Exhibit 99.1
For More Information
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Contact: James F. Oliviero
KSW, Inc., (718) 340-1409
joliviero@ksww.com
FOR IMMEDIATE RELEASE
KSW TO REDUCE STOCK OPTION EXPENSE
PREVIOUSLY REPORTED IN 2006 AND 2007
Long Island City, New York - December 21, 2007 - KSW, Inc. (NASDAQ: KSW)
announced today that it incorrectly reported an expense of $343,000 in
connection with the exercising of stock options during the year ended December
31, 2006, and incorrectly reported an expense of $357,000 in connection with the
exercising of stock options during the first nine months of 2007, including
their respective interim periods. Correcting these errors will have no effect on
reported revenue, cash position, or net worth, but will increase previously
reported earnings by $343,000 for 2006 and increase previously reported earnings
by $357,000 for the first nine months of 2007.
The Company's previously issued statements of income for the year ended 2006 and
the nine months ended September 30, 2007, including for their respective interim
periods, should not be relied upon as to the net income reported in such
statements as a result of these accounting errors.
The following table shows the net income as reported and corrected:
Net Income, Net Income,
As Reported Correction As Corrected
----------- ----------- ------------
Quarter ended March 31, 2006 $ 346,000 $ 195,000 $ 541,000
Quarter ended June 30, 2006 618,000 57,000 675,000
Quarter ended September 30, 2006 785,000 9,000 794,000
Quarter ended December 31, 2006 1,016,000 82,000 1,098,000
----------- ----------- ------------
Year ended December 31, 2006 $ 2,765,000 $ 343,000 $ 3,108,000
=========== =========== ============
Quarter ended March 31 ,2007 $ 723,000 $ 175,000 $ 898,000
Quarter ended June 30, 2007 771,000 89,000 860,000
Quarter ended September 30, 2007 871,000 93,000 964,000
----------- ----------- ------------
Nine Months ended September 30, 2007 $ 2,365,000 $ 357,000 $ 2,722,000
=========== =========== ============
Based on the corrected net income, the following table shows the correct
earnings per share for 2006 and the first three quarters of 2007.
Corrected Corrected
Earnings Per Earnings Per
Share - Basic Share-Diluted
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Quarter ended March 31, 2006 $ 0.09 $ 0.09
Quarter ended June 30, 2006 0.11 0.11
Quarter ended September 30, 2006 0.13 0.13
Quarter ended December 31, 2006 0.19 0.18
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Year ended December 31, 2006 $ 0.52 $ 0.51
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Quarter ended March 31 ,2007 0.15 $ 0.15
Quarter ended June 30, 2007 0.14 0.14
Quarter ended September 30, 2007 0.15 0.15
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Nine Months ended September 30, 2007 $ 0.44 $ 0.44
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On January 1, 2006, the Company adopted FASB Statement No. 123-R, "Share Based
Payment" ("SFAS 123-R"). SFAS 123-R requires all share based payments to
employees and non-employee directors, including grants of stock options, to be
recognized in the financial statements based on the awards fair value at the
date of grant. The Company had elected to adopt SFAS 123-R on the modified
prospective method.
In connection with its adoption of SFAS 123-R, expenses are recorded on the
Company's financial statements when options vest, but not when options are
exercised. The Company incorrectly recorded an expense in its 2006 financial
statements and its 2007 interim results, when options which had vested prior to
the adoption of SFAS 123-R were exercised.
The Company has notified both its independent registered public accounting firm
and the Securities and Exchange Commission of this accounting error.
The Company will correct these errors in its Annual Report on Form 10-K for the
year ending December 31, 2007.
About KSW
KSW, Inc., through its wholly-owned subsidiary, KSW Mechanical Services, Inc.,
furnishes and installs heating, ventilating and air conditioning (HVAC) systems
and process piping systems for institutional, industrial, commercial, high-rise
residential and public works projects. KSW Mechanical Services, Inc. also acts
as Trade Manager on larger construction projects, such as the New York
Presbyterian Cardiovascular Center.
For further information, please visit our website at www.kswmechanical.com.
Safe Harbor Statement
Certain statements contained in this press release are not historical facts, and
constitute "forward-looking statements" (as such term is defined in the Private
Securities Litigation Reform Act of 1995). These forward looking statements
generally can be identified as statements that include phrases such as
"believe", "expect", "anticipate", "intend", "plan", "foresee", "likely",
"should", "will" or other similar words or phrases. Such forward-looking
statements concerning management's expectations and other similar matters
involve known and unknown risks, uncertainties and other important factors that
could cause the actual results to differ materially from any future results,
performance or achievements discussed or implied by such forward-looking
statements. Such risks, uncertainties, and other important factors that could
cause actual results to differ materially from expectation of the Company
include, among others, the outcome of the year-end audit and further internal
review of the Company's historical financial statements. All written and oral
forward-looking statements of or attributable to the Company or persons acting
on behalf of the Company are qualified in their entirety by such factors. The
Company disclaims any obligation or undertaking to provide any updates or
revisions to any forward-looking statement to reflect any change in the
Company's expectations or any change in events, conditions or circumstances on
which the forward-looking statement is based.
Contact:
KSW, Inc.
James F. Oliviero
718-340-1409