x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
For
the quarterly period ended September
30, 2008
|
Or
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF
1934
For
the transition period from _______________ to
___________________
|
Delaware
(State
or other jurisdiction
of
incorporation or organization)
|
58-1954497
(IRS
Employer Identification Number)
|
8302
Dunwoody Place, Suite 250, Atlanta, GA
(Address
of principal executive offices)
|
30350
(Zip
Code)
|
Class
|
Outstanding
at November 3, 2008
|
|
Common
Stock, $.001 Par Value
|
53,908,700
shares
of registrant’s
Common
Stock
|
|
|
Page
No.
|
|
PART I
|
FINANCIAL
INFORMATION
|
||
Item
1.
|
Condensed
Financial Statements
|
||
Consolidated
Balance Sheets -
September
30, 2008 (unaudited) and December 31, 2007
|
1
|
||
Consolidated
Statements of Operations -
Three
and Nine Months Ended September 30, 2008 and 2007 (unaudited)
|
3
|
||
Consolidated
Statements of Cash Flows -
Nine
Months Ended September 30, 2008 and 2007 (unaudited)
|
4
|
||
Consolidated
Statement of Stockholders' Equity -
Nine
Months Ended September 30, 2008 (unaudited)
|
5
|
||
Notes
to Consolidated Financial Statements
|
6
|
||
Item
2.
|
Management's
Discussion and Analysis of
Financial
Condition and Results of Operations
|
27
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures
About
Market Risk
|
58
|
|
Item
4.
|
Controls
and Procedures
|
59
|
|
PART II
|
OTHER
INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
60
|
|
Item
1A.
|
Risk
Factors
|
61
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
61
|
|
Item
5.
|
Other
Information
|
62
|
|
Item
6.
|
Exhibits
|
63
|
(Amount
in Thousands, Except for Share Amounts)
|
September 30,
2008
(Unaudited)
|
December 31,
2007
|
|||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
91
|
$
|
118
|
|||
Restricted
cash
|
55
|
55
|
|||||
Accounts
receivable, net of allowance for doubtful accounts of $184 and $203,
respectively
|
8,541
|
14,961
|
|||||
Unbilled
receivables - current
|
11,286
|
10,433
|
|||||
Inventories
|
321
|
332
|
|||||
Prepaid
and other assets
|
3,318
|
3,206
|
|||||
Current
assets related to discontinued operations
|
177
|
3,505
|
|||||
Total
current assets
|
23,789
|
32,610
|
|||||
Property
and equipment:
|
|||||||
Buildings
and land
|
23,238
|
23,929
|
|||||
Equipment
|
31,397
|
32,240
|
|||||
Vehicles
|
993
|
1,302
|
|||||
Leasehold
improvements
|
11,462
|
11,462
|
|||||
Office
furniture and equipment
|
1,899
|
2,349
|
|||||
Construction-in-progress
|
2,812
|
1,673
|
|||||
71,801
|
72,955
|
||||||
Less
accumulated depreciation and amortization
|
(22,979
|
)
|
(23,161
|
)
|
|||
Net
property and equipment
|
48,822
|
49,794
|
|||||
Net
property and equipment held for sale
|
349
|
349
|
|||||
Property
and equipment related to discontinued operations
|
666
|
3,942
|
|||||
Intangibles
and other long term assets:
|
|||||||
Permits
|
16,991
|
16,826
|
|||||
Goodwill
|
10,822
|
9,046
|
|||||
Unbilled
receivables - non-current
|
3,661
|
3,772
|
|||||
Finite
Risk Sinking Fund
|
10,739
|
6,034
|
|||||
Other
assets
|
2,320
|
2,496
|
|||||
Intangible
and other assets related to discontinued operations
|
—
|
1,179
|
|||||
Total
assets
|
$
|
118,159
|
$
|
126,048
|
(Amount
in Thousands, Except for Share Amounts)
|
September 30,
2008
(Unaudited)
|
December 31,
2007
|
|||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
6,606
|
$
|
5,907
|
|||
Current
environmental accrual
|
228
