Xanser (NYSE:XNR)
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Xanser Corporation (NYSE:XNR) today reported results
for the year ended December 31, 2005. Revenues for the year were
$153.9 million, compared with $145.7 million for 2004. The Company
reported a net loss of $(4.3) million for 2005, compared with net
income of $2.4 million last year.
"This loss was substantially incurred in the first half of the
year as a direct result of issues in Xtria. We reduced the losses in
Xtria substantially in the third quarter and again in the fourth.
Furmanite, our industrial services business, showed improvement every
quarter over the previous year. Xanser's small loss in the fourth
quarter reflects the traditional seasonality that Furmanite
experiences in the fourth quarter as well as in the first quarter,"
said John R. Barnes, chairman and CEO of Xanser Corporation.
"We are very pleased with Furmanite's acquisition of Flowserve's
General Services Group, which was announced early this year. It is a
major step forward for Furmanite, for it broadens our footprint in
North America and Europe which enhances our ability to grow this
business substantially. Our goal is to have the operations integrated
by mid-year, and we are expensing the integration costs, expected to
be around $2 million, as we go," Mr. Barnes said.
BUSINESS SEGMENT REVIEW
Technical Services -- Furmanite
For the year ended December 31, 2005, Furmanite's revenues
increased to $131.8 million for 2005, compared with $118.4 million for
2004. Furmanite's 2005 operating income increased to $10.1 million,
compared with $7.9 million for the prior year.
"For 2005, Furmanite increased revenue by 11 percent, and
operating income by 28 percent over the prior year," said Michael L.
Rose, president and chief operating officer of Xanser. "The revenue
growth associated with our core business allowed us to leverage our
economies of scale, driving more dollars to the bottom line."
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, energy producers, and suppliers. Furmanite has
more than 50 offices on five continents. Its website is
www.furmanite.com.
Information Technology Services -- Xtria
For the year ended December 31, 2005, Xtria's revenues were $22.1
million for 2005, compared with revenues of $27.3 million for 2004.
Xtria's operating loss for the year was $(7.7) million, compared with
operating income of $342,000 for 2004.
"We spent the entire year in 2005 addressing the issues in Xtria,
honoring previously made commitments to customers and taking care of
their needs, even when doing so meant that we incurred significant
additional costs. Now, we have most of those issues behind us, and
this year, it is time to look at the long-term potential for this
business," said Mr. Rose.
Xtria is an information technology services provider for the
healthcare market and a full service provider to the government
markets in focus areas of early childhood education and development.
These services are provided through focused offerings of solutions,
services and systems. In the healthcare market, Xtria provides managed
service solutions for the enterprise solution as well as for the
implementation and management of picture archiving and communications
systems. For agencies of the federal, state and local government,
Xtria provides program and policy analysis, program implementation and
program evaluation 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.
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 50 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 Twelve Months
Ended December 31, Ended December 31,
-------------------- --------------------
2005 2004 2005 2004
----------- -------- ---------- ---------
Revenues:
Services $33,859 $37,156 $146,975 $138,697
Products 981 4,947 6,906 6,990
----------- -------- ---------- ---------
Total revenues 34,840 42,103 153,881 145,687
----------- -------- ---------- ---------
Costs and expenses:
Operating costs 31,820 34,850 141,310 129,058
Cost of products sold 1,090 3,637 7,459 4,856
Depreciation and
amortization 785 940 3,514 3,552
General and administrative 931 985 3,258 3,262
Other -- -- (769) --
----------- -------- ---------- ---------
Total costs and
expenses 34,626 40,412 154,772 140,728
----------- -------- ---------- ---------
Operating income (loss) 214 1,691 (891) 4,959
Interest and other income,
net 173 77 660 174
Interest expense (248) (246) (1,040) (989)
----------- -------- ---------- ---------
Income (loss) before income
taxes 139 1,522 (1,271) 4,144
Income tax expense (438) (310) (2,995) (1,748)
----------- -------- ---------- ---------
Net income (loss) $(299) $1,212 $(4,266) $2,396
=========== ======== ========== =========
Earnings (loss) per common
share -- Basic and Diluted $(0.01) $0.03 $(0.13) $0.07
=========== ======== ========== =========
XANSER CORPORATION
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------- -------------------
2005 2004 2005 2004
---------- -------- --------- ---------
Revenues:
Technical services $30,910 $31,894 $131,821 $118,415
Information technology
services 3,930 10,209 22,060 27,272
---------- -------- --------- ---------
$34,840 $42,103 $153,881 $145,687
========== ======== ========= =========
Operating income (loss):
Technical services $2,128 $2,040 $10,114 $7,879
Information technology
services (983) 636 (7,747) 342
General and administrative
expenses (931) (985) (3,258) (3,262)
---------- -------- --------- ---------
$214 $1,691 $(891) $4,959
========== ======== ========= =========
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