For immediate release For more information, contact:
Investor Relations
(972) 699-4055
Email: investor@xanser.com
XANSER CORPORATION ANNOUNCES 2004 RESULTS
DALLAS, TEXAS (March 10, 2005) - Xanser Corporation (NYSE: XNR) today reported
results for the year ended December 31, 2004. Revenues for the year were $145.7
million, compared with $135.7 million for 2003. The Company reported net income
of $2.4 million, compared with a 2003 loss of $(13.1) million. Earnings per
share for the year were $0.07, compared with a loss of $(0.41) for 2003.
"Xanser made real progress in 2004. Both our businesses made substantive
improvement, allowing us to deliver measurable results and profits," said John
R. Barnes, chairman, president and CEO of Xanser Corporation. "We will continue
to move ahead on our goals in the coming year. Due to the seasonality in our
business, the first quarter is traditionally light for technical services, and
the way we recognize revenue in our healthcare business can cause swings in
operating results from one quarter to the next, depending on when the contract
is signed and the work is completed. As a result, we will have some quarters
with significant profits and some with lower profits or even small losses."
Mr. Barnes continued. "It is our plan and our commitment to build Xanser into a
company of significant size and meaningful profits. At the end of 2003, we set a
goal of doubling Xanser's revenues and generating operating margins in excess of
10% over the next five years. We made substantial progress in 2004, and we
expect to continue to move ahead in the coming year."
BUSINESS SEGMENT REVIEW
Information Technology Services - Xtria
Revenues in the Company's information technology services business, Xtria, were
$27.3 million for the year ended December 31, 2004, compared with $34.7 million
in 2003, which included $13.6 million in revenues related to businesses that
were closed in the fourth quarter of 2003. Xtria's operating income was $342,000
for 2004, compared with a 2003 loss of $(6.5) million.
"Xtria made great strides in 2004. We have very strong, capable and seasoned
leadership in each of our business groups in healthcare, government and risk
management, backed by experienced employees who are experts in systems design
and deployment as well as solutions sales and marketing," said Mr. Barnes. "We
have significant opportunities for growth, and we expect continued progress in
Xtria's performance for 2005."
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.
Technical Services - Furmanite
Revenues in the Company's technical services business, Furmanite, increased to
$118.4 million for 2004, compared with $101.0 million for 2003. Furmanite's
operating income increased to $7.9 million for 2004, compared with $6.3 million
for the previous year.
"Furmanite's performance for 2004 continued to demonstrate our ability to
execute a strategic business model that is designed to expand our market, grow
our core services, add to our service offerings and increase our value to
customers," said Jeff Chick, president of Furmanite. "We see this in our
results, with top line and bottom line improvement for the year. We see it as
well in our 25% growth in leak sealing services worldwide and in the multi-year,
multi-service contracts we signed with customers in 2004. As we introduce new
offerings of value-added services that respond directly to our customers' needs
and open new avenues of opportunity for us, we are confident that we will have a
strong 2005."
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 marked 75 years of Furmanite serving industry worldwide. Today,
Furmanite is recognized 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 proprietary 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
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 Twelve Months
Ended December 31, Ended December 31,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues:
Services $ 37,156 $ 31,266 $ 138,697 $ 120,790
Products 4,947 1,255 6,990 14,930
--------- --------- --------- ---------
Total revenues 42,103 32,521 145,687 135,720
--------- --------- --------- ---------
Costs and expenses:
Operating costs 34,850 32,501 129,058 116,503
Cost of products sold 3,637 1,114 4,856 13,538
Depreciation and amortization 940 2,742 3,552 5,860
General and administrative 985 684 3,262 3,186
--------- --------- --------- ---------
Total costs and expenses 40,412 37,041 140,728 139,087
--------- --------- --------- ---------
Operating income (loss) 1,691 (4,520) 4,959 (3,367)
Interest and other income, net 77 72 174 260
Interest expense (246) (260) (989) (1,273)
--------- --------- --------- ---------
Income (loss) before income taxes 1,522 (4,708) 4,144 (4,380)
Income tax expense (310) (9,327) (1,748) (8,725)
--------- --------- --------- ---------
Net income (loss) $ 1,212 $ (14,035) $ 2,396 $ (13,105)
========= ========= ========= =========
Earnings (loss) per common share - Basic and Diluted $ 0.04 $ (0.44) $ 0.07 $ (0.41)
========= ========= ========= =========
XANSER CORPORATION
SUPPLEMENTAL INFORMATION
(In thousands, except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Net income (loss) $ 1,212 $ (14,035) $ 2,396 $ (13,105)
Less federal and state income taxes -- 9,725 -- 7,632
--------- --------- --------- ---------
Income (loss) before federal and state income taxes $ 1,212 $ (4,310) $ 2,396 $ (5,473)
========= ========= ========= =========
Diluted earnings (loss) per share before federal
and state income taxes $ 0.04 $ (0.13) $ 0.07 $ (0.17)
========= ========= ========= =========
Weighted average diluted shares outstanding 33,404 33,055 33,208 32,899
========= ========= ========= =========
Revenues:
Technical services $ 31,894 $ 27,136 $ 118,415 $ 101,018
Information technology services 10,209 5,385* 27,272 34,702*
--------- --------- --------- ---------
$ 42,103 $ 32,521 $ 145,687 $ 135,720
========= ========= ========= =========
Operating income (loss):
Technical services $ 2,040 $ 1,204 $ 7,879 $ 6,337
Information technology services 636 (5,040) 342 (6,518)
General and administrative expenses (985) (684) (3,262) (3,186)
--------- --------- --------- ---------
$ 1,691 $ (4,520) $ 4,959 $ (3,367)
========= ========= ========= =========
* Includes $1.3 million and $13.6 million in revenues for the three and
twelve months ended December 31, 2003, respectively, related to businesses
that were closed in the fourth quarter of 2003.