|
475
|
|||||
Accrued
expenses
|
10,514
|
9,982
|
|||||
Disposal/transportation
accrual
|
6,818
|
6,850
|
|||||
Unearned
revenue
|
1,933
|
4,978
|
|||||
Current
liabilities related to discontinued operations
|
1,356
|
6,220
|
|||||
Current
portion of long-term debt
|
3,875
|
15,352
|
|||||
Total
current liabilities
|
31,330
|
49,764
|
|||||
Environmental
accruals
|
653
|
705
|
|||||
Accrued
closure costs
|
10,679
|
8,901
|
|||||
Other
long-term liabilities
|
441
|
968
|
|||||
Long-term
liabilities related to discontinued operations
|
1,877
|
2,817
|
|||||
Long-term
debt, less current portion
|
11,234
|
2,880
|
|||||
Total
long-term liabilities
|
24,884
|
16,271
|
|||||
Total
liabilities
|
56,214
|
66,035
|
|||||
Commitments
and Contingencies
|
|||||||
Preferred
Stock of subsidiary, $1.00 par value; 1,467,396 shares authorized,
1,284,730 shares issued and outstanding, liquidation value $1.00
per
share
|
1,285
|
1,285
|
|||||
Stockholders'
equity:
|
|||||||
Preferred
Stock, $.001 par value; 2,000,000 shares authorized, no shares issued
and
outstanding
|
¾
|
¾
|
|||||
Common
Stock, $.001 par value; 75,000,000 shares authorized, 53,908,700
and
53,704,516 shares issued and outstanding, respectively
|
54
|
54
|
|||||
Additional
paid-in capital
|
97,129
|
96,409
|
|||||
Stock
subscription receivable
|
¾
|
(25
|
)
|
||||
Accumulated
deficit
|
(36,523
|
)
|
(37,710
|
)
|
|||
Total
stockholders' equity
|
60,660
|
58,728
|
|||||
Total
liabilities and stockholders' equity
|
$
|
118,159
|
$
|
126,048
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
September 30,
|
September 30,
|
||||||||||||
(Amounts in
Thousands, Except for Per Share Amounts)
|
2008
|
2007
|
2008
|
2007
|
|||||||||
Net
revenues
|
$
|
15,989
|
$
|
16,306
|
$
|
51,961
|
$
|
48,452
|
|||||
Cost
of goods sold
|
11,884
|
11,693
|
37,536
|
33,564
|
|||||||||
Gross
profit
|
4,105
|
4,613
|
14,425
|
14,888
|
|||||||||
Selling,
general and administrative expenses
|
4,711
|
4,691
|
13,818
|
13,493
|
|||||||||
Asset
impairment recovery
|
(507
|
)
|
¾
|
(507
|
)
|
¾
|
|||||||
(Gain)
loss on disposal of property and equipment
|
(2
|
)
|
(13
|
)
|
139
|
99
|
|||||||
(Loss)
income from operations
|
(97
|
)
|
(65
|
)
|
975
|
1,296
|
|||||||
Other
income (expense):
|
|||||||||||||
Interest
income
|
52
|
71
|
170
|
238
|
|||||||||
Interest
expense
|
(231
|
)
|
(482
|
)
|
(917
|
)
|
(964
|
)
|
|||||
Interest
expense-financing fees
|
(14
|
)
|
(48
|
)
|
(124
|
)
|
(143
|
)
|
|||||
Other
|
¾
|
(40
|
)
|
(5
|
)
|
(55
|
)
|
||||||
(Loss)
income from continuing operations before taxes
|
(290
|
)
|
(564
|
)
|
99
|
372
|
|||||||
Income
tax (benefit) expense
|
(14
|
)
|
(161
|
)
|
3
|
23
|
|||||||
(Loss)
income from continuing operations
|
(276
|
)
|
(403
|
)
|
96
|
349
|
|||||||
Loss
from discontinued operations, net of taxes
|
(159
|
)
|
(1,549
|
)
|
(1,218
|
)
|
(2,163
|
)
|
|||||
Gain
on disposal of discontinued operations, net of taxes
|
94
|
¾
|
2,309
|
¾
|
|||||||||
Net
(loss) income applicable to Common Stockholders
|
$
|
(341
|
)
|
$
|
(1,952
|
)
|
$
|
1,187
|
$
|
(1,814
|
)
|
||
Net
(loss) income per common share - basic
|
|||||||||||||
Continuing
operations
|
$
|
(.01
|
)
|
$
|
(.01
|
)
|
$
|
¾
|
$
|
.01
|
|||
Discontinued
operations
|
¾
|
(.03
|
)
|
(.02
|
)
|
(.04
|
)
|
||||||
Disposal
of discontinued operations
|
¾
|
¾
|
.04
|
¾
|
|||||||||
Net
(loss) income per common share
|
$
|
(.01
|
)
|
$
|
(.04
|
)
|
$
|
.02
|
$
