VIENNA, Va., July 31, 2001 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR), a diversified defense and commercial electronic security firm, said today that its second quarter net earnings from continuing operations jumped nearly 40%, with higher profit margins after absorbing the impact of exchange losses caused by the effect of a weak European currency. Six months profits were well ahead of 2000.
For the three months ended June 30, 2001, Allied Research earned $2.0 million from continuing operations, or $0.41 a share, fully diluted, on revenues of $25.8 million, compared to earnings of $1.4 million, or $0.30 a share, fully diluted, on revenues of $28.5 million for the same period in 2000.
For the six months ended June 30, 2001, Allied earned $3.2 million from continuing operations, or $0.65 a share, fully diluted, on revenues of $42.8 million, compared with earnings of $2.4 million, or $0.50 a share, fully diluted, on revenues of $52.0 million for the same period in 2000.
General J.H. Binford Peay III, Chairman and Chief Executive Officer of Allied Research, said that Mecar S.A., part of Allied's defense group, powered the revenue and earnings jump. The firm's electronic security unit, VSK Group, was on plan and ahead of the previous year's results, in spite of the weak Euro that depressed its revenues and profit picture.
"Mecar realized the effects of an aggressive marketing program, combined with its focus on generating higher margins for its proprietary product lines. Their outlook for the balance of the year is excellent. This growth, plus VSK Group's steady, predictable earnings contribution and headquarters push on management efficiencies, should result in an excellent year for Allied Research.
"We continue to be significantly undervalued by the market. Our revenues and earnings are strong; we have virtually no debt, an excellent cash flow and a program for internal and acquisition growth," General Peay said. "Our plan of growing a portfolio of strategy security businesses, both defense and commercial, domestic and international, is on track. This goal is attainable and will add to Allied's mass. We anticipate being able to announce one or possibly two domestic U.S. acquisitions before the end of the year," General Peay concluded.
Allied Research Corporation is a diversified defense and commercial electronic security firm, developing and producing conventional ammunition systems marketed to defense departments worldwide, and designing, producing and marketing sophisticated electronic security systems for European, Asian and African markets.
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
Six months ended June 30,
($ millions except per share amounts)
2001 2000
---- ----
Revenues $ 42.8 $ 52.0
Net earnings from
continuing operations $ 3.2 $ 2.4
Net earnings from
discontinued operations -- $ 0.5
Net earnings $ 3.2 $ 2.9
Fully diluted net earnings
per share from
continuing operations $ 0.65 $ 0.50
Fully diluted net earnings
per share from
discontinued operation -- $ 0.11
Three months ended June 30,
($ millions except per share amounts)
2001 2000
---- ----
Revenues $ 25.8 $ 28.5
Net earnings from
continuing operations $ 2.0 $ 1.4
Net earnings from
discontinued operations -- $ 0.1
Net earnings $ 2.0 $ 1.5
Fully diluted net earnings
per share from
continuing operations $ 0.41 $ 0.30
Fully diluted net earnings
per share from
discontinued operation -- $ 0.01