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Previous: WESTMORELAND COAL CO, 10-Q, 1995-05-15 |
Next: WHX CORP, 10-Q, 1995-05-15 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarter period ended March 31, 1995
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
----------------- ----------------
Commission File No. 0-4643
ROY F. WESTON, INC.
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 23-1501990
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1 WESTON WAY, WEST CHESTER, PENNSYLVANIA 19380-1499
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code........ (610)-701-3000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
------ ------
As of April 28, 1995, the registrant had outstanding 7,338,874 shares
of Series A common stock and 2,111,784 shares of common stock.
<PAGE> 2
<TABLE>
<CAPTION>
Index Page
----- ----
<S> <C>
Part I - Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets -
March 31, 1995 and December 31, 1994 1-2
Consolidated Statements of Income -
Three Months Ended March 31, 1995 and 1994 3
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1995 and 1994 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 6
Part II - Other Information 7
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
</TABLE>
<PAGE> 3
ROY F. WESTON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
---- ----
(Unaudited)
(Thousands of Dollars)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents........................... $ 8,583 $ 5,745
Marketable securities............................... 11,469 12,992
Accounts receivable, trade, net of allowance
for doubtful accounts of $1,872 in 1995
and $1,699 in 1994................................. 77,778 68,947
Unbilled costs and estimated earnings on
contracts in process............................... 21,035 20,586
Prepaid and refundable income taxes................. 1,053 1,581
Deferred income taxes............................... 1,825 1,395
Other............................................... 2,795 3,626
--------- ---------
Total current assets....................... 124,538 114,872
--------- ---------
PROPERTY AND EQUIPMENT
Land................................................ 215 215
Buildings and improvements.......................... 11,099 10,832
Furniture and equipment............................. 55,622 54,617
Leasehold improvements.............................. 7,424 7,579
Construction in progress............................ 791 253
--------- ---------
Total property and equipment............... 75,151 73,496
Less accumulated depreciation and amortization...... 53,788 52,494
--------- ---------
Property and equipment, net................ 21,363 21,002
--------- ---------
OTHER ASSETS
Goodwill, net of accumulated amortization of
$1,092 in 1995 and $1,055 in 1994.................. 4,862 4,899
Deferred income taxes............................... 1,562 1,827
Other............................................... 14,539 14,130
--------- ---------
Total other assets......................... 20,963 20,856
--------- ---------
$ 166,864 $ 156,730
========= =========
</TABLE>
See notes to consolidated financial statements.
-1-
<PAGE> 4
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
---- ----
(Unaudited)
(Thousands of Dollars)
<S> <C> <C>
CURRENT LIABILITIES
Current maturities of long-term debt.............. $ 2,425 $ 2,431
Accounts payable and accrued expenses............. 11,560 11,502
Billings on contracts in process in excess of
costs and estimated earnings..................... 14,672 8,960
Employee compensation, benefits and
payroll taxes.................................... 12,291 9,841
Income taxes payable.............................. 166 120
Other ............................................ 9,897 7,666
---------- ---------
Total current liabilities................ 51,011 40,520
---------- ---------
LONG TERM DEBT.................................... 29,267 29,843
---------- ---------
OTHER LIABILITIES................................. 5,318 5,475
---------- ---------
CONTINGENCIES.....................................
STOCKHOLDERS' EQUITY
Common stock, $.10 par value, 10,500,000 shares
authorized; 3,193,059 shares issued in 1995;
3,211,213 shares issued in 1994.................. 319 321
Series A common stock, $.10 par value,
20,500,000 shares authorized; 7,686,479
shares issued in 1995; 7,668,325 shares
issued in 1994................................... 769 767
Additional paid-in capital........................ 52,896 52,684
Retained earnings................................. 29,987 29,415
---------- ---------
83,971 83,187
Less treasury stock at cost, 1,081,275 common
shares in 1995 and 1994; 290,605 and 214,705
Series A common shares in 1995 and 1994.......... 2,703 2,295
---------- ---------
Total stockholders' equity............... 81,268 80,892
---------- ---------
$ 166,864 $ 156,730
========== =========
</TABLE>
See notes to consolidated financial statements.