|
(.03
|
)
|
||
Net
(loss) income per common share - diluted
|
|||||||||||||
Continuing
operations
|
$
|
(.01
|
)
|
$
|
(.01
|
)
|
|
¾
|
$
|
.01
|
|||
Discontinued
operations
|
¾
|
(.03
|
)
|
(.02
|
)
|
(.04
|
)
|
||||||
Disposal
of discontinued operations
|
¾
|
¾
|
.04
|
¾
|
|||||||||
Net
(loss) income per common share
|
$
|
(.01
|
)
|
$
|
(.04
|
)
|
$
|
.02
|
$
|
(.03
|
)
|
||
Number
of common shares used in computing net income (loss) per
share:
|
|||||||||||||
Basic
|
53,844
|
52,843
|
53,760
|
52,349
|
|||||||||
Diluted
|
53,844
|
52,843
|
54,149
|
53,673
|
September 30,
|
|||||||
(Amounts
in Thousands)
|
2008
|
2007
|
|||||
Cash
flows from operating activities:
|
|||||||
Net
income (loss)
|
$
|
1,187
|
$
|
(1,814
|
)
|
||
Less:
Income (loss) on discontinued operations (Note 9)
|
1,091
|
(2,163
|
)
|
||||
Income
from continuing operations
|
96
|
349
|
|||||
Adjustments
to reconcile net income (loss) to cash provided by
operations:
|
|||||||
Depreciation
and amortization
|
3,817
|
2,970
|
|||||
Asset
impairment recovery
|
(507
|
)
|
―
|
||||
Provision
for bad debt and other reserves
|
33
|
76
|
|||||
Loss
on disposal of property and equipment
|
139
|
99
|
|||||
Issuance
of common stock for services
|
201
|
165
|
|||||
Share
based compensation
|
335
|
288
|
|||||
Changes
in operating assets and liabilities of continuing operations, net
of
effect from business acquisitions:
|
|||||||
Accounts
receivable
|
6,387
|
2,710
|
|||||
Unbilled
receivables
|
(742
|
)
|
465
|
||||
Prepaid
expenses, inventories, and other assets
|
2,367
|
2,260
|
|||||
Accounts
payable, accrued expenses, and unearned revenue
|
(7,515
|
)
|
(2,958
|
)
|
|||
Cash
provided by continuing operations
|
4,611
|
6,424
|
|||||
Gain
on disposal of discontinued operations (Note 9)
|
(2,309
|
)
|
―
|
||||
Cash
used in discontinued operations
|
(997
|
)
|
(98
|
)
|
|||
Cash
provided by operating activities
|
1,305
|
6,326
|
|||||
Cash
flows from investing activities:
|
|||||||
Purchases
of property and equipment
|
(810
|
)
|
(2,295
|
)
|
|||
Proceeds
from sale of plant, property and equipment
|
31
|
69
|
|||||
Change
in finite risk sinking fund
|
(4,031
|
)
|
(1,443
|
)
|
|||
Cash
used for acquisition consideration, net of cash acquired
|
(14
|
)
|
(2,685
|
)
|
|||
Cash
used in investing activities of continuing operations
|
(4,824
|
)
|
(6,354
|
)
|
|||
Proceeds
from sale of discontinued operations (Note 9)
|
6,620
|
―
|
|||||
Cash
provided by (used in) discontinued operations
|
42
|
(202
|
)
|
||||
Net
cash provided by (used in) investing activities
|
1,838
|
(6,556
|
)
|
||||
Cash
flows from financing activities:
|
|||||||
Net
(repayments) borrowing of revolving credit
|
(3,483
|
)
|
5,202
|
||||
Principal
repayments of long term debt
|
(6,658
|
)
|
(7,319
|
)
|
|||
Proceeds
from issuance of long-term debt
|
7,000
|
―
|
|||||
Proceeds
from issuance of stock
|
184
|
399
|
|||||
Repayment
of stock subscription receivable
|
25
|
40
|
|||||
Cash
used in financing activities of continuing operations
|
(2,932
|
)
|
(1,678
|
)
|
|||
Principal
repayment of long-term debt for discontinued operations
|
(238
|
)
|
(216
|
)
|
|||
Cash
used in financing activities
|
(3,170
|
)
|
(1,894
|
)
|
|||
Decrease
in cash
|
(27
|
)
|
(2,124
|
)
|
|||
Cash
at beginning of period
|
118
|
2,221
|
|||||
Cash
at end of period
|
$
|
91
|
$
|
97
|
|||
Supplemental
disclosure:
|
|||||||
Interest
paid
|
$
|
915
|
$
|
697
|
|||
Income
