Exhibit 99.1
For immediate release For more information, contact:
Investor Relations
(972) 699-4055
Email: investor@xanser.com
XANSER CORPORATION ANNOUNCES FIRST QUARTER RESULTS
DALLAS, TEXAS (May 9, 2005) - Xanser Corporation (NYSE: XNR) today reported
results for the first quarter ended March 31, 2005. Revenues for the quarter
were $35.2 million, compared with $32.2 million for the first quarter 2004. The
Company reported a net loss of $(2.3) million, compared with net income of
$110,000 for the first quarter last year.
"Furmanite, in what is traditionally a light quarter for technical services,
delivered a very strong first quarter performance with substantial top and
bottom line gains. Furmanite's excellent results helped to mitigate the
significant loss in Xtria," said John R. Barnes, chairman, president and CEO of
Xanser Corporation. "While we anticipated a light first quarter for the company
overall, with limited contribution from Xtria, it is deeply frustrating and
disappointing that Xtria went so far off course that it would lose $2.7 million.
In essence, Xtria's focus changed from our proven IT services strategy to one of
making what amounted to low margin, large revenue equipment sales with little
services attached. And, to make matters worse, spending increased substantially
and a large infrastructure was added. As soon as this redirection became
apparent, we stepped in and put a halt to it. We are directing Xtria back to our
strategy and doing what is necessary to get the business back on course. We plan
to reduce the loss for the second quarter, and we are very confident we will see
Xtria return to profitability. The fact remains that Xtria's core business is
solid and our strategy for the company is sound. Xtria is a business with the
capacity and capability to be a significant contributor to Xanser long-term."
BUSINESS SEGMENT REVIEW
Information Technology Services - Xtria
Revenues in the Company's information technology services business, Xtria, were
$4.5 million for the first quarter, compared with $5.2 million for the same
period in 2004. Xtria's operating loss was $(2.7) million for the first quarter
2005, compared with a flat first quarter 2004.
"The core business of Xtria is based on expertise and proven experience in the
delivery of IT services, particularly in the healthcare and government markets,
and a suite of specialized services that have excellent market positions and
opportunities. We are going back to the basics in building and managing this
business for long-term, sustainable growth," said Mr. Barnes.
Xtria is an information technology services provider for the healthcare 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). 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 and government
markets. Its website is www.xtria.com.
Technical Services - Furmanite
Revenues in the Company's technical services business, Furmanite, increased to
$30.7 million for the first quarter 2005, compared with $27.0 million for the
same period in 2004. Furmanite's operating income increased to $1.5 million for
the first quarter 2005, compared with $1.1 million for the first quarter 2004.
"Furmanite started 2005 with a strong performance in what is traditionally a
light quarter in our business. We increased revenue by 14 percent, and operating
income by 34 percent. We're pleased with our results this quarter, and we see an
excellent year ahead for Furmanite," said Jeff Chick, president of Furmanite.
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 provides a portfolio of innovative technology
solutions to the healthcare and government markets. Combining its deep market
expertise with specialized technology, Xtria partners with its clients to set
the standard for managing mission critical processes in information-intensive
environments. Xtria has a legacy of enabling organizations to power their
businesses, while mitigating the risks associated with change. 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 drilling operations, pipelines, refineries and power
generation facilities, chemical and petrochemical plants, 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.
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XANSER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months
Ended March 31,
--------------------
2005 2004
-------- --------
Revenues:
Services $ 34,391 $ 31,841
Products 780 323
-------- --------
Total revenues 35,171 32,164
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Costs and expenses:
Operating costs 34,794 29,962
Cost of products sold 572 181
Depreciation and amortization 978 879
General and administrative 791 752
-------- --------
Total costs and expenses 37,135 31,774
-------- --------
Operating income (loss) (1,964) 390
Interest and other income, net 96 34
Interest expense (282) (239)
-------- --------
Income (loss) before income taxes (2,150) 185
Income tax expense (155) (75)
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Net income (loss) $ (2,305) $ 110
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Earnings (loss) per common share - Basic and Diluted $ (0.07) $ -
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XANSER CORPORATION
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
Three Months
Ended March 31,
--------------------
2005 2004
-------- --------
Revenues:
Technical services $ 30,659 $ 26,982
Information technology services 4,512 5,182
-------- --------
$ 35,171 $ 32,164
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Operating income (loss):
Technical services $ 1,531 $ 1,140
Information technology services (2,704) 2
General and administrative expenses (791) (752)
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$ (1,964) $ 390
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