-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VDnUeOEDP8TzTpWvO8kN6cFRgchoQQN+X+gQ6ngVNnUlNQtyVVzqxtVbCRjvcoZJ gnV6H1Fog+UZifOoH5lvgQ== 0000950152-09-002409.txt : 20090310 0000950152-09-002409.hdr.sgml : 20090310 20090310104759 ACCESSION NUMBER: 0000950152-09-002409 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090310 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090310 DATE AS OF CHANGE: 20090310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BAKER MICHAEL CORP CENTRAL INDEX KEY: 0000009263 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT SERVICES [8741] IRS NUMBER: 250927646 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06627 FILM NUMBER: 09668133 BUSINESS ADDRESS: STREET 1: AIRSIDE BUSINESS PARK STREET 2: 100 AIRSIDE DRIVE CITY: MOON TOWNSHIP STATE: PA ZIP: 15108 BUSINESS PHONE: 4122696300 MAIL ADDRESS: STREET 1: AIRSIDE BUSINESS PARK STREET 2: 100 AIRSIDE DRIVE CITY: MOON TOWNSHIP STATE: PA ZIP: 15108 FORMER COMPANY: FORMER CONFORMED NAME: EUTHENICS SYSTEMS CORP DATE OF NAME CHANGE: 19750527 FORMER COMPANY: FORMER CONFORMED NAME: BAKER MICHAEL JR INC DATE OF NAME CHANGE: 19720526 8-K 1 l35769ae8vk.htm FORM 8-K FORM 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) March 10, 2009
MICHAEL BAKER CORPORATION
 
(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania
 
(State or Other Jurisdiction of Incorporation)
     
1-6627   25-0927646
 
(Commission File Number)   (IRS Employer Identification No.)
     
100 Airside Drive
Moon Township, Pennsylvania
  15108
 
(Address of Principal Executive Offices)   (Zip Code)
(412) 269-6300
 
(Registrant’s Telephone Number, Including Area Code)
 
(Former Name or Former Address, if Changed Since Last Report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


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Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
EXHIBIT INDEX
EX-99.1


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Item 2.02. Results of Operations and Financial Condition.
On March 10, 2009, Michael Baker Corporation (the “Company”) issued a press release reporting, among other things, the Company’s financial results for 2008. A copy of this press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 2.02 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished pursuant to this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d)   Exhibits.
The following exhibit is furnished with this report on Form 8-K:
     
Exhibit No.   Description
 
   
99.1
  Press release dated March 10, 2009.

 


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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  MICHAEL BAKER CORPORATION
 
 
  By:   /s/ Craig O. Stuver    
    Craig O. Stuver   
    Acting Chief Financial Officer   
 
Date: March 10, 2009

 


Table of Contents

EXHIBIT INDEX
         
Number   Description   Method of Filing
 
       
99.1
  Press release dated March 10, 2009.   Filed herewith.

 

EX-99.1 2 l35769aexv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
(BAKER LOGO)
News Release
         