taxes paid
|
29
|
311
|
|||||
Non-cash
investing and financing activities:
|
|||||||
Long-term
debt incurred for purchase of property and equipment
|
20
|
613
|
|||||
Sinking
fund financed
|
674
|
―
|
Common Stock
|
Additional
Paid-In Capital
|
Stock
Subscription
Receivable
|
Accumulated
Deficit
|
Total
Stockholders'
Equity
|
|||||||||||||||
(Amounts in thousands,
except for
share amounts)
|
Shares
|
Amount
|
|||||||||||||||||
Balance
at December 31, 2007
|
53,704,516
|
$
|
54
|
$
|
96,409
|
$
|
(25
|
)
|
$
|
(37,710
|
)
|
$
|
58,728
|
||||||
Net
income
|
¾
|
¾
|
¾
|
¾
|
1,187
|
1,187
|
|||||||||||||
Issuance
of Common Stock for services
|
93,005
|
¾
|
201
|
¾
|
¾
|
201
|
|||||||||||||
Issuance
of Common Stock upon exercise of Options
|
111,179
|
¾
|
184
|
¾
|
¾
|
184
|
|||||||||||||
Share
based compensation
|
¾
|
¾
|
335
|
¾
|
¾
|
335
|
|||||||||||||
Repayment
of stock subscription receivable
|
¾
|
¾
|
¾
|
25
|
¾
|
25
|
|||||||||||||
Balance
at September 30, 2008
|
53,908,700
|
$
|
54
|
$
|
97,129
|
$
|
¾
|
$
|
(36,523
|
)
|
$
|
60,660
|
1.
|
Basis
of Presentation
|
2.
|
Summary
of Significant Accounting
Policies
|
3.
|
Stock
Based Compensation
|
Employee Stock Options Granted
|
|||||||
September 30, 2008
|
September 30, 2007 (4)
|
||||||
Weighted-average
fair value per share
|
$
|
1.17
|
$
|
—
|
|||
Risk
-free interest rate (1)
|
3.28
|
%
|
—
|
||||
Expected
volatility of stock (2)
|
55.54
|
%
|
—
|
||||
Dividend
yield
|
None
|
—
|
|||||
Expected
option life (3)
|
5.1
years
|
—
|
Outside Director Stock Options Granted
|
|||||||
September 30, 2008
|
September 30, 2007
|
||||||
Weighted-average
fair value per share
|
$
|
1.79
|
$
|
2.30
|
|||
Risk
-free interest rate (1)
|
4.04
|
%
|
4.77
|
%
|
|||
Expected
volatility of stock (2)
|
66.53
|
%
|
67.60
|
%
|
|||
Dividend
yield
|
None
|
None
|
|||||
Expected
option life (3)
|
10.0
years
|
10.0
years
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
Stock Options
|
September 30,
|
September 30,
|
|||||||||||
2008
|
|
2007
|
|
2008
|
|
2007
|
|||||||
Employee
Stock Options
|
$
|
106,000
|
$
|
52,000
|
$
|
247,000
|
$
|
190,000
|
|||||
Director
Stock Options
|
45,000
|
75,000
|
88,000
|
98,000
|
|||||||||
Total
|
$
|
151,000
|
$
|
127,000
|
$
|
335,000
|
$
|
288,000
|
4.
|
Capital
Stock And Employee Stock
Plan
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Options
outstanding Janury 1, 2008
|
2,590,026
|
$
|
1.91
|
||||||||||
Granted
|
1,002,000
|
2.29
|
|||||||||||
Exercised
|
(111,179
|
)
|
1.66
|
$
|
95,103
|
||||||||
Forfeited
|
(81,001
|
)
|
1.80
|
||||||||||
Options
outstanding End of Period (1)
|
3,399,846
|
2.03
|
4.6
|
$
|
572,397
|
||||||||
Options
Exercisable at September 30, 2008 (1)
|
2,138,013
|
$
|
1.94
|
4.0
|
$
|
511,727
|
|||||||
Options
Vested and expected to be vested at September 30, 2008
|
3,336,346
|
$
|
2.03
|
4.6
|
$
|
568,341
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Options
outstanding Janury 1, 2007
|
2,816,750
|
$
|
1.86
|
||||||||||
Granted
|
102,000
|
2.95
|
|||||||||||
Exercised
|
(226,084
|
)
|
1.80
|
$
|
238,671
|
||||||||
Forfeited
|
(34,999
|
)
|
1.83
|
||||||||||
Options
outstanding End of Period (1)
|
2,657,667
|
1.91
|
4.8
|
$
|
3,086,524
|
||||||||
Options
Exercisable at September 30, 2007 (1)
|
1,965,000
|
$
|
1.87
|
4.6
|
$
|
2,358,911
|
|||||||
Options
Vested and expected to be vested at September 30, 2007
|
2,613,127
|
$
|
1.91
|
4.8
|
$
|
3,032,631
|
5.
