Environmental Elements Corporation Releases Second Quarter Earnings
BALTIMORE, Nov. 14 /PRNewswire-FirstCall/ -- Environmental Elements Corporation
today reported a net loss of $771,000 ($.11 per share) on sales of $6.7 million
for its second fiscal quarter ended September 30, 2003, compared to net income
of $47,000 or $.01 per share on sales of $9.3 million for the same period last
year. For the six months ended September 30, 2003, the Company reported a net
loss of $1,044,000 ($.14 per share loss) on sales of $17.2 million, compared
with a net loss of $347,000 ($.05 per share) on sales of $23.6 million during
the same period last fiscal year.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011211/EECLOGO ) "The summer is a slow period for the Company as our customers are in peak
production and therefore unable to shut down their facilities for either new
systems installations or the maintenance and service of their existing air
pollution control equipment," said interim President and Chief Financial Officer
Lawrence Rychlak. "In spite of this expected revenue slowdown, our results for
the second quarter were slightly better than we forecasted due to the successful
completion of several projects and the resolution of a patent dispute. Our
future outlook is much better as our initiatives to reduce our overall spending
have been completed and are evident in our results. In addition, the debt
restructuring discussions with our bank continue and we expect to have a
resolution during our third fiscal quarter." Environmental Elements Corporation is a solutions-oriented, global provider of
innovative technology for plant services, air pollution control equipment and
complementary products. The Company serves a broad range of customers in the
power generation, pulp and paper, waste-to-energy, rock products, metals and
petrochemical industries.
Certain of the statements included in this news release are forward- looking
statements. These statements involve risks and uncertainties that could cause
the actual results to differ from those expressed in or implied by such
statements. These factors include the loss of bookings, increased competition,
changes in environmental regulations, and other factors. Information on factors
that could affect the Company's financial results is set forth in the Company's
filings with the Securities and Exchange Commission, including reports filed on
Form 10-K. Financial Information follows.
Environmental Elements Corporation
Summary Consolidated Financial Data
(Unaudited) Three Months Ended Six Months Ended
September 30, September 30,
In thousands, except per-share
data 2003 2002 2003 2002 Sales $6,706 $9,263 $17,213 $23,577
Cost of sales 6,477 7,875 16,097 21,056
Gross profit 229 1,388 1,116 2,521
Selling, general and
administrative expenses 918 1,277 1,867 2,660
Operating income (loss) (689) 111 (751) (139) Interest and other expense (82) (64) (293) (208)
Income (loss) before
income taxes (771) 47 (1,044) (347) Provision for income taxes - - - -
Net income (loss) $(771) $47 $(1,044) $(347)
Earnings (loss) per share:
Basic $(0.11) $0.01 $(0.14) $(0.05)
Diluted $(0.11) $0.01 $(0.14) $(0.05) Weighted average common shares
outstanding:
Basic 7,282 7,244 7,282 7,243
Diluted 7,282 7,254 7,282 7,243 Backlog, end of period $7,100 $19,100
http://www.newscom.com/cgi-bin/prnh/20011211/EECLOGO DATASOURCE: Environmental Elements Corporation CONTACT: Lawrence Rychlak, President & CFO, Environmental Elements Corporation, +1-410-368-7007 Web site: http://www.eec1.com/ Company News On-Call: http://www.prnewswire.com/comp/284933.html
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