 
  Contact:   David Higie
 
  Phone:   (412) 269-6449
 
  Release:   Immediate (Mar. 10, 2009)
BAKER ANNOUNCES RECORD EARNINGS FOR 2008
     PITTSBURGH — Michael Baker Corporation (NYSE Alternext US:BKR) today reported record earnings for the year 2008, driven primarily by the performance of its Engineering business segment.
     For 2008, Baker reported record net income of $29.2 million, or $3.28 per diluted share, on total revenue of $699.4 million. This compares to net income of $19.3 million, or $2.18 per diluted share, on total revenue of $727 million in 2007. A number of positive factors in Engineering contributed to this improved earnings performance, including improved profitability on certain federal and state projects, both domestically and internationally, and the favorable impact of a non-recurring project settlement during the year. The Energy segment also added to the earnings increase, due primarily to a year-over-year decrease in self-insured general liability costs and favorable tax-related settlements in several international jurisdictions. The decrease in total revenue occurred despite a 14 percent increase in Engineering’s year-over-year revenue, as Energy’s revenue decreased 25 percent.
     The 14 percent increase in 2008 revenue in the Engineering business resulted primarily from work performed as support for the Department of Homeland Security’s efforts to secure U.S. borders, an increase in work performed for the Company’s unconsolidated joint venture in Iraq, growth in several existing transportation projects, and the project settlement mentioned previously. Operating income before corporate overhead allocations in Engineering increased 11 percent, with the major factor being the improved revenue volume compared to the year-ago period. Operating income before corporate overhead allocations expressed as a percentage of Engineering segment revenues was 11.2 percent for the current year, compared to 11.5 percent for 2007. This year-over-year reduction results from a decrease in project incentive awards from clients and an increase in incentive compensation expense to reward personnel for the record performance in 2008.
     The 25 percent decrease in 2008 revenue in the Energy business was due primarily to a client’s sale of properties and the resulting termination of a domestic managed services contract during the third quarter of 2007, changes in the scope of services provided to two existing managed services clients, and the cancellation of another managed services contract in the first half of 2008. This decline was partially offset by an increase in revenue from domestic offshore labor clients in the Gulf of Mexico during 2008, and an increase in international revenue, primarily in Nigeria. Energy’s operating income before corporate overhead allocations in the current year increased 66 percent over the same period last year due primarily to the lower self-insured liability costs and favorable tax-related settlements mentioned previously, and a non-recurring incentive award associated with a managed services contract. As a result, operating income before corporate overhead allocations expressed as a percentage of segment revenues was 4.2 percent for 2008, compared to 1.9 percent for 2007.
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ADD ONE — BAKER 2008 FINANCIAL RESULTS
     The effective tax rate for 2008 was 42 percent, slightly lower than the 43 percent for 2007.
     Total backlog for the Engineering and Energy businesses at December 31, 2008, was $1.22 billion, compared to $1.31 billion at December 31, 2007. Of these totals, $450 million and $426 million at December 31, 2008, and December 31, 2007, respectively, are considered funded backlog for the Engineering segment. Included in funded backlog at December 31, 2008, was $68 million related to the Company’s FEMA Map Modernization contract, compared to $57 million at December 31, 2007.
     On the balance sheet as of December 31, 2008, the Company had no long-term debt and a cash balance of approximately $49 million.
     In the fourth quarter of 2008, the company recorded net income of $3.0 million, or $0.33 per diluted common share, on total revenue of $172 million, compared with net income of $7.2 million, or $0.80 per diluted common share, on total revenue of $196 million in the fourth quarter of 2007. The year-over-year reduction in fourth quarter performance relates primarily to the aforementioned increase in incentive compensation expense in the Engineering segment, the recognition of a bad debt reserve related to a portion of a bankrupt Energy client’s receivables, and the settlement of a contract-related claim in the Energy business.
     Commenting on the results, President and Chief Executive Officer Bradley L. Mallory said, “Obviously, we are pleased with Engineering’s record performance in 2008, and recognize that Energy overcame some significant obstacles to make a significant contribution to the bottom line. 2009 will be a challenging year for America and the world, but Baker is well positioned to withstand the storm. With no debt and an increasing cash balance, our financial position is strong. And with a steady backlog level, carefully targeted project pursuits and the infrastructure stimulus spending, we are poised for continued success.”
     Michael Baker Corporation (http://www.mbakercorp.com) provides engineering and operations and maintenance services for its clients’ most complex challenges worldwide. The firm’s primary business areas are aviation, defense, environmental, facilities, geospatial, homeland security, municipal & civil, pipelines & utilities, transportation, water, and oil & gas. With more than 4,500 employees in over 50 offices across the United States and internationally, Baker is focused on creating value by delivering innovative and sustainable solutions for infrastructure and the environment.
Conference Call
     Michael Baker Corporation has scheduled a conference call and webcast for Wednesday, March 11, at 10:00 a.m. EDT, to discuss its 2008 financial results. Please call 800-860-2442 at least 10 minutes prior to the start of the call. To access the webcast, please visit the investor relations portion of Baker’s website at www.mbakercorp.com
     (The above information contains forward-looking statements concerning our future operations and performance. Forward-looking statements are subject to market, operating and economic risks and uncertainties that may cause our actual results in future periods to be materially different from any future performance suggested herein. Factors that may cause such differences include, among others: increased competition; increased costs; changes in general market conditions; changes in industry trends; changes in the regulatory environment; changes in our relationship and/or contracts with the Federal Emergency Management Agency (“FEMA”); changes in anticipated levels of government spending on infrastructure, including the Safe, Accountable, Flexible, Efficient Transportation Equity Act—A Legacy for Users (“SAFETEA-LU”); changes in loan relationships or sources of financing; changes in management; changes in information systems; late SEC filings; and, the restatement of financial results. Such forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.)
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BAKER 2008 FINANCIAL RESULTS
FINANCIAL SUMMARY
(In thousands, except earnings per share)
Fourth Quarter Operating Results
                 
