ENGLEWOOD, Colo., March 27 /PRNewswire/ -- CET Environmental Services,
Inc. (AMEX: ENV) today reported record revenues of $54,918,520 for 1996
compared to $47,871,972 for 1995, an increase of 14.7%. The company reported
a net loss for the year of $3,756,450 or $.74 per share, compared to net
income of $1,809,251 and $.44 per share a year ago. A loss of $1,192,889 was
posted for the fourth quarter.
The loss for the fourth quarter was larger than expected due to non-
recurring issues. Approximately two-thirds of the loss is attributable to a
required write down of a receivable from one customer due to its age and
uncertainty of collectability. The company is confident of the future
collectability of this amount. The balance of the loss is attributable to
project writedowns from prior periods and an operating loss primarily due to
lower margins on projects completed in the 4th quarter.
Steven Davis, President and Chief Executive Officer of CET stated that,
"Much of the loss incurred in 1996 can be categorized as an investment in
building a presence in new regions of the U.S. as part of a strategy for
expansion of business in both government and commercial sectors. Establishing
a regional office network with the ability to perform a full range of services
was critical to obtaining additional EPA awards, a corporate strategy
implemented in 1995." Davis went on to state that, "Despite the significant
loss, the company is positioned for accelerated growth in revenues combined
with a return to profitability. Backlog is four times last year's figure and
overhead cost have been cut significantly in the second half of the year."
Davis cited that two large contracts which have been delayed are now
slated to kick off in March and April of 1997 including the $290 million EPA
Emergency and Rapid Response Services (ERRS) contract awarded to CET in
December. CET also expects to be notified in the coming months of results for
its bid for the ERRS contracts in EPA Regions 4 and 10 with a combined value
of approximately $75 million over 5 years.
Since the third quarter of 1995, CET has reduced overhead costs resulting
in a savings of more than $4 million per year. This has been accomplished by
discontinuing unprofitable operations, personnel adjustments, employee
benefits restructuring, and executive salary cuts. These overhead reductions
have not affected the company's ability to perform at its customary high
standards. This reduced overhead structure combined with a record backlog and
resultant revenues will lead to continued strong growth and growing
profitability in coming periods.
CET Environmental Services, Inc. (AMEX: ENV)
12 Months Ended
Year to Date Ended December 31, 1996 December 31, 1995
Revenues $54,918,520 $47,871,972
Net Income ($3,756,450) $1,809,251
Average Shares Outstanding 5,077,946 4,113,725
Net Income Per Common Share ($.74) $.44 |
