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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
FIRST QUARTER 1999 RESULTS
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 5 pages including this page.
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ANSALDO SIGNAL N.V.
Contact
-------
Anthony A. Florence
Phone: +412.688.2102
Fax: +412.688.2518
ANSALDO SIGNAL ANNOUNCES FIRST QUARTER RESULTS
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JUNE 18, 1999 (SCHIPHOL, THE NETHERLANDS)
Ansaldo Signal today announced its results for the first quarter of 1999.
Revenues for the first quarter ended March 31, 1999 were US $73.3 million, up
1.7% from the US $72.0 million level for the quarter ended March 31, 1998.
For the first quarter of 1999, gross profit was US $15.7 million, up 6.1% from
the first quarter 1998 level of US $14.8 million. For the first quarter 1999,
gross profit as a percentage of revenues was 21.4%, versus a level of 20.5% in
the first quarter of 1998.
Operating income for the first quarter 1999 was US $2.8 million, up 10.5% from
the first quarter 1998 operating income of US $2.6 million.
Pre-tax income in the first quarter of 1999 was US $0.3 million compared to a
pre-tax loss of US $0.2 million in the first quarter of 1998.
Net income for the first quarter of 1999 was a loss of US $0.7 million, compared
to a net loss of US $0.5 million in the first quarter of 1998.
James Sanders, Ansaldo Signal's president and chief executive officer, noted
that although net income performance was negative for the quarter, the results
still permit Ansaldo Signal to achieve a profitable performance for the full
year if 1999 follows a performance pattern similar to 1998. "As is the
historical pattern in our business, last year the Company's positive
developments occurred toward the end of the year," Sanders said.
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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In the first quarter of 1999, the Company booked US $74.1 million in orders,
1.4% below the US $75.2 million booked in the first quarter of 1998. The largest
new order was for extensions to Dallas Area Rapid Transit's Light Rail Starter
System, a contract valued at US $45.0 million.
Sanders stressed that Ansaldo Signal continues its improvement in operations and
in gross profit as a percentage of revenues, both of which "are the result of
internal initiatives launched across all Ansaldo Signal operating companies last
year. We returned the Company to profitability last year and we continue to do
what it takes to improve the Company's operating performance going forward,"
Sanders said.
Ansaldo Signal N.V., an Ansaldo Trasporti/Finmeccanica-affiliated company, is a
worldwide leader in the design, manufacture and service of signaling, automation
and control equipment and systems for the railway and mass transit industries.
Its headquarters are in Schiphol, the Netherlands.
This news release contains various forward-looking statements and includes
assumptions about future market conditions, operations and results. These
statements, which include statements as to the Company's performance for 1999,
continuance in improvement in operations and in gross profit as a percentage of
revenues, and productivity and operating performance, 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: failure to meet contract
requirements and customer expectations at the cost level the Company is
anticipating on the projects which the Company and its subsidiaries are
currently implementing, and changes in the announced investment programs of the
Company's largest customers, both in terms of funding levels and technology
employed. Other factors are included in the Company's filings with the
Securities and Exchange Commission. 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 3
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ANSALDO SIGNAL N.V.
CONSOLIDATED STATEMENT OF OPERATIONS
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
THREE MONTHS ENDED
----------------------------
MARCH 31, MARCH 31,
1999 1998
<S> <C> <C>
Revenue ....................................................................... $ 73,266 $ 72,044
Cost of revenue ................................................................ 57,578 57,255
----------- -----------
Gross profit ............................................................. 15,688 14,789
Operating expenses:
Selling, general and administrative.......................................... 11,387 10,497
Research and development - net .............................................. 1,482 1,741
----------- -----------
Operating expenses ....................................................... 12,869 12,238
----------- -----------
Operating income ........................................................ 2,819 2,551
Net interest expense............................................................ 2,573 2,230
Other (income) expense.......................................................... (85) 529
----------- -----------
Income (loss) before income taxes and
minority interest in net income (loss) of subsidiaries ................. 331 (208)
Provision for income taxes .................................................... 1,009 280
Minority interest in net (income) loss of subsidiaries ......................... 5 (11)
----------- -----------
Net income (loss) ....................................................... $ (673) $ (499)
=========== ===========
Basic and diluted net income (loss)
per common share ........................................................ $ (0.03) $ (0.02)
=========== ===========
Basic and diluted weighted average number
common shares outstanding ...................................................... 20,448,750 $20,448,750
=========== ===========
</TABLE>
Certain amounts from prior periods have been reclassified
for comparative purposes.
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ANSALDO SIGNAL N.V.
PRESS RELEASE PAGE 4
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ANSALDO SIGNAL N.V.
CONSOLIDATED BALANCE SHEET
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
UNAUDITED
MARCH 31, DECEMBER 31,
1999 1998
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents......................................... $ 11,449 $ 12,913
Receivables - net................................................. 79,473 104,647
Receivables from parent and affiliates............................ 8,873 10,051
Inventory......................................................... 51,534 49,305
Costs and estimated earnings in excess of billings................
on uncompleted contracts....................................... 218,079 182,253
Deferred income taxes............................................. 7,447 6,844
Prepaid expenses and other current assets......................... 14,357 13,763
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Total current assets......................................... 391,212 379,776
Contract receivables - retentions.................................... 5,863 11,275
Property, plant and equipment - net.................................. 31,799 33,735
Intangible assets-net................................................ 30,185 33,658
Deferred tax assets - noncurrent..................................... 8,179 9,320
Other assets......................................................... 4,993 4,828
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Total assets................................................. $ 472,231 $ 472,592
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings and current
obligations under capital leases............................... $ 75,833 $ 75,403
Accounts payable.................................................. 103,581 91,593
Accounts payable-parent and affiliates............................ 3,979 4,956
Accrued liabilities............................................... 27,223 27,982
Accrued reorganization costs...................................... 1,341 2,276
Billings in excess of costs and estimated earnings................
on uncompleted contracts....................................... 54,621 53,137
Long-term borrowings due within one year.......................... 4,286 4,286
--------- ---------
Total current liabilities.................................... 270,864 259,633
Employee benefits obligations........................................ 20,747 22,477
Deferred income taxes................................................ 519 647
Other liabilities.................................................... 10,379 10,844
Long-term borrowings and obligations under capital leases............ 40,625 40,335
Long-term borrowings from parent..................................... 22,819 26,282
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Total liabilities............................................ 365,953 360,218
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Shareholders' equity:
Priority shares, NLG 0.01 par value, authorized 100
shares, no shares issued and outstanding....................... -- --
Common share, NLG 0.01 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.......................... (12,685) (7,262)
Accumulated earnings (deficit).................................... (21,156) 20,483)
--------- ---------
Total shareholders' equity................................... 106,278 112,374
Commitments and contingencies........................................ -- --
--------- ---------
Total liabilities and shareholders' equity................... $ 472,231 $ 472,592
========= =========
</TABLE>
