CHICAGO, July 26 /PRNewswire/ -- Burns International Services Corporation
(NYSE: BOR) today reported earnings in the second quarter of 2000 of $0.28 per
diluted share.
During the second quarter of 2000, revenues for the core Domestic
Industrial segment increased 7.9 percent over the prior year quarter, compared
with an increase of 5.3 percent in the second quarter of 1999 over the prior
year quarter. Revenues for the full company were $359.3 million in the second
quarter of 2000 versus $338.6 million in the prior year quarter, an increase
of 6.1 percent.
Earnings per share for the second quarter of 2000 were $0.28 compared with
$0.29 in the prior year quarter. Prior year earnings included approximately a
$0.02 per share gain associated with legal settlements and other non-recurring
items.
Commentary on Quarterly Results
John A. Edwardson, chairman and chief executive officer, said, "I continue
to be pleased with the company's operating performance and financial results.
Despite a tight labor market, we continue to experience strong revenue growth,
as well as, improved employee retention."
"In addition to healthy expansion in the core Domestic Industrial segment,
several of our specialty businesses are also experiencing increased growth
rates. Revenues for Globe Aviation increased 12 percent over the prior year
quarter and Contract Staffing revenues increased 28 percent for the same
period. Likewise, Investigative Services and SafeToHire.com increased
revenues by 39 percent, which equates to an annualized run rate of
approximately $15 million."
"Revenue for the United Kingdom operation fell 14 percent versus the first
quarter of 2000, however gross margins increased 1.5 percentage points as
management focused on higher margin accounts."
"The investments we made in sales and marketing training, as well as
national accounts, continue to pay off in terms of significantly improved
revenue growth. I anticipate that our increased focus on customer service
training will have a similar impact on the company's performance going forward
by improving customer retention," said Mr. Edwardson.
Accounts receivable declined by approximately $17 million during the
second quarter, reflecting progress on invoicing and collections, offset by
growth in revenues. As a consequence of this and the receipt of a substantial
tax refund, net funding declined to $198.4 million as of June 30, 2000.
Company Description
Chicago-based Burns International Services Corporation is North America's
premier provider of physical security and related services with 75,000
employees and more than 300 offices throughout the United States, Canada,
England, Scotland, Ireland, and Colombia. The company offers a complete range
of security solutions involving armed and unarmed physical security, foot and
vehicle patrol, access control and monitoring, background and drug screening,
investigative services, contract staffing, and other specialized security and
support services.
Risks and uncertainties that may affect projections include the cost and
availability of labor, the consequences of debt leverage to the company's
ability to fund its operations, the ability to manage the risks associated
with the services provided by the company, the ability to acquire other
security businesses at attractive prices and successfully integrate such
acquisitions into existing operations, and the other factors listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1999.
The company will host a conference call Thursday, July 27, 2000 at 10:00
a.m. eastern time to discuss this press release. Interested parties can
listen in on the conference call by dialing 888-273-9890 within the U.S. or
612-332-0523 from outside the U.S. A recording of the conference call will be
available from noon on Thursday, July 27, 2000 until midnight on Friday, July
28, 2000. To access the recording, call 800-475-6701 from within the U.S. and
320-365-3844 from outside the U.S. The access code is 527653. The call will
also be broadcast live and archived on the company's web site at
http://www.burnsinternational.com .
Income Statement
Second Quarter
($ Millions, Except Per Share)
(Unaudited)
2000 1999
Net Service Revenues $ 359.3 $ 338.6
Cost of Services 302.7 284.9
Gross Margin 56.6 53.7
% of Revenues 15.8% 15.9%
Selling, General & Administrative 40.6 36.4
% of Revenues 11.3% 10.8%
Depreciation 1.7 1.3
% of Revenues 0.5% 0.4%
Other Expense, Net 0.1 1.0
Earnings before Interest and Taxes 14.2 15.0
Interest Expense and Finance Charges 4.8 3.9
Earnings before Income Taxes 9.4 11.1
Provision for Income Taxes 3.7 4.3
Earnings before Extraordinary Item 5.7 6.8
Loss from Early Extinguishment of Debt -- (12.1)
Net Earnings (Loss) $ 5.7 ($ 5.3)
Earnings (Loss) per Share - Diluted:
Earnings before Extraordinary Item (A) $ 0.28 $ 0.29
Loss from Early Extinguishment of Debt -- (0.52)
Net Earnings (Loss) per Share $ 0.28 ($ 0.23)
Average Shares Outstanding - Diluted 20.1 23.4
(A) 1999 includes approximately a $0.02 per share gain associated with
legal settlements and other non-recurring items, which primarily
relate to Selling, General and Administrative expense.
Income Statement
Six Months
($ Millions, Except Per Share)
2000 1999
Net Service Revenues $ 716.5 $ 669.1
Cost of Services 603.0 562.3
Gross Margin 113.5 106.8
% of Revenues 15.8% 16.0%
Selling, General & Administrative 82.3 72.6
% of Revenues 11.5% 10.9%
Depreciation 3.5 2.5
% of Revenues 0.5% 0.4%
Other Expense, Net 0.5 2.3
Earnings before Interest and Taxes 27.2 29.4
Interest Expense and Finance Charges 9.8 7.7
Earnings before Income Taxes 17.4 21.7
Provision for Income Taxes 6.9 8.4
Earnings before Extraordinary Item 10.5 13.3
Loss from Early Extinguishment of Debt -- (12.1)
Net Earnings $ 10.5 $ 1.2
Earnings (Loss) per Share - Diluted:
Earnings before Extraordinary Item $ 0.52 $ 0.56
Loss from Early Extinguishment of Debt -- (0.51)
Net Earnings per Share $ 0.52 $ 0.05
Average Shares Outstanding - Diluted 20.1 23.8
Summary Balance Sheet
($ Millions)
(Unaudited)
June 30, December 31,
2000 1999
Cash and Cash Equivalents $ 10.1 $ 10.4
Receivables, Net 44.8 59.9
Other Current Assets (A) 112.7 104.0
Property, Plant & Equipment 23.3 23.6
Other Non-current Assets 147.4 145.8
Total Assets $ 338.3 $ 343.7
Current Liabilities $ 110.9 $ 128.7
Long-term Debt 137.2 133.6
Other Non-current Liabilities 51.0 50.7
Stockholders' Equity 39.2 30.7
Total Liabilities & Stockholders' Equity $ 338.3 $ 343.7
(A)Includes retained interests in trade receivables sold through a
securitization facility of $88.0 million and $51.9 million at
June 30, 2000 and December 31, 1999, respectively
(see supplemental data).
Supplemental Data
($ Millions)
(Unaudited)
June 30, December 31,
2000 1999
Receivables, Net $ 44.8 $ 59.9
Retained Interest in Trade Receivables Sold 88.0 51.9
Receivables Sold through Securitization Facility 80.0 120.0
Total Trade Receivables Portfolio $ 212.8 $ 231.8
Short-term Borrowings $ 0.1 $ 3.6
Borrowings under Senior Credit Facility 137.0 133.4
Other Long-term Debt 0.2 0.2
Receivables Sold through Securitization Facility 80.0 120.0
Less: Funds Held in Trust under
Securitization Facility (8.8) (5.0)
Less: Cash and Cash Equivalents (10.1) (10.4)
Total Net Funding $ 198.4 $ 241.8
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
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