Insituform Announces $0.30 Earnings Per Share Before Discontinued Operations, Restructuring Charge
Insituform Technologies, Inc. announced results for the fourth quarter and twelve months ended Dec. 31, 2001.
For the fourth quarter, revenues from continuing operations were $116.1 million compared to $104.7 million in the same period in 2000, an increase of 11 percent. Revenues from continuing operations in 2001 rose 9 percent to $445.3 million from $409.4 million in 2000. Net income for the fourth quarter after discontinued operations and restructuring charges was $4.8 million, or $0.18 per share, a decrease of 48 percent compared to fourth quarter 2000 net income of $9.3 million, or $0.36 per share. For the twelve months ended Dec. 31, 2001, net income after discontinued operations and restructuring expense decreased 29 percent to $24.9 million from $34.9 million in 2000 or $0.92 earnings per share for 2001, compared to $1.37 earnings per share for 2000. The 2001 results reflect the Feb. 28, 2001 acquisition of Kinsel Industries, Inc. ("Kinsel") and are adjusted to reflect discontinued operations.
Commenting, Anthony W. (Tony) Hooper, Chairman of the Board, President and Chief Executive Officer of the Company, stated, "I am pleased to state that our earnings were better than we forecasted in October. Earnings per share for the quarter before discontinued operations and restructuring expense were $0.30.
"When we acquired Kinsel, I discussed that we would perform a strategic review of certain parts of that company to determine if they fit our business strategy. During the fourth quarter, we made the decision to sell the Wastewater Treatment Plant business and the Highway Construction and Maintenance business. Accordingly, we have presented the results of these parts of Kinsel as discontinued operations for 2001. These businesses, accounted for as discontinued, lost $0.02 earnings per share in the fourth quarter and approximately broke even for the year. The loss was primarily the result of delays caused by near record rainfall in Houston during the fourth quarter.
"As discussed in October, we took restructuring charges during the fourth quarter of 2001 of $4.1 million pretax, which had a $0.10 impact on earnings per share. We still expect the restructuring will enable about $9.0 million of costs to be eliminated on a yearly basis.
"All of our core businesses performed at or above our expectations for the quarter. The Tunneling business was especially strong, reporting $16.0 million of revenues representing a 41 percent increase, and operating income of $2.1 million, representing a 46 percent increase, over the same period in 2001.
"Looking at 2002, we expect to see improvement in our Rehab and Tunneling segments and a continuation of the 2001 weakness in our TiteLiner segment. For the year, we would anticipate core business revenues to grow at 1520 percent and earnings per share from the core business to generate $1.45 to $1.60 per share. For 2002, we are also expecting the discontinued operations to contribute $0.06 earnings per share."