Luminant Reiterates Return to Profitability in First Quarter 2001; Announces Strengthening of Second Quarter Pipeline and Renewal of Credit Facilities

Apr 11, 2001, 01:00 ET from Luminant Worldwide Corporation

    DALLAS, April 11 /PRNewswire/ --
 Luminant Worldwide Corporation (Nasdaq:   LUMT), a provider of technology-
 enabled business solutions, today confirmed its earlier announcement of the
 Company's return to profitability in the first quarter of 2001.  It also
 announced improvement in several critical metrics related to first and second
 quarter performance.
     "In the days since our recent earnings press release and conference call,
 many competitors have reported news of continuing layoffs, reorganizations and
 financial restructuring.  With the instability in the market and our sector in
 particular, we thought it was important to let our investors and clients know
 that we remain confident in our progress," said Jim Corey, president and chief
 executive officer.  "We took early actions and are not experiencing the
 problems that continue to plague many of our competitors.  Today we stand by
 our comments from our March 22, 2001 press release and conference call.
 Although we are in the process of closing the books and having our external
 review completed, all signs point toward profitability in the first quarter.
     "The experience of our management team was demonstrated when we took early
 and decisive actions as the market shift began six months ago," added Corey.
 "Last October we implemented our 100-day plan outlining expense reductions and
 organizational changes to realign the company with the new economic realities.
 At the same time, we realized that cost reductions -- while important -- would
 not meet our goal of long-term profitable growth.  We quickly began to refocus
 our company on projects that clients continue to fund even during an economic
 downturn.  Delivering projects that provide substantive economic value is the
 heart of our successful solutions strategy."
     Luminant's return to profitability is accompanied by improvements in
 several critical performance metrics:
     --  The Company's cash flow was positive in March.
     --  The Company experienced modest sequential revenue growth in the first
         quarter from the fourth quarter.
     --  The breakeven point for the June quarter will be below the breakeven
         point of the March quarter.
     --  The Company has strengthened its backlog for the second quarter during
         the last several weeks as a result of recent client wins.
     --  The majority of Luminant's current Global 1000 clients have been
         retained as active clients through the last three quarters or more.
 
     "Our Global 1000 clients have stayed with us because we have the deep
 technical, industry and functional business skills to work on more complex,
 business-critical projects -- projects that go beyond Web site production,"
 said Richard Scruggs, vice chairman and executive vice president of corporate
 development.  "Some of our competitors are struggling because they lack this
 experience and skill set and are having a harder time making the transition to
 the next generation of our industry.  This is a key point of differentiation
 for Luminant."
     Additionally, Luminant today announced the successful completion of the
 annual review of the bank loan covenants of its $15 million credit facility
 with Wells Fargo Business Credit Inc.  The line of credit extends through
 March 31, 2003.  Tom Bevivino, chief financial officer noted, "The newly
 established loan covenants provide the company with increased flexibility.
 Together with our cash balances and anticipated positive cash flow, Luminant
 has adequate funding for capital needs throughout this year and into 2002."
     "We are performing counter to the trends in our industry," Corey
 concluded, "because of our focus on specific solutions that are relevant even
 in a down market, the depth and longevity of our relationships with large
 Global 1000 companies, the inherent strength of our people and our experienced
 management team.  We believe we are six months ahead of our competition in
 building a company that can meet the demands of today's new business
 environment.  Our position today gives me great confidence."
 
     Related Material
     For other recent related news releases go to
 www.luminant.com/pressreleases.htm and view:
 
     March 22, 2001 - Luminant Reports Fourth Quarter and Year-End Results
 
     February 9, 2001 - Luminant Completes 100 Day Plan
 
     November 9, 2000 - Luminant Takes Further Steps Toward Return to Growth
 and Profitability
 
     October 24, 2000 - Luminant Organizes for Improvements in Operating
 Results, Names Executive Committee, Targets Key Industries for Increased
 Emphasis
 
     October 17, 2000 - Luminant Plan Sets Company on Course for Return to
 Growth and Profitability
 
     September 26, 2000 - Luminant Board Appoints James R. Corey as CEO
 
     About Luminant
     Luminant Worldwide Corporation is a provider of technology-enabled
 business solutions.  Our effective, proven business solutions help some of the
 world's largest companies fully capture measurable value from the Internet and
 other emerging technologies.  We strive to build clients for life by
 continuously delivering performance rooted in deep industry experience,
 classic strategic management consulting, strong logistics and marketing
 strategy analytics, and innovative creative and information technology skills.
 Luminant's principal locations are in Atlanta, Chicago, Dallas, Houston, New
 York City, Washington, D.C., San Francisco and Seattle.  For more information,
 visit www.luminant.com, call 888.225.4468 or join our quarterly investor
 newsletter mailing list by sending a request to insights@luminant.com.
 
     Forward-Looking Statements:
     This press release contains forward-looking statements related to the
 Company's opportunities, ex and future growth.  These forward-looking
 statements are made pursuant to the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  Forward-looking statements are
 based on current management expectations.  These statements can be affected by
 inaccurate assumptions the Company might make or by known or unknown risks and
 uncertainties, including risks described in its Registration Statement and
 Form S-3 filed with the Securities and Exchange Commission on
 October 27, 2000, as amended, and its other filings with the Securities and
 Exchange Commission.  Any or all of the forward-looking statements the Company
 makes in this press release or in any other public statements may turn out to
 be wrong.
 
