CET Environmental Services, Inc. Announces First Quarter 2000 Financial Results
ENGLEWOOD, Colo., May 15 /PRNewswire/ -- CET Environmental Services, Inc.
(Amex: ENV) announces financial results for the three months ended
March 31, 2000.
Net revenues for the three months ended March 31, 2000 were $3,453,202 as
compared to $12,944,961 for the same time period in 1999. Net loss for the
three months ended March 31, 2000, was $(784,209) or $(.12) per share, as
compared to net income of $351,178, or $.06 per share for the same period in
1999.
The decrease in revenues results from factors including, but not limited
to, the EPA suspension enacted in August 1999 which disrupted the normal flow
of business and reduced first quarter EPA revenues. The reduction in EPA
revenues was from $8.3 million in the first quarter ended March 31,1999 to
$1.3 million for the same period in 2000. Additionally, as a result of the
EPA suspension, the Company implemented a restructuring plan in the third and
fourth quarter of 1999 which included the sale of the Mobile and Jackson
offices and the closure of its New Orleans and Houston offices. Revenues from
these offices were approximately $1.4 million in commercial contracts for the
quarter ended March 31, 1999 with no corresponding commercial revenues in the
quarter ended March 31, 2000. Lastly, the first quarter ending March 31, 1999
saw the completion of a commercial project, which contributed approximately
$1 million.
Steve Davis, CEO and President, said, "During the first quarter we
substantially reduced our operating losses and completed our efforts to
restructure the Company. The CET team has been extremely busy overseeing all
facets of operations. Those operations include our two large commercial
projects located in California, along with water and wastewater services.
With the lifting of the EPA suspension, the number of delivery orders from the
Government has continued to increase, and CET is effectively performing the
work."
Highlights - First Quarter:
-- The Company entered into an Asset Purchase Agreement with Cape
Environmental Management, Inc. to sell certain assets and assign
certain contracts and liabilities associated with its Tustin,
California operations for $2.1 million. The transaction was closed on
May 8, 2000, effective as of April 30, 2000. The Company's net book
value of the assets and liabilities of approximately $0.7 million
resulted in a recorded gain of $1.4 million on the date of sale.
-- Began the Santa Clarita project with Remediation Financial, Inc. on a
purchase order basis. First quarter operations and negotiations led to
the second quarter announcement of the five year, multi-million dollar
contract with Remediation Financial, Inc. for the Santa Clarita
project. The project calls for CET to provide environmental and civil
infrastructure services for the development of 996 acres.
-- Improved the Company's financial situation by fully repaying the
National Bank of Canada and thus freeing the Company of any long-term
debt.
-- Settled the litigation against AquaSource, Inc. As a result from the
settlement, CET collected $650,000 from AquaSource and $708,000 from
Monfort.
-- Continues to perform satisfactory work on the $16 million remediation
and development activities at former explosives manufacturing site in
Hercules, CA.
Mr. Davis concluded, "Our Company outlook is extremely positive. We are
virtually debt free and we have solid, long-term commercial backlog. The near
future will bring greater attention to the Company's commercial contracts.
This recent repositioning will allow CET to more aggressively pursue water and
wastewater services, and Brownfield redevelopment projects. I appreciate our
shareholders' support and patience over the last six months and look forward
to a much improved 2000."
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, Inc.
Three Months Ended March 31, 2000 (Unaudited)
2000 1999
Revenues $3,453,202 $12,944,961
Net Income (Loss) $ (784,209) $ 351,178
Basic Earnings (Loss) Per Share $ (.12) $ .06
Diluted Earnings (Loss) Per Share $ (.12) $ .06
Basic Weighted Average
Shares Outstanding 6,284,288 6,276,414
Diluted Weighted Average
Shares Outstanding 6,284,288 6,276,543
For more Company information, visit its web site at
www.cetenvironmental.com. |