-2-
<PAGE> 5
ROY F. WESTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1995 1994
---- ----
(Thousands of Dollars)
<S> <C> <C>
Gross revenues..................................... $ 75,601 $ 72,191
Direct project costs............................... 22,877 22,163
---------- ----------
Net revenues.............................. 52,724 50,028
---------- ----------
Expenses:
Direct salaries and other operating costs. 44,106 42,380
General and administrative expenses....... 7,498 7,050
---------- ----------
51,604 49,430
---------- ----------
Income from operations.................... 1,120 598
---------- ----------
Other income (expense):
Investment income......................... 372 180
Interest expense.......................... (605) (665)
Other..................................... 7 54
---------- ----------
(226) (431)
---------- ----------
Income before income taxes................ 894 167
Provision for income taxes......................... 322 64
---------- ----------
Net income ............................... $ 572 $ 103
========== ==========
Net income per share...................... $ .06 $ .01
========== ==========
Weighted average shares outstanding 9,552,040 9,491,877
========== ==========
</TABLE>
See notes to consolidated financial statements.
-3-
<PAGE> 6
ROY F. WESTON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1995 1994
---- ----
(Thousands of Dollars)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ......................................... $ 572 $ 103
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization............. 2,367 2,650
Provision for losses on accounts
receivable............................... 180 180
Other..................................... 671 401
Change in assets and liabilities:
Accounts receivable, trade................ (9,011) (1,838)
Unbilled costs and estimated earnings on
contracts in process..................... (449) (324)
Other current assets...................... 831 (1,071)
Accounts payable and accrued expenses..... 58 (276)
Billings on contracts in excess of costs
and estimated earnings................... 5,712 (1,138)
Employee compensation, benefits and
payroll taxes............................ 2,450 2,612
Income taxes.............................. 574 612
Deferred income taxes..................... (62) (488)
Other current liabilities................. 1,498 316
Other assets and liabilities.............. (334) 183
--------- ---------
Net cash provided by operating activities........ 5,057 1,922
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investments................... 6,650 11,050
Payments for purchase of investments................ (5,052) (12,186)
Purchase of property and equipment, net............. (2,327) (874)
Investments in other assets......................... (500) (69)
--------- ---------
Net cash used for investing activities........... (1,229) (2,079)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under long-term debt............. (582) (1,729)
Purchase of Series A common treasury stock.......... (408) -
--------- ---------
Net cash used for financing activities....... (990) (1,729)
--------- ---------
Net increase (decrease) in cash and cash
equivalents.................................. 2,838 (1,886)
Cash and cash equivalents:
Beginning of period.......................... 5,745 14,441
--------- ---------
End of period................................ $ 8,583 $ 12,555
========= =========
</TABLE>
See notes to consolidated financial statements.
-4-
<PAGE> 7
ROY F. WESTON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The unaudited consolidated financial statements reflect all adjustments which
are, in the opinion of management, necessary for a fair presentation of the
financial position, results of operations and cash flows for the interim
periods. All such adjustments are of a normal recurring nature. Results for
the three months ended March 31, 1995 are not necessarily indicative of results
for the full year 1995.
NOTE 2 - CONSOLIDATED STATEMENTS OF CASH FLOW
Cash payments for income taxes were $14,000 and $188,000 in the three months
ended March 31, 1995 and 1994, respectively. Cash payments for interest were
$128,000 and $209,000 in the three months ended March 31, 1995 and 1994,
respectively.
No capital lease obligations were incurred in the three months ended March 31,
1995 or 1994.
-5-
<PAGE> 8
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Material Changes in Financial Condition
Cash and cash equivalents increased $2,838,000 in the first three months of
1995 to $8,583,000 from $5,745,000 at December 31, 1994. Marketable
securities decreased $1,523,000 in the first three months of 1995 to
$11,469,000 from $12,992,000 at December 31, 1994.
Operating activities provided cash of $5,057,000 for the first three months of
1995 compared to $1,922,000 in the comparable 1994 period. Net cash
investments in property and equipment and other assets were $2,827,000 in the
first three months of 1995 compared to $943,000 in the comparable 1994 period.
The Company used cash of $990,000 in financing activities in the first three
months of 1995, compared to $1,729,000 in the 1994 first quarter.
Material Changes in Results of Operations
Net income for the three months ended March 31, 1995 increased 455% to
572,000, or $.06 per share, compared to $103,000, or $.01 per share, for the
three months ended March 31, 1994.
