Raging Bull #4969, Posted by crappedout on:
Thursday, 30 Sep 1999 at 12:19 PM EDT
Excerpt:
In other words, to Cayman, it's time for you to move on. IMO we've heard quite enough about her spilt milk. If she can't stand the heat, get outta the kitchen. Same goes for anyone else.
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Reply:
"It is as fatal as it is cowardly to blink (at) facts because they are not to our taste."
John Tyndall, English Physicist (1820-1893)
I love to … rain on your parade … Jackman. So here is some more spilt milk. Better yet, think I'll pour the whole bottle of cream over your head!
* Note the (Plant and Project Update)
cayman_98
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LANGLEY, British Columbia--(BUSINESS WIRE)
March 24, 1997 -- Corporate Development Ontario
Hamilton Bio Conversion Inc. The company is pleased to announce that it has brought its first plant into a position of profit on operations. As of Jan. 31, 1997, Hamilton Bio Conversion has reported a profit before depreciation, of $40,739. Revenue has continued to build since the end of the third quarter. These results have been realized even though Hamilton was involved in a mechanical upgrade program throughout the third quarter. The results confirm both the effectiveness of the mechanical modifications and the strategic decisions taken regarding the management and operation of the plant. Since the end of the second quarter tonnages processed have been
increasing steadily on contracted waste volumes. The increase is projected to continue through the year, based on volumes processed to date. Over the last three quarters a doubling of volume and revenues has been seen and by the end of the fourth quarter this plant is projected to be at capacity of 300 tons per day. This rapid expansion of processing has been accommodated by the corrections to engineering deficiencies identified during the recently completed system review.
Market demand coupled with an availability of contracts, to receive and process large volumes of sludge from sewage treatment plants in the Hamilton-Wentworth region has caused management to determine to expand capacity at Hamilton. The plant capacity is to be expanded to 500 tons per day to accommodate the increased volume and the plant will process both sludge and food waste. Capital costs for expansion and upgrades equal to 30% of new plant costs will result in a 70% increase in capacity. Engineering and project development for the expansion has been initiated. The Hamilton Bio Conversion property is an ideal site for such an expansion as it is situated on a 4 acre parcel of land providing ample room for the necessary
increase in physical dimensions.
Brampton Bio Conversion Inc. Over the first nine months of the fiscal year, Brampton has increased tonnage and revenue. New third quarter contracts provided the basis for this increase and scheduled fourth quarter contracts are projected to bring tonnages to target levels. The Hamilton and Brampton plants have combined resources to optimize revenue flows and to make effective use of facilities to maintain and increase productivity. Brampton has been recognized as an ideal depackaging service provider for generators and is currently handling
significant depackaging business while aggressively seeking further contracts. Brampton also receives bulk organic wastes as well as the depack stream. Results to date indicate raw material projections to be on target. Brampton will expand its capacity and business
in the depackaging field, with the intention of becoming a dedicated depackaging facility. Brampton realizes additional revenue from the fee premium available for the secure depackaging service which it is offering.
Ajax. The company looks at the rapid increase and major growth in business as indication of the market breakthrough and industry acceptance it has been developing in the Toronto area. Plans for Ontario involve the establishment of a plant in Ajax to handle waste materials from the Eastern part of Toronto and adjacent communities. As part of the Ontario operation, Ajax would receive waste from various generators and haulers operating to the East of Toronto, as well as from the depackaging operation at Brampton Bio Conversion. Waste streams from plants owned by food industry giants such as
Kraft, General Foods, General Mills, the Oshawa Food Group and Quaker Oats are considered to represent a strong base for a new plant and preparation wastes from commissaries belonging to large companies such as General Motors also represent significant available waste streams.
Ontario Region. Negotiations are at an advanced stage for a large regional licence for Ontario, including existing plants. The agreement would involve the purchase by the partner of 50% ownership in the existing plants. The partner would take responsibility for operations of the Ontario market and would have a first right of refusal on licenses for Quebec and the Atlantic Provinces. Thermo Tech(TM) would still retain its 50% interest in all existing and future plants. A more detailed announcement will be forthcoming when and if negotiations have been concluded.
