KSW, Inc. Reports Fourth Quarter and Year End Results

Business Wire, Feb 26, 1999

LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--Feb. 26, 1999--KSW Inc. (NASDAQ:KSWW) today reported fourth quarter and year end financial results for 1998.

Total revenue for the fourth quarter of 1998 was $9,106,000 compared to $13,417,000 for the same period in 1997. There was a net profit for the quarter of $5,000 as opposed to a net loss of $418,000 or ($.07) per share, during the fourth quarter of 1997. During the fourth quarter of 1998, the company spent $98,000 to close one of its fabrication facilities. It is anticipated that this plus other cost saving measures will result in a reduction of overhead in 1999 of approximately $550,000.

Total revenues for 1998 were to $39,631,000 as compared to 1997 revenues of $66,184,000. There was a net loss for 1998 of $634,000 or ($.12) per share basic ($.11) - diluted as compared to a net gain of $159,000 or $0.03 per share for 1997.

1998 costs were adversely affected by cost overruns on a single project, which, together with prior years cost overruns on this project exceed $3.5 million. The company has instituted a lawsuit to recover these costs which will be vigorously pursued. While there is no assurance of a recovery, the company believes its lawsuit to be meritorious.

KSW, Inc. through its totally-owned mechanical subsidiary KSW Mechanical Services, Inc. furnishes and installs heating, ventilating and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects, such as Terminal One at JFK Airport and The Metropolitan Museum of Art. KSW Mechanical Services, Inc. also acts as trade manager on large construction projects such as The New York Hospital.

The following table compares the company's year-end revenues and earnings for 1998 and 1997. -0-

                             YEAR ENDING
            (Dollars per thousands except per share data)

                                     12/31/98            12/31/97

Revenue                                39,631              66,184
Net/Income/(Loss)                        (634)                159
Profit/(Loss) Per Share - Basic          (.12)                .03
Profit/(Loss) Per Share - Diluted        (.11)                .03