T.EMS follow up
S Continues Remarkable Growth Streak in Third Quarter
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OTTAWA, ONTARIO--Environmental Management Solutions (TSX-EMS) is
pleased to report continued revenue growth in the third quarter.
Third quarter revenues of $11,154,698 represent a ten-fold
increase in revenue over the comparable $1,111,203 reported for
the corresponding period in 2002. The results for Q3 2003
contributed to a 587% increase in revenue reported for the year
to date (9 months) results of fiscal 2003. Year to date revenues
for the nine months ended September 30, 2003 increased to
$20,916,661 compared to $3,562,286 for the nine months ended
September 30, 2002.
The third quarter saw continued seasonal improvements and the
effective completion of the acquisition of WasteCo Environmental
Services Ltd. ("WasteCo"). EBITDA for the third quarter was
$684,293. This represents a two hundred and fifty percent
increase over the EBITDA of $268,406 that was reported for the
first six months of 2003. An after tax profit of $180,566 was
reported for the three months ended September 30, 2003 compared
to the Q2 2003 after tax profit of $55,182. The WasteCo
transaction was effective as of September 2, 2003 for accounting
purposes; therefore only one month of activity is included in the
third quarter results of EMS. The addition of WasteCo to the EMS
group of companies will fuel further growth in the fourth
quarter. A strong finish is anticipated for our current fiscal
year as the fourth quarter is traditionally very active and
revenue is expected to maintain the trend of significant growth
established to date in 2003.
"As one can easily attest, our unique business model and our
focused strategy in the environmental industry is proving to be
extremely successful for EMS and our group of companies", states
Frank D'Addario, President and CEO.
Company Information
EMS is a rapidly growing and profitable environmental company,
which provides cost effective, integrated solutions to all
industries. Based in Ottawa, the company is well positioned to
become the first and largest national company that delivers all
of the goods and services related to this sector. EMS has
already earned preferred status among its' customers which
include federal, regional, provincial, and municipal governments,
and various commercial and industrial Corporations around the
world. EMS has been named one of Profit Magazine's Top 100
Fastest Growing Canadian Companies for 2003.
November 24, 2003 Close $1.75
TSX-EMS
Shares Issued: 17.5 million
ENVIRONMENTAL MANAGEMENT SOLUTIONS INC.
CONSOLIDATED BALANCE SHEET
September 30 Dec 31
2003 2002
(unaudited)
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ASSETS
Current assets:
Short-term investments $1,002,298 $2,030,448
Accounts receivable 13,680,646 3,465,728
Inventory 187,932 101,628
Work in process 2,771,619 762,009
Prepaid expenses and advances 597,089 77,152
Income taxes receivable 87,207
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Total current assets 18,239,584 6,524,172
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PROPERTY, PLANT and EQUIPMENT 7,570,216 2,794,341
LONG-TERM RECEIVABLE 470,135 469,635
SOIL TREATMENT & DISPOSAL
FACILITIES 2,239,527 44,022
GEOREMDIATION TECHNOLOGY 111,343 60,317
GOODWILL 8,256,248 495,311
DEFERRED FRANCHISE FEES 849,881
DEFERRED FINANCING CHARGES 716,782
LONG TERM DEPOSITS 71,690 55,693
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Total assets $38,525,406 $10,443,491
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $4,033,422 $1,374,729
Accounts payable and accrued
liabilities 11,777,768 2,732,889
Current portion of capital lease
obligations 546,867 104,100
Current portion of long-term debt 1,273,607 132,069
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Total current liabilities 17,631,664 4,343,787
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DUE TO SHAREHOLDER 762,031
LONG TERM PAYABLE 149,804
CAPITAL LEASE OBLIGATIONS 908,523 79,003
LONG-TERM DEBT 7,608,761 247,265
FUTURE INCOME TAX LIABILITY 327,361 227,568
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Total liabilities 27,388,144 4,897,623
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Shareholders' equity
SHARE CAPITAL 11,071,826 5,414,506
RETAINED EARNINGS 65,436 131,362
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Total shareholders' equity 11,137,262 5,545,868
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Total liabilities and shareholders'
equity $38,525,406 $10,443,491
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ENVIRONMENTAL MANAGEMENT SOLUTIONS INC.
UNAUDITED CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
Three Months Ended Nine Months Ended
September 30, September 30,
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2003 2002 2003 2002
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Revenue $11,154,698 $1,111,203 $20,916,661 $3,562,286
Direct costs 8,652,877 475,641 15,015,566 1,337,750
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Gross profit 2,501,821 635,562 5,901,095 2,224,536
Expenses
Indirect salaries 1,153,958 372,958 3,019,451 924,767
Selling and
marketing 105,082 8,702 283,145 60,412
General and
administrative 558,488 192,634 1,645,800 434,046
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Earnings before the
undernoted 684,293 61,268 952,699 805,311
Interest 98,869 (1,455) 226,626 1,181
Depreciation and
amortization 276,764 20,438 659,528 54,028
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Earnings before
income taxes 308,660 42,285 66,545 750,102
Provision for income
taxes
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Current 16,664 29,246 212,345
Future 111,430 (1,630)
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Net earnings (loss) 180,566 42,285 38,929 537,757
Retained earnings,
beginning of period (10,275) 436,455 131,362 66,424
Premium on
repurchased shares (104,855) (104,855)
Preferred share
dividends paid (125,441)
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Retained earnings
(deficit), end of
period $65,436 $478,740 $65,436 $478,740
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Earnings (loss) per
share:
Basic $.01 - - $.06
Diluted $.01 - - $.05
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Weighted Average
Shares:
Basic 15,621,901 12,719,855 14,680,398 8,824,231
Diluted 16,181,901 14,408,877 15,240,398 9,956,079
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Complete financial statements are available at www.sedar.com or
can be found on the companies website.
FOR FURTHER INFORMATION PLEASE CONTACT:
ENVIRONMENTAL MANAGEMENT SOLUTIONS INC
Mr. Frank D'Addario
President, CEO and Chairman
(613) 692-7808 ext 111
(613) 692-7812 (FAX)
Email: frank@emsolutions.com
www.emsolutions.com
or
ENVIRONMENTAL MANAGEMENT SOLUTIONS INC
Mr. Trevor Mitzel CA, CFA
Chief Financial Officer
(403) 255-7303
(430) 255-7120 (FAX)
Email: tmitzel@emsolutions.com
www.emsolutions.com
or
Renmark Financial Communications Inc.
Michael Small
(514) 939-3989
(514) 939-3717 (FAX)
msmall@renmarkfinancial.com
www.renmarkfinancial.com
or
Renmark Financial Communications Inc.
Media: Dominic Sicotte
(514) 939-3989
(514) 939-3717 (FAX)
dsicotte@renmarkfinancial.com
www.renmarkfinancial.com
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RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Copyright 2002 The Globe and Mail |