The Thermo Master(TM) System Engineering. In early January, the company received the final report of the design review from Dick Engineering. The company has been conducting an ongoing program of upgrading in parallel with the review and the report recommendations have effectively already been implemented, resulting in the improvements in performance noted above. A major component of the retrofit recommendations is the inclusion of a highly efficient triple effect evaporator system which has been ordered from the Rosenblad Design Group of Leonardo, NJ. Rosenblad has guaranteed performance and in recognition of the potential has given guarantees of high priority manufacturing preference. Manufacturing is in progress for the Hamilton evaporator. Increased product volume and value resulting from the more efficient recovery system will more than offset operating costs of just over $2/per ton of incoming raw material. Expansion plans for the Hamilton plant incorporate all needed space for the evaporator which can be easily accommodated within the plant structure. The evaporator is an integral part of the new plant design for future Thermo Master(TM) Plants.
New Plant Design and Construction. New plants will be built to the design which has resulted from the current review. New plant design will be based on 300 ton per day capacity but where the market demands, capacity can be expanded to 500 tons per day or greater. Design concepts and systems have been finalized and approved and Dick Engineering is currently rendering the detailed engineering drawings which will constitute the Thermo Master (TM) Plant design for the roll-out of the turn-key plants anywhere in the world. The Market for Thermo Master(TM) Plants. The engineering review and parallel
internal operational performance review have resulted in new pro forma financial projections which indicate the Thermo Master(TM) Plant is able to offer a highly competitive technology for waste management. When compared to all currently available options, the Thermo Master(TM) system is unique in its technology and is able to compete head to head with the much less attractive disposal options now available. The increase in plant efficiency has allowed a reduction in the processing fee assumption with the effect of more than doubling the number of economically viable potential plant sites
available in North America.
Plant and Project Update
Operational update and new plant projections include the following sites:
1. Corinth, New York. The company has requested quotations for dismantling and reassembly of the plant as the company intends to move the entire operation to a new area of the Eastern USA. The company is currently in negotiations for a purchase arrangement which could result in recapture of a significant portion of the capital cost of the plant. Prior to reopening, the plant will benefit from upgrading to bring it to the current standard for Thermo Master(TM) Plants.
2. Richmond, British Columbia. Richmond Bio Conversion is a high priority for development. The company is engaged in advanced negotiations for the establishment of a 50% joint venture and for a secure supply of contracted waste materials. Management expects these negotiations to be complete within the current fiscal year. This newest Thermo Master(TM) Plant is intended to be the company's technology showcase for Western North America.
3. Fort Devens, Massachusetts. A site has been assigned for the Fort Devens Thermo Master(TM) Plant. Air and other necessary permits have been granted by the Massachusetts Department of Environmental Protection. This plant is permitted to process food waste as well as sewage treatment bio-solids. Upon completion of final engineering drawings, construction is expected to start with the plant being in operation later in 1997. An agreement was reached with Bio Gro, a division of Wheelabrator Water Technologies, for a long term 800 ton per week, put or pay contract for sewage sludge with a first right of refusal on remaining plant capacity. Discussions are ongoing with
Wheelabrator regarding other potential projects involving bio-solids residuals.
4. Skagit County, Washington. A comprehensive review and report has been completed by E.D. Hovee and Company, a highly respected consultant in the field of economic development services. The report includes a full review of the financial feasibility for the project and concludes that in the short term, a plant can be supported in Skagit County, on the strength of currently available waste streams, tipping fees and local economics. The long term outlook improves, increasing the potential profitability. The environmental and economic benefit makes a Thermo Master(TM) Plant an attractive addition to the County. The company views Skagit Bio Conversion as a priority project. The use of Industrial Revenue bonds is being pursued for financing of this plant.
5. Seattle, Washington. The company has determined that it will proceed with Stage One of a Thermo Master Plant complex in Seattle, Wash. The company has commenced discussions with E.D. Hovee & Company to conduct a thorough market analysis similar to Skagit County, in order to expedite financing and to identify strategic directions for project development.
6. International. Trooper Technologies, holder of a regional licence for specified parts of Central and Eastern Europe, has advised the company that it has completed arrangements to build the first plant under this licence, in Warsaw, Poland and is completing its financing arrangements for the project.
