CET Environmental Services, Inc. Reports Results For Fourth Quarter and Full Year 2001
ENGLEWOOD, Colo., April 12 /PRNewswire-FirstCall/ -- CET Environmental Services, Inc. (Amex: ENV - news) revenues for the fourth quarter of 2001 were $3,585,000, down 45% from the $6,575,000 recorded in the final three months of 2000. Gross profit margin improved significantly, but with revenues lower, operating income for the period was virtually unchanged at $29,000 versus $30,000 in the year-earlier period. After a loss on the disposition of equipment, a net deficit of $21,000 was incurred in the 2001 period; a year earlier, a profit of $59,000 or $0.01 a share was recorded.
Revenues for the year ended December 31, 2001 were $14.2 million, down 42% from the $24.4 million reported for the prior year. Gross profit margin improved to 17.5% from 11.2%, which coupled with lower operating expenses and the absence of restructuring expenses resulted in operating income of $195,000. In 2000, an operating loss of $405,000 was incurred. Net income for 2001 was $219,000 or $0.04 a share. Results for the prior year benefited from a $1.3 million gain on the sale of the Tustin (CA) operations and a gain on the sale of property held for investment. Consequently, net income for 2000 was $1,041,000 or $0.17 a share.
Steven Davis, President and CEO, noted that the major factors contributing to the drop in 2001 revenues were the absence of Brownfields work, the sale of the Tustin operations, and a lower level of work orders from the EPA. The combined short-fall of these three factors exceeded $10 million.
Regarding the Brownfields activity, Mr. Davis said, ``Collection problems with the developer and affiliated partnerships brought two major projects in California to a halt in October, 2000. The Company was forced to seek legal remedies in order to recover payment for work performed and, in February, 2002, reached a settlement agreement with respect to one project and received $2.1 million. We are continuing our efforts to collect some $3.3 million related to the other project.''
Further, Mr. Davis noted that 2002 will be a transition year as the Company moves from being essentially EPA dependent to a broader Brownfields remediation and water/wastewater oriented business. Mr. Davis said, ``Over time, these markets should offer an opportunity for significant growth and greater profitability.'' |