 

SOURCE Luminant Worldwide Corporation
    DALLAS, April 11 /PRNewswire/ --
 Luminant Worldwide Corporation (Nasdaq:   LUMT), a provider of technology-
 enabled business solutions, today confirmed its earlier announcement of the
 Company's return to profitability in the first quarter of 2001.  It also
 announced improvement in several critical metrics related to first and second
 quarter performance.
     "In the days since our recent earnings press release and conference call,
 many competitors have reported news of continuing layoffs, reorganizations and
 financial restructuring.  With the instability in the market and our sector in
 particular, we thought it was important to let our investors and clients know
 that we remain confident in our progress," said Jim Corey, president and chief
 executive officer.  "We took early actions and are not experiencing the
 problems that continue to plague many of our competitors.  Today we stand by
 our comments from our March 22, 2001 press release and conference call.
 Although we are in the process of closing the books and having our external
 review completed, all signs point toward profitability in the first quarter.
     "The experience of our management team was demonstrated when we took early
 and decisive actions as the market shift began six months ago," added Corey.
 "Last October we implemented our 100-day plan outlining expense reductions and
 organizational changes to realign the company with the new economic realities.
 At the same time, we realized that cost reductions -- while important -- would
 not meet our goal of long-term profitable growth.  We quickly began to refocus
 our company on projects that clients continue to fund even during an economic
 downturn.  Delivering projects that provide substantive economic value is the
 heart of our successful solutions strategy."
     Luminant's return to profitability is accompanied by improvements in
 several critical performance metrics:
     --  The Company's cash flow was positive in March.
     --  The Company experienced modest sequential revenue growth in the first
         quarter from the fourth quarter.
     --  The breakeven point for the June quarter will be below the breakeven
         point of the March quarter.
     --  The Company has strengthened its backlog for the second quarter during
         the last several weeks as a result of recent client wins.
     --  The majority of Luminant's current Global 1000 clients have been
         retained as active clients through the last three quarters or more.
 
     "Our Global 1000 clients have stayed with us because we have the deep
 technical, industry and functional business skills to work on more complex,
 business-critical projects -- projects that go beyond Web site production,"
 said Richard Scruggs, vice chairman and executive vice president of corporate
 development.  "Some of our competitors are struggling because they lack this
 experience and skill set and are having a harder time making the transition to
 the next generation of our industry.  This is a key point of differentiation
 for Luminant."
     Additionally, Luminant today announced the successful completion of the
 annual review of the bank loan covenants of its $15 million credit facility
 with Wells Fargo Business Credit Inc.  The line of credit extends through
 March 31, 2003.  Tom Bevivino, chief financial officer noted, "The newly
 established loan covenants provide the company with increased flexibility.
 Together with our cash balances and anticipated positive cash flow, Luminant
 has adequate funding for capital needs throughout this year and into 2002."
     "We are performing counter to the trends in our industry," Corey
 concluded, "because of our focus on specific solutions that are relevant even
 in a down market, the depth and longevity of our relationships with large
 Global 1000 companies, the inherent strength of our people and our experienced
 management team.  We believe we are six months ahead of our competition in
 building a company that can meet the demands of today's new business
 environment.  Our position today gives me great confidence."
 
     Related Material
     For other recent related news releases go to
 www.luminant.com/pressreleases.htm and view:
 
     March 22, 2001 - Luminant Reports Fourth Quarter and Year-End Results
 
     February 9, 2001 - Luminant Completes 100 Day Plan
 
     November 9, 2000 - Luminant Takes Further Steps Toward Return to Growth
 and Profitability
 
     October 24, 2000 - Luminant Organizes for Improvements in Operating
 Results, Names Executive Committee, Targets Key Industries for Increased
 Emphasis
 
     October 17, 2000 - Luminant Plan Sets Company on Course for Return to
 Growth and Profitability
 
     September 26, 2000 - Luminant Board Appoints James R. Corey as CEO
 
     About Luminant
     Luminant Worldwide Corporation is a provider of technology-enabled
 business solutions.  Our effective, proven business solutions help some of the
 world's largest companies fully capture measurable value from the Internet and
 other emerging technologies.  We strive to build clients for life by
 continuously delivering performance rooted in deep industry experience,
 classic strategic management consulting, strong logistics and marketing
 strategy analytics, and innovative creative and information technology skills.
 Luminant's principal locations are in Atlanta, Chicago, Dallas, Houston, New
 York City, Washington, D.C., San Francisco and Seattle.  For more information,
 visit www.luminant.com, call 888.225.4468 or join our quarterly investor
 newsletter mailing list by sending a request to insights@luminant.com.
 
     Forward-Looking Statements:
     This press release contains forward-looking statements related to the
 Company's opportunities, ex and future growth.  These forward-looking
 statements are made pursuant to the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  Forward-looking statements are
 based on current management expectations.  These statements can be affected by
 inaccurate assumptions the Company might make or by known or unknown risks and
 uncertainties, including risks described in its Registration Statement and
 Form S-3 filed with the Securities and Exchange Commission on
 October 27, 2000, as amended, and its other filings with the Securities and
 Exchange Commission.  Any or all of the forward-looking statements the Company
 makes in this press release or in any other public statements may turn out to
 be wrong.
 
 SOURCE  Luminant Worldwide Corporation