Encompass Reports Second Quarter Loss; May Be Removed From NYSE
“Our operating results for the second quarter were negatively affected by approximately $13.3 million in previously unforeseen project write-downs associated with two large fixed-price power projects,” said Joe Ivey, Encompass’ president and chief executive officer. “The power projects are essentially complete and such projects represent a very small portion of our total business.”
In related news, the New York Stock Exchange notified Encompass in late July that it is subject to de-listing from the exchange since its stock has traded below the $1 average minimum requirement for more than 30 consecutive days. The company stated its intention to meet the listing requirements within the six months.
In order to meet those requirements, Encompass will seek shareholder approval to effect a reverse stock split at a ratio between one for five and one for 15, to be determined by the board. A date has net yet been set for the meeting, but the company expects it will be held at the end of September or early October.