Mgt continues to disappoint--maybe they should sell the company
CET Environmental Services, Inc.
Reports Third Quarter, Nine Month Results
ENGLEWOOD, Colo., Nov. 17 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV
- news) announced revenues of $17.1 million for its third quarter ended September 30, 1998, an
increase of 16 percent compared to revenues of $14.8 million for the period a year earlier. The
Company reported a net loss of $2.6 million or $0.45 loss per share for the third quarter of fiscal
1998, as compared to earnings of $600,000, or $0.10 per share for the third quarter of 1997, due
primarily to a series of project-related charges and accounting adjustments taken in the quarter.
While selling, general, and administrative expenses and indirect costs remained in line with historical
levels, direct costs increased substantially due to overruns incurred on one project.
For the first nine months of 1998, the Company reported revenues of $44.6 million, and a net loss of
$3.9 million or $0.67 loss per share, as compared to revenues of $34.9 million and a net loss of
$800,000 million, or $0.15 per share for first nine months of 1997.
CEO Steven H. Davis commented, ''We are encouraged with the continuing growth of revenue in
both the government and commercial sectors; however, throughout the first half of the year, we
experienced problems with a number of projects that had substantial cost or schedule overruns. This
quarter, in order to halt this pattern, we performed across-the-board analysis of each project in each
region to evaluate risks and loss potential. The result of this analysis was significant charges and
impact to the bottom line.
''Moving forward,'' Davis continued, ''we believe that, with the recent implementation of new
cost-accounting procedures in the field, the projects in progress are fairly accounted for and that
management personnel in each region are better equipped to avoid these losses in the future.
Management is also pleased with the progress made towards identifying potential divestiture partners
and strategies and, working with our investment bank, we have been able to garner strong outside
interest that we believe will deliver the best possible value to the Company and its shareholders in the
near future.'' |