|
Earnings
(Loss) Per Share
|
|
Three Month Ended
|
|
Nine Months Ended
|
|
|||||||||
|
|
September 30,
|
|
September 30,
|
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
|
||||||||
(Amounts in Thousands, Except for Per Share
Amounts)
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
||||
(Loss)
earnings per share from continuing operations
|
|||||||||||||
(Loss) income from continuing operations applicable
|
|||||||||||||
to
Common Stockholders
|
$
|
(276
|
)
|
$
|
(403
|
)
|
96
|
$
|
349
|
||||
Basic
(loss) income per share
|
$
|
(.01
|
)
|
$
|
(.01
|
)
|
¾
|
$
|
.01
|
||||
Diluted
(loss) income per share
|
$
|
(.01
|
)
|
$
|
(.01
|
)
|
¾
|
$
|
.01
|
||||
Loss
per share from discontinued operations
|
|||||||||||||
Loss
from discontinued operations
|
$
|
(159
|
)
|
$
|
(1,549
|
)
|
(1,218
|
)
|
$
|
(2,163
|
)
|
||
Basic
loss per share
|
$
|
¾
|
$
|
(.03
|
)
|
(.02
|
)
|
$
|
(.04
|
)
|
|||
Diluted
loss per share
|
$
|
¾
|
$
|
(.03
|
)
|
(.02
|
)
|
$
|
(.04
|
)
|
|||
Income
per share from disposal of discontinued operations
|
|||||||||||||
Gain
on disposal of discontinued operations
|
$
|
94
|
$
|
¾
|
2,309
|
$
|
¾
|
||||||
Basic
income per share
|
$
|
¾
|
$
|
¾
|
.04
|
$
|
¾
|
||||||
Diluted
income per share
|
$
|
¾
|
$
|
¾
|
.04
|
$
|
¾
|
||||||
Weighted
average common shares outstanding – basic
|
53,844
|
52,843
|
53,760
|
52,349
|
|||||||||
Potential
shares exercisable under stock option plans
|
¾
|
¾
|
389
|
771
|
|||||||||
Potential
shares upon exercise of Warrants
|
¾
|
¾
|
¾
|
553
|
|||||||||
Weighted
average shares outstanding – diluted
|
53,844
|
52,843
|
54,149
|
53,673
|
|||||||||
Potential
shares excluded from above weighted average share calculations due
to
their anti-dilutive effect include:
|
|||||||||||||
Upon
exercise of options
|
157
|
217
|
1,172
|
232
|
6.
|
Long
Term Debt
|
(Unaudited)
|
|||||||
September 30,
|
December 31,
|
||||||
(Amounts
in Thousands)
|
2008
|
2007
|
|||||
Revolving
Credit
facility dated December 22, 2000, borrowings based
upon eligible accounts receivable, subject to monthly borrowing base
calculation, variable interest paid monthly at prime rate plus ½% (5.50%
at September 30, 2008), balance due in July 2012.
|
$
|
3,367
|
$
|
6,851
|
|||
Term
Loan
dated December 22, 2000, payable in equal monthly
installments of principal of $83, balance due in July 2012, variable
interest paid monthly at prime rate plus 1% (6.00% at September 30,
2008).
|
6,916
|
4,500
|
|||||
Promissory
Note dated
June 25, 2001, payable in semiannual installments
on
June 30 and December 31 through December 31, 2008, variable interest
accrues at the applicable law rate determined under the IRS Code
Section
(7.0% on September 30, 2008) and is payable in one lump sum at the
end of
installment period.
