CHICAGO, Aug. 4 /PRNewswire/ -- Borg-Warner Security Corporation
(NYSE: BOR) reported second quarter net earnings of $4.1 million, or 17 cents
per share, compared with income of $1.9 million, or 8 cents per share, in the
second quarter of 1996. Income from continuing operations for the second
quarter of 1997 was 17 cents per share compared with 12 cents per share, an
increase of 41.7 percent compared with the second quarter of 1996.
Revenues in the second quarter of 1997 were $378.6 million compared with
$418.3 million in the second quarter of 1996. Core security services revenues
in the second quarter of 1997 were $378.6 million compared with $357.6 million
in the second quarter of 1996, an increase of 5.9 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.
For the first six months of 1997, net income was $8.1 million, or 34 cents
per share, compared with income of $2.4 million, or 10 cents per share, for
the first six months of 1996. Income from continuing operations for the first
six months of 1997 was 34 cents per share compared with 19 cents per share, an
increase of 78.9 percent compared with the first six months of 1996. Revenues
for the first six months of 1997 were $761.0 million compared with $832.4
million for the first six months of 1996. Excluding the armored services
business, core security services revenues for the first six months of 1997
were $745.7 million compared with $712.7 million for the first six months
of 1996, an increase of 4.6 percent.
Total debt at June 30, 1997, was $436.7 million compared with $549.8
million at December 31, 1996, and $446.2 million at March 31, 1997. The first
half 1997 decrease resulted from cash proceeds received in the armored
services business combination and operating cash flow.
J. Joe Adorjan, chairman and chief executive officer, stated, "Second
quarter results confirm that the company continues to make excellent progress
in achieving the strategic goals established in 1995. The year-to-date
increase in income from continuing operations of 80.0 percent has us on course
to achieve our previously stated target of 30-45 percent earnings per share
growth for the year."
Borg-Warner Security Corporation is the nation's largest provider of
security services. The company offers a complete range of services, including
electronic and physical security services under the Wells Fargo and Burns
brand names.
Risks and uncertainties which may effect projections are listed in Exhibit
99 to the company's Form 10-K for the year ended December 31, 1996.
For a copy of this press release or for additional information on the
company, contact our web site at http://www.bwsc.com or http://www.prnewswire.com.
Borg-Warner Security Corporation
Business Segment Revenue
($ Millions)
Three months ended Six months ended
June 30 June 30
1997 1996 1997 1996
Physical Security Services $308.4 $286.6 $607.5 $571.6
Electronic Security Services 70.2 71.0 138.2 141.1
Armored Security Services -- 60.7 15.3 119.7
Total Revenues $378.6 $418.3 $761.0 $832.4
Income Statement
Second Quarter
($ Millions, except per share)
Change
1997 1996 $ %
Revenues $378.6 $418.3 (39.7) -9.5%
Cost of services 300.4 332.2 (31.8) -9.6%
Gross margin 78.2 86.1 (7.9) -9.2%
% of Revenues 20.7% 20.6%
Depreciation 9.8 11.8 (2.0) -16.9%
% of Revenues 2.6% 2.8%
Selling & administrative 48.7 52.2 (3.5) -6.7%
% of Revenues 12.9% 12.5%
Other expense, net 2.5 3.4 (0.9) -26.5%
Earnings before interest and
taxes 17.2 18.7 (1.5) -8.0%
Interest expense 10.2 14.1 (3.9) -27.7%
Pretax income 7.0 4.6 2.4 52.2%
Income taxes 2.9 1.7 1.2 70.6%
Income from continuing
operations 4.1 2.9 1.2 41.4%
Loss from discontinued operations,
net of income taxes -- (1.0) 1.0 N/A
Net earnings $4.1 $1.9 $2.2 115.8%
Earnings (loss) per common share:
Continuing operations $0.17 $0.12 $0.05 41.7%
Discontinued operations -- (0.04) 0.04 N/A
Net earnings (loss) per
share $0.17 $0.08 $0.09 112.5%
Income Statement
First Six Months
($ Millions, except per share)
Change
1997 1996 $ %
Revenues $761.0 $832.4 (71.4) -8.6%
Cost of services 604.8 661.8 (57.0) -8.6%
Gross margin 156.2 170.6 (14.4) -8.4%
% of Revenues 20.5% 20.5%
Depreciation 19.6 23.9 (4.3) -18.0%
% of Revenues 2.6% 2.9%
Selling & administrative 100.5 104.9 (4.4) -4.2%
% of Revenues 13.2% 12.6%
Other expense, net 3.1 6.7 (3.6) -53.7%
Earnings before interest and
taxes 33.0 35.1 (2.1) -6.0%
Interest expense 20.8 28.6 (7.8) -27.3%
Pretax income 12.2 6.5 5.7 87.7%
Income taxes 4.1 2.0 2.1 105.0%
Income from continuing
operations 8.1 4.5 3.6 80.0%
Loss from discontinued operations,
net of income taxes -- (2.1) 2.1 N/A
Net earnings $8.1 $2.4 $5.7 237.5%
Earnings (loss) per common share:
Continuing operations $0.34 $0.19 $0.15 78.9%
Discontinued operations -- (0.09) 0.09 N/A
Net earnings (loss) per
share $0.34 $0.10 $0.24 240.0%
Borg-Warner Security Corporation
Summary Balance Sheet
($ Millions)
June 30, December 31,
1997 1996
Current assets $ 132.8 $ 167.1
Property, plant & equipment 156.3 203.1
Other non-current assets 368.0 390.6
Total assets $ 657.1 $ 760.8
Current liabilities 154.8 178.1
Long-term debt 336.5 438.2
Other non-current liabilities 115.6 103.3
Stockholders' equity 50.2 41.2
Total liabilities & stockholders'
equity $ 657.1 $ 760.8
SOURCE Borg-Warner Security Corporation
 back to top
CONTACT:
Jeff Cartwright of Borg-Warner Security
Corporation, 312-322-8836
|
