EX-99.1 2 d529134dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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   Contact:    David Higie
   Phone:    (412) 269-6449
   Release:    Immediate (May 2, 2013)

BAKER REPORTS HIGHER NET INCOME AND EPS FOR FIRST QUARTER 2013

PITTSBURGH — Michael Baker Corporation (NYSE MKT:BKR) today announced its financial results for the first quarter of 2013, including significant increases in net income and earnings per share compared to the first quarter of 2012. In addition, the Company’s Board of Directors declared an $0.18 per share dividend for the second quarter of 2013, payable on July 2 to shareholders of record on June 12. This represents a $0.02 per share increase from the dividend paid for the first quarter of 2013.

For the quarter, Baker reported net income of $5.5 million, or $0.57 per diluted share, on revenues of $144.0 million, compared to net income of $1.7 million, or $0.18 per diluted share, on revenues of $151.7 million in the first quarter of 2012.

The substantial improvement in first-quarter 2013 net income and earnings per share resulted from increases in both of the Company’s business segments’ operating income. This was due mainly to the timing of revenue recognition on certain projects in the Transportation segment, which contributed $3.0 million, higher utilization, a decrease in acquisition-related intangible asset amortization expenses, and a $3.3 million reduction in selling, general and administrative costs primarily related to the performance improvement plan. These factors were partially offset by the decrease in revenue in the first quarter of 2013, which resulted primarily from a decrease in work performed for the Department of Defense and declines in work performed for certain key Transportation clients. The 2012 first quarter benefitted from the favorable impact of a recovery of $1.1 million related to claims due from a professional liability insurer that is in liquidation.

Selling, general and administrative expenses expressed as a percentage of revenue were 13.3 percent for the current period compared to 14.8 percent for the first quarter of 2012. This decrease is primarily attributable to the period-over-period decrease in SG&A personnel and a general reduction in overhead expenses.

The Company’s effective income tax rate was 39 percent for the first quarter of 2013, compared to 38 percent for the first quarter of 2012. The difference between the effective income tax rate of 39 percent and the tax expenses for 2013 related to a settlement with the IRS for a previous assessment which resulted in a reversal of tax liabilities.

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ADD ONE – BAKER FINANCIAL RESULTS FOR FIRST QUARTER 2013

Total backlog at March 31, 2013, was $1.66 billion, compared to $1.65 billion at December 31, 2012. Of these totals, $644 million and $649 million, respectively, are considered funded backlog.

As of March 31, 2013, the Company had cash and investment balances of $79.3 million, compared to $77.4 million at December 31, 2012, and no debt.

Commenting on the results, H. James McKnight and Michael J. Zugay, office of the chief executive, said, “We are pleased with the significant improvement we were able to achieve in the first quarter of 2013. Our revenue, while down from 2012, was in line with our expectations, and our results demonstrate the progress we have made in better aligning our cost structure with the current industry environment. Overall, it is a good start to the year and we are hopeful that this favorable trend in our performance will continue.”

Michael Baker Corporation (www.mbakercorp.com) provides engineering, design, planning and construction services for its clients’ most complex challenges worldwide. The firm’s primary business areas are architecture, aviation, defense, environmental, geospatial, homeland security, municipal & civil, oil & gas, rail & transit, telecommunications & utilities, transportation, urban development and water. With more than 3,000 employees in over 100 offices across the United States, 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 Thursday, May 2, at 10:00 AM Eastern Daylight Savings Time to discuss these results. Please call 877-769-6805 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.

Note with respect to Forward-Looking Statements:

(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: the events described in the “Risk Factors” section of our 2012 Form 10-K as well as the Company’s other reports filed with the Securities and Exchange Commission; 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; changes in loan relationships or sources of financing; changes in management; changes in information systems; and divestitures and acquisitions; and the potential effects of our ongoing strategic assessment process. 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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ADD TWO — BAKER FIRST QUARTER 2013 FINANCIAL RESULTS

FINANCIAL SUMMARY

(Unaudited)

 

     For the three months ended  

Operating Results

(In thousands, except earnings per share)

