WEGI earnings... .01/sh
Windswept Environmental Group, Inc. Announces Third Quarter and Nine Month Results; Revenues Increase 49% in the Quarter and 54% in the Nine Month Period
BAY SHORE, N.Y., May 17 /PRNewswire-FirstCall/ -- Windswept Environmental Group, Inc. (OTC Bulletin Board: WEGI - News) today announced operating results for the thirteen and thirty-nine week periods ended April 2, 2002. Revenues increased $1,913,956 or 49% to $5,823,792 for the thirteen week period ended April 2, 2002 from $3,909,836 for the thirteen week period ended April 3, 2001. The increase in revenues for the thirteen week period ended April 2, 2002 was primarily attributable to work performed in downtown Manhattan related to the terrorist attack on the World Trade Center.
Net income available to common shareholders for the thirteen week period ended April 2, 2002 was $740,024 or $.01 per common share compared to net loss available to common shareholders of $(519,168) or $(.01) per common share for the thirteen week period ended April 3, 2001. Earnings before interest, taxes, depreciation and amortization ("EBITDA") increased to $1,328,596 for the thirteen week period ended April 2, 2002 from $(469,803) for the thirteen week period ended April 3, 2001.
Revenues increased $9,275,944 or 54% to $26,559,419 for the thirty-nine week period ended April 2, 2002 from $17,283,475 for the thirty-nine week period ended April 3, 2001. The increase in revenues for the thirty-nine week period ended April 2, 2002 was primarily attributable to work performed in downtown Manhattan related to the terrorist attack on the World Trade Center.
Net income available to common shareholders for the thirty-nine week period ended April 2, 2002 was $2,082,564 or $.04 per common share compared to net income available to common shareholders of $1,522,702 or $.04 per common share for the thirty-nine week period ended April 3, 2001. EBITDA increased to $5,714,318 for the thirty-nine week period ended April 2, 2002 from $2,861,143 for the thirty-nine week period ended April 3, 2001.
Michael O'Reilly, the Company's CEO, stated, "In the third quarter, we continued on our course of increasing revenues and gross margins. While most of our revenue and earnings growth was from the WTC related projects, we have continued to aggressively market the Company's services to new and existing customers. Once again, we have shown our capability of handling large-scale catastrophes by responding with a large labor force in a short period of time. We expect to continue to capitalize on these capabilities and look to expand our business outside the Northeast region.
Financially, the Company's balance sheet improved due to increases in working capital. The Company was able to repay $680,000 of convertible debt upon its maturity in March without any additional borrowings. In addition, we had a non-cash benefit of $487,324 in the third quarter and a non-cash expense of $880,696 in the nine-month period relating to the variable accounting treatment of my stock options. In the absence of these non-cash transactions, our net income available to common shareholders would have been approximately $253,000, or $.00 per share, in the third quarter and approximately $2,964,000, or $.05 per share, for the first nine months of fiscal 2002."
Additional information can be found in the Company's Form 10-Q for the third quarter ended April 2, 2002 that was filed with the SEC on May 17, 2002 and in the table below.
Windswept Environmental Group, Inc., through its wholly owned subsidiaries, Trade-Winds Environmental Restoration, Inc. and North Atlantic Laboratories, Inc., provides a full array of emergency response, remediation and disaster restoration services to a broad range of clients. The Company's web address is tradewindsenvironmental.com.
This press release contains certain forward-looking statements about the Company that are based on management's current expectations. Actual results may differ materially as a result of any one or more of the risks identified in the Company's filings under the Securities and Exchange Act of 1934. These risks include such factors as the amount of the Company's revenues, the Company's ability to increase its gross margins and limit or reduce its expenses, the frequency and magnitude of environmental disasters or disruptions, the effects of new laws or regulations relating to environmental remediation, the Company's ability to raise capital, the competitive environment within the Company's industry, dependence on key personnel and economic conditions. |