Gross revenues increased 5% to $75,601,000 for the three months ended March 31,
1995, compared to $72,191,000 in the 1994 period. Net revenues increased 5% to
$52,724,000 for the three months ended March 31, 1995, compared to $50,028,000
for the comparable 1994 period. Net revenues in the three months ended March
31, 1995 include $600,000 representing a refined estimate of contract
realization on a remediation project. Increases in net revenues on consulting
services, principally due to improved direct labor utilization, and remediation
projects, principally due to improved pricing and project management, were
partially offset by lower analytical laboratory services revenues.
Income from operations increased 87% to $1,120,000 for the three months ended
March 31, 1995 from $598,000 in 1994, principally due to the greater 1995 net
revenues. Improved results from remediation projects were partially offset by
declines in margins for analytical laboratory services and consulting services.
The Company is continuing to allocate significant resources to new business
development activities.
Investment income increased $192,000, or 107%, to $372,000 in 1995 due to
greater amounts invested in cash equivalents and marketable securities.
Interest expense declined $60,000, or 9%, to $605,000 in 1995 due to lower
borrowings. Other income for the three months ended March 31, 1994 included a
$51,000 gain realized on repurchase of the Company's 7% Convertible
Subordinated Debentures.
-6-
<PAGE> 9
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable.
Item 2. Changes in Securities
Not Applicable.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
Item 5. Other Information
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) The following documents are filed as part of this report:
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
11 Statements of Computation
of Net Income Per Share
27 Financial Data Schedule
</TABLE>
(b) No reports on Form 8-K have been filed during the
quarter ended March 31, 1995.
-7-
<PAGE> 10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ROY F. WESTON, INC.
(Registrant)
Date: May 12, 1995 By:/s/ M. Christine Murphy
-----------------------
M. Christine Murphy
Executive Vice President
Quality Assurance/Finance
(Duly Authorized Officer)
(Principal Financial Officer)
Date: May 12, 1995 By:/s/ William G. Mecaughey
-----------------------
William G. Mecaughey
Vice President and
Corporate Controller
(Chief Accounting Officer)
<PAGE> 11
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
11 Statements of Computation of
Net Income Per Share
27 Financial Data Schedule
</TABLE>
<PAGE> 1
Exhibit 11
ROY F. WESTON, INC. AND SUBSIDIARIES
STATEMENTS OF COMPUTATION OF NET INCOME PER SHARE
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1995 1994
---- ----
(Thousands of Dollars)
<S> <C> <C>
PRIMARY
- -------
Net income ........................................ $ 572 $ 103
=========== ===========
Weighted average shares outstanding................ 9,552,040 9,491,877
=========== ===========
Net income per share............................... $ .06 $ .01
=========== ===========
FULLY DILUTED
- -------------
Net income ........................................ $ 572 $ 103
ADD:
Interest on 7% Convertible Subordinated
Debentures, net of applicable income
taxes.................................... 278 274
----------- -----------
Net income for fully diluted net income
per share......................................... $ 850 $ 377
=========== ===========
Weighted average number of shares used in
calculating primary net income per share.......... 9,552,040 9,491,877
ADD:
Shares issuable upon conversion of 7%
Convertible Subordinated Debentures...... 1,175,106 1,204,028
Stock options............................. - -
----------- -----------
Weighted average number of shares used in
calculating fully diluted net income per share.... 10,727,146 10,695,905
=========== ===========
Fully diluted net income per share................. $ .08 $ .04
=========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet at March 31, 1995 and the Consolidated Statement of
Income for the three months ended March 31, 1995 and is qualified in its
entirety by reference to such financial statements
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 8,583
<SECURITIES> 11,469
<RECEIVABLES> 98,813<F1>
<ALLOWANCES> 1,872
<INVENTORY> 0
<CURRENT-ASSETS> 124,538
<PP&E> 75,151
<DEPRECIATION> 53,788
<TOTAL-ASSETS> 166,864
<CURRENT-LIABILITIES> 51,011
<BONDS> 29,267
<COMMON> 1,088
0
0
<OTHER-SE> 80,180
<TOTAL-LIABILITY-AND-EQUITY> 166,864
<SALES> 0
<TOTAL-REVENUES> 75,601
<CGS> 0
<TOTAL-COSTS> 74,481
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 180
<INTEREST-EXPENSE> 605
<INCOME-PRETAX> 894
<INCOME-TAX> 322
<INCOME-CONTINUING> 572
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 572
<EPS-PRIMARY> .06
<EPS-DILUTED> 0
<FN>
<F1>Includes $21,035 of unbilled costs and estimated earnings thereon.
</FN>
</TABLE>
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