EXHIBIT 99.1
FOR IMMEDIATE RELEASE For more information, contact:
Investor Relations
(972) 699-4055
Email: investor@xanser.com
XANSER CORPORATION ANNOUNCES THIRD QUARTER RESULTS
Highlights:
o Revenue increased 18%; net income of $367,000
o Earnings per share of $0.01
DALLAS, TEXAS (October 30, 2003) - Xanser Corporation (NYSE: XNR) today reported
results for the quarter ended September 30, 2003. Revenues for the quarter were
$37.7 million, compared with $31.9 million in the third quarter 2002. Xanser
reported net income of $367,000, which compares with a third quarter 2002 loss
of $(431,000). Earnings per share for the third quarter of 2003 are $0.01.
For the nine month period, revenues were $103.2 million, compared with $92.5
million for the nine month period in 2002. Income (loss), before the cumulative
effect of change in accounting principle, was $930,000 for the nine months ended
September 30, 2003, compared with a $(1.9) million loss for the prior year
period.
"Xanser reported an excellent third quarter," said John R. Barnes, chairman,
president and CEO of Xanser Corporation. "Our revenues increased significantly
in both our technical services and information technology businesses this
quarter, and net income of $367,000 delivered earnings per share of one cent.
Compared to the third quarter last year, this is a $5.9 million improvement in
revenue, a $1.5 million improvement in operating income, and an $800,000
improvement in net income." Mr. Barnes continued, "Throughout this year, we have
stayed on track with our strategy to build Xanser into a technology-based
company capable of real growth over the long term."
BUSINESS SEGMENT REVIEW
Information Technology Services - Xtria
Revenues in the Company's information technology services business, Xtria, were
$12.0 million for the quarter ended September 30, 2003, compared with $9.3
million in the third quarter 2002. Xtria's operating loss was reduced to
$(719,000) in the third quarter, compared with $(1.3) million in the same period
last year.
For the nine month period, Xtria revenues were $29.3 million, compared with
$27.2 million for the nine month period in 2002. Xtria's operating loss for the
nine month period was reduced to $(1.5) million, compared with $(3.2) million in
the prior year period.
The Company's focus in Xtria is to lead the technology services sector for the
healthcare and financial/insurance markets, delivering solutions that leverage
technology to solve industry-specific business problems.
Xtria is a provider of information technology solutions and services. Xtria
serves organizations in the healthcare, finance and insurance industries, and
agencies of the U.S. government. Xtria's solutions improve information access
and point-of-service performance in complex regulatory environments. Solutions
are built on Xtria's deep experience in vertical business segments, application
integration and high-end infrastructure design.
Technical Services - Furmanite
Revenues in technical services were $25.8 million in the third quarter 2003,
compared with $22.6 million in the prior year period. For the quarter, operating
income from the Company's technical services business, Furmanite, increased by
$700,000 over the prior year's quarter, to $1.8 million, compared with $1.1
million in the third quarter of 2002.
For the nine month period, Furmanite revenues were $73.9 million, compared with
$65.2 million for the nine month period in 2002. Furmanite's operating income
for the nine month period increased to $5.1 million, compared with $2.2 million
in the prior year period.
The Company's focus in Furmanite's core operations is to maximize margins while
growing market share. At the same time, Furmanite is exploring new services,
based on new technologies, that can benefit its core customers and new market
segments. Furmanite's business is the protection and management of its
customers' critical assets, and the Company's technical and technological
capabilities help to assure that customers' critical assets are on line and
performing for maximum profit.
Furmanite is one of the world's largest specialty technical services companies.
For 65 years, Furmanite has achieved the most recognized and respected brand in
technical services worldwide. Today, with more than 40 offices on five
continents, Furmanite is a global provider of technology-based and technical
solutions to international industries. Furmanite's customers encompass every
element in the energy and power supply chain - from offshore and land-based
drilling operations, to pipelines, refineries and power generation facilities.
Its customers also include steel mills, automotive manufacturers, pulp and paper
mills, food and beverage processing plants, semi-conductor manufacturers and
pharmaceutical manufacturers. Across this diverse, global customer base,
Furmanite delivers a broad portfolio of engineering solutions that keep
facilities operating, minimizing downtime and maximizing profitability.
Furmanite, known as The Solutions Group, holds more than 200 international
patents and trademarks for its customized products and services, and is a
recognized market leader in technical services.
