Exhibit 99.1
For immediate release For more information, contact:
Investor Relations
(972) 699-4055
Email: investor@xanser.com
XANSER ANNOUNCES THIRD QUARTER RESULTS
Highlights
o Net income of $205,000
o Pre-tax income of $1.0 million
o Earnings per common share of $0.01
DALLAS, TEXAS (November 3, 2004) - Xanser Corporation (NYSE: XNR) today reported
results for the quarter ended September 30, 2004. Revenues for the third quarter
2004 were $35.8 million, compared with the prior year third quarter revenues of
$37.7 million. The Company's net income for the third quarter was $205,000,
compared with $367,000 for the third quarter last year. The Company's pre-tax
income for the third quarter 2004 was $1.0 million, compared with $33,000 for
the third quarter 2003. Earnings per share were $0.01, compared with $0.01 for
the same period last year.
For the nine months ended September 30, 2004, Xanser reported revenues of $103.6
million, compared with $103.2 million for the same period last year. Net income
for the nine months was $1.2 million, compared with $930,000 for the nine months
of 2003. The Company's pre-tax income for the nine month period was $2.6
million, compared with $328,000 for the same period of 2003. Earnings per share
were $0.04, compared with $0.03 for the nine months last year.
"Xanser had a good third quarter. At the bottom line, we show a $205,000 profit,
and our real performance is very evident at the pre-tax level where we increased
from $33,000 to $1 million. This quarter, we produced a 15 percent increase in
revenues from services, which are our primary focus. In our technical services
business, Furmanite, we gained a 41 percent improvement in operating income over
the same period last year. In our technology services business, Xtria, timing
affected the start of two contracts. That work is now underway, as well as
significant additional work for the fourth quarter. We expect the year end for
Xtria to be very strong, as the fourth quarter will reflect operating income
originally anticipated in the third as well as that expected in the fourth. Our
business is on track, and we will have an excellent year overall," said John R.
Barnes, chairman, president and CEO of Xanser Corporation.
BUSINESS SEGMENT REVIEW
Technical Services - Furmanite
Revenues in the Company's technical services business, Furmanite, were $29.8
million for the third quarter 2004, compared with $25.8 million for the third
quarter last year. Furmanite's operating income was $2.6 million for the third
quarter, compared with $1.8 million last year. For the nine months ended
September 30, 2004, Furmanite revenues were $86.5 million, compared with $73.9
million in the same period last year. Operating income for the nine months of
2004 was $5.8 million, compared with $5.1 million for the nine months last year.
"I'm pleased to report that Furmanite continued to post strong revenue gains -
up $4 million in the third quarter over the same quarter last year. Operating
income for the quarter approached 9 percent at $2.6 million - which is a 41
percent increase over third quarter 2003 when operating income was 7 percent at
$1.8 million," said C. Jeffery Chick, president, Furmanite Worldwide. "We
continue to leverage our brand, reputation and global presence to win
multi-service, multi-year and multi-region contracts, and expect to deliver
strong overall performance for the year."
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. 2004 represents 75 years of Furmanite serving as `the' worldwide expert
in the field of on-site and on-line plant and pipeline maintenance. Furmanite's
single mission and business goal is to maximize asset uptime for customers.
Specifically, everything Furmanite does directly relates to keeping an asset
on-line, productive and profitable; be it a pipeline, a plant, or personnel.
Furmanite ensures asset productivity and profitability for a variety of
industries -- chemical and petrochemical, oil and gas, power generation, pulp
and paper, pharmaceutical, and national defense. This commitment to excellence,
coupled with Furmanite's broad array of services and patented technology, is a
critical component to the operation and financial success of some of the world's
largest process manufacturers and energy producers and suppliers including
Shell, ExxonMobil, Sun Oil, Dominion, Exelon, Cinergy, Entergy and Reliant.
Furmanite has more than 40 offices on five continents. Its website is
www.furmanite.com
Information Technology Services - Xtria
Revenues in the Company's information technology services business, Xtria, were
$6.0 million for the third quarter 2004, compared with $12.0 million for the
third quarter last year. Revenues reflect a $6.7 million decrease in equipment
sales, which vary quarter to quarter depending upon customer requirements. The
company's primary focus is on consistently increasing revenues from services.
Xtria's operating loss for the third quarter of 2004 was $(590,000), compared
with a loss of $(719,000) for the third quarter last year. For the nine months
ended September 30, 2004, Xtria revenues were $17.1 million, compared with $29.3
million in the same period last year. Xtria's operating loss for the nine months
of 2004 was $(294,000), compared with a loss of $(1.5 million) for the prior
year period.
