CET Environmental Services, Inc. Announces Fourth Quarter and Year End 1999 Financial Results
ENGLEWOOD, Colo., March 31 /PRNewswire/ -- CET Environmental Services,
Inc. (Amex: ENV) announces net revenues, net income (loss) and earnings per
share for the three months and year ended December 31, 1999.
Net revenues for the three months ended December 31, 1999, were $7,802,039
as compared to $21,912,053 for the same period in 1998. Net income for the
three months ended December 31, 1999, was $124,457, or $.02 per share as
compared to $4,410,947, or $.75 per share for the same period in 1998.
Net revenues for the year ended December 31, 1999, were $43,189,319 as
compared to $66,497,279 for the same period in 1998. Net loss for the year
ended December 31, 1999, was $3,176,757 or $.51 per share, as compared to net
income of $538,478, or $.09 per share for the same period in 1998.
Steve Davis, CEO and President, said, "I am disappointed with our year end
results, but they were expected and anticipated. The Company faced numerous
obstacles that negatively impacted revenues. These obstacles have been
addressed in the Company's Restructuring Plan and are reflected in the fourth
quarters' revenues. A significant part of our focus this past year was on
improving the fundamentals in our operation. I remain extremely confident we
have made those improvements and we are correctly positioned to increase
revenues, income and shareholder value."
Following the EPA suspension, the Company initiated a restructuring plan
to reduce operating costs and gain efficiencies through sale, downsizing and
closure of regional offices.
Future strategic alternatives currently being considered by the Company
include, among others, (i) the pursuit of opportunities in its core
environmental remediation business; (ii) expansion into water and wastewater
treatment construction, operation and maintenance through direct investment or
acquisitions; (iii) the proposed sales of the Edmond, Washington and Tustin,
California offices and related EPA and federal contracts; and (iv) continued
focus on the improvement of contract profitability.
The Company produced significant accomplishments in 1999 that need to be
recognized. Outlined below is a compilation of some of the more important
events:
-- Successfully executed the third option period with the Environmental
Protection Agency (EPA). The period of the contract will be from
January 9, 2000 through January 8, 2001.
-- Successfully started the $16 million remediation and development
activities at former explosives manufacturing site in Hercules, CA.
-- Began the Santa Clarita project on a purchase order basis. The
Company continues negotiations for the multi-million dollar project
and is hopeful that a definitive contract will be reached in the near
future.
-- CET has been awarded a contract to upgrade the water treatment system
for two Denver area water districts and is aggressively attempting to
secure additional water business.
-- Fully repaid the National Bank of Canada and has positioned itself
without any long-term debt.
Mr. Davis concluded, "In spite of the financial loss we reported, our
operations have made significant progress especially during the fourth
quarter. The Company is focused on basic strategies that should lead to
improved profitability, specifically to focus on the completion of more
profitable contracts, overall direct and indirect costs reductions and
administrative efficiencies. The Company continues to work diligently on
business relationships where it can assure high quality and operate
profitability. Our success on the Hercules project and our more profitable,
down-sized operations are moving us to the point of consistent profitability."
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.
CET Environmental Services, Inc.
Three Months Year Ended
Ended 12/31 Ended 12/31
1999 1998 1999 1998
Revenues $7,802,039 $21,912,053 $43,189,319 $66,497,279
Net Income (Loss) $124,457 $4,410,947 $(3,176,757) $538,478
Earnings (Loss) Per
Share Basic & Diluted $.02 $.75 $(.51) $.09
Weighted Average
Shares Outstanding
Basic & Diluted 6,282,346 5,882,119 6,282,346 5,811,738
For more Company information, visit their web site at
www.cetenvironmental.com. |