|
235
|
635
|
|||||
Promissory Note
dated June 25, 2007, payable in monthly installments
of
principal of $160 starting July 2007 and $173 starting July 2008,
variable
interest paid monthly at prime rate plus 1.125% (6.125% at September
30,
2008)
|
1,598
|
3,039
|
|||||
Installment
Agreement in
the Agreement and Plan of Merger with Nuvotec
and PEcoS, dated April 27, 2007, payable in three equal yearly installment
of principal of $833 beginning June 2009. Interest accrues at annual
rate
of 8.25% on outstanding principal balance starting June 2007 and
payable
yearly starting June 2008
|
2,500
|
2,500
|
|||||
Installment
Agreement
dated June 25, 2001, payable in semiannual
installments on June 30 and December 31 through December 31, 2008,
variable interest accrues at the applicable law rate determined under
the
Internal Revenue Code Section (7.0% on September 30, 2008) and is
payable
in one lump sum at the end of installment period.
|
53
|
153
|
|||||
Various
capital lease and promissory note obligations, payable 2008 to 2013,
interest at rates ranging from 5.0% to 12.6%.
|
440
|
1,158
|
|||||
15,109
|
18,836
|
||||||
Less
current portion of long-term debt
|
3,875
|
15,352
|
|||||
Less
long-term debt related to assets held for sale
|
—
|
604
|
|||||
$
|
11,234
|
$
|
2,880
|
7.
|
Commitments
and Contingencies
|
8.
|
Changes
to Plan of Sale and Asset Impairment Charges
(Recovery)
|
9.
|
Discontinued
Operations and
Divestitures
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||
September 30,
|
September 30,
|
||||||||||||
(Amounts in Thousands)
|
2008
|
2007
|
2008
|
2007
|
|||||||||
Net
revenues
|
$
|
—
|
$
|
5,494
|
$
|
3,195
|
$
|
15,192
|
|||||
Interest
expense
|
$
|
(28
|
)
|
$
|
(49
|
)
|
$
|
(96
|
)
|
$
|
(147
|
)
|
|
Operating
(loss) income from discontinued operations (1)
|
$
|
(159
|
)
|
$
|
(1,549
|
)
|
$
|
(1,218
|
)
|
$
|
(2,163
|
)
|
|
Gain
on disposal of discontinued operations (2)
|
94
|
$
|
—
|
$
|
2,309
|
$
|
—
|
||||||
Income
(loss) from discontinued operations
|
$
|
(65
|
)
|
$
|
(1,549
|
)
|
$
|
1,091
|
$
|
(2,163
|
)
|
September 30,
|
December 31,
|
||||||
(Amounts in Thousands)
|
2008
|
2007
|
|||||
Account
receivable, net (1)
|
$
|
—
|
$
|
2,828
|
|||
Inventories
|
—
|
313
|
|||||
Other
assets
|
22
|
1,533
|
|||||
Property,
plant and equipment, net (2)
|
666
|
3,942
|
|||||
Total
assets held for sale
|
$
|
688
|
$
|
8,616
|
|||
Account
payable
|
$
|
—
|
$
|
1,707
|
|||
Deferred
revenue
|
—
|
7
|
|||||
Accrued
expenses and other liabilities
|
56
|
3,595
|
|||||
Note
payable
|
—
|
604
|
|||||
Environmental
liabilities
|
—
|
428
|
|||||
Total
liabilities held for sale
|
$
|
56
|
$
|
6,341
|
September 30,
|
|
December 31,
|
|
||||
(Amounts in Thousands)
|
|
2008
|
|
2007
|
|
||
Other
assets
|
$
|
155
|
$
|
10
|
|||
Total
assets of discontinued operations
|
$
|
155
|
$
|
10
|
|||
Account
payable
|
$
|
21
|
$
|
144
|
|||
Accrued
expenses and other liabilities
|
1,955
|
1,287
|
|||||
Deferred
revenue
|
—
|
—
|
|||||
Environmental
liabilities
|
1,201
|
1,265
|
|||||
Total
liabilities of discontinued operations
|
$
|
3,177
|
$
|
2,696
|
10.
|
Operating
Segments
|
·
|
from
which we may earn revenue and incur expenses;
|
·
|
whose
operating results are regularly reviewed by the segment president
to make
decisions about resources to be allocated to the segment and assess
its
performance; and
|
·
|
for
which discrete financial information is available.
