BELIZE CITY, Belize, March 2 /PRNewswire/ -- BHI Corporation
(Nasdaq: BHIKF), a corporation operating financial and other service
businesses, reported net income of $15.0m for the nine months ended
January 31, 1998, an increase of 21% over the same period last year. Earnings
per share for the nine months was $2.04, up 17% over the comparable period
last year.
BHI also announced that it had completed the acquisition of a controlling
interest (83%) in Aaxis Limited in a share-for-share transaction. This
acquisition, through ISS International Service Systems Inc. ("ISS Inc."),
makes BHI one of North America's leading providers of outsourced facilities
services, including cleaning, building maintenance and support services. BHI
has now made an offer for the minority interests in Aaxis on comparable terms
and expects to close this offer by March 31, 1998. Immediately following
completion of this offer, BHI will have approximately 11.0 million BHI
Ordinary Shares in issue (assuming 100% acceptances of the Offer by remaining
shareholders of Aaxis).
Commenting, Mr. Steve Ruzika, BHI's Chief Executive Officer said: "With
the acquisition of Aaxis, BHI has become a leader in the highly fragmented
outsourced facility services market in North America. We see exciting
opportunities to increase our business through a combination of internal
growth and acquisitions. The combined company has strong recurring revenues
and cash flow which will serve as a platform for our strategy which we believe
will significantly enhance shareholder value."
Commenting on the third quarter results, Mr. Ruzika, added:
"BHI's existing businesses experienced satisfactory growth during the nine
month period. We are also pleased with the performance of BHI's equity
investments which continues to be up to expectations."
Financial Services
Financial services, with income before taxes at $7.1m, up 18% for the nine
months ended January 31, 1998, achieved continued growth in both lending and
non-interest income. Net interest income was up 8% driven by strong growth in
the average lending portfolio, partly offset by lower margins. Non-interest
income was up 30% due principally to further gains in the international
financial services sector. Company and ship registration services maintained
high growth rates with a 31% gain in total revenue for the nine months ended
January 31, 1998. The number of companies and ships registered to date is
approximately 6600 and 3200 respectively.
Equity Investments
BHI's equity in the net income of associated companies amounted to $7.2m
for the nine months ended January 31, 1998, up 4% over the comparable period
last year. This result includes a $2.3m contribution from Belize
Telecommunications Limited, up 5% against the prior year and a $5.7m
contribution from NUMAR, the fully integrated edible oil processor and
distributor in Costa Rica, up 13% against the prior year with continued gains
in export sales of palm oil and seeds and reduced finance charges as a result
of debt reduction.
Other Income
Other income at $0.8m for the nine months ended January 31, 1998 compared
to a loss of $0.3m for the same period last year, includes the results of
BHI's construction and civil engineering operations and hotel operations, both
of which performed to expectations.
BHI owns and operates selected services businesses in Central America and
with the completion of the acquisition of Aaxis Limited, is a leader in the
outsourced facilities services sector in North America. BHI prepares its
financial statements in US dollars and according to US GAAP.
FORWARD LOOKING STATEMENT
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. In particular, statements contained herein regarding expectations
with respect to future revenue and business expansion, are subject to known
and unknown risks, uncertainties and contingencies, many of which are beyond
the control of BHI, which may cause actual results, performance or
achievements to differ materially from anticipated results, including, among
others, overall economic and business conditions, the demand for BHI's
services, competitive factors, regulatory approvals and the uncertainty of
consummation of future acquisitions. Additional factors which may affect
BHI's business and performance are set forth in BHI's filings with the
Securities and Exchange Commission.
