CHICAGO, April 27 /PRNewswire/ -- Burns International Services Corporation
(NYSE:BOR) today reported earnings from continuing operations in the first
quarter of 2000 of $0.24 per diluted share on a revenue increase of 8.1
percent over the prior year quarter.
The company's revenues for the first quarter of 2000 were $357.2 million
versus $330.5 million in the first quarter of 1999. Revenues for the core
U.S. Industrial guard segment increased 9.4 percent over the prior year
quarter.
Earnings per share for the first quarter of 2000 were $0.24 compared with
$0.27 in the prior year quarter. Current year earnings were impacted by an
increase of $1.2 million in interest expense over the prior year, primarily
due to the increase in receivables related to the installation of a new
financial and invoicing system during the fourth quarter of 1999.
Commentary on Quarterly Results
John A. Edwardson, chairman and chief executive officer, said, "We are
pleased to see revenue increasing at a rate double that of 1999. It is also
significant to note that our Globe aviation business unit began generating a
profit in February and our United Kingdom business has made substantial
progress toward profitability."
"The upfront investments we have made in sales and management training, as
well as national accounts, are having a very positive impact," stated Mr.
Edwardson. "We have signed significant national account contracts over the
last several months. These include Motorola, Weyerhaeuser, and Farmland
Industries, which total over 140 new sites. In addition, we were awarded a
Globe aviation contract at Dallas/Fort Worth Airport and renewed contracts at
Connecticut Yankee Atomic Power Company and Carolina Power and Light, both
commercial nuclear energy locations.
"I am particularly pleased that we substantially increased our sales
momentum while at the same time improving gross profit margins over last
quarter."
Gross profit margins for the company increased from 15.6 percent to
15.9 percent compared with the fourth quarter of 1999. The selling, general,
and administrative expense ratio to sales increased from the first quarter of
1999 primarily due to investments in training and national accounts, as well
as the inclusion of a non-recurring gain in the prior year. Selling, general,
and administrative expenses for the first quarter of 1999 included a
$1.5 million pretax gain associated with an insurance settlement.
Company Description
Chicago-based Burns International Services Corporation is North America's
premier provider of physical security and related services with 75,000
employees and 330 offices throughout the United States, Canada, England,
Scotland, Ireland, and Colombia. The company offers a complete range of
security solutions involving armed and unarmed physical security, foot and
vehicle patrol, access control and monitoring, background and drug screening,
investigative services, contract staffing, and other specialized security and
support services.
Risks and uncertainties that may affect projections include the cost and
availability of labor, the consequences of debt leverage to the company's
ability to fund its operations, the ability to manage the risks associated
with the services provided by the company, the ability to acquire other
security businesses at attractive prices and successfully integrate such
acquisitions into existing operations, and the other factors listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1999.
The company will host a conference call Friday, April 28, at 10:00 a.m.
eastern time to discuss this press release. Interested parties can listen in
on the conference call by dialing 800-260-0712 within the U.S. or 612-332-0720
from outside the U.S. The call will also be broadcast live and archived on
the company's web site at http://www.burnsinternational.com.
Income Statement
First Quarter
($ Millions, Except Per Share)
(Unaudited)
2000 1999
Net Service Revenues $357.2 $330.5
Cost of Services 300.3 277.4
Gross Margin 56.9 53.1
% of Revenues 15.9% 16.1%
Selling, General & Administrative 41.7 36.2
% of Revenues 11.7% 11.0%
Depreciation 1.8 1.2
% of Revenues 0.5% 0.4%
Other Expense, Net 0.4 1.3
Earnings before Interest and Taxes 13.0 14.4
Interest Expense and Finance Charges 5.0 3.8
Earnings before Income Taxes 8.0 10.6
Provision for Income Taxes 3.2 4.1
Net Earnings $4.8 $6.5
Net Earnings per Share-Diluted $0.24 $0.27
Average Shares Outstanding - Diluted 19.9 24.2
Summary Balance Sheet
($ Millions)
(Unaudited)
March 31, December 31,
2000 1999
Cash and cash equivalents $7.7 $10.4
Other current assets 159.0 163.9
Property, plant & equipment 23.0 23.6
Other non-current assets 146.6 145.8
Total assets $336.3 $343.7
Current liabilities 120.7 128.7
Long-term debt 128.8 133.6
Other non-current liabilities 51.3 50.7
Stockholders' equity 35.5 30.7
Total liabilities & stockholders' equity $336.3 $343.7
SOURCE Burns International Services Corporation
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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
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