Finally starting to see some movement in GWTR. They reported earnings
of about 3 1/2 cents a share on a small loss with increased revenues.
Trading at less than 2x revenues at this time. Can we hope for more?
Global Water Technologies Announces Record Bookings
and Third Quarter 1998 Results
PR Newswire - November 23, 1998 14:12
GOLDEN, Colo., Nov. 23 /PRNewswire/ -- Global Water Technologies, Inc. (OTC Bulletin Board:
GWTR) today announced results for the third quarter ending September 30, 1998.
Revenues for the third quarter of 1998 increased 152% to $8.8 million compared to $3.5 million for
the same period in 1997. The third quarter of 1998 resulted in a net loss of $187,145 compared to a
net loss of $36,190 for the third quarter of 1997.
Revenues for the nine months ended September 30, 1998 increased 75% to $20.2 million compared
to $11.6 million for the same period in 1997. The first nine months of 1998 resulted in a net loss of
$304,655 compared to a net loss of $45,284 for the same period in 1997.
Contracts of $9.6 million awarded during the third quarter of 1998 increased 303% over the $2.4
million awarded in the third quarter of 1997. For the nine months ended September 30, 1998,
contracts of $25.6 million were awarded which was 91% greater than the $13.4 million awarded for
the comparable 1997 period. Backlog was $13.1 million as of September 30, 1998 compared to
$11.6 million as of December 31, 1997 and $8.0 million as of September 30, 1997. Subsequent to
September 30, additional contracts awarded through November 17, 1998 totaled $16.8 million
bringing total new contracts recorded in 1998 to $42.4 million. This surpasses 1997 full year bookings
by 76%.
Subsequent to September 30, 1998, the Board of Directors approved the Company's change in
accounting principle related to its application of the percentage of completion method of accounting for
revenues and costs on long- term contracts. As a result of this change, to which the Company's
independent public accounting firm concurs, the Company will be recording a one-time extraordinary
charge to income as of January 1, 1998. The amount of this charge, which has not yet been
determined, and the related proforma quarterly effects of the accounting change will be shown in the
Company's annual report on Form 10-KSB for the year ending December 31, 1998.
George A. Kast, Chairman and CEO, stated, "Contracts and backlog for 1998 are very strong and
will have a significant favorable impact on fourth quarter 1998, as well as first and second quarter
1999, revenues. The high demand for our technology, products and services does not surprise me as
we have made the investments and commitment to bring our technology to the marketplace. With the
implementation of some of our new technology and services, I am very optimistic about our continued
growth in 1999."
Global Water Technologies, through its subsidiary Psychrometric Systems, Inc., provides process
cooling water primarily through the design, engineering and construction of cooling towers to industrial
and manufacturing clients worldwide. Also, through its water treatment subsidiary, the company will
provide customers with proprietary non-chemical, water treatment systems designed to meet the
growing need for environmentally sound water purification and reclamation worldwide.
GLOBAL WATER TECHNOLOGIES, INC. Consolidated Statements of Operations (Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
Net revenues:
United States $7,118,646 $2,633,034 $ 16,261,530 $9,614,844
International 1,653,490 844,996 3,982,253 1,975,535
Total revenues 8,772,136 3,478,030 20,243,783 11,590,379
Costs and expenses:
Cost of sales 7,065,786 2,587,622 15,891,640 8,786,912
Selling, general and
administrative 1,885,347 922,183 4,538,156 2,708,948
Research and
development 66,373 16,576 174,690 89,345
Total costs and
expenses 9,017,506 3,526,381 20,604,486 11,585,205
Operating income
(loss) (245,370) (48,351) (360,703) 5,174
Other income (expense):
Interest expense, net (45,670) (32,918) (110,865) (98,367)
Other, net 11,472 23,355 15,469 24,581
Income (loss) before
income taxes (279,568) (57,914) (456,099) (68,612)
Income taxes
(benefit) (95,053) (21,724) (154,074) (23,328)
Net income (loss)
before preferred
dividend (184,515) (36,190) (302,025) (45,284)
Preferred stock
dividend 2,630 -- 2,630 --
Net income (loss)
for common
stockholders $(187,145) $(36,190) $(304,655) $(45,284)
Income (loss) per share:
Basic weighted
average shares
outstanding 294,050,000 263,472,228 294,050,000 262,086,731
Basic income (loss)
per share $(0.0006) $(0.0001) $(0.0010) $(0.0002)
Fully diluted weighted
average shares
outstanding 294,050,000 263,472,228 294,050,000 262,086,731
Fully diluted
income (loss)
per share $(0.0006) $(0.0001) $(0.0010) $(0.0002)
FORWARD LOOKING STATEMENT
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are subject to risks and uncertainties that could cause actual results to vary
materially from those projected in the forward-looking statements. The Company may experience
significant fluctuations in future operating results due to a number of economic, competitive and other
factors, including, among other things, the size and timing of customer orders, changes in laws, new or
increased competition, delays in new products, production problems, changes in market demand,
market acceptance of new products, seasonality in product purchases, and changes in foreign
exchange rates. These factors and others could cause operating results to vary significantly from those
in prior periods, and those projected in forward-looking statements. Additional information with
respect to these and other factors which could materially affect the Company and its operations are
included in the Company's filings with the Securities and Exchange Commission and are incorporated
herein.
SOURCE Global Water Technologies, Inc.
/CONTACT: Robert L. Tomz, Chief Financial Officer of Global Water
Technologies, Inc., 303-215-1100, fax, 303-215-0595,
info@psicoolingtowers.com/
/Web site: psicoolingtowers.com
(GWTR) |