BHI CORPORATION
Unaudited Consolidated Statements of Income
US Dollars in millions
Nine months ended
January 31,
1998 1997
Financial Services
Interest income:
Interest and fees on loans $15.5 $13.5
Interest on deposits with banks 1.2 0.9
Interest on Government of Belize securities -- 0.2
Interest on other securities -- 0.4
Total interest income 16.7 15.0
Interest expense:
Interest on deposits (6.8) (5.8)
Interest on short-term debt (0.2) (0.1)
Intercompany interest (0.1) (0.1)
Total interest expense (7.1) (6.0)
Net interest income 9.6 9.0
Provision for loan losses (0.1) (0.4)
Net interest income after provision for loan losses 9.5 8.6
Non-interest income 3.9 3.0
Non-interest expense:
Salaries and benefits (2.8) (2.7)
Premises and equipment (1.2) (0.9)
Other non-interest expenses (2.3) (2.0)
Total non-interest expenses (6.3) (5.6)
Total - Financial Services 7.1 6.0
Elimination of intercompany interest 0.1 0.1
7.2 6.1
Equity in net income of associated companies 7.2 7.0
Other income 0.8 (0.3)
Other interest income 0.1 0.2
Other interest expense (0.3) (0.6)
Income from operations before income taxes 15.0 12.4
Income taxes -- --
Net income 15.0 12.4
Earnings per ordinary share $2.04 $1.75
BHI CORPORATION
Unaudited Consolidated Balance Sheets
US Dollars in millions
January 31, April 30,
1998 1997
Assets
Cash, cash equivalent and due from banks $22.3 $14.3
Interest bearing deposits 24.4 28.6
Loans (net of unearned income) 119.7 108.2
Less: Allowance for loan losses (1.7) (1.9)
Premises and equipment 23.4 22.5
Equity investments 60.9 55.2
Goodwill and other intangibles - net 0.7 0.8
Other assets 22.4 19.5
Total Assets $272.1 $247.2
Liabilities and Shareholders' Equity
Deposits
-Demand $31.5 $29.1
-Savings 27.1 28.2
-Certificates of deposit 85.3 82.2
Total Deposits 143.9 139.5
Short-term debt 9.3 7.2
Other liabilities 11.2 9.4
Long-term debt 0.5 0.6
Total Liabilities 164.9 156.7
Shareholders' Equity
Share capital 0.1 0.1
Additional paid-in capital 50.6 47.3
Retained earnings 59.5 46.1
Treasury shares, at cost (2.8) (2.8)
Translation adjustment (0.2) (0.2)
Total Shareholders' Equity 107.2 90.5
Total Liabilities and Shareholders' Equity $272.1 $247.2
BHI CORPORATION
Unaudited Consolidated Statements of Shareholders' Equity
US Dollars in millions
Nine months ended
January 31,
1998 1997
Balance, May 1 $90.5 $71.1
Net income 15.0 12.4
Shares issued 1.8 --
Sales of treasury shares 0.1 2.0
Cash dividend paid (0.2) (0.1)
Balance, January 31 107.2 85.4
BHI Corporation
Unaudited Consolidated Statements of Cash Flows
US Dollars in millions
Nine months ended
January 31
1998 1997
Cash Flows from Operating Activities
Net income $15.0 $12.4
Adjustment to reconcile net income to net cash
provided by operating activities
Provision for loan losses 0.2 0.4
Depreciation on premises and equipments 1.5 1.2
Gain on sale of equity investments (1.8) --
Undistributed earnings of associates (5.5) (5.5)
Change in assets and liabilities net of effect
from purchase of businesses
Increase (decrease) in other assets (2.7) 4.9
Increase (decrease) in accrued expenses and
other liabilities 1.7 (7.9)
Net cash provided by operating activities 8.4 5.5
Cash Flows from Investing Activities
Decrease in interest-bearing deposits
with correspondent banks 4.3 1.5
Decrease in government securities -- 10.4
Increase in loans to customers (12.0) (16.2)
Purchase of premises and equipment (2.5) (2.0)
Disposal of premises and equipment 0.1 0.1
Purchase of investments in associated companies (1.3) (2.0)
Sale of other investments 4.5 0.5
Purchase of other investments (1.6) (0.1)
Purchase of minority interest -- (1.5)
Payments for businesses purchased
(net of cash acquired) -- (1.3)
Net cash used by investing activities (8.5) (10.6)
Cash Flows from Financing Activities
Increase in demand, savings and
certificate of deposits 4.3 0.2
Sale of treasury shares 0.1 1.9
Net increase in short-term loans 2.1 4.0
Ordinary shares issued on exercise of options 1.8 --
Cash dividend paid out on Ordinary shares (0.2) (0.1)
Net cash provided by financing activities 8.1 6.0
Net Change in Cash, Cash Equivalents and
Due from Banks 8.0 0.9
Cash, cash equivalent and due from banks
at beginning of period 14.3 14.5
Cash, cash equivalent and due from banks
at end of period $22.3 $15.4
Supplemental disclosure of cash flows information
Cash paid for interest $0.3 $0.6
Cash paid for taxes -- --
SOURCE BHI Corporation
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CONTACT:
Angela Entwistle, 561-368 3899, or Eileen M.
Halsch, 212-232-2222, both for BHI Corporation
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
114380
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