CHICAGO, Feb. 3 /PRNewswire/ -- Borg-Warner Security Corporation
(NYSE: BOR) reported fourth quarter net earnings of $6.2 million, or 26 cents
per share, compared with net earnings of $6.2 million, or 26 cents per share
in the fourth quarter of 1996. For the full year 1997, net earnings were
$19.0 million, or 79 cents per share, versus a net loss of $14.6 million, or
62 cents per share in 1996. Earnings from continuing operations for the full
year 1997 were 79 cents per share versus 59 cents per share for the full year
1996, an increase of 33.9 percent.
Revenues in the fourth quarter of 1997 were $396.2 million, compared with
$443.9 million in the fourth quarter of 1996. Core security services revenues
in the fourth quarter of 1997 were $396.2 million versus $379.9 million in the
fourth quarter of 1996, an increase of 4.3 percent. Revenues for the full
year 1997 were $1,548.0 million compared with full year 1996 results of
$1,711.2 million. Core security services revenues for the full year 1997 were
$1,532.7 million versus full year 1996 revenues of $1,464.9 million, an
increase of 4.6 percent. The decline in reported revenue results from the
January, 1997 combination of the company's Wells Fargo Armored business with
Loomis Armored, which created Loomis, Fargo & Co. Wells Fargo Armored is no
longer consolidated and the company now accounts for its interest in Loomis,
Fargo as a 49 percent-owned equity investment.
Total debt at December 31, 1997 was $443.5 million compared with
$549.8 million at December 31, 1996 and $445.6 million at September 30, 1997.
The 1997 decrease resulted primarily from cash proceeds received in the
armored services business combination.
Joe Adorjan, chairman and chief executive officer, stated, "While we are
pleased with the fourth quarter performance of our core security business, we
were adversely affected by results at Loomis, Fargo & Co. Excluding a net
loss from Loomis, Fargo in the fourth quarter, earnings per share would have
increased from the fourth quarter 1996." Adorjan further commented that,
"1997 completes our second year of continued improvement in both revenue and
earnings growth from our core security business. Accomplishments during the
year included completion of the Loomis, Fargo combination, the launch of Total
Security Solutions, continued improvement in employee and customer retention
and the introduction of new products and technologies." Concluding his
remarks, Adorjan mentioned that the company is optimistic about its prospects
for 1998.
Borg-Warner Security Corporation is the nation's largest provider of
security services. The company offers a complete range of services, including
electronic and physical security services under the Wells Fargo and Burns
brand names.
Risks and uncertainties that may affect projections include the cost and
availability of labor, the consequences of debt leverage to the company's
ability to fund its operations, the ability to manage the risks associated
with the services provided by the company, the ability to acquire other
security businesses at attractive prices and successfully integrate such
acquisitions into existing operations, and the other factors listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1996.
For a copy of this press release or for additional information on the
company, contact our web site at http://www.Borg-WarnerSecurity.com or
http://www.prnewswire.com.
Borg-Warner Security Corporation
Business Segment Revenue
($ Millions)
Three months ended Twelve months ended
December 31 December 31
1997 1996 1997 1996
Physical Security Services $319.3 $305.8 $1,246.7 $1,178.8
Electronic Security Services 76.9 74.1 286.0 286.1
Armored Security Services -- 64.0 15.3 246.3
Total Revenues $396.2 $443.9 $1,548.0 $1,711.2
INCOME STATEMENT
FOURTH QUARTER
($ MILLIONS, EXCEPT PER SHARE)
Change
1997 1996 $ %
Revenues $396.2 $443.9 $(47.7) -10.7%
Cost of services 313.7 350.2 (36.5) -10.4%
Gross margin 82.5 93.7 (11.2) -12.0%
% of Revenues 20.8% 21.1%
Selling & administrative 48.3 53.9 (5.6) -10.4%
% of Revenues 12.2% 12.1%
Depreciation 9.6 11.4 (1.8) -15.8%
% of Revenues 2.4% 2.6%
Other expense, net 3.6 3.3 0.3 9.1%
Earnings before interest
and taxes 21.0 25.1 (4.1) -16.3%
Interest expense 10.6 13.9 (3.3) -23.7%
Pretax earnings 10.4 11.2 (0.8) -7.1%
Income taxes 4.2 5.0 (0.8) -16.0%
Earnings from continuing
operations 6.2 6.2 -- --
Loss from discontinued operations,
net of income taxes -- -- -- --
Net earnings (loss) $6.2 $6.2 -- --
Earnings per common share - Basic:
Continuing operations $0.26 $0.27 ($0.01) -3.7%
Discontinued operations -- -- -- --
Net earnings (loss)
per share $0.26 $0.27 ($0.01) -3.7%
Earnings per common share - Diluted:
Continuing operations $0.26 $0.26 -- --
Discontinued operations -- -- -- --
Net earnings (loss)
per share $0.26 $0.26 -- --
INCOME STATEMENT
FULL YEAR
($ MILLIONS, EXCEPT PER SHARE)
Change
1997 1996 $ %
Revenues $1,548.0 $1,711.2 $(163.2) -9.5%
Cost of services 1,232.3 1,360.2 (127.9) -9.4%
Gross margin 315.7 351.0 (35.3) -10.1%
% of Revenues 20.4% 20.5%
Selling & administrative 194.6 210.6 (16.0) -7.6%
% of Revenues 12.6% 12.3%
Depreciation 39.1 47.0 (7.9) -16.8%
% of Revenues 2.5% 2.7%
Other expense, net 10.0 13.4 (3.4) -25.4%
Earnings before interest
and taxes 72.0 80.0 (8.0) -10.0%
Interest expense 42.0 56.6 (14.6) -25.8%
Pretax earnings 30.0 23.4 6.6 28.2%
Income tax 11.0 9.5 1.5 15.8%
Earnings from continuing
operations 19.0 13.9 5.1 36.7%
Loss from discontinued operations,
net of income taxes -- (28.5) 28.5 100.0%
Net earnings (loss) $19.0 ($14.6) $33.6 230.1%
Earnings per common share - Basic:
Continuing operations $0.81 $0.60 $0.21 35.0%
Discontinued operations -- (1.23) 1.23 100.0%
Net earnings (loss)
per share $0.81 ($0.63) $1.44 228.6%
Earnings per common share - Diluted:
Continuing operations $0.79 $0.59 $0.20 33.9%
Discontinued operations -- ($1.21) 1.21 100.0%
Net earnings (loss)
per share $0.79 ($0.62) $1.41 227.4%
BORG-WARNER SECURITY CORPORATION
SUMMARY BALANCE SHEET
($ MILLIONS)
December 31, December 31,
1997 1996
Current assets $144.2 $167.1
Property, plant & equipment 141.3 203.1
Other non-current assets 374.1 390.6
Total assets $659.6 $760.8
Current liabilities 147.9 178.1
Long-term debt 342.5 438.2
Other non-current liabilities 104.2 103.3
Stockholders' equity 65.0 41.2
Total liabilities &
stockholders' equity $659.6 $760.8
SOURCE Borg-Warner Security Corporation
 back to top
Related links:
http://www.Borg-WarnerSecurity.com
CONTACT:
Jeff Cartwright of Borg-Warner Security
Corporation, 312-322-8836
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
120940
|
