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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 1998
ANSALDO SIGNAL N.V.
-------------------
(Exact name of registrant as specified in its charter)
Schiphol Boulevard 267
1118 BH Schiphol
The Netherlands
(Address of principal executive office)
Indicate by check mark whether the Registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F |X| Form 40-F | |
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934:
Yes | | No |X|
This document contains 6 pages.
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ANSALDO SIGNAL N.V.
Contact
-------
Anthony A. Florence
Phone: (412) 688-2102
Fax: (412) 688-2518
ANSALDO SIGNAL REPORTS THIRD
QUARTER RESULTS
===============================================================================
29 OCTOBER, 1998 (AMSTERDAM, THE NETHERLANDS):
Ansaldo Signal N.V. (Nasdaq: ASIGF) today released its unaudited third quarter
and nine months results for the period ended September 30, 1998. As expected,
the company announced profitable performance for the second consecutive quarter,
offering continuing evidence of progress in the company's position.
Revenues for the third quarter ended September 30, 1998 were US$ 76,868,000, up
18.3% from the US$ 64,999,000 achieved in the third quarter ended September 30,
1997.
Gross profit for the third quarter was US$ 16,457,000, or 21.4% of revenues.
Gross profit rose 16.6% from the prior year, when the company's gross profit was
US$ 14,114,000. Net income for the third quarter was US$ 306,000, or US$ 0.01
per basic and diluted share compared to a net loss of US$ 3,165,000, or (US$
0.15) per basic and diluted share in the third quarter of 1997. In the quarter
ended June 30, 1998, Ansaldo Signal earned US$ 115,000, or US$ 0.01 per basic
and diluted share.
Revenues for the nine months ended September 30, 1998 were US$ 239,573,000, up
8.6% from the US$ 220,510,000 achieved in the nine months ended September 30,
1997.
ANSALDO SEGNALAMENTO FERROVIARIO S.P.A. - CSEE TRANSPORT S.A. -
UNION SWITCH & SIGNAL INC. US&S PTY. LTD. - AT SIGNAL SYSTEM A.B. -
ANSALDO TRASPORTI SIGNALLING (IRELAND) LTD.
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 2
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Gross profit for the first nine months was US$ 49,187,000; or 20.5% of revenues.
Gross profit rose 17.6% from the prior year, when the company's gross profit was
US$ 41,833,000, or 19.0% of revenues.
Net income for the first nine months was a loss of US$ 78,000, or (US$ 0.00) per
basic and diluted share; in the first nine months of 1997, the company realized
a net loss of US$ 9,198,000, or (US$ 0.45) per basic and diluted share.
Backlog at September 30, 1998 was US$ 780,014,000, compared to US$ 530,140,000
on September 30, 1997.
James N. Sanders, Ansaldo Signal's president and chief executive officer,
attributed the improvement in revenues to the company's orders success during
1997. "While our strong increase in backlog during 1997 gave us the base for a
solid revenue stream through the turn of the century, we continue to win
significant contracts that build our position for the future."
Sanders referred to the "Integrato" contracts won by the company's Italian
subsidiary Ansaldo Segnalamento Ferroviario S.p.A. ("ASF"). "We won the first
two phases of a significant project undertaken by the Italian State Railway
("FS") to modernize its signaling system with a design that is compatible with
emerging European Rail Traffic Management System ("ERTMS") specifications. By
creating a European standard, ERTMS specifications will allow the national rail
systems of Europe to achieve interoperability. As such, ERTMS represents the
future of European rail-based transit."
Sanders also pointed to the demonstration agreement between New York City
Transit ("NYCT") and a consortium including Union Switch & Signal Inc. ("US&S"),
the company's U.S. subsidiary. The demonstration agreement calls for the
consortium to implement communications-based train control technology on a
two-mile stretch of the Culver line. "NYCT has chosen our consortium and two
others to develop and supply technology, from which it will determine a standard
to form the basis of planned system upgrades over the next 20 years."
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PRESS RELEASE PAGE 3
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Sanders discussed US&S's recent selection as the preferred supplier to implement
a network management center system for Railtrack Plc. in Great Britain.
Railtrack Plc, a new customer for US&S, has announced a capital expenditure
program to upgrade its infrastructure. Planned development following the
preliminary contract includes a series of network management centers to be
implemented over the next ten years.
"Even in our traditional markets, we continue to find new customers for our
products." Sanders noted that CSEE Transport S.A. ("CSEE"), the French
subsidiary, had recently won a contract from the Spanish National Railway
("RENFE") to supply hot box detector units.
Sanders noted that the company continues to improve its internal performance. He
attributed reductions in year-over-year operating expenses to greater cost
controls and efficiency measures, resulting in part from redesign programs at
Ansaldo Signal's operating subsidiaries. "We continue to rebound," said Sanders.
Ansaldo Signal N.V., an Ansaldo Trasporti/Finmeccanica-affiliated company, is a
leader in design, manufacture, and service of signalling, automation and control
equipment and systems for the railroad and mass transit industries worldwide.
