EXHIBIT 99.1
THE KEITH COMPANIES | TKC
NEWS RELEASE FOR FEBRUARY 11, 2002 AT 7:30 AM EST
Contact Information:
The Keith Companies, Inc. Allen & Caron, Inc.
2955 Red Hill Ave. Matt Clawson (investors), or
Costa Mesa, CA 92626 Lynn Johnson
(714) 668-7001 lynn@allencaron.com
(714) 668-7026 Fax 949-474-4300
www.keithco.com
Contact: Aram Keith, CEO
THE KEITH COMPANIES EXECUTES AGREEMENT TO ACQUIRE PUBLIC
WORKS/INFRASTRUCTURE ENGINEERING FIRM
COSTA MESA, CA (February 11, 2002) . . . The Keith Companies, Inc.
(Nasdaq:TKCI), an engineering and consulting services company, announced today
that, as part of its continuing strategy to expand the Company's areas of
coverage and services through acquisition, it has executed a definitive purchase
agreement with a company providing engineering services to public
works/infrastructure clients and others in the midwest states. The acquired
company is a diversified full service consulting engineering firm specializing
in government services with expertise in environmental, civil, mechanical,
electrical engineering, and surveying. The acquired company's long standing
history and reputation will provide a solid base of operations in the midwest.
The acquisition will add over 100 employees to The Keith Companies bringing its
total employee count to approximately 850 employees. The closing, pending final
due diligence, is scheduled for the end of February 2002. Complete details about
the acquisition will be provided in a company press release at the time of
closing.
As a result of this planned acquisition, The Keith Companies is
increasing its annual 2002 guidance to reflect 10 months of operating results
from the acquired company. Estimated net revenue is projected to increase by
$10.0 million to $11.5 million, increasing the total estimated net revenue range
for 2002 to $92.0 million to $99.5 million. Diluted earnings per share is
anticipated to increase by $0.05 to $0.08 bringing the total estimated 2002
diluted earnings per share range to $0.85 to $1.00 ($0.17 to $0.20 for 1st
quarter, $0.21 to $0.25 for 2nd quarter, $0.25 to $0.29 for 3rd quarter, and
$0.22 to $0.26 for 4th quarter). Upon completion of the closing, The Company's
cash and securities balance should exceed $15 million.
The Keith Companies Chairman and CEO, Aram H. Keith noted, "Our
strategic plan for diversification is right on track. This particular
acquisition will enhance our government services work significantly. It also
provides the opportunity to promote other Keith Companies services in the
midwest. Upon completing the transaction later this month, we will have closed
two energy related acquisitions and one in the public works/infrastructure
industry segment since completion of the Company's secondary stock offering in
May 2001."
Further discussion about the planned acquisition will be provided by
management in the Company's year end and 4th quarter conference call that is
scheduled for 11:30 am (EST) on February 14, 2002.
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' 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, including, but not limited to
2002 guidance, 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 the acquired company and other 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 the acquired
company's and other 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.