Global Water Technologies Announces Record Revenues and Earnings
GOLDEN, Colo., March 25 /PRNewswire/ -- Global Water Technologies, Inc., (OTC Bulletin Board: GWTR - news) today announced record-setting results for
the fourth quarter and the year ended December 31, 1997.
Net income for 1997 increased 86.6% to $570,982 or $0.002 per share versus 1996 net income of $305,984 or $0.001 per share. Revenues for calendar year
1997 increased to $18.7 million, 13.2% greater than 1996 revenues of $16.5 million. For the fourth quarter, net income increased from $130,146 in 1996 to
$616,266 in 1997, and revenues increased from $4.8 million to $7.1 million for the same period.
Contracts awarded during 1997 also reached record levels. The $24.2 million in contracts awarded in 1997 were significantly higher than the $15.0 million awarded
in 1996. The 1997 amount included $8.7 million of international bookings (36.2% of the total) as the company continued to expand its exports. In recognition of its
growth in the international market, the Small Business Administration named the company's Psychrometric Systems, Inc. subsidiary as Small Business Exporter of
the Year for Region VIII which includes Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming.
George A. Kast, Chairman and CEO, said, ''Calendar 1997 was a record year in all respects. Based on our year-end backlog of $11.6 million plus bookings
during early 1998, we are optimistic that 1998 could be another record year. We've come a long way since our incorporation in 1993, and even farther since being
ranked #30 in Entrepreneur Magazine's 1996 listing of the 100 Hottest New Small Businesses in America.''
Global Water Technologies, through its subsidiary Psychrometric Systems, Inc., provides process cooling water primarily through the design, engineering and
construction of cooling towers to industrial and manufacturing clients worldwide. Also, through its recently formed Advanced Oxidation Technologies, Inc.
subsidiary, the company will provide customers with proprietary non-chemical, water treatment systems designed to meet the growing need for environmentally
sound water purification and reclamation worldwide.
Global Water Technologies, Inc.
Consolidated Statements of Operations
Year Ended Quarter Ended
December 31 December 31,
1997 1996 1997 1996
Construction
revenues:
United States $14,919,866 $14,602,363 $5,160,482 $3,821,213
International 3,777,426 1,918,181 1,946,431 947,740
Total revenues 18,697,292 16,520,544 7,106,913 4,768,953
Costs and expenses:
Cost of
construction 13,547,484 12,654,634 4,760,572 3,371,538
Selling, general
and administrative 4,031,159 3,130,378 1,348,143 1,124,204
Research and
development 147,895 129,984 32,618 46,066
Total costs and
expenses 17,726,538 15,914,996 6,141,333 4,541,808
Operating income 970,754 605,548 965,580 227,145
Other income (expense):
Interest expense,
net (123,072) (145,758) (39,975) (24,106)
Other, net (2,822) 647 (12,133) (1,185)
Income before income
taxes 844,860 460,437 913,472 201,854
Income taxes 273,878 154,453 297,206 71,708
Net income $570,982 $305,984 $616,266 $130,146
Income per share:
Basic weighted
average shares
outstanding 270,014,801 255,526,642 293,540,489 261,382,500
Basic income per
share $0.002 $0.001 $0.002 $0.000
Fully diluted
weighted average
shares outstanding 270,126,740 255,520,642 293,984,593 261,382,500
Fully diluted income
per share $0.002 $0.001 $0.002 $0.000
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those
projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic,
competitive and other factors, including, among other things, the size and timing of customer orders, changes in laws, new or increased competition, delays in new
products, production problems, changes in market demand, market acceptance of new products, seasonality in product purchases, and changes in foreign exchange
rates. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements.
Additional information with respect to these and other factors which could materially affect the Company and its operations are included in the Company's filings
with the Securities and Exchange Commission and are incorporated herein. |