"Although Xtria experienced a loss in the quarter, we had one of the company's
strongest quarters on record for contracts signed," said Ian Littlewood,
president, Xtria. "Signings have steadily increased over the year, reaching more
than $30 million in new business and renewals signed in the third quarter. This
total includes $23 million from the government sector, which typically is
strongest in the third quarter, and reflects improvements in the volume of
multi-year contracts executed in our Government Solutions group as well as
several long-term Managed Services contracts signed by our Healthcare Solutions
group. Our investment in sales and marketing capability is beginning to accrue
very real benefits, and we expect to end the year with a meaningful contribution
to Xanser's profitability."
Xtria is an information technology services provider for the healthcare,
financial and insurance, and government markets through focused offerings of
solutions, services and systems. In the healthcare market, Xtria provides
managed service solutions for the implementation and management of Picture
Archiving Communications Systems (PACS). In the financial and insurance market,
Xtria provides risk management information systems (RMIS). For agencies of the
federal, state and local government, Xtria provides information technology
services. With established intellectual capital and product knowledge, Xtria's
market-focused operations have many years of experience and a track record of
success in the healthcare, risk management, and government markets. Its website
is www.xtria.com.
ABOUT XANSER CORPORATION
Xanser Corporation (NYSE: XNR) provides technology-based and technical services
worldwide. Headquartered in Dallas, Texas, Xanser's operations consist of an
information technology services company, Xtria, and an international technical
services firm, Furmanite. Xtria is an information technology services provider
for the healthcare, financial and insurance, and government markets through
focused offerings of solutions, services and systems. In the healthcare market,
Xtria provides managed service solutions for the implementation and management
of Picture Archiving Communications Systems (PACS). In the financial and
insurance market, Xtria provides risk management information systems (RMIS). For
agencies of the federal, state and local government, Xtria provides information
technology services. With established intellectual capital and product
knowledge, Xtria's market-focused operations have many years of experience and a
track record of success in the healthcare, risk management, and government
markets. 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 INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues:
Services $ 35,385 $ 30,683 $ 101,541 $ 89,524
Products 379 7,059 2,043 13,675
--------- --------- --------- ---------
Total revenues 35,764 37,742 103,584 103,199
--------- --------- --------- ---------
Costs and expenses:
Operating costs 32,634 28,776 94,208 84,002
Cost of products sold 294 6,831 1,219 12,424
Depreciation and amortization 842 1,019 2,612 3,118
General and administrative 733 878 2,277 2,502
--------- --------- --------- ---------
Total costs and expenses 34,503 37,504 100,316 102,046
--------- --------- --------- ---------
Operating income 1,261 238 3,268 1,153
Interest and other income, net 32 58 97 188
Interest expense (266) (263) (743) (1,013)
--------- --------- --------- ---------
Income before income taxes 1,027 33 2,622 328
Income tax benefit (expense) (822) 334 (1,438) 602
--------- --------- --------- ---------
Net income $ 205 $ 367 $ 1,184 $ 930
========= ========= ========= =========
Earnings per common share - Basic and diluted $ 0.01 $ 0.01 $ 0.04 $ 0.03
========= ========= ========= =========
XANSER CORPORATION
SUPPLEMENTAL INFORMATION
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Net income $ 205 $ 367 $ 1,184 $ 930
Less federal and state income taxes -- (914) -- (2,093)
--------- --------- --------- ---------
Income (loss) before federal and state income taxes $ 205 $ (547) $ 1,184 $ (1,163)
========= ========= ========= =========
Diluted earnings (loss) per share before federal
and state income taxes $ 0.01 $ (0.02) $ 0.04 $ (0.04)
========= ========= ========= =========
Weighted average diluted shares outstanding 33,093 33,019 33,122 32,833
========= ========= ========= =========
Revenues:
Technical services $ 29,781 $ 25,763 $ 86,521 $ 73,882
Information technology services 5,983 11,979 * 17,063 29,317 *
--------- --------- --------- ---------
$ 35,764 $ 37,742 $ 103,584 $ 103,199
========= ========= ========= =========
Operating income:
Technical services $ 2,584 $ 1,835 $ 5,839 $ 5,133
Information technology services (590) (719) (294) (1,478)
General and administrative expenses (733) (878) (2,277) (2,502)
--------- --------- --------- ---------
$ 1,261 $ 238 $ 3,268 $ 1,153
========= ========= ========= =========
* Includes $6.5 million and $12.3 million in revenues for the three and nine
months ended September 30, 2003, respectively, related to businesses that
were closed in the fourth quarter of 2003.