UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(Amendment No. 1)
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-16225
EMCON
(Exact name of Registrant as specified in its charter)
California 94-1738964
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 South El Camino Real, Suite 1200
San Mateo, California
94402
- ---------------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (650) 375-1522
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 [ ]
8,723,100 shares of Common Stock Issued and Outstanding as of July 27, 1998.
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INFORMATION TO BE INCLUDED IN THE REPORT
Amendment No. 1
The undersigned registrant hereby amends the following items of its Form
10-Q for the period ended June 30, 1998: Form 10Q filed with the Securities and
Exchange Commission on August 5, 1998. The Consolidated Statements of Income on
page 4 and the Earnings Per Share on page 8 for the quarter ended June 30, 1998
have been amended due to a calculation error for weighted shares outstanding for
1998. The recalculation did not affect earnings per share during the 1998
periods stated except for diluted earnings per share for the quarter ended June
30, 1998. The revised calculations changes diluted earnings per share to $0.06
from the previously reported $0.07.
<TABLE>
<CAPTION>
EMCON
CONSOLIDATED STATEMENTS OF INCOME
- -------------------------------------------------------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
(Unaudited) (Unaudited)
--------------------------- --------------------------
(In thousands, except per share amounts) 1998 1997 1998 1997
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross revenue $40,985 $33,114 $69,764 $64,477
Outside services at cost 4,776 8,647 7,733 12,429
------- ------- ------- -------
Net revenue 36,209 24,467 62,031 52,048
Costs and expenses:
Direct expenses 21,979 12,206 35,801 24,812
Indirect expenses 13,040 11,177 24,897 25,403
Restructuring/other charges -- -- -- (75)
Loss on disposition of laboratory -- -- -- 333
Gain on sale of assets -- -- (826)
------- ------- ------- -------
--
Income from operations 1,190 1,084 1,333 2,401
Interest income (151) (125) (319) (219)
Interest expense 304 317 597 648
Equity in earnings of affiliates -- (16) (15) (34)
Minority interest (income) expense 2 148 183
------- ------- ------- -------
(20)
Income before provision for income taxes 1,035 760 1,090 1,823
Provision for income taxes 461 266 496 638
------- ------- ------- -------
Net income $ 574 $ 494 $ 594 $ 1,185
======= ======= ======= =======
Basic earnings per share $ 0.07 $ 0.06 $ 0.07 $ 0.14
======= ======= ======= =======
Diluted earnings per share $ 0.06 $ 0.06 $ 0.07 $ 0.14
======= ======= ======= =======
Shares used in computing basic earnings per share 8,712 8,534 8,643 8,534
======= ======= ======= =======
Shares used in computing diluted earnings per share 8,924 8,554 8,876 8,545
======= ======= ======= =======
See accompanying notes.
</TABLE>
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<TABLE>
<CAPTION>
6. Earnings Per Share
Three months ended Six months ended
June 30 June 30
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(In thousands, except for earnings per share) 1998 1997 1998 1997
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Numerator:
Net income $ 574 $ 494 $ 594 $1,185
------ ------ ------ ------
Numerator for basic earnings per share -
income available to common stockholders 574 494 594 1,185
Effect of dilutive securities:
8% convertible debentures N/A(1) N/A(1) N/A(1) N/A(1)
------ ------ ------ ------
Numerator for diluted earnings per share -
income available to common stockholders
after assumed conversions $ 574 $ 494 $ 594 $1,185
====== ====== ====== ======
Denominator:
Denominator for basic earnings per share -
weighted-average shares 8,712 8,534 8,643 8,534
Effect of dilutive securities:
Employee stock options 212 20 233 11
8% convertible debentures N/A(1) N/A(1) N/A(1) N/A(1)
Dilutive potential common shares
Denominator for diluted earnings per share -
adjusted weighted average shares and assumed
conversions 8,924 8,554 8,876 8,545
====== ====== ====== ======
Basic earnings per share $ 0.07 $ 0.06 $ 0.07 $ 0.14
====== ====== ====== ======
Diluted earnings per share $ 0.06 $ 0.06 $ 0.07 $ 0.14
====== ====== ====== ======
------------------------------------------------------ --------------- ---------------- -------------- ---------------
(1)Excluded from the above reconciliations were approximately 269,000 shares
of common stock that may be issued at $6.50 per share to convert $1,747,000 of
indebtedness to certain senior management of OWT because such shares were
antidilutive at June 30, 1998. Conversion of debt, if it occurs, would be
within ninety days after November 30, 2001. Also excluded from the above
reconciliations were approximately 123,000 shares of common stock that may be
issued at $6.50 per share to convert $800,000 of indebtedness to certain
senior management of NEP because such shares were antidilutive at June 30,
1998. Conversion of debt, if it occurs, would be 50% at May 1, 2000, and 50%
at May 1, 2002.
</TABLE>
<PAGE>
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.
Date: August 21, 1998 EMCON
\s\ R. Michael Momboisse
-------------------------------------
R. MICHAEL MOMBOISSE
Chief Financial Officer,
Vice President - Legal, and Secretary
(Duly authorized and principal
financial and accounting officer)