(Unaudited)   2008   2007
Revenues
  $ 172,406     $ 195,836  
 
               
Gross profit
    23,429       28,448  
 
               
Income from operations
    2,321       10,406  
 
               
Income before income taxes
    4,360       11,186  
 
               
Net income
  $ 2,987     $ 7,191  
 
               
Net income per share:
               
Basic
    0.33       0.82  
Diluted
  $ 0.33     $ 0.80  
 
Full Year Operating Results
                 
(Audited)   2008   2007
Revenues
  $ 699,395     $ 726,965  
 
               
Gross profit
    113,657       100,496  
 
               
Income from operations
    43,440       31,375  
 
               
Income before taxes
    50,401       33,725  
 
               
Net income
  $ 29,154     $ 19,340  
 
               
Net income per share:
               
Basic
    3.31       2.21  
Diluted
  $ 3.28     $ 2.18  
 

 


 

BAKER 2008 FINANCIAL RESULTS
Segment Results
                                 
    For the three months   For the year
    ended December 31,   ended December 31,
(In millions)   2008   2007   2008   2007
Revenues
                               
Engineering
  $ 114.6     $ 111.8     $ 455.9     $ 401.5  
Energy
    57.8       84.0       243.5       325.5  
 
Total revenues
  $ 172.4     $ 195.8     $ 699.4     $ 727.0  
 
 
                               
Income from operations before Corporate overhead
                               
Engineering
  $ 7.0     $ 12.5     $ 51.1     $ 46.2  
Energy
    0.2       2.7       10.3       6.2  
 
Total segment income from operations before Corporate overhead
    7.2       15.2       61.4       52.4  
 
Less: Corporate overhead
                               
Engineering
    (3.5 )     (3.3 )     (13.6 )     (14.0 )
Energy
    (1.3 )     (1.3 )     (5.2 )     (5.3 )
 
Total Corporate overhead
    (4.8 )     (4.6 )     (18.8 )     (19.3 )
 
Total income/(loss) from operations
                               
Engineering
    3.5       9.2       37.5       32.2  
Energy
    (1.1 )     1.4       5.1       0.9  
Other Corporate (expense)/income
    (0.1 )     (0.2 )     0.8       (1.7 )
 
Total income from operations
  $ 2.3     $ 10.4     $ 43.4     $ 31.4  
 
Backlog
                 
    As of December 31,
(In millions)   2008   2007
Engineering
               
Funded
  $ 449.5     $ 425.6  
Unfunded
    534.7       696.6  
 
Total Engineering
    984.2       1,122.2  
Energy
    233.4       191.7  
 
Total
  $ 1,217.6     $ 1,313.9  
 

 


 

BAKER 2008 FINANCIAL RESULTS
Condensed Balance Sheets
                 
    As of December 31,
(In thousands)   2008   2007
ASSETS
               
Cash and cash equivalents
  $ 49,050     $ 22,052  
Receivables, net
    113,676       109,453  
Unbilled revenues on contracts in progress
    70,455       88,214  
Prepaid expenses and other
    16,756       14,718  
 
Total current assets
    249,937       234,437  
 
               
Property, plant and equipment, net
    16,671       16,776  
Goodwill and other intangible assets, net
    17,254       17,367  
Other long-term assets
    8,200       7,770  
 
Total assets
  $ 292,062     $ 276,350  
 
 
               
LIABILITIES & SHAREHOLDERS’ INVESTMENT
               
Accounts payable
  $ 42,421     $ 55,940  
Accrued compensation and insurance
    47,162       41,974  
Other accrued expenses
    28,696       36,123  
Billings in excess of revenues on contracts in progress
    17,449       15,771  
 
Total current liabilities
    135,728       149,808  
 
               
Other long-term liabilities
    13,690       11,485  
 
Total liabilities
    149,418       161,293  
 
 
               
Common Stock
    9,351       9,306  
Additional paid-in capital
    48,405       47,356  
Retained earnings
    92,214       63,060  
Other comprehensive (loss)/income
    (2,565 )     96  
Less — Treasury shares
    (4,761 )     (4,761 )
 
Total shareholders’ investment
    142,644       115,057  
 
Total liabilities & shareholders’ investment
  $ 292,062     $ 276,350  
 
# # # #

 

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