Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) a company that specializes in rehabilitating sewer, water and other underground piping systems, today reported a small profit for 2007, down considerably from 2006.
Net income for the full year of 2007 was $2.5 million, or $0.09 per diluted share. This compares to net income in the full year of 2006 of $24.7 million, or $0.90 per diluted share.
For the full year of 2007, income from continuing operations was $12.9 million, or $0.47 per diluted share, as compared to $26.3 million, or $0.96 per diluted share in 2006.
The net loss from discontinued operations for the full year of 2007 was $10.3 million, or $0.38 per diluted share, as compared to a net loss from discontinued operations of $1.6 million, or $0.06 per diluted share in 2006. The 2007 loss from discontinued operations was principally impacted by pre-tax closure charges of $17.9 million, or $12.1 million after-tax ($0.44 per diluted share), the company said.
Q4 income from continuing operations was $9.0 million, or $0.33 per diluted share. This compares to $10.3 million, or $0.37 per diluted share, earned in the fourth quarter of 2006.
The shutdown of the company’s tunneling division was substantially completed by year-end and has been classified as a discontinued operation accordingly for all periods reported.
Taking into account the discontinued operation, Q4 net income was $10.1 million, or $0.37 per diluted share. This compares to net income of $10.4 million, or $0.38 per diluted share, for the fourth quarter of 2006.
Q407 continuing operations results benefited from a $4.5 million pre-tax gain from a litigation settlement.
Alfred L. Woods, Chairman and Interim CEO, made the following comments on the quarter’s and the full year 2007 results:
"2007 was a difficult year for Insituform, and no one at this Company is happy with the modest profit we have reported. These results are not indicative of the performance that is expected and do not reflect the potential of our Company. We are taking aggressive steps to achieve the kind of earnings growth we owe our stockholders, and in the last quarter of 2007, we began to see measurable progress from these efforts.
About Insituform Technologies, Inc.
Insituform Technologies, Inc. is a leading worldwide provider of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems without digging and disruption.
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