New Jersey-based NUI Corp. announced Friday its intention to sell the operations of TIC Enterprises, LLC, its sales outsourcing unit. NUI will begin discussions with interested parties and hopes to conclude a transaction by the end of the fiscal year. As of Friday, NUI said its remaining basis in its investment in TIC is approximately $13 million.

The unit is composed of a freelance sales force which markets various services such as telecom and office equipment and priority mail service to small to medium-sized businesses. It employs about 300 people in 40 states.

Consistent with its plan to sell off the unit, NUI has opted for the early adoption of Statement of Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long-lived Assets.” Going forward, results from TIC will be reported as discontinued operations. As a result of this action, NUI’s earnings from continuing operations for the second quarter are expected to be higher than anticipated with net income of $16.7 million, or $1.18 per share.

The continued sluggish economy and corresponding weak demand for telecom equipment by small- to medium-sized businesses, combined with mounting issues with the U.S. Postal Service, are the primary reasons for NUI’s decision. As a result of the factors mentioned above, NUI will record a loss associated with TIC of approximately $2.1 million, after tax, for NUI’s second quarter ended March 31, 2002.

“When we acquired full control of TIC in 2001, we made a commitment to our investors that we would act quickly and decisively taking into account our view of TIC’s business and its fit within NUI’s strategy,” said John Kean, Jr., NUI CEO. “We are now taking that decisive action.” Interested parties may contact Bob Lurie, NUI vice president of corporate development at (908) 719-4219.

NUI acquired a 49% interest in TIC in May 1997 and acquired the remainder of the business in May 2001. From 1997 to 2000, TIC experienced significant growth, with revenues rising from $14 million to $80 million. Since 2000, weakness in the telecommunications market has severely impacted TIC’s profitability.

NUI, based in Bedminster, NJ, operates natural gas utilities along the eastern seaboard, and businesses involved in natural gas storage and pipeline activities; wholesale energy trading and portfolio management; retail energy sales; energy and environmental project development; energy consulting; telecommunications; and digital mapping and customer information systems and services.

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