Financially beleaguered Morrison Knudsen Corp. has released its repeatedly delayed 1994 earnings report, confirming an anticipated loss of nearly $350 million.
The company, which is trying to right itself since the ouster of Chairman William Agee in February, also repeated it urgently needs more cash."It appears as if their resources are running out and their options are running out," said Max Burns of Smith Barney Shearson in New York.
The loss in 1994 amounted to $349.6 million, or $10.75 a share, in contrast to a profit of $35.8 million, or $1.15 a share, a year earlier.
Revenue for the year fell to $2.5 billion from $2.7 billion a year ago.
In the final three months of 1994, the company lost $315.6 million, including $29 million set aside for potential settlements of shareholder lawsuits claiming former corporate officials misled them about the viability of the construction and engineering giant.
The quarterly loss translated into a loss of $9.64 cents per share.
The company earned $10.4 million, or 33 cents a share, in the fourth quarter of 1994.
Revenue for the quarter fell to $636 million from $773.1 million a year ago.
In the wake of Agee's dismissal and disclosure of the depth of the financial crisis, the Boise-based company's stock has plunged to its lowest levels in its 83-year history. It was down 371/2 cents a share Monday at $6.1275 on the New York Stock Exchange.
In a statement, corporate officials restated the financial problems facing the company, which has won a reprieve until July 31 from creditors holding more than $200 million in notes.
Without a significant infusion of cash, the company could be forced to seek protection from creditors under federal bankruptcy laws.
"While discussions continue with various financing sources and regarding various strategic alternatives, there can be no assurance that any transaction can be completed or that any transaction completed will not adversely impact current stockholders," it said.
Two-thirds of the 1994 loss was attributed to MK Transit, the subsidiary created by Agee that left the corporation in financial dis-ar-ray.
While corporate officials have been able to find buyers for its interests in other so-called non-core businesses it had expanded into, they have yet to find someone to take MK Transit and its potentially huge liabilities.