#81. INSITUFORM EAST INC.
3421 Pennsy Dr. Landover, Md. 20785 REVENUE: $9.7 million PROFITS: $1.2 million EARNINGS PER SHARE: 29 cents DIVIDEND: None ASSETS: $8 million STOCKHOLDERS' EQUITY: $5.9 million RETURN ON EQUITY: 20 percent EXCHANGE: OTC EMPLOYES: 106 TOP EXECUTIVES: Arthur G. Lang III, president and chief executive officer; Thomas C. Trexler, executive vice president and chief financial officer. FOUNDED: 1978
DESCRIPTION: Insituform East rehabilitates and reconstructs sewers and other underground pipeline systems, using a special process (Insituform) that enables the company to create a new pipe within the damaged original, without disruptive excavation. New pipes are formed when polyester fiber-felt liners coated with polyurethane are inserted in damaged pipes. The line then is impregnated with a liquid thermal-setting resin and heated with hot water. The process causes the resin to harden into a rigid lining in the original pipe.
Although most of Insituform East's work is performed under contract with state and local government agencies, the company continues to expand its business with large industrial customers in a five-state area that comprises Maryland, Virginia, Pennsylvania, Delaware and Ohio.
DEVELOPMENTS: Insituform East credits increasing demand for the reconstruction of aging, deteriorating pipeline systems in the mid-Atlantic region for its broadening base of municipal and industrial clients. Sales increased 43 percent last year, and earnings more than doubled to 44 cents a share.
Insituform East announced the formation in late 1985 of Insituform MidSouth, a partnership in which it holds a 42.5 percent interest. Insituform MidSouth, which is based in Oak Ridge, Tenn., has been granted an operating sublicense to do business in Tennessee, Kentucky and northern Mississippi. In March, Insituform East also reported that it had signed a sublicense agreement with Insituform of North America to use the patented repair process in West Virginia, where it previously performed work under a single contract. #82. U.S. DESIGN CORP.
5100 Philadelphia Way Lanham, Md. 20706 REVENUE: $8.5 million LOSS: $3.9 million LOSS PER SHARE: 78 cents DIVIDEND: None ASSETS: $8.5 million STOCKHOLDERS' EQUITY: $6.2 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 83 TOP EXECUTIVES: William R. Anderson Jr., chief executive officer; John L. Tincler, president. FOUNDED: 1978
DESCRIPTION: U.S. Design Corp. manufactures high-capacity disk and tape storage systems for micro and mini computers.
DEVELOPMENTS: With nearly flat revenue in the fiscal year ended June 30, 1985, the company's loss deepened fourfold over that reported for the prior year. The prime cause of the poor financial performance was a delay in bringing to market the company's new MICROVIP computer storage system.
However, in the first half of the current fiscal year, shipments of the system have been running at a higher than anticipated rate, and losses for the period were sharply reduced. In the first half of 1984, the company reported a loss of $1.3 million (22 cents a share) compared with a first-half loss in the current year of $361,000 (7 cents).
The company recently reached agreement with a British firm to distribute the Series VIP systems in Europe and expects further penetration of that market in coming months. U.S. Design's major domestic clients include the U.S. Navy, McDonnell Douglas Corp. and the Jet Propulsion Laboratory. #83. BOWLES FLUIDICS CORP.
6625 Dobbin Rd. Columbia, Md. 21045 REVENUE: $7.1 million PROFITS: $575,812 EARNINGS PER SHARE: 5 cents DIVIDEND: None ASSETS: $3.4 million STOCKHOLDERS' EQUITY: $436,845 RETURN ON EQUITY: 132 percent EXCHANGE: OTC EMPLOYES: 105 TOP EXECUTIVES: William Ewing Jr., chairman of the board; Julian Lazrus, president. FOUNDED: 1961
DESCRIPTION: The company specializes in making windshield-washer nozzles for about 80 percent of passenger cars made by the big four U.S. automobile manufacturers in the United States and Canada, though it has not been able to crack the export market or the plants of foreign companies producing cars in this country. The company has given up other consumer products, such as shower massagers, that it once made.
DEVELOPMENTS: Sales increased by more than $400,000 in 1985, but profits dipped by $236,501. The company blamed the decrease in profits on rising costs due to a new facility in Columbia, Md., and higher costs of materials that could not be covered by raising prices. #84. PRESIDENTIAL AIRWAYS INC.
400 West Service Rd. Washington Dulles International Airport Washington, D.C. 20041 REVENUE: $6.8 million LOSS: $9.5 million LOSS PER SHARE: $2.67 DIVIDEND: None ASSETS: $36 million STOCKHOLDERS' EQUITY: $19.5 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 542 TOP EXECUTIVE: Harold J. Pareti, president. FOUNDED: 1985
DESCRIPTION: A new, low-cost air carrier operating out of Dulles, the company began service on Oct. 10, 1985, and now operates flights to 14 cities. A holding company created by Presidential early in 1986, named Washington Air Corp., is expected to operate a new carrier, "Presidential 1," as a feeder airline for Presidential.
DEVELOPMENTS: The airline has grown since it began service in October despite increasing competition at Dulles, which serves as its hub. In February 1986, Presidential announced that it was joining forces with American Airlines to increase the size of its new midfield terminal at Dulles. It also announced the creation of its holding company and the beginning of service by the new Presidential 1. The new carrier, which has four turboprop aircraft, will act as a feeder airline for Presidential. In March, Presidential won four slots at National Airport and seven at LaGuardia Airport in New York. A proposed merger between Gull Air and Presidential was terminated earlier this year. The airline hopes to serve more than 20 cities by the end of the year.