revenue as well as income growth. I'm
comfortable that the majority of our issues related to the United Kingdom and
Globe aviation businesses are behind us. We anticipate that these businesses
will be profitable in 2000."
"We experienced an increase in receivables in the fourth quarter due to
difficulties related to the implementation of new financial and invoicing
software. We have made substantial progress dealing with the systems issues.
However, receivables, including the securitized portion, were approximately
$42 million higher at January 31, 2000 than at the same date a year ago.
Year-end 1999 debt and receivables financing totaled $249 million, and is
currently at $258 million."
"For the year 2000, we anticipate net earnings per share of $1.25 to
$1.30. This figure includes approximately $0.23 for the first quarter of
2000, $0.28 to $0.29 for the second quarter, $0.36 to $0.38 for the third
quarter, and $0.38 to $0.40 for the fourth quarter."
Earnings Per Share Summary Table
Fourth quarter and year-to-date diluted earnings per share results compare
as follows:
Fourth Quarter Full Year
1999 1998 1999 1998
Continuing Operations $0.26 $0.35 $1.14 $0.64
Discontinued Operations --- --- --- 0.83
Extraordinary Loss - early
extinguishment of debt --- --- (0.55) (0.26)
Net Earnings Per Share $0.26 $0.35 $0.59 $1.21
Average Shares Outstanding (mil) 19.9 24.0 22.0 24.0
Discontinued Operations
Full year 1998 earnings from discontinued operations reflect a
$42.5 million after-tax gain on the sale of the company's Wells Fargo Alarm
business. This gain was partially offset by a $15.9 million after-tax charge
to write off the company's investment in Pony Express Courier and to provide
for costs associated with the disposition, as well as a $6.3 million Wells
Fargo Alarm loss from operations prior to the divestiture.
Extraordinary Items
Full year 1999 results reflect a second quarter extraordinary charge of
$12.1 million for the early retirement of $125 million principal amount of
9-5/8 percent senior subordinated notes. Full year 1998 results reflect an
extraordinary charge of $6.3 million for the early retirement of $150 million
principal amount of 9-1/8 percent senior subordinated notes.
Company Description
Chicago-based Burns International Services Corporation is North America's
premier provider of physical security and related services with 75,000
employees and more than 300 offices throughout the United States, Canada,
England, Scotland, Ireland, and Colombia. The company offers a complete range
of security solutions involving armed and unarmed physical security, foot and
vehicle patrol, access control and monitoring, background and drug screening,
investigative services, contract staffing, and other specialized security and
support services.
Risks and uncertainties that may affect projections include the cost and
availability of labor, the consequences of debt leverage to the company's
ability to fund its operations, the ability to manage the risks associated
with the services provided by the company, the ability to acquire other
security businesses at attractive prices and successfully integrate such
acquisitions into existing operations, and the other factors listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1998.
For a copy of this press release or for additional information on the
company, contact the company's web site at http://www.burnsinternational.com or
http://www.prnewswire.com .
The company will host a conference call Friday, February 25, at 10:00 a.m.
eastern time to discuss this press release. Interested parties can listen in
on the conference call by dialing 800-450-0785 within the U.S. or 612-332-0819
from outside the U.S. A recording of the conference call will be available
from 9:00 a.m. until midnight eastern time on Monday, February 28. To access
the recording, call 800-475-6701 from within the U.S. and 320-365-3844 from
outside the U.S. The access code is 499836.
Income Statement
Fourth Quarter
($ Millions, Except Per Share)
(Unaudited)
Change
1999 1998 $ %
Net Service Revenues $360.1 $344.3 $15.8 4.6%
Cost of Services 304.0 290.4 13.6 4.7%
Gross Margin 56.1 53.9 2.2 4.1%
% of Revenues 15.6% 15.7%
Selling, General & Administrative 41.8 34.5 7.3 21.2%
% of Revenues 11.6% 10.0%
Depreciation 1.7 1.2 0.5 41.7%
% of Revenues 0.5% 0.3%
Amortization of Excess
Purchase Price 1.3 1.3 0.0 0.0%
Loomis, Fargo Income (0.9) (0.6) (0.3) 50.0%
Earnings before Interest
and Taxes 12.2 17.5 (5.3) (30.3%)
Interest Expense and
Finance Charges 4.7 3.7 1.0 27.0%
Earnings before Income Taxes 7.5 13.8 (6.3) (45.7%)
Provision for Income Taxes 2.3 5.4 (3.1) (57.4%)
Earnings from Continuing
Operations 5.2 8.4 (3.2) (38.1%)
Discontinued Operations, Net
of Income Taxes -- -- -- --
Extraordinary Loss - Early
Extinguishment of Debt -- -- -- --
Net Earnings $5.2 $8.4 ($3.2) (38.1%)
Earnings per Share-Diluted:
Continuing Operations $0.26 $0.35 ($0.09) (25.7%)
Discontinued Operations -- -- -- --
Extraordinary Loss - Early
Extinguishment of Debt -- -- -- --
Net Earnings Per Share $0.26 $0.35 ($0.09) (25.7%)
Income Statement
Full Year
($ Millions, Except Per Share)
(Unaudited)
Change
1999 1998 $ %
Net Service Revenues $1,378.6 $1,323.4 $55.2 4.2%
Cost of Services 1,161.3 1,116.7 44.6 4.0%
Gross Margin 217.3 206.7 10.6 5.1%
% of Revenues 15.8% 15.6%
Selling, General & Administrative 151.9 155.7 (3.8) (2.4%)
% of Revenues 11.0% 11.8%
Depreciation 5.7 4.2 1.5 35.7%
% of Revenues 0.4% 0.3%
Amortization of Excess
Purchase Price 5.4 6.5 (1.1) (16.9%)
Loomis, Fargo Income (1.9) (0.1) (1.8) 1,800.0%
Earnings before Interest
and Taxes 56.2 40.4 15.8 39.1%
Interest Expense and Finance
Charges 16.4 15.5 0.9 5.8%
Earnings before Income Taxes 39.8 24.9 14.9 59.8%
Provision for Income Taxes 14.6 9.8 4.8 49.0%
Earnings from Continuing
Operations 25.2 15.1 10.1 66.9%
Discontinued Operations, Net
of Income Taxes -- 20.3 (20.3) NM
Extraordinary Loss - Early
Extinguishment of Debt (12.1) (6.3) (5.8) NM
Net Earnings $13.1 $29.1 ($16.0) (55.0%)
Earnings (Loss) per Share-Diluted:
Continuing Operations $1.14 $0.64 $0.50 78.1%
Discontinued Operations -- 0.83 (0.83) NM
Extraordinary Loss - Early
Extinguishment of Debt (0.55) (0.26) (0.29) NM
Net Earnings Per Share $0.59 $1.21 ($0.62) (51.2%)
SOURCE Burns International Services Corporation
 back to top
Related links:
http://www.Burnsinternational.com
Company News On-Call:
http://www.prnewswire.com/comp/120940.html or fax,
800-758-5804, ext. 120940
CONTACT:
Analysts, Anne Ireland, 312-322-8550, or
Media, Lynne Glovka, 312-322-8511, both of Burns International
Services Corporation
|