|
Nuclear
|
Engineering
|
Industrial
|
Segments
Total
|
Corporate (2)
|
Consolidated Total
|
||||||||||||||
Revenue from
external customers
|
$
|
12,519
|
(3)
|
$
|
846
|
$
|
2,624
|
$
|
15,989
|
$
|
—
|
$
|
15,989
|
||||||
Intercompany
revenues
|
802
|
200
|
213
|
1,215
|
¾
|
1,215
|
|||||||||||||
Gross
profit
|
3,168
|
347
|
590
|
4,105
|
¾
|
4,105
|
|||||||||||||
Interest
income
|
¾
|
¾
|
¾
|
¾
|
52
|
52
|
|||||||||||||
Interest
expense
|
72
|
¾
|
4
|
76
|
155
|
231
|
|||||||||||||
Interest
expense-financing fees
|
2
|
¾
|
¾
|
2
|
12
|
14
|
|||||||||||||
Depreciation
and amortization
|
1,073
|
8
|
485
|
1,566
|
13
|
1,579
|
|||||||||||||
Segment
profit (loss)
|
782
|
170
|
309
|
1,261
|
(1,537
|
)
|
(276
|
)
|
|||||||||||
Segment
assets(1)
|
93,044
|
2,110
|
6,021
|
101,175
|
16,984
|
(4)
|
118,159
|
||||||||||||
Expenditures
for segment assets
|
207
|
3
|
3
|
213
|
5
|
218
|
|||||||||||||
Total
long-term debt
|
4,655
|
¾
|
171
|
4,826
|
10,283
|
15,109
|
Nuclear
|
|
Engineering
|
|
Industrial
|
|
Segments
Total
|
|
Corporate (2)
|
|
Consolidated Total
|
|||||||||
Revenue from external
customers
|
$
|
13,211
|
(3)
|
$
|
629
|
$
|
2,466
|
$
|
16,306
|
$
|
¾
|
$
|
16,306
|
||||||
Intercompany
revenues
|
1,036
|
302
|
199
|
$
|
1,537
|
¾
|
1,537
|
||||||||||||
Gross
profit
|
4,035
|
231
|
347
|
$
|
4,613
|
¾
|
4,613
|
||||||||||||
Interest
income
|
¾
|
¾
|
¾
|
¾
|
71
|
71
|
|||||||||||||
Interest
expense
|
240
|
¾
|
6
|
$
|
246
|
236
|
482
|
||||||||||||
Interest
expense-financing fees
|
¾
|
¾
|
¾
|
¾
|
48
|
48
|
|||||||||||||
Depreciation
and amortization
|
1,092
|
10
|
¾
|
$
|
1,102
|
16
|
1,118
|
||||||||||||
Segment
profit (loss)
|
1,319
|
70
|
(279
|
)
|
$
|
1,110
|
(1,513
|
)
|
(403
|
)
|
|||||||||
Segment
assets(1)
|
95,319
|
2,012
|
7,739
|
$
|
105,070
|
25,925
|
(4) |
130,995
|
|||||||||||
Expenditures
for segment assets
|
488
|
¾
|
72
|
$
|
560
|
4
|
564
|
||||||||||||
Total
long-term debt
|
7,665
|
8
|
231
|
$
|
7,904
|
9,952
|
17,856
|
Nuclear
|
|
Engineering
|
|
Industrial
|
|
Segments
Total
|
|
Corporate (2)
|
|
Consolidated Total
|
|||||||||
Revenue from
external customers
|
$
|
41,510
|
(3)
|
$
|
2,537
|
$
|
7,914
|
$
|
51,961
|
$
|
¾
|
$
|
51,961
|
||||||
Intercompany
revenues
|
2,086
|
466
|
457
|
3,009
|
¾
|
3,009
|
|||||||||||||
Gross
profit
|
11,279
|
931
|
2,215
|
14,425
|
¾
|
14,425
|
|||||||||||||
Interest
income
|
2
|
¾
|
¾
|
2
|
168
|
170
|
|||||||||||||
Interest
expense
|
460
|
¾
|
13
|
473
|
444
|
917
|
|||||||||||||
Interest
expense-financing fees
|
3
|
¾
|
¾
|
3
|
121
|
124
|
|||||||||||||
Depreciation
and amortization
|
3,276
|
22
|
485
|
3,783
|
33
|
3,816
|
|||||||||||||
Segment
profit (loss)
|
3,521
|
433
|
609
|
4,563
|
(4,467
|
)
|
96
|
||||||||||||
Segment
assets(1)
|
93,044
|
2,110
|
6,021
|
101,175
|
16,984
|
(4)
|
118,159
|
||||||||||||
Expenditures
for segment assets
|
752
|
12
|
52
|
816
|
14
|
830
|
|||||||||||||
Total
long-term debt
|
4,655
|
¾
|
171
|
4,826
|
10,283
|
15,109
|
Nuclear
|
|
Engineering
|
|
Industrial
|
|
Segments
Total
|
|
Corporate (2)
|
|
Consolidated Total
|
|||||||||
Revenue from
external customers
|
$
|
38,560
|
(3)
|
$
|
1,738
|
$
|
8,154
|
$
|
48,452
|
$
|
¾
|
$
|
48,452
|
||||||
Intercompany
revenues
|
2,328
|
845
|
588
|
3,761
|
¾
|
3,761
|
|||||||||||||
Gross
profit
|
13,105
|
565
|
1,218
|
14,888
|
¾
|
14,888
|