This news release contains various forward-looking statements and includes
assumptions about future market conditions, operations and results. These
statements are based on current expectations and are subject to risks and
uncertainties. They are made pursuant to safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Among the many factors that could
cause actual results to differ materially from the forward-looking statements
are: changes in the announced investment programs of the Company's largest
customers, both in terms of funding levels and in terms of technology employed;
failure to meet Customer expectations on the projects which the Company and its
subsidiaries are currently implementing. Other factors are included in the
Company's filings with the Securities and Exchange Commission, incorporated by
reference herein. The Company assumes no obligation to update these forward-
looking statements or advise of changes in the assumptions on which they were
based.
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 4
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CONSOLIDATED STATEMENT OF OPERATIONS
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenue ......................................... $76,868 $64,999 $239,573 $220,510
Cost of revenue........................................ 60,411 50,885 190,386 178,677
------- ------- -------- --------
Gross profit...................................... 16,457 14,114 49,187 41,833
Operating expenses:
Selling, general and administrative............... 12,147 12,300 34,942 40,029
Research and development - net.................... 1,226 2,185 6,348 8,132
------- ------- -------- --------
Operating expenses................................ 13,373 14,485 41,290 48,161
------- ------- -------- --------
Operating income (loss)........................... 3,084 (371) 7,897 (6,328)
Interest expense....................................... 2,766 2,053 7,515 6,497
Other non-operating (income) expense................... (523) (82) (2,373) (1,929)
------- ------- -------- --------
Income (loss) before income taxes and equity
in net earnings (losses) of affiliates... 841 (2,342) 2,755 (10,896)
Provision for (benefit from) income taxes.............. 681 879 3,291 (1,418)
------- ------- -------- --------
Income (loss) before equity in net
earnings (losses) of affiliates............... 160 (3,221) (536) (9,478)
Equity in net earnings of affiliates................... 146 56 458 280
------- ------- -------- --------
Net income (loss)................................. $ 306 $(3,165) $ (78) $ (9,198)
======= ======= ======== ========
Basic and dilutive net income (loss)
per common share.............................. $ 0.01 $ (0.15) $ 0.00 $ (0.45)
======= ======= ======== ========
Basic weighted average number
common shares outstanding......................... 20,488,750 20,488,750 20,488,750 20,488,750
========== ========== ========== ==========
Dilutive weighted average number
common shares outstanding......................... 20,488,750 20,488,750 20,488,750 20,488,750
========== ========== ========== ==========
</TABLE>
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 5
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CONSOLIDATED BALANCE SHEET
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
SEPTEMBER 30, DECEMBER 31,
1998 1997
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents..................................................... $ 7,123 $ 4,530
Receivables - net............................................................. 84,978 95,689
Receivables from parent and affiliates........................................ 9,810 15,761
Inventory..................................................................... 52,865 44,771
Costs and estimated earnings in excess of billings on uncompleted contracts... 215,199 157,008
Prepaid expenses and other current assets..................................... 23,280 25,646
-------- --------
Total current assets................................................. 393,255 343,405
Contract receivables - retentions.................................................. 4,793 13,370
Property, plant and equipment - net................................................ 34,579 54,302
Intangible assets-net.............................................................. 32,926 33,118
Deferred tax assets................................................................ 10,021 9,653
Other assets ..................................................................... 5,114 3,318
-------- --------
Total assets......................................................... $480,688 $457,166
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings and current obligations under capital leases............ $ 91,977 $ 60,129
Accounts payable.............................................................. 87,783 97,844
Accounts payable-parent and affiliates........................................ 3,373 4,465
Accrued liabilities........................................................... 29,507 24,331
Reorganization costs accrued.................................................. 3,851 4,160
Billings in excess of costs and estimated earnings on uncompleted contracts... 67,973 62,672
-------- --------
Total current liabilities............................................ 284,464 253,601
Employee benefits obligations...................................................... 22,841 21,304
Contract advances from parent...................................................... 2,998 2,998
Other liabilities.................................................................. 8,851 10,329
Long-term borrowings and obligations under capital leases.......................... 23,404 34,003
Payable to parent.................................................................. 31,959 32,379
-------- --------
Total liabilities.................................................... 374,517 354,614
-------- --------
Shareholders' equity:
Priority shares, NLG 001 par value, authorized 100
shares, no shares issued and outstanding.................................. - -
Common share, NLG 001 par value, authorized 50,000,000
shares, issued and outstanding 20,448,750 and 20,448,750.................. 120 120
Additional paid-in capital.................................................... 139,999 139,999
Foreign currency translation adjustments...................................... (6,865) (10,562)
Accumulated earnings (deficit)................................................ (27,083) (27,005)
-------- --------
Total shareholders' equity........................................... 106,171 102,552
Commitments and contingencies...................................................... - -
-------- --------
Total liabilities and shareholders' equity........................... $480,688 $457,166
======== ========
</TABLE>
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