EXHIBIT 99.1
THE KEITH COMPANIES | TKC
NEWS RELEASE
FOR RELEASE FEBRUARY 14, 2002 AT 7:30 AM EST
CONTACT INFORMATION:
THE KEITH COMPANIES, INC. ALLEN & CARON, INC.
2955 Red Hill Ave. Lynn Montoya (Investors), or
Costa Mesa, CA 92626 Lynn@allencaron.com
(714) 668-7001 Matt Clawson
(714) 668-7026 Fax Matt@allencaron.com
WWW.KEITHCO.COM (949) 474-4300
Contact: Aram Keith,
CEO & Chairman of the Board
THE KEITH COMPANIES REPORTS RECORD 2001 YEAR END RESULTS WITH NET REVENUE AND
NET INCOME REACHING AN ALL-TIME HIGH
o 30% INCREASE IN NET REVENUE FOR THE YEAR ENDED DECEMBER 31, 2001
o 20% INCREASE IN NET REVENUE FOR THE QUARTER ENDED DECEMBER 31, 2001
COSTA MESA, CA (February 14, 2002) - The Keith Companies, Inc. (Nasdaq: TKCI),
an engineering and consulting services firm, today announced that net revenue
for the fourth quarter and year ended December 31, 2001 increased 20 percent and
30 percent, respectively, increasing year end net revenue and net income to
record levels. This annual growth was primarily driven by service expansion and
cross selling, combined with the addition of key strategic acquisitions, which
further expanded the Company's geographical reach into five new states.
For the year ended December 31, 2001, net revenue rose to $69.5 million with net
income up 24 percent to a record $5.8 million, and earnings per diluted share of
$0.82 (based upon 7.1 million diluted weighted average shares outstanding). This
compares to net revenue in 2000 of $53.4
million with net income of $4.7 million, and earnings per diluted share of $0.89
(based upon 5.3 million diluted weighted average shares outstanding).
Net revenue for the fourth quarter of 2001 was $17.6 million with net income of
$1.2 million, and earnings per diluted share of $0.16 (based upon 7.7 million
diluted weighted average shares outstanding), compared to net revenue in the
prior year's fourth quarter of $14.6 million with net income of $1.4 million,
and earnings per diluted share of $0.25 (based upon 5.5 million diluted weighted
average shares outstanding).
Chairman and CEO Aram Keith commented, "We made solid progress across all fronts
in 2001 and successfully met the business challenges created by a national
crisis and economic uncertainty. The year saw The Keith Companies emerge from
being a relatively small, but profitable company with operations primarily in
southern California to a company with a far broader domestic profile and a truly
international reach. We are now operating out of 15 locations in 8 states and
are providing services to projects in Mexico and Brazil, as well. Today, we are
firmly rooted across multiple engineering disciplines and have diversified the
Company for future profitable growth across a range of sectors. We continue to
keep our business model simple while adhering to the high levels of quality on
which our reputation was built."
"The beginning of 2002," continued Keith, "has shown evidence that many of the
projects delayed during the fourth quarter are kicking off and that new demand
for services is returning to the higher levels seen prior to September 11."
The Company's December 31, 2001 balance sheet remains strong with a current
ratio of 3.92 to 1.00, and a debt to equity ratio of 0.04 to 1.00. The Company's
December 31, 2001 book value per share was $7.35, while cash and securities per
share was $3.25.
NET REVENUE CONTRIBUTIONS FROM ACQUISITIONS
The acquisitions of Crosby Mead Benton & Associates ("CMB"), which closed in the
fourth quarter of 2000, and Hook & Associates Engineering, Inc. ("Hook"),
Pacific Engineering Corporation ("PEC"), and Universal Energy, Inc. ("UEI"), all
of which closed in 2001, contributed $12.8 million to net revenue during 2001
(excludes CMB results for the fourth quarter of 2001). In the fourth quarter of
2001, the acquisitions of Hook, PEC, and UEI, contributed $3.2 million to net
revenue.
CONFERENCE CALL TO BE BROADCAST LIVE OVER THE INTERNET
The Company will be hosting an earnings conference call, which will be broadcast
live over the Internet at 8:30 a.m. Pacific Time on February 14, 2002 and can be
accessed by all interested parties at WWW.VIAVID.COM. To listen to the live
call, please go to the Web site at least fifteen minutes prior to the start of
the call to register, download, and install any necessary audio software. For
those unable to participate during the live broadcast, a replay will be
available shortly after the call for approximately seven days.
ABOUT THE KEITH COMPANIES
The Keith Companies, Inc. is a fully integrated, multi-disciplined engineering
and consulting services company, with offices located throughout the western
United States. The Keith Companies'
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professionals provide a wide spectrum of skilled resources including land
planning, engineering, surveying, mapping, environmental, and water and cultural
resources, that are needed to effectively plan, engineer, and design
state-of-the-art facilities. Additionally, the Company provides mechanical,
electrical, chemical, power/energy engineering, and other industrial engineering
services to design and improve the efficiency and reliability of automated and
manufacturing processes, production lines, and fire protection systems. The
Keith Companies benefits from a diverse public and private client base varying
from residential and commercial real estate projects to institutional,
manufacturing, and processing facilities. For more information visit the
Company's website at WWW.KEITHCO.COM.
