PDG Environmental Announces First Quarter Results
PITTSBURGH--(BUSINESS WIRE)--PDG Environmental, Inc. (OTC BB: PDGE - News), a leading provider of environmental remediation and specialty contracting services, today reported financial results for the first quarter ended April 30, 2007.
Revenue for the quarter was $21.7 million, up 32.6% from the $16.4 million reported in the first quarter of fiscal 2007. The increase primarily reflects the success of the company's sales and marketing initiatives, along with increased demand for environmental remediation services nationwide. As a result of the rise in revenue, PDGE's field margin increased to $6.5 million from $4.1 million last year, and field margin percentage expanded to 29.8% from 25.3% in the first quarter of fiscal 2007. EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $1.3 million in the first quarter of 2008 versus a negative $(1.7) million for the comparable period in fiscal 2007. SG&A and other direct expenses totaled $5.6 million, or 25.7% of revenue, down from $5.9 million, or 36.2% of revenue, last year. The company reported after-tax income of $0.3 million, or $0.01 per diluted share, compared with an after-tax loss of $(2.2) million, or $(0.12) per diluted share, in the first quarter of fiscal 2007.
"As anticipated, the first quarter of fiscal 2008 marked our return to profitability, as our right-sizing efforts bore fruit and we continued to book contracts at a strong pace - again resulting in a backlog of over $51 million," said John C. Regan, chairman and chief executive officer of PDG Environmental. "Our new CFO, Nick Battaglia, is taking a fresh look at the organization for additional cost-containment measures and other initiatives to improve our financial performance. The company's sales and marketing efforts have led to new opportunities across the board, with our reconstruction division experiencing particularly strong demand heading into the second quarter. We are also preparing for an active hurricane season and are well positioned to take advantage of emergency response and reconstruction opportunities if they arise. Moving into the second and third quarters - traditionally our strongest - we are committed to growing the business organically while maintaining or reducing infrastructure costs and increasing field margins."
Conference Call
PDG Environmental will host a conference call on June 14, 2007 at 11:00 a.m. Eastern. During the call, John C. Regan, Chairman and Chief Executive Officer, and Nick Battaglia, Chief Financial Officer, will discuss the Company's quarterly performance and financial results. The telephone number for the conference call is (888) 804-7108.
Investors will be able to access an encore recording of the conference call for one week by calling (800) 642-1687, conference ID# 2983896. The encore recording will be available two hours after the conference call has concluded.
The company makes use of EBITDA (earnings before interest, taxes, depreciation and amortization) as a financial measure which it believes is a useful performance indicator. EBITDA is not a recognized term under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net income/(loss) or net cash provided by operating activities, which are GAAP measures. A reconciliation of EBITDA to net income/(loss) appears at the end of this release, as do both actual results for the quarter and year-to-date periods.
About PDG Environmental
PDG Environmental, Inc., headquartered in Pittsburgh, PA, is a leading provider of specialty contracting services including asbestos abatement, mold remediation, emergency response, demolition and reconstruction to commercial, industrial and governmental clients nationwide. With over twenty years experience, PDG Environmental has 13 offices capable of responding to customer requirements coast to coast. For additional information, please visit www.pdge.com.
Safe Harbor Statement under Private Securities Act of 1995: The statements contained in this release, which are not historical facts, may be deemed to contain forward-looking statements, including, but not limited to, deployment of new services, growth of customer base, and growth of service area, among other items. Actual results may differ materially from those anticipated in any forward-looking statement with regard to magnitude, timing or other factors. Deviation may result from risk and uncertainties, including, without limitation, the company's dependence on third parties, market conditions for the sale of services, availability of capital, operational risks on contracts, and other risks and uncertainties. The company disclaims any obligation to update information contained in any forward-looking statement.
PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
April 30, 2007 ----------- |
January 31, 2007 ------------ |
| Assets | (unaudited) | |
| Current Assets | ||
| Cash and cash equivalents | $ 70,000 | $ 158,000 |
| Contracts receivable, net | 23,202,000 | 21,257,000 |
| Costs and estimated earnings in excess of billings on uncompleted contracts |
5,549,000 |
5,607,000 |
| Inventories | 588,000 | 553,000 |
| Prepaid income taxes | 41,000 |
271,000 |
| Deferred income tax asset | 915,000 | 915,000 |
| Other current assets | 933,000 ----------- |
534,000 ----------- |
| Total Current Assets | 31,298,000 ----------- |
29,295,000 ----------- |
| Property, Plant and Equipment |
11,523,000 | 11,352,000 |
| Less: accumulated depreciation | 9,063,000 ----------- |
8,795,000 ----------- |
| 2,460,000 |
2,557,000 | |
| Intangible Assets, net | 2,498,000 | 5,416,000 |
| Goodwill | 2,619,000 | 2,651,000 |
| Deferred Income Tax Asset | 5,876,000 |
2,565,000 |
| Contracts Receivable, Non Current | 500,000 |
500,000 |
| Other Assets | 295,000 ------------ |
270,000 ------------ |
| Total Assets | $44,897,000 ============ |
$43,254,000 ============ |
Liabilities and Stockholders' Equity
| Current Liabilities |
||
| Accounts payable | $ 7,944,000 | $ 7,403,000 |
| Billings in excess of costs and estimated earnings on uncompleted contracts |
2,915,000 |
3,421,000 |
| Accrued liabilities | 4,377,000 | 4,007,000 |
| Current portion of long-term debt | 331,000 ----------- |
322,000 ----------- |
| Total Current Liabilities |
15,567,000 | 15,153,000 |
| Long-Term Debt | 12,813,000 |
12,161,000 |
| Mandatorly redeemable cumulative convertible Series C preferred stock |
2,760,000 ----------- |
2,550,000 ----------- |
| Total Liabilities | 31,140,000 |
29,864,000 |
| Commitments and Contingencies |
||
| Stockholders' Equity Common stock |
411,000 |
411,000 |
| Common stock warrants | 1,628,000 | 1,628,000 |
| Paid-in capital | 19,298,000 | 19,245,000 |
| Accumulated deficit | (7,542,000) |
(7,856,000) |
| Less treasury stock, at cost | (38,000) ----------- |
(38,000) ----------- |
| Total Stockholders' Equity | 13,757,000 ------------ |
13,390,000 ------------ |
| Total Liabilities and Stockholders' Equity | $44,897,000 ============ |
$43,254,000 ============ |
PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)
For the Three Months
Ended April 30,
|
2007 ----------- |
2006 ------------ |
| Contract revenues | $21,700,000 | $16,368,000 |
Job costs |
15,234,000 ----------- |
12,224,000 ----------- |
| Field margin | 6,466,000 | 4,144,000 |
| Other Direct Costs | 2,773,000 ----------- |
2,998,000 ----------- |
| Gross margin | 3,693,000 |
1,146,000 |
| Selling, general and administrative expenses | 2,814,000 ------------ |
2,932,000 ------------ |
| Income (loss) from operations | 879,000 |
(1,786,000) |
| Other Income (Expense): Interest expense |
(271,000) |
(219,000) |
| Non-cash dividends and interest expense for accretion of discount on preferred stock |
(210,000) |
(784,000) |
| Non-recurring charge for employee fraud |
- |
(347,000) |
| Interest and other income | 5,000 ------------ |
- ------------ |
| (476,000) ------------ |
(1,350,000) ------------ |
|
| Income (Loss) Before Income Taxes | 403,000 |
(3,136,000) |
| Income Tax (Benefit) Provision | 89,000 ------------ |
(976,000) ------------ |
| Net Income (Loss) | $ 314,000 ============ |
$(2,160,000) ============ |
| Earnings Per Common Share - Basic: | $ 0.02 ============ |
$ (0.12) ============ |
| Earnings Per Common Share - Dilutive: | $ 0.01 =========== |
$ (0.12) =========== |
| Average Common Shares Outstanding | 20,502,191 | 18,268,000 |
$ (0.10) ============ |
$ 0.05 ============ |
|
| Average Dilutive Common Stock Equivalents Outstanding |
495,216 |
- |
| Average Common Shares and Dilutive Common Stock Equivalents Outstanding |
20,997,407 |
18,268,000 |
PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
RECONCILIATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION ("EBITDA")
(UNAUDITED)
For the Three Months
Ended April 30,
2007 ------------ |
2006 ------------ |
|
| Net Income (Loss) | $ 314,000 | $(2,160,000) |
Income Tax Provision (Benefit) |
89,000 | (976,000) |
Interest expense |
271,000 | 219,000 |
Non-cash dividends and interest expense for |
210,000 |
784,000 |
Depreciation and Amortization |
461,000 ------------ |
426,000 ------------ |
| EBITDA | $ 1,345,000 =========== |
$ 1,345,000 =========== |
Contact:
PDG Environmental, Inc.
John C. Regan, (412) 243-3200
Chairman & CEO
or
Investors:
Lippert / Heilshorn & Associates, Inc.
Jody Burfening / Chris Witty, (212) 838-3777
cwitty@lhai.com
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Source: PDG Environmental, Inc.
