VIENNA, Va., April 30, 2001 (PRIMEZONE) -- Allied Research Corporation, a diversified defense and commercial electronic security firm, reported today that net earnings from continuing operations for the first three months of 2001 rose 18% over the same period in 2000.
For the three months ended March 31, 2001, Allied Research earned from continuing operations $1.14 million, or $0.23 a share, on revenues of $17.0 million, compared to earnings of $0.97 million, or $0.20 a share, on revenues of $23.5 million for the same period in 2000.
Backlog as of March 31, 2001 was $73.0 million compared to $63.5 million at year-end and contains several contracts with excellent quoted profit margins.
According to General (Retired) J.H. Binford Peay, III, Chairman, President and Chief Executive Officer, the sharp increase in earnings was powered by outstanding results at both operating units, MECAR S.A., and the VSK Group. General Peay stated, "We are very pleased by the solid operating results, paticularly given the 7% decline of the Euro against the U.S. Dollar, and we expect the rest of the year's earnings will be very strong.
"The VSK Group did exceptionally well in growing both revenues and earnings. The VSK Group reported a 24% increase in net income after tax for the quarter ended March 31, 2001. It earned $0.47 million in the first quarter of 2001 compared to $0.38 million for the same quarter in 2000. We are extremely pleased with the response from our customers to our CCTV capable integrated access control product. The VSK Group continues to get significant referrals from our growing customer base due to the high level of customer satisfaction and state-of-the-art product line."
"MECAR reported increased earnings on revenues, although revenues were lower than the previous year. MECAR reported a 35% increase in net income after tax for the quarter ended March 31, 2001. It earned $0.84 million in the first quarter 2001, compared to $0.62 million for the same quarter in 2000. MECAR's demonstrated flexibility in responding to a variety of new orders has been a key to MECAR's continued success and expanded market reach. Additionally, we are fortunate to continue to benefit from higher defense budgets of our traditional customer base."
"Our goal is to increase value to our shareholders on an accelerated schedule. While no firm commitments are in place, our strategy of prudent expansion is actively being pursued. We believe our vision is focused and our timing is right. We continue to believe our stock trades considerably below our true value," General Peay concluded.
Allied Research Corporation is a diversified firm with a portfolio of strategic security businesses. Its subsidiaries develop and manufacture ammunition systems; in addition, they engineer, design and market sophisticated commercial electronic systems to markets worldwide. Allied and its employees are dedicated to customer service, profitable growth and above all enhancing shareholder value.
Certain statements contained herein are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.
ALLIED RESEARCH CORPORATION
Three months ended March 31,
(000's omitted except per share amounts)
2001 2000
Revenues $17,010 $23,474
Net earnings from
continuing operations 1,143 967
Net earnings from
discontinued operation - 0 - 485
Fully diluted earnings
per share from continuing operations 0.23 0.20
Fully diluted earnings
per share from discontinued operation - 0 - 0.10
For additional information please contact us at 800-847-5322 or e-mail at jmeyer@alliedresearch.com