CERTAIN STATEMENTS IN THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS
THAT EXPRESS OUR EXPECTATION, PREDICTION, BELIEF, OR PROJECTION. THESE
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, AND OTHER FACTORS
THAT MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE, AND ACHIEVEMENT OF THE KEITH
COMPANIES TO BE MATERIALLY AND ADVERSELY DIFFERENT FROM ANY FUTURE RESULTS,
PERFORMANCE, OR ACHIEVEMENT EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING
STATEMENTS. FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER FROM THE
FORWARD-LOOKING STATEMENTS CONTAINED IN THIS RELEASE AND THAT MAY AFFECT THE
COMPANY'S PROSPECTS IN GENERAL INCLUDE, BUT ARE NOT LIMITED TO: CHANGES IN THE
RATE OF ECONOMIC GROWTH IN THE UNITED STATES AND OTHER MAJOR INTERNATIONAL
ECONOMIES, OUR ABILITY TO SUSTAIN OUR GROWTH AND PROFITABILITY, OUR ABILITY TO
IMPLEMENT OUR ACQUISITION STRATEGY AND TO SUCCESSFULLY CLOSE AND INTEGRATE
ACQUIRED COMPANIES ON A TIMELY AND COST-EFFECTIVE BASIS, OUTCOMES OF PENDING AND
FUTURE LITIGATION, THE ONGOING FINANCING OF PUBLIC WORKS AND INFRASTRUCTURE
ENHANCEMENTS AND REFURBISHMENT, OUR ABILITY TO ATTRACT AND RETAIN EMPLOYEES, THE
DEMAND FOR ELECTRICITY AND THE IMPACT ON POWER PROVIDERS' PLANS FOR EXPANDING
GENERATION FACILITIES, INCREASING COMPETITION BY FOREIGN AND DOMESTIC COMPANIES,
A DOWNTURN IN THE REAL ESTATE MARKET, OUR FAILURE TO ACCURATELY ESTIMATE COSTS
ON FIXED-PRICE CONTRACTS OR CONTRACTS WITH NOT-TO-EXCEED PROVISIONS, THE
UNCERTAIN TIMING OF AWARDS AND CONTRACTS, THE ABILITY TO MAINTAIN ACQUIRED
COMPANIES' PROFIT MARGINS AND/OR CLIENT BASE, THE SHORT- AND LONG-TERM IMPACT OF
TERRORIST ACTIVITIES AND RESULTING POLITICAL AND MILITARY POLICIES, AND OTHER
FACTORS AS ARE DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION.
TABLES FOLLOW
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THE KEITH COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Years Ended
December 31, December 31,
---------------------------- ----------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
(Unaudited)
Gross revenue $20,440,000 $16,620,000 $77,066,000 $57,835,000
Subcontractor costs 2,797,000 1,977,000 7,611,000 4,454,000
------------ ------------ ------------ ------------
Net revenue 17,643,000 14,643,000 69,455,000 53,381,000
Costs of revenue 11,953,000 9,225,000 45,438,000 34,362,000
------------ ------------ ------------ ------------
Gross profit 5,690,000 5,418,000 24,017,000 19,019,000
Selling, general and administrative
expenses 4,017,000 2,942,000 14,690,000 10,834,000
------------ ------------ ------------ ------------
Income from operations 1,673,000 2,476,000 9,327,000 8,185,000
Interest income (174,000) (4,000) (552,000) (31,000)
Interest expense 33,000 81,000 270,000 341,000
Other expenses (income), net 9,000 8,000 53,000 (44,000)
------------ ------------ ------------ ------------
Income before provision for income
taxes 1,805,000 2,391,000 9,556,000 7,919,000
Provision for income taxes 607,000 988,000 3,707,000 3,199,000
------------ ------------ ------------ ------------
Net income $1,198,000 $1,403,000 $5,849,000 $4,720,000
============ ============ ============ ============
Earnings per share data:
Basic $0.16 $0.28 $0.89 $0.95
============ ============ ============ ============
Diluted $0.16 $0.25 $0.82 $0.89
============ ============ ============ ============
Weighted average number of
shares outstanding:
Basic 7,303,836 5,063,510 6,604,367 4,983,692
============ ============ ============ ============
Diluted 7,683,367 5,513,466 7,092,505 5,299,679
============ ============ ============ ============
MORE-MORE-MORE
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THE KEITH COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2001 2000
---------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $12,212,000 $ 1,043,000
Securities held-to-maturity 11,521,000 --
Contracts and trade receivables, net 18,618,000 12,089,000
Costs and estimated earnings in excess of billings 8,270,000 6,334,000
Prepaid expenses and other current assets 1,458,000 766,000
---------------- ---------------
Total current assets 52,079,000 20,232,000
Equipment and leasehold improvements, net 4,921,000 4,713,000
Goodwill, net 14,252,000 8,128,000
Other assets 240,000 239,000
---------------- ---------------
Total assets $71,492,000 $33,312,000
================ ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit $ -- $ 2,025,000
Current portion of long-term debt and capital lease
obligations 459,000 3,359,000
Trade accounts payable 2,376,000 1,689,000
Accrued employee compensation 3,091,000 2,467,000
Current portion of deferred tax liabilities 2,028,000 1,541,000
Other accrued liabilities 2,961,000 807,000
Billings in excess of costs and estimated earnings 2,383,000 1,001,000
---------------- ---------------
Total current liabilities 13,298,000 12,889,000
Long-term debt and capital lease obligations, less
current portion 1,453,000 361,000
Issuable common stock 1,512,000 1,000,000
Deferred tax liabilities 1,271,000 719,000
Accrued rent 225,000 104,000
---------------- ---------------
Total liabilities 17,759,000 15,073,000
---------------- ---------------
Shareholders' equity:
Preferred stock -- --
Common stock 7,000 5,000
Additional paid-in-capital 42,096,000 12,453,000
Retained earnings 11,630,000 5,781,000
---------------- -----------------
Total shareholders' equity 53,733,000 18,239,000
---------------- -----------------
Total liabilities and shareholders' equity $71,492,000 $33,312,000
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