Bakery Energy Has Record Year
Michael Baker Corporation reported record earnings for 2001, as well as a 90 percent increase in operating income.
For the full year, the company achieved net income of $11.2 million, or $1.33 cents per diluted share, compared with net income of $5.4 million, or 65 cents per diluted share, in 2000. The 2000 net income was adversely affected by a $6.8 million pre-tax litigation charge. Income from operations in 2001 was $20.4 million, or 5.1 percent of revenue, compared to $10.7 million, or 2.7 percent of revenue, in year 2000. Total contract revenues for the full year 2001 were $403 million, compared to $391 million in 2000. Revenues in 2000 included $42 million from non-core businesses which have been wound down or sold.
The current year's revenue includes $10 million of revenue in the Energy business segment resulting from the consolidation of local currency activities of operating subsidiaries in Thailand and Nigeria which are not wholly owned. This revenue is being recorded for the first time in 2001. There was no impact on earnings per share related to these revenues for the fourth quarter or the full year.
The company's core Engineering and Energy businesses posted strong operating results and margin improvement in 2001. For the year, these two businesses achieved operating income before corporate overhead of $31.4 million on revenues of $402 million, compared to 2000 operating income of $25.8 million on revenues of $349 million. Operating income before corporate overhead in the Engineering segment increased 16 percent, and in the Energy segment 32 percent, compared to the prior year. The combined operating margin for these businesses before corporate overhead was 7.8 percent.
Total backlog for the core Engineering and Energy businesses at year-end 2001 was $510 million, compared to $502 million at year-end 2000.
In fourth quarter 2001, the company recorded total contract revenues of $105 million and income from operations of $4.5 million, compared with total contract revenues of $92 million and a loss from operations of ($1.1) million in the year-ago period. The year ago loss is attributable to the previously mentioned $6.8 million pre-tax charge.
"We are very pleased with our record earnings performance, as it clearly validates the soundness of our two segment business strategy," Donald P. Fusilli, Jr., president and chief executive officer, said. "Our Energy segment will continue to be our growth engine, as its unique brand of service offerings are well suited to help oil and gas producers deal with a rapidly changing business environment. Our Engineering segment has exhibited the capability to optimize its performance in its core transportation and civil infrastructure design markets. We do, however, expect some relative slowness in activity in the first quarter in both segments due to market conditions such as the current Federal and state budget constraints."