EPS Increased to $.17 in 2000 Compared to ($.51) in 1999
ENGLEWOOD, Colo., April 2 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) announces net revenues, net income, and earnings per share for the three months and year ended December 31, 2000.
Net revenues for the three months ended December 31, 2000, were $6,574,967 as compared to $7,802,039 for the same period in 1999. Net income for the three months ended December 31, 2000, was $58,198, or $.01 per share as compared to $124,457, or $.02 per share for the same period in 1999.
Net revenues for the year ended December 31, 2000, were $24,441,671 as compared to $43,189,319 for the same period in 1999. Net income for the year ended December 31, 2000, was $1,040,576 or $.17 per share, as compared to net loss of ($3,176,757), or ($.51) per share for the same period in 1999.
Steve Davis, CEO and President, said, "This past year has seen our Company project revenues decrease by 43% due to several factors including a reduction in the volume of EPA remediation work performed and the effects of the closure of several Company satellite offices in late 1999. However, even though project revenues for 2000 decreased with a corresponding operating loss, we are pleased to report that we dramatically reduced the percentage of loss based on project revenues. We plan to continue this focus on improved project margins, cost reductions, and administrative efficiencies that proved effective in 2000. This will allow CET to concentrate our efforts on building our water/wastewater business, as well as remain active in the environmental remediation industry."
The Company produced significant accomplishments in 2000.
-- Successfully executed the third option period with the Environmental
Protection Agency (EPA) to provide environmental services for
Regions 6, 8 and 9. The period of the contract ran from January 9,
2000 through January 8, 2001. During this third option period, the
EPA was empowered to issue delivery orders for up to $42 million in
value; actual revenues for the period were $13.1 million.
-- In March, the Company entered into an Asset Purchase Agreement with
Cape Environmental Management, Inc. covering certain assets and the
assignment of certain non-EPA government contracts and liabilities
associated with the Tustin (CA) operations. The Company realized a
gain of $1.3 million and retained approximately $1.3 million of the
Tustin assets, primarily consisting of receivables recorded through
the May closing date.
-- The Company successfully executed remediation and development
activities for Remediation Financial, Inc. (RFI) at a former
explosives manufacturing site in Hercules, CA and "Brownfield" work on
the Santa Clarita project on a purchase order basis. The combined
revenues from the two RFI projects accounted for approximately 32% of
total revenues for 2000. During the third quarter 2000, the Company
encountered collection problems with RFI, the severity of which caused
the Company to suspend work at the Santa Clarita site. Shortly
thereafter, RFI presented the Company with termination notices for
both the Hercules and Santa Clarita projects. The Company is pursuing
recourse under a Deed of Trust related to the Hercules project and the
filings of a mechanics' lien on the Santa Clarita project. The RFI
receivables amount to approximately $6.1 million.
-- In January 2000, the Company satisfied the repayment terms of its line
of credit with the National Bank of Canada, which has now released all
claims against the Company. The Company also obtained a $1 million
revolving line of credit with Compass Bank (formerly FirsTier Bank)
secured by the assets of the Company.
-- The Board of Directors authorized the repurchase of up to 100,000
shares of the Company's common stock through open market purchases.
As of March 15, 2001, 18,100 shares of common stock have been
repurchased under this authorization.
Mr. Davis concluded, "Our working capital position remains strong, our banking relationship is in place, and we are continuing to pursue resolution of our dispute with RFI. Due to the hard work and dedication of our outstanding employees, we are well positioned to take advantage of expansion opportunities." |
