CHICAGO, April 20 /PRNewswire/ -- Borg-Warner Security Corporation
(NYSE: BOR) today reported first quarter 1999 net earnings per diluted share
of $0.27 compared with a net loss of $0.63 per share in the first quarter of
1998. Earnings from continuing operations in the first quarter 1999 were also
$0.27 per diluted share versus $0.16 per share in the prior year quarter, an
increase of approximately 69 percent. First quarter 1999 revenue increased
3.7 percent to $330.5 million compared with $318.6 million in the first
quarter of 1998.
John Edwardson, president and chief executive officer, stated, "We
performed well in the quarter. Domestic revenue growth, excluding the energy
and government services business, was approximately 5 percent. The 1999 first
quarter results included a $0.9 million, or $0.04 per share, non-recurring
after-tax gain associated with an insurance settlement which was partially
offset by higher than expected interest costs and effective tax rate.
Excluding this gain, earnings before interest and taxes increased 24 percent
largely due to continued improvement in gross margins."
"We remain focused on improving employee and customer retention, and
leveraging the company's strong financial position to build future revenue and
earnings per share growth," said Edwardson.
Borg-Warner Security Corporation is North America's largest provider of
physical security and related services with 73,000 employees and more than 300
offices throughout the United States, Canada, the United Kingdom and Colombia.
The company offers a complete range of security solutions including armed and
unarmed physical security, foot and vehicle patrol, access control and
monitoring, background and drug screening, investigative services, contract
staffing, and other specialized security services.
Risks and uncertainties that may affect projections include the cost and
availability of labor, the consequences of debt leverage to the company's
ability to fund its operations, the ability to manage the risks associated
with the services provided by the company, the ability to acquire other
security businesses at attractive prices and successfully integrate such
acquisitions into existing operations, and the other factors listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1998.
For a copy of this press release or for additional information on the
company, contact the company's web site at http://www.Borg-WarnerSecurity.com or
http://www.prnewswire.com.
Income Statement
First Quarter
($ Millions, Except Per Share)
Change
1999 1998 $ %
Net Service Revenues $330.5 $318.6 $11.9 3.7%
Cost of Services 277.4 269.1 8.3 3.1%
Gross Margin 53.1 49.5 3.6 7.3%
% of Revenues 16.1% 15.5%
Selling, General &
Administrative 37.7 35.7 2.0 5.6%
% of Revenues 11.4% 11.2%
Depreciation 1.2 1.0 0.2 20.0%
% of Revenues 0.4% 0.3%
Other Income Expense, Net (0.2) 2.4 (2.6) NM
Earnings before
Interest and Taxes 14.4 10.4 4.0 38.5%
Interest Expense and
Finance Charges 3.8 4.2 (0.4) (9.5%)
Earnings before
Income Taxes 10.6 6.2 4.4 71.0%
Provision for Income Taxes 4.1 2.3 1.8 78.3%
Earnings from Continuing
Operations 6.5 3.9 2.6 66.7%
Loss from Discontinued
Operations, Net of
Income Taxes 0.0 (19.1) 19.1 100.0%
Net Earnings $6.5 ($15.2) $21.7 NM
Earnings (Loss) per
Share-Diluted:
Continuing
Operations $O.27 $O.16 $0.11 68.8%
Discontinued
Operations 0.00 (0.79) 0.79 100.0%
Net Earnings
(Loss) per Share $0.27 ($0.63) $O.90 NM
SOURCE Borg-Warner Security
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Related links:
http://www.Borg-WarnerSecurity.com
Company News On-Call:
http://www.prnewswire.com/comp/120940.html or fax,
800-758-5804, ext. 120940
CONTACT:
Analysts, Jeff Cartwright, 312-322-8836, or
Media, Lynne Glovka, 312-322-8511, both of Borg-Warner Security
Corporation
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