THERMO TECH(TM) TECHNOLOGIES INC.
Consolidated Statements of Loss and Deficit
FOR NINE MONTHS ENDED January 31, 1997 and 1996
(Unaudited)
(Canadian $)
Nine months ended
January 31
1997 1996
(restated)
Revenue 2,079,927 1,122,602
Cost of operations 2,641,382 683,929
(Loss) Profit before
expenses (561,455) 438,673
OPERATING EXPENSES
Selling, general &
administrative expenses 4,748,779 4,648,701
Research & development 1,281,695 211,734
6,030,474 4,860,435
Loss from operations (6,591,928) (4,421,762)
OTHER EXPENSE (INCOME)
Other expense 831,848
Gain on sale of
investments (321,266)
Depreciation &
amortization 2,527,423 1,982,126
Total other expense 3,038,005 1,982,126
NET LOSS (9,629,934) (6,403,888)
DIVIDENDS IN KIND (503,185)
DEFICIT BEGINNING PERIOD (26,602,445) (12,386,583)
DEFICIT END OF PERIOD (36,735,564) (18,790,471)
Weighted average common
shares outstanding 29,526,635 12,885,494
Loss per common share $ (0.33) $ (.50)
Rene J. Branconnier, President and CEO provided the following review:
As already noted, the company has made significant progress in realizing profits from plant operations with Hamilton Bio Conversion having recorded an operating profit of $40,739 before depreciation, at the end of the third quarter. Corporate revenues for the period were $2,079,927, representing an increase of 85% over revenues of $1,122,602 for the same period in 1995/96. The company derives revenues from fees charged to process waste at its Thermo Master(TM) Plants, end product sales of high protein animal feed supplements and fertilizers, from waste management brokerage fees and royalties, as well as from technology licence fees and delivery of turn-key plants.
Selling, general and administrative expenses increased only $100,077 from Jan. 31, 1996 to Jan. 31, 1997 despite the inclusion of certain costs relating to upgrading, retrofit and engineering programs. This small net increase reflects an overall reduction in regular expenses and management's commitment to controlling of costs and more efficient day to day operations. Nonetheless, new investments in the future have been made through R&D, the engineering review and new design program as well as the establishment of new and ambitious marketing program intended to put in place the infrastructure to advance the company's long term development plan. Costs of operations, including direct labor and benefits, utilities, and supplies were $2,641,382 at the end of the quarter compared to $683,929 in 1995/96. Hamilton and Brampton plants were in a start-up and commissioning phase through much of the second quarter of 1995/96 and the difference in cost of operations, which is also reflected in the loss before expenses, is partly due to the deferred treatment of pre-operating costs in financial reporting. An increase in R&D expenditure of $1,069,961 has yielded a number of positive results, the most significant of which has been in the area of enzyme production and recovery. Management is currently determining the structure to optimize the return to the company and the company's
shareholders resulting from this entirely new venture. Further information will be made available as appropriate by way of a separate news release. The company is pleased to announce that conversion is 100% complete on a convertible debenture for US$3,760,000 which was placed by way of a Regulation S Offering. A total issuance of 9,449,078 shares has taken place with in kind interest of US$46,474.12 paid. The company does not currently
anticipate conducting any further Regulation S financings. Proceeds from the financing were applied to such projects as the upgrading and new plant design. Certain matters discussed in this Press Release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and, as such, may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Readers are cautioned not to place undue reliance on the forward looking statements made in this Press Release.
Thermo Tech (TM) Technologies Inc. is a leader in organic waste recycling with offices in Vancouver and Toronto, Canada and Atlanta. Thermo Tech's (TM) patented thermophilic process is utilized in compact and environmentally friendly Thermo Master(TM) plants to convert biodegradable food waste into high protein animal feed and waste water treatment sludges into fertilizer concentrate.
ON BEHALF OF THE BOARD OF DIRECTORS OF THERMO TECH(TM) TECHNOLOGIES INC.
Per: Rene J. Branconnier
President and Director
CONTACT: Thermo Tech Technologies Inc.
Vancouver Corporate Office: 604/534-5085
Toronto Corporate Office: 905/450-8866
Atlanta Corporate Office: 404/816-9003
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