KBF Reports 31% Increase in Recycling Service Revenue.
Paterson, New Jersey, November 15, 2001.
KBF Pollution Management, Inc. (OTCBB: KBFP) ("KBF") today reported a 31% increase in recycling service revenue for the three months ended September 30, 2001 with revenues of $822,173, as compared to $627,778 for the same period in 2000. KBF also posted a profit for its second consecutive quarter at its state of the art Recycling and Commodity Manufacturing Center, with earnings before interest, taxes, depreciation and amortization for the three months ended September 30, 2001 of $109,700, up from $(302,876) for the same period last year.
The current results demonstrate the stability of KBF's upward trend in performance. Providing guidance on this trend moving forward, Kevin Kreisler, KBF's president, said that "we will see continued growth and significant demand in our core markets as our sales and joint venture initiatives continue to generate exciting results, and as we accelerate investment in process infrastructure in the near term in response to expected substantial increases in contract demand. Recycling service revenue increased by 31% and earnings before interest, taxes, depreciation and amortization increased by 136% for the three months ended September 30, 2001 as compared to the same period last year. We expect to generate similar increases in the fourth quarter 2001 as compared to the fourth quarter 2000."
KBF's 10-QSB for the third quarter 2001, filed today, additionally disclosed that recycling service revenues for the nine months ended September 30, 2001 increased 20% to $2,258,349 from $1,884,202 for the same period last year, with a corresponding 145% increase in earnings before interest, taxes, depreciation and amortization to $365,614 from $(803,637) for the same period last year. Gross profit for the nine months ended September 30, 2001 increased by a dramatic 536% to $539,625 from $100,676 from the nine months ended September 30, 2000. The increase in KBF's gross profit is due to the favorable economies of scale associated with KBF's increased volume and KBF's increased focus on recycling services as opposed to field services.
"Our focus on the large-scale application of our patented technologies - KBF's core competency - continues to generate powerful results. We are very pleased with our increased revenues and dramatically improved gross profit for the nine months ended September 30, 2001, and we expect the momentum of this upward trend in performance to continue," added Kreisler.
Total revenues for the nine months ended September 30, 2001 increased to $2,357,322 as compared to $2,341,152 for the same period in 2000, an increase of 0.69%. This growth rate, as compared to the more significant growth rate of the first six months of 2001, is predominately due to KBF's increased focus on recycling (facility-based) services as opposed to field services which provide for substantially lower profit margins. The filing further disclosed that KBF decreased its costs of operations by 19% and its general and administrative expenses by 53%. The decrease in general and administrative expenses is primarily due to decreased labor costs associated with KBF's development of a more efficient information system, the deferment of certain salaries and significantly decreased professional fees. General and administrative costs are expected to increase in future periods with the reinstatement of certain salaries and anticipated new hires. KBF's 10-QSB for the third quarter 2001 is available online at www.kbf-pmi.com.
About KBF Pollution Management, Inc.
KBF is a growth-stage company that is establishing itself as the premier recycling services provider in the nation. KBF's Paterson, New Jersey flagship recycling and commodity manufacturing center has been designed for the large-scale application of KBF's Selective Separation Technology? ("SST?") (U.S. Pat. Nos.: 5,753,125; 5,908,559; 6,254,782) and other patent-pending and proprietary resource recovery technologies. These process technologies separate, remove and recover a wide range of metals from liquid and solid wastes as well as other production and manufacturing media. Use of SST? and its related processes enables KBF to competitively recycle a much broader array of hazardous and non-hazardous waste than any other recycling service provider that exists today. Wastes managed with KBF's technologies become products that are comparable and superior to the quality of virgin ore material extracted from the ground. Use of KBF's technologies eliminates the federally mandated 'cradle-to-grave' liability for which a waste generator would otherwise remain perpetually liable. KBF's technologies apply to manufacturing, industrial and municipal waste processes that contain metals or otherwise produce a metal bearing waste by-product. KBF also provides regulatory compliance support services to its customers and is developing an environmental services business-to-business site called TSDonline.com?.
Safe Harbor Statement
The foregoing discussion contains forward-looking statements that are based on current expectations. Actual results, including the timing and amount of anticipated revenues, may differ due to such factors as: regulatory delays; dealings with governmental and foreign entities; economic and other conditions affecting the financial ability of actual and prospective clients; and, other risks generally affecting the financing of projects. Additional risks associated with KBF's business can be found in its Annual Report on Form 10-KSB for the year ended December 31, 2000, and other periodic filings with the SEC. KBF Pollution Management, Inc. trades on the over the counter bulletin board maintained by the NASD under the symbol "KBFP."
Contact: Joseph B. Schmidt
KBF Pollution Management, Inc.
One Jasper Street
Paterson, New Jersey 07522
Phone: 800-366-1426
Fax: 973-942-7527
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