CET Environmental Services, Inc. Announces Fourth Quarter, Year-End Results; Hires New CFO
ENGLEWOOD, Colo., March 31 /PRNewswire/ -- CET Environmental Services,
Inc. (Amex: ENV), today announced financial results for the fourth quarter and
year ended December 31, 1998. Record revenues for the fourth quarter totaled
$21,912,053, and net income was $4,410,947, or $0.75 per share, which included
nonrecurring gains from the sale of a subsidiary. Net income from operations
for the fourth quarter, exclusive of nonrecurring items, was $272,820 or
$0.05 per share. Revenues for last year's fourth quarter were $19,281,162,
resulting in net income of $502,366, or $0.09 per share. Total revenues for
the year ended December 31, 1998 were $66,497,279, an increase of 23 percent
over 1997 revenues of $54,169,753. Net income for the year ended December 31,
1998 was $538,478 or $0.09 per share, compared to a net loss of ($347,291) or
($.06) per share for the prior fiscal year.
CEO Steven H. Davis commented, "The Company experienced an eventful and
positive fourth quarter in which we accomplished three important objectives.
First, we successfully sold our Water Quality Management Corporation
subsidiary for a good valuation, allowing us to recapitalize our operations
and significantly strengthen our balance sheet with no dilution to
shareholders. Second, we negotiated for the retirement, at a fair price, of
the residual convertible preferred stock issued last year. This was completed
in January 1999. Third, and most important, we returned the Company to
operational profitability."
Davis continued, "These accomplishments have helped lay the foundation for
continued top and bottom line growth through aggressive marketing in both the
government and private sectors, stringent project management controls from the
field level up, prudent acquisition of accretive business units and the
continual attention to maintaining a lean operating cost structure."
Due to the sale of the Company's water treatment subsidiary during the
fourth quarter and the complexity of the transaction, the Company is
requesting a filing extension with the Securities and Exchange Commission and
plans to file its Form 10K within two weeks.
The Company also announced that it has hired finance and administration
veteran Paul C. Kelly, CPA, 44, as its Chief Financial Officer. Kelly comes
to CET from Colorado-based Technology Management Advisors, a management
consulting firm where he developed business plans and secured financing for
technology-based startup companies. Prior to this, Kelly spent twelve years
in financial and operational roles within Adolph Coors Company and one of its
successor companies, ACX Technologies, Inc. In these positions, Kelly was
responsible for both financial and operating matters of the respective
organizations. Prior to joining Coors, Mr. Kelly was an Audit Manager with
Price Waterhouse. Kelly, a Certified Public Accountant, received a BA in
Accounting from Eastern Michigan University and an MS in Financial Accounting
from Colorado State University.
According to Kelly, "During the fourth quarter, outstanding borrowings on
the Company's line of credit decreased $5,927,162, or 85 percent, while
long-term debt and other borrowings decreased $3,413,879. In addition, net
working capital improved to $8.6 million at December 31, 1998." |