|||||||||||||
Interest
income
|
1
|
¾
|
¾
|
1
|
237
|
238
|
|||||||||||||
Interest
expense
|
462
|
1
|
15
|
478
|
486
|
964
|
|||||||||||||
Interest
expense-financing fees
|
¾
|
¾
|
¾
|
¾
|
143
|
143
|
|||||||||||||
Depreciation
and amortization
|
2,666
|
27
|
225
|
2,918
|
52
|
2,970
|
|||||||||||||
Segment
profit (loss)
|
5,860
|
162
|
(1,097
|
)
|
4,925
|
(4,576
|
)
|
349
|
|||||||||||
Segment
assets(1)
|
95,319
|
2,012
|
7,739
|
$
|
105,070
|
25,925
|
(4)
|
130,995
|
|||||||||||
Expenditures
for segment assets
|
2,337
|
13
|
366
|
2,716
|
17
|
2,733
|
|||||||||||||
Total
long-term debt
|
7,665
|
8
|
231
|
$
|
7,904
|
9,952
|
17,856
|
(1) |
Segment
assets have been adjusted for intercompany accounts to reflect actual
assets for each segment.
|
(2) |
Amounts
reflect the activity for corporate headquarters not included in the
segment information.
|
(3)
|
The
consolidated revenues within the Nuclear Segment include the LATA/Parallax
revenues for the three and nine months ended September 30, 2008 of
$1,443,000 (or 9.0%) and $4,287,000 (or 8.2%), respectively, of our
total
consolidated revenue, and $2,029,000 (or 12.4%) and $7,167,000 (or
14.8%)
for the corresponding period ended September 30, 2007, respectively.
In
addition, the consolidated revenues within the Nuclear Segment include
the
Fluor Hanford revenues of $2,787,000 (or 17.4%) and $6,662,000 (or
12.8%)
for the three and nine months period September 30, 2008, respectively,
of
our total consolidated revenue and $1,538,000 (or 9.4%) and $4,962,000
(or
10.2%) for the corresponding period ended September 30, 2007,
respectively.
|
(4)
|
Amount
includes assets from discontinued operations of $843,000 and $13,287,000
as of September 30, 2008 and 2007,
respectively.
|
11.
|
Income
Taxes
|
12.
|
Related
Party Transaction
|
·
|
ability
to continue and improve operations and achieve profitability on an
annualized basis;
|
·
|
ability
to retain or receive certain permits, licenses, or
patents;
|
·
|
ability
to comply with the Company's general working capital requirements;
|
·
|
ability
to continue to meet our fixed charge coverage ratio in
2008;
|
·
|
ability
to be able to continue to borrow under the Company's revolving line
of
credit;
|
·
|
we
plan to fund any repurchases under the common stock repurchase plan
through our internal cash flow and/or borrowing under our line of
credit;
|
·
|
ability
to generate sufficient cash flow from operations to fund all
operations;
|
·
|
ability
to remediate certain contaminated sites for projected
amounts;
|
·
|
despite
our aggressive compliance and auditing procedures for disposal of
wastes,
we could, in the future, be designated as a Partially Responsible
Party
(“PRP”) at a remedial action site, which could have a material adverse
effect;
|
·
|
ability
to fund budgeted capital expenditures of $3,100,000 during 2008 through
our operations or lease financing or a combination of both;
|
·
|
growth
of our Nuclear Segment;
|
·
|
we
believe that our cash flows from operations and our available liquidity
from our line of credit are sufficient to service the Company’s current
obligations;
|
·
|
we
expect backlog levels to continue to fluctuate in 2008, depending
on the
complexity of waste streams and the timing of receipts and processing
of
materials;
|
·
|
the
high levels of backlog material contin |