   March 31,
2013
     April 1,
2012
 

Revenues

   $ 143,968       $ 151,659   

Gross profit

     26,799         23,817   

Operating income

     7,708         1,411   

Income before income taxes and noncontrolling interest

     8,520         1,736   

Net income from continuing operations attributable to Michael Baker Corporation

     5,533         959   

Income from discontinued operations, net of tax

     —            737   

Net income attributable to Michael Baker Corporation

   $ 5,533       $ 1,696   

Earnings per share:

     

Basic-net income

   $ 0.58       $ 0.18   

Diluted-net income

     0.57         0.18   

Cash dividends declared per share

   $ 0.16       $ —      

 

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ADD THREE — BAKER FIRST QUARTER 2013 FINANCIAL RESULTS

Segment Results (Unaudited)

(In millions)    For the three months ended  
     March 31,
2013
    April 1,
2012
 

Revenues

    

Transportation

   $ 75.1      $ 80.5   

Federal

     68.9        71.2   
  

 

 

   

 

 

 

Total revenues

   $ 144.0      $ 151.7   
  

 

 

   

 

 

 

Gross Profit

    

Transportation

   $ 15.4      $ 13.4   

Federal

     11.4        11.3   

Corporate

     —          (0.9
  

 

 

   

 

 

 

Total gross profit

     26.8        23.8   
  

 

 

   

 

 

 

Less: SG&A

    

Transportation

     (10.5     (12.2

Federal

     (8.6     (10.2
  

 

 

   

 

 

 

Total SG&A

     (19.1     (22.4
  

 

 

   

 

 

 

Total income/(loss) from operations

    

Transportation

     4.9        1.2   

Federal

     2.8        1.1   

Corporate

     —          (0.9
  

 

 

   

 

 

 

Total operating income

   $ 7.7      $ 1.4   
  

 

 

   

 

 

 
Backlog     
     As of  
(In millions)    March 31,
2013
    December 31,
2012
 

Funded

   $ 644.2      $ 648.5   

Unfunded

     1,016.2        997.5   
  

 

 

   

 

 

 

Total

   $ 1,660.4      $ 1,646.0   
  

 

 

   

 

 

 

 

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ADD FOUR — BAKER FIRST QUARTER 2013 FINANCIAL RESULTS

 

Condensed Balance Sheet (Unaudited)     
(In thousands)    As of  
     March 31,
2013
    December 31,
2012
 

ASSETS

    

Cash and cash equivalents

   $ 68,112        77,367   

Short term investments

     1,500        —     

Available for sale securities

     9,683        —     

Receivables, net

     91,524        85,733   

Unbilled revenues on contracts in progress

     77,494        78,062   

Prepaid expenses and other

     9,784        11,361   
  

 

 

   

 

 

 

Total current assets

     258,097        252,523   
  

 

 

   

 

 

 

Property, plant and equipment, net

     16,351        17,286   

Goodwill and other intangible assets, net

     92,820        94,363   

Other long-term assets

     8,797        9,237   
  

 

 

   

 

 

 

Total assets

   $ 376,065      $ 373,409   
  

 

 

   

 

 

 

LIABILITIES & SHAREHOLDERS’ INVESTMENT

    

Accounts payable

   $ 40,176      $ 41,386   

Accrued compensation and insurance

     37,051        30,723   

Billings in excess of revenues on contracts in progress

     18,875        22,215   

Other accrued expenses

     30,134        31,220   
  

 

 

   

 

 

 

Total current liabilities

     126,236        125,544   
  

 

 

   

 

 

 

Other long-term liabilities

     20,104        22,713   
  

 

 

   

 

 

 

Total liabilities

     146,340        148,257   
  

 

 

   

 

 

 

Common Stock

     10,184        10,172   

Additional paid-in capital

     70,227        69,514   

Retained earnings

     154,075        150,087   

Accumulated other comprehensive loss

     (8     —     

Less - Treasury shares

     (5,313     (5,173
  

 

 

   

 

 

 

Total Michael Baker Corporation shareholders’ investment

     229,165        224,600   

Noncontrolling interests

     560        552   
  

 

 

   

 

 

 

Total shareholders’ investment

     229,725        225,152   
  

 

 

   

 

 

 

Total liabilities & shareholders’ investment

   $ 376,065      $ 373,409   
  

 

 

   

 

 

 

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