CET Environmental Services, Inc. Announces the Lifting of the Environmental Protection Agency Suspension
No Financial Penalties or Significant Restrictions Have Been Placed On CET
Under Agreement
ENGLEWOOD, Colo., Nov. 5 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) announces it has executed an Agreement with the Environmental Protection Agency (EPA) that removes the Notice of Suspension issued on August 10, 1999. With the lifting of the Notice of Suspension, CET is permitted to pursue new delivery orders with its existing clients and new contracts with various Federal agencies. No financial penalties or significant restrictions have been placed on CET under its Agreement with the EPA.
Since receiving the Notice of Suspension, CET downsized its operation as a decline in revenues occurred. The Mobile and Jackson offices were sold and the New Orleans office has been shut down. CET still maintains offices in Houston, San Antonio, Denver, Seattle, and Tustin and Richmond, CA. Though the number of employees has decreased by 60% to approximately 140, the Company's core capabilities and key personnel remain intact.
Steven H. Davis, President and CEO of CET Environmental Services, Inc. said, "This has been a trying and difficult time for the Company, but with the suspension lifted, CET will work doubly hard to regain its good relationships with its key Federal and Commercial clients. I am hopeful our good reputation can be restored and the Company can grow again." Mr. Davis continued, "With the downsizing and transition of offices, I am dedicated to controlling costs and keeping these transition expenses manageable. I am equally dedicated to returning the Company to profitability. I feel confident we can do just that because our key people are in place and ready, willing and able to serve our clients."
Concerning Federal opportunities, CET has requested the EPA contract be novated to a third party. The novation would include the sale of the Seattle office. CET is very concerned about the long-term effects that the suspension may have with its relationship with the EPA. Whether or not the novation is approved, CET will aggressively attempt to procure work from its contracts with the EPA, Army Corps of Engineers and Air Force, and will pursue new contract opportunities.
In the commercial sector, CET has begun work on the $17 Million Hercules "brownfields" project and anticipates it will be able to contract additional projects of this type. Additionally, CET has stepped up its commitment to the water/wastewater market with the addition of construction, maintenance and operations capability.
Mr. Davis concluded, "We have taken the necessary steps to help improve our profitability and competitiveness in this industry. We have virtually no long-term debt and our revolving bank debt is under $3 Million. Although we recognize there is a lot of work to be done, we are committed to repositioning the Company as an initially smaller but stronger, more profitable company. I am confident these steps will lead to improved shareholder value."
CET conducts business in three primary areas: government programs, industrial services, and water/wastewater treatment. The Company provides a broad range of expertise in technology-based environmental services for both the public and private sectors throughout the United States.
For more Company information, visit the web site www.cetenvironmental.com. |
