NISKAYUNA, NY -- (01/21/1998; 1130)(EIS) -- Environment One Corporation (NASDAQ:EONE) achieved record sales and earnings in 1997, Chairman and CEO Stephen V. Ardia reported today. Sales for the year grew 13 percent to $24.3 million from 1996's $21.5 million. Net earnings grew 56 percent to $1.96 million ($.44 eps) from $1.25 million in 1996.
Fourth quarter revenues increased to $7.1 million, up 14 percent from $6.2 million for the fourth quarter of 1996. Net earnings surged to $641,000 ($.14 eps), up 96 percent from $327,000 ($.08 eps) for the comparable period a year ago.
"It was a great year in every aspect," said Mr. Ardia. "Strengthening Sewer Systems distribution, strong Detection Systems sales, and rising productivity have contributed to E/One's performance. Particularly encouraging is the improvement in gross margin, showing an increase of four points from 34 to 38 percent. We are also in the process of developing and introducing a series of new products this year, and we fully envision that our growth pattern established over the last twelve quarters will continue through 1998."
The Sewer Systems business should experience growth via new developer business from the single-family residential home sector as well as municipal project business, including several large jobs previously delayed through the fourth quarter of '97 that are now expected to be booked and shipped in the first half of '98.
Detection Systems' business continues to improve with the receipt of a significant new order valued at over $600,000 from Mexico expected to ship in the first quarter '98. International opportunities continue to play a major growth role for Detection Systems, as evidenced by recent contracts with Hitachi and installations in many industrialized nations.
Business Outlook
-- The company targets revenue growth of at least 20 percent in 1998.
-- Earnings growth is expected to be at least 30 percent.
-- Growth in the 20-30 percent range per year appears sustainable over the foreseeable future.
"SAFE HARBOR" STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACTOF 1995
Environment One is a leading manufacturer and provider of:
-- Products and services for the disposal of residential sanitary waste
-- Detection systems for the protection of high value electric utility equipment
The Company's 1998 outlook and all other statements in this release other than historical facts are forward-looking statements that involve risks and uncertainties and are subject to change at any time. The Company derives its forward-looking statements from forecasts based upon detailed assumptions about many important factors such as product demand, market conditions and competitive activities. While the Company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting the impact of certain factors, which could cause actual result to differ materially from predicted results. These factors, as and when applicable, are discussed in the Company's filings with the Securities and Exchange Commission, in particular its most recent Form 10-KSB.
Environment One Corporation
Consolidated Statements of Income
For Three and Twelve Months Ended December 31, 1997 and 1996
Three Months December 31
1997 1996
Revenue $7,102,819 6,229,228
Costs and Expenses
Cost of Sales 4,229,679 3,812,129
Selling and Marketing 837,186 775,718
General and Administrative 999,245 1,062,452
Interest Expense, Net 11,603 53,247
Other Expense (Income), Net (8,337) (1,386)
Total Expenses, Net 6,069,376 5,702,160
Net Income Before Taxes 1,033,443 527,068
Income Tax Expense 392,500 200,000
Net Income $640,943 327,068
Per Share Amounts:
Basic Earnings per Common Share $0.15 0.08
Diluted Earnings per Common Share 0.14 0.08
(See Accompanying Notes to Consolidated Financial Statements)
Memo: (Diluted Earnings per Common Share)
Net Earnings - Operational $640,943 327,068
Net Earnings - Sale of IFD Business
Net (Loss) - Note Receivable Write-Off
Diluted EPS - Operational $0.14 0.08
Diluted EPS - Sale of IFD Business
Diluted EPS - Note Receivable Write-Off
Twelve Months December 31
1997 1996
Revenue $24,330,721 21,536,430
Costs and Expenses
Cost of Sales 15,048,745 14,258,235
Selling and Marketing 2,734,010 2,502,644
General and Administrative 3,359,041 2,552,408
Interest Expense, Net 116,885 248,725
Other Expense (Income), Net (91,903) (46,774)
Total Expenses, Net 21,166,778 19,515,238
Net Income Before Taxes 3,163,943 2,021,192
Income Tax Expense 1,203,900 766,505
Net Income $1,960,043 1,254,687
Per Share Amounts:
Primary Earnings per Common Share $0.46 0.30
Fully Diluted Earnings per Common Share 0.44 0.29
(See Accompanying Notes to Consolidated Financial Statements)
Memo: (Primary Earnings per Common Share)
Net Earnings - Operational $1,960,043 1,232,866
Net Earnings - Sale of IFD Business 105,954
Net (Loss) - Note Receivable Write-Off (84,133)
Diluted EPS - Operational $0.44 0.29
Diluted EPS - Sale of IFD Business 0.02
Diluted EPS - Note Receivable Write-Off (0.02)