ABOUT XANSER CORPORATION
Xanser Corporation (NYSE: XNR) provides technology-based and technical services
worldwide. Xanser's operations deliver business knowledge and solutions to
customers. Headquartered in Dallas, Texas, Xanser Corporation's operations
consist of an information technology services company and an international
technical services firm. Xtria is a provider of information technology solutions
and services. Xtria serves organizations in the healthcare, finance and
insurance industries, and agencies of the U.S. government. Xtria's solutions
improve information access and point-of-service performance in complex
regulatory environments. Solutions are built on Xtria's deep experience in
vertical business segments, application integration and high-end infrastructure
design. Furmanite, one of the world's largest specialty technical services
companies, delivers a broad portfolio of engineering solutions that keep
facilities operating, minimizing downtime and maximizing profitability.
Furmanite's diverse, global customer base includes offshore and land-based
drilling operations, pipelines, refineries and power generation facilities,
steel mills, automotive manufacturers, pulp and paper mills, food and beverage
processing plants, semi-conductor manufacturers and pharmaceutical
manufacturers. Furmanite operates more than 40 offices on five continents. For
more information, visit www.xanser.com.
Certain of the Company's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include statements
regarding management's intentions, plans, beliefs, expectations or projections
of the future. Forward-looking statements involve risks and uncertainties,
including without limitation, the various risks inherent in the Company's
business, and other risks and uncertainties detailed from time to time in the
Company's periodic reports filed with the Securities and Exchange Commission.
One or more of these factors have affected, and could in the future affect, the
Company's business and financial results in future periods, and could cause
actual results to differ materially from plans and projections. There can be no
assurance that the forward-looking statements made in this document will prove
to be accurate, and issuance of such forward-looking statements should not be
regarded as a representation by the Company, or any other person, that the
objectives and plans of the Company will be achieved. All forward-looking
statements made in this press release are based on information presently
available to management, and the Company assumes no obligation to update any
forward-looking statements.
XANSER CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues:
Services $ 30,683 $ 27,921 $ 89,524 $ 83,248
Products 7,059 3,963 13,675 9,217
--------- --------- --------- ---------
Total revenues 37,742 31,884 103,199 92,465
--------- --------- --------- ---------
Costs and expenses:
Operating costs 28,776 27,444 84,002 81,721
Cost of products sold 6,831 3,918 12,424 8,982
Depreciation and amortization 1,019 804 3,118 2,707
General and administrative 878 962 2,502 2,850
--------- --------- --------- ---------
Total costs and expenses 37,504 33,128 102,046 96,260
--------- --------- --------- ---------
Operating income (loss) 238 (1,244) 1,153 (3,795)
Interest and other income, net 58 103 188 352
Interest expense (263) (435) (1,013) (1,353)
--------- --------- --------- ---------
Income (loss) before income taxes and cumulative effect of
change in accounting principle 33 (1,576) 328 (4,796)
Income tax benefit 334 1,145 602 2,878
--------- --------- --------- ---------
Income (loss) before cumulative effect of change in
accounting principle 367 (431) 930 (1,918)
Cumulative effect of change in accounting principle - adoption of
new accounting standard for goodwill, net of income taxes -- -- -- (45,269)
--------- --------- --------- ---------
Net income (loss) $ 367 $ (431) $ 930 $ (47,187)
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Earnings (loss) per common share - Basic and diluted:
Before cumulative effect of change in accounting principle $ 0.01 $ (0.01) $ 0.03 $ (0.06)
Cumulative effect of change in accounting principle -- -- -- (1.37)
--------- --------- --------- ---------
$ 0.01 $ (0.01) $ 0.03 $ (1.43)
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XANSER CORPORATION
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues:
Technical services $ 25,763 $ 22,576 $ 73,882 $ 65,216
Information technology services 11,979 9,308 29,317 27,249
--------- --------- --------- ---------
$ 37,742 $ 31,884 $ 103,199 $ 92,465
========= ========= ========= =========
Operating income (loss):
Technical services $ 1,835 $ 1,062 $ 5,133 $ 2,249
Information technology services (719) (1,344) (1,478) (3,194)
General and administrative expenses (878) (962) (2,502) (2,850)
--------- --------- --------- ---------
$ 238 $ (1,244) $ 1,153 $ (3,795)
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