Exhibit 99.1
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N e w s R e l e a s e | ||||
Contact: | David Higie | |||
Phone: | (412) 269-6449 | |||
Release: | Immediate (May 6, 2010) |
BAKER REPORTS FIRST QUARTER 2010 FINANCIAL RESULTS
PITTSBURGH — Michael Baker Corporation (NYSE Amex:BKR) today announced its financial results for the first quarter of 2010.
As announced earlier, in 2009 the Company sold its former Energy business and, as a result of this disposition, the financial results of the former Energy segment have been reclassified as discontinued operations for all periods presented in the consolidated financial statements. The information contained in this news release pertains to Baker’s continuing operations, while the Company’s Form 10-Q, which is being filed with the SEC concurrent with this announcement, presents a complete discussion of both continuing and discontinued operations.
For the quarter, Baker reported net income from continuing operations of $4.6 million, or $0.52 per diluted share, on revenues of $111.7 million, compared to net income from continuing operations of $6.3 million, or $0.70 per diluted share, on revenues of $115.1 million in the first quarter of 2009.
The three percent decrease in first-quarter 2010 revenue was related to the Company’s Federal business segment, which had a net decline of $6.3 million in work performed on contracts with FEMA, and a $6.2 million decrease in work performed for the Company’s unconsolidated subsidiary operating in Iraq. Partially offsetting this decline in the Federal segment was an increase of $2.1 million related to a contract to provide facility design services and an increase in total project incentive awards of $0.5 million compared to the first quarter of 2009. The Company’s Transportation business segment had period-over-period revenue growth of eight percent, related primarily to increases on new and existing contracts.
Operating income from continuing operations before corporate overhead allocations in the Federal business segment for the first quarter of 2010 was $8.1 million, a decrease of 21 percent compared to the first-quarter 2009. This is due primarily to the aforementioned decrease in revenue, as well as a decrease in utilization and decreased margin related to project mix compared to the first quarter of 2009, partially offset by the previously mentioned project incentive awards.
Operating income from continuing operations before corporate overhead allocations in the Transportation segment for the first quarter of 2010 was $4.3 million, a decrease of eight percent compared to the first-quarter 2009. This decline is mainly attributable to a decrease in margins related to project mix and higher corporate overhead costs due to acquisition-related costs.
The Company’s provision for income taxes was 37.5 percent at March 31, 2010, and 39.0 percent at March 31, 2009.
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ADD ONE — BAKER FINANCIAL RESULTS FOR FIRST QUARTER 2010
Total backlog for continuing operations March 31, 2010 was $1.53 billion, compared to $1.43 billion at December 31, 2009. Of these totals, $456 million and $461 million, respectively, are considered funded backlog. Included in funded backlog at March 31, 2010, was $26 million related to the Company’s FEMA Risk MAP Program and $34 million related to the FEMA Map Modernization Program.
On the balance sheet as of March 31, 2010, the Company had cash and investment balances of $120 million and no debt.
Commenting on the results, President and Chief Executive Officer Bradley L. Mallory, said, “We had a challenging start to 2010, as most of our operations were negatively impacted by the severe weather across the U.S. However, we rebounded very nicely at the end of the quarter, and we expect to continue this momentum throughout the remainder of the year.” In reference to the Company’s previous announcement regarding the acquisition of The LPA Group, he added that, “We are pleased to welcome The LPA Group and its team of highly talented people to the Baker family, and we anticipate a strong contribution from them over the last eight months of 2010.”
Michael Baker Corporation (www.mbakercorp.com) provides architecture, engineering and construction services for its clients’ most complex challenges worldwide. The firm’s primary business areas are aviation, defense, environmental, facilities, geospatial, homeland security, municipal & civil, pipelines & utilities, rail & transit, transportation and water. With more than 2,900 employees in nearly 90 offices across the United States, Baker is focused on creating value by delivering innovative and sustainable solutions for infrastructure and the environment.
Conference Call
Michael Baker Corporation has scheduled a conference call and webcast for Friday, May 7, at 10:00 AM Eastern Daylight Savings Time to discuss these results. Please call 877-769-6805 at least 10 minutes prior to the start of the call. To access the webcast, please visit the investor relations portion of Baker’s website at www.mbakercorp.com.
(The above information contains forward-looking statements concerning our future operations and performance. Forward-looking statements are subject to market, operating and economic risks and uncertainties that may cause our actual results in future periods to be materially different from any future performance suggested herein. Factors that may cause such differences include, among others: increased competition; increased costs; changes in general market conditions; changes in industry trends; changes in the regulatory environment; changes in our relationship and/or contracts with the Federal Emergency Management Agency (“FEMA”); changes in anticipated levels of government spending on infrastructure, including the Safe, Accountable, Flexible, Efficient Transportation Equity Act—A Legacy for Users (“SAFETEA-LU”); changes in loan relationships or sources of financing; changes in management; changes in information systems, and acquisition-related activity. Such forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995.)
of 1995.)
