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ENVIRO-ENERGY CORPORATION ACHIEVES FIRST TIME PROFITABILITY AND SIGNIFICANTLY IMPROVES BALANCE SHEET BUSINESS EDITORS SPOKANE, WASH.--(BUSINESS WIRE)--MAY 20, 2002--ENVIRO-ENERGY CORPORATION
09:03 ET SPOKANE, Wash.--(BUSINESS WIRE)--May 20, 2002--Enviro-Energy Corporation (OTCBB:ENGY.U) (Germany:676401-EVM.BER) is pleased to announce its financial results for the first quarter ending March 31, 2002.
Revenue increased 464.09% in the first quarter 2002 compared to the first quarter of 2001. Revenue was US $2,289,676 in the first quarter of 2002 compared to US $405,905 in the first quarter of 2001. The increase in revenue was primarily the result of our acquisition of
Colvico, Inc. The Company reported a net profit of $85,931 in the first quarter of 2002 as compared to a net loss of $165,798 in the
first quarter of 2001.
The Company made major progress in improving its balance sheet to create the opportunity to aggressively expand and grow our business. The Company completed a number of achievements in this area including:
-- Acquisition of Colvico, Inc. for four million shares
(4,000,000) of preferred stock with 4 to 1 conversion for a
total of sixteen million (16,000,000) shares of common stock
translating to $0.25 per common share valuation. Colvico
increases assets to $7,044,243.
-- Discontinuance of Environmental Reclamation Inc. (ERI), thus
eliminating a seriously negative cash drain and producing a
potential stock dividend from the acquiring company.
With the above acquisition and discontinuance transactions, the
Company achieved profitability and positive cash flow.
In February 2001 management announced that they were seeking to
expand the business of the Company into other environmental
businesses, launching a consolidation strategy in a highly fragmented
industry. In just one year it has emerged from this strategy with a
sharply defined and well-focused business providing bio-waste
treatment and energy conversion. The acquisition of Colvico, Inc. on
February 1st, 2002 provided Enviro-Energy with an established
profitable operating base and access to facilities and resources from
which to launch innovative technology designed to transform farm
animal manure into energy and amended organic soils (fertilizers). The
Company develops and manufacturers its proprietary Enviro-Energy(TM)
Bio-Waste Systems through its wholly owned subsidiary Energy Flow
Management, Inc. (EFMI).
Management believes that operations will continue to improve
throughout the year. Plans to strengthen the Company's management team
are expected to accelerate as the Company is now clearly defined and
on greatly improved financial footings.
"Having a solid operating company (Colvico, Inc.) from which to
build our bio-waste business is a definite advantage," stated Michael
Funk, President of Energy Flow Management, Inc. (EFMI). "We have the
facilities, engineering and manpower needed to launch our technology.
Our first system continues on schedule. Equipment and processing tanks
are on site in Tillamook, with final assembly and testing under way.
We are posting pictures of the system on our website.
"Understandably, virtually all of our efforts of late have been
focused on this important first installation. With it up and running
successfully we will be able to release management resources to follow
up additional order interest. Company forecasts for the year are
expected to be updated this quarter after the Company has had the
opportunity to evaluate the impact of the Tillamook launch to order
activity."
Enviro-Energy Corporation is a consolidator and operator of
bio-waste treatment and energy conversion systems and technologies.
Energy Flow Management, Inc. is a wholly owned subsidiary of
Enviro-Energy Corporation, responsible for developing, manufacturing
and operating proprietary Enviro-Energy(TM) Bio-Waste Systems.
Colvico, Inc. is a wholly owned subsidiary of Energy Flow
Management, Inc.
The above news release contains forward-looking statements. These
statements are based on assumptions that |
