CET Environmental Services, Inc. Reports Operating Profit for the Third Quarter and Nine-Month Period
ENGLEWOOD, Colo., Nov. 13 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) revenues for the quarter ended September 30, 2001 were $4.0 million, down 48% from the $7.7 million recorded in the year-earlier period. Despite the decline in revenues, operating income for the current quarter increased to $186,182, up 63% from the comparable period of 2000. Net income amounted to $212,376, or $0.04 a share, for the 2001 quarter. In the prior year, a gain of $211,862 on the sale of property held for investment bolstered net income to $262,296, or $0.04 a share on a somewhat larger number of shares outstanding.
For the nine months ended September 30, 2001, revenues were $10.6 million, down 41% from the $17.9 million for the like period of 2000. Operating profit for the current period was $166,330, which contrasted with an operating loss of $434,822 for the nine-month period of 2000. Net income for the 2001 period was $240,218, or $0.04 a share. In the year-earlier period, a gain of $1.3 million on the sale of the Tustin, CA operations and a gain on the sale of property held for investment resulted in the Company reporting net income of $982,379, or $0.16 a share.
The major impact on the Company's business during the current year is the absence of commercial revenues from Brownfields projects. In the prior year, these activities contributed revenues of $2.6 million and $6.2 million, respectively, to the third quarter and nine-month period. However, because of collection problems with Remediation Financial, Inc. (RFI), the parent company of the Brownfields projects in California, the Company ceased work on these projects in September, 2000. The outstanding receivables due from RFI total $6.2 million or 74% of receivables at September 30, 2001. The Company continues to pursue all legal recourse available in an effort to collect the funds and has secured liens on the properties.
Steve Davis, President and CEO, said, "It is encouraging that the Company achieved an operating profit for the quarter. However, the task of redirecting the business from an essentially EPA revenue base, which will end with the completion of the present contract in January, 2002, to becoming a factor in the water/wastewater business and Brownfields contracting business remains formidable. Our organization has been pared which should allow us to respond quickly as opportunities emerge in these exciting and growing markets." |
