PRO ONE’S 1999 NET LOSS SWELLS TO NEARLY $83 MILLION, BUT MANAGEMENT SAYS BLEEDING IS BEING STOPPED
Protection One Inc., one of the leading residential security alarm companies in North America, announces its revenues were $152.7 million in the fourth quarter of 1999, compared to $144 million in 1998. The net loss for the period was $29.5 million, or 23 cents per share, compared to a net loss of $5.7 million, or 5 cents per share, in the comparable period of 1998. For the year, Pro One posted revenues of $605.2 million, compared to $421.1 million in 1998, an increase of 43.7 percent. However, its net loss was $82.9 million, compared to $3.3 million in 1998. Meanwhile, Pro One’s parent company, Western Resources, plans to separate its electric utility business, to be called Westar Energy, from its nonelectric business.
“This strategy gives our shareholders a choice of which business they wish to own, and gives the financial community a clearer understanding of where the company’s value lies,” says David C. Wittig, Western Resources chairman, president and CEO. “The new corporate structure will allow the management team of each business to focus its energies and abilities on maximizing the potential and value of its assets.” As for Protection One, Wittig says its customer attrition has improved and that he expects attrition to be even lower in the first quarter of 2000. He adds that Pro One has also made significant progress in the past six months to enhance customer service, retain customers and reduce debt.
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