PITTSBURGH–LAWFUEL Law News, Law Jobs –PDG Environmental, Inc. (OTC BB: PDGE), a leading provider of environmental remediation and specialty contracting services, today announced that it expects to record an extraordinary charge to fiscal 2007 third quarter earnings in the range of $1.0 million to $1.5 million, or $(0.05) to $(0.07) per share. This charge is a result of the company’s internal controls uncovering suspected fraudulent activities undertaken by one or more former employees at our Seattle office. The company has taken immediate action including retaining legal counsel, fraud investigators, and forensic accountants to assist in determining the actual amount of the loss, taking appropriate legal action, and pursuing insurance payments and other means of recovery for such losses.
“In the interest of maintaining transparency and open communication with the investment community, we have disclosed this development and the associated financial impact as soon as it was discovered and we were able to determine a reasonable range to bracket the third quarter charge,” said Chairman and Chief Executive Officer John Regan. “We were able to discover this incident through our internal control procedures, which alerted us to the issues. We are confident that the fraudulent activities, while serious, are isolated. In our 22 year history, this is the first significant occasion of employee theft/fraud.
“Although this incident will result in a charge to earnings in the third quarter, we are confident that the impact to ongoing operations and our diversification plans will not be material. The company’s backlog is in excess of $40 million, and our balance sheet remains strong. Field margins are showing signs of strengthening, opportunities for reconstruction projects in the New Orleans area continue to increase, and bidding activity remains strong throughout our offices.”
About PDG Environmental
PDG Environmental, Inc., headquartered in Pittsburgh, PA, is a leading provider of specialty contracting services including asbestos abatement, demolition, mold remediation, emergency response and reconstruction to commercial, industrial and governmental clients nationwide. With over twenty years experience, PDG Environmental has 18 offices capable of responding to customer requirements coast to coast. For additional information, please visit http://www.pdge.com.
Safe Harbor Statement under Private Securities Act of 1995: The statements contained in this release, which are not historical facts, may be deemed to contain forward-looking statements, including, but not limited to, deployment of new services, growth of customer base, and growth of service area, among other items. Actual results may differ materially from those anticipated in any forward-looking statement with regard to magnitude, timing or other factors. Deviation may result from risk and uncertainties, including, without limitation, the Company’s dependence on third parties, market conditions for the sale of services, availability of capital, operational risks on contracts, and other risks and uncertainties. The Company disclaims any obligation to update information contained in any forward-looking statement.