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ADD TWO — BAKER FINANCIAL RESULTS FOR FIRST QUARTER 2010
FINANCIAL SUMMARY
(Unaudited)
(Unaudited)
For the quarter ended March 31, | ||||||||
First Quarter Operating Results | 2010 | 2009 | ||||||
(In thousands, except earnings per share) | ||||||||
Revenues | $ | 111,660 | $ | 115,084 | ||||
Gross profit | 21,519 | 22,683 | ||||||
Operating income | 6,920 | 9,247 | ||||||
Income before noncontrolling interest and income taxes | 7,665 | 10,289 | ||||||
Net income from continuing operations attributable to Michael Baker Corporation | 4,613 | 6,276 | ||||||
(Loss)/income from discontinued operations | (628 | ) | 1,563 | |||||
Net income attributable to Michael Baker Corporation | $ | 3,985 | $ | 7,839 | ||||
Earnings per share: | ||||||||
Basic-continuing operations | $ | 0.52 | $ | 0.71 | ||||
Diluted-continuing operations | 0.52 | 0.70 | ||||||
Basic-net income | 0.45 | 0.89 | ||||||
Diluted-net income | $ | 0.45 | $ | 0.88 | ||||
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ADD THREE — BAKER FINANCIAL RESULTS FOR FIRST QUARTER 2010
For the quarter ended March 31 | ||||||||
(In millions) | 2010 | 2009 | ||||||
Revenues | ||||||||
Transportation | $ | 50.9 | $ | 47.0 | ||||
Federal | 60.8 | 68.1 | ||||||
Total revenues | $ | 111.7 | $ | 115.1 | ||||
Income/(loss) from operations before Corporate overhead | ||||||||
Transportation | $ | 4.3 | $ | 4.7 | ||||
Federal | 8.1 | 10.3 | ||||||
Total segment income from operations before Corporate overhead | 12.4 | 15.0 | ||||||
Less: Corporate overhead | ||||||||
Transportation | (2.8 | ) | (2.2 | ) | ||||
Federal | (2.9 | ) | (3.4 | ) | ||||
Total Corporate overhead | (5.7 | ) | (5.6 | ) | ||||
Total income/(loss) from operations | ||||||||
Transportation | 1.5 | 2.5 | ||||||
Federal | 5.2 | 6.9 | ||||||
Corporate/Discontinued operations income/(expense) | 0.2 | (0.2 | ) | |||||
Total income from operations | $ | 6.9 | $ | 9.2 | ||||
Backlog
As of | ||||||||
March 31, | December 31, | |||||||
(In millions) | 2010 | 2009 | ||||||
Funded | $ | 456.3 | $ | 461.3 | ||||
Unfunded | 1,071.2 | 963.9 | ||||||
Total | $ | 1,527.5 | $ | 1,425.2 | ||||
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ADD FOUR — BAKER FINANCIAL RESULTS FOR FIRST QUARTER 2010
Condensed Consolidated Balance Sheets
As of | ||||||||
March 31, | December 31, | |||||||
(In thousands) | 2010 | 2009 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 105,126 | $ | 105,259 | ||||
Short term investments and available for sale securities | 15,091 | 4,655 | ||||||
Proceeds receivable — Energy sale | — | 9,965 | ||||||
Receivables, net | 72,196 | 76,455 | ||||||
Unbilled revenues on contracts in progress | 54,824 | 49,605 | ||||||
Prepaid expenses and other | 5,947 | 5,407 | ||||||
Total current assets | 253,184 | 251,346 | ||||||
Property, plant and equipment, net | 13,638 | 12,578 | ||||||
Goodwill and other intangible assets, net | 9,692 | 9,702 | ||||||
Other long-term assets | 6,180 | 5,218 | ||||||
Total assets | $ | 282,694 | $ | 278,844 | ||||
LIABILITIES & SHAREHOLDERS’ INVESTMENT | ||||||||
Accounts payable | $ | 33,229 | $ | 31,948 | ||||
Accrued compensation and insurance | 29,810 | 32,576 | ||||||
Billings in excess of revenues on contracts in progress | 17,390 | 19,102 | ||||||
Other accrued expenses | 15,230 | 13,363 | ||||||
Total current liabilities | 95,659 | 96,989 | ||||||
Other long-term liabilities | 8,926 | 8,115 | ||||||
Total liabilities | 104,585 | 105,104 | ||||||
Common Stock | 9,403 | 9,403 | ||||||
Additional paid-in capital | 50,106 | 49,989 | ||||||
Retained earnings | 123,120 | 119,135 | ||||||
Accumulated other comprehensive loss | (352 | ) | (333 | ) | ||||
Less — Treasury shares | (4,761 | ) | (4,761 | ) | ||||
Total Michael Baker Corporation shareholders’ investment | 177,516 | 173,433 | ||||||
Noncontrolling interests | 593 | 307 | ||||||
Total shareholders’ investment | 178,109 | 173,740 | ||||||
Total liabilities & shareholders’ investment | $ | 282,694 | $ | 278,844 | ||||
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