CNV .36:
(COMTEX) B: CVF Technologies Reports Results for 2003 CVF Reports 47% Incr
ase In Revenue for the Year Biorem Reports Profitabil
B: CVF Technologies Reports Results for 2003 CVF Reports 47% Increase In Revenue
for the Year Biorem Reports Profitability of $1.3 Million ( PRNewswire-FirstCall
)
WILLIAMSVILLE, N.Y., Apr 2, 2004 /PRNewswire-FirstCall via COMTEX/ -- CVF
Technologies Corporation (Amex: CNV) a holding company with a portfolio of
environmentally friendly technology companies with significant market potential,
today reported financial results for the fiscal year 2003.
Sales for 2003 were $8,704,069 or an increase of 47% compared to sales of
$5,923,513 for 2002. This increase was principally due to the sales increase at
Biorem of 128%.
The company reported an 18% reduction in its net loss from continuing operations
(excluding expense related to stock options) to $1,790,916 ($0.20 per share) for
the fiscal year 2003 compared to a net loss from continuing operations of
$2,184,115 ($0.24 per share loss) in the fiscal year 2002.
CVF's gross margins increased to 41.1% in 2003 from 34.9% in 2002 as a result of
increased margins at SRE Controls.
Biorem Technologies had record sales once again in 2003 of $6,189,488 and net
profitability totaling $1,333,037. Currently Biorem has signed purchase orders
and letters of intent for orders totaling approximately $9,000,000.
Gemprint(TM) had record sales in 2003 which were up 16% and continued to operate
on its own cash flow as it did in 2002.
As previously indicated, over the past year and a half CVF management has
adopted very aggressive cost and expenditure controls and monitoring policy both
at its headquarters as well as its portfolio companies. These efforts continue
to yield reduction in expenses as is evidenced by the continued decline in CVF's
net operating loss from continuing operations.
CVF's current financial statements are prepared on a going concern basis as they
have been over the last three years, in particular as they relate to the
Company's ability to continue to maintain the value of those holdings that are
still not profitable. This applies principally to SRE Controls, which was the
only one of CVF's companies to experience a significant loss ($965,000) in 2003
and is currently being funded by a third party investor. SRE is working to
achieve profitability in 2004.
In the past, CVF has addressed its cash flow requirements through the receipt of
interest and dividend payments from its subsidiaries, as well as obtaining
investments in the form of debt and or equity directly into CVF. It has also
selectively sold a portion of its investments as they appreciated in value. CVF
expects to continue to fund its operating needs in the future in the same way as
it has in the past.
CVF is also exploring ways to present its financial statements on a non-
consolidated basis so that the market value of CVF's holdings can be reflected
on its balance sheet. This would create a measurable net asset value per share
for CVF, allowing an investor in CVF to compare that number to the current
trading price. Draft non-consolidated statements indicate that CVF is currently
trading at a significant discount to its net asset value. CVF will issue
additional press releases on this topic in the coming weeks as it examines the
legal and accounting options that will be required to be followed in order to
achieve this result. A more complete discussion on these issues can be found in
its 10-KSB filing.
RECENT ACHIEVEMENTS OF PORTFOLIO COMPANIES
Biorem - (69% owned by CVF) sales revenues for 2003 were at a record $6,189,500
and net income of $1,333,000. This included the results of expansion of sales
activities into the US Southwest with new sales in Texas and California. The
installation of a $3 million biofilter in the food processing industry was
completed in 2003 and contracts have been initiated for a second system of the
same magnitude in 2004. Two new sales managers were hired in 2003 to continue
concentrated efforts in new business development in the municipal market. The
appointment of an industrial business manager in 2004 will provide concerted
effort in continued growth in the agri-food and forest product industry as well
as the hydrocarbon and surface coatings industries. Biorem has been working
closely with leading municipal consulting engineers on pre-selection of large
biofilter systems at three locations for inclusion in the construction of new
municipal treatment facilities in Virginia and Georgia.
Gemprint(TM) - (65% owned by CVF) continues to focus its efforts on establishing
relationships with the major diamond wholesalers in New York City, where it has
sold its custom designed diamond inventory control systems for prices ranging
from $30-$40 thousand each. It also continues to build its relationships in
Europe (DNA of Diamonds Program), and Canada (Canadian Certified Diamond
Program). The need for diamond identification continues to be driven by (1) the
need to protect the identity of branded stones, (2) the need to distinguish
between synthetic diamond look a likes and genuine diamonds, (3) the need to
identify "conflict" diamonds and lost or stolen diamonds. Gemprint is also
actively seeking a strategic partner from the diamond industry to help propel
Gemprint(TM) as the world standard for diamond identification.
SRE Controls - (37% owned by CVF) extended the range of OEM customers served in
2003 and expanded its dealer network as well as identifying a significant number
of target aftermarket accounts. Also, SRE is developing working relationships
with certain electric vehicle manufacturers to supply electrical subsystems to
expand its product offering in the marketplace. At the end of 2003 SRE hired a
stronger sales force, expanded marketing activities and expanded engineering
staff, all intended to increase sales revenue, quality, new technology and
customer appeal. All these activities are expected to have a positive impact on
future financial results.
Ecoval - (85% owned by CVF) expanded its product line with the addition of a
moss cleaner. Patents have also been granted in North America on an improved
herbicidal composition and insecticidal composition. Ecoval also developed an
insecticide formulation that is exempt from US registration because it is
composed of ingredients that the EPA has determined pose minimal risk to the
public. In 2004, Ecoval will continue to generate sales revenues by establishing
key distributor relationships in North America, establishing potential licensees
to generate royalty income and by working to expand sales to its current
customer base.
Jeff Dreben, President and CEO of CVF stated that "CVF results in 2003 showed
significant revenue growth and a continued reduction in our operating losses. In
particular, Biorem's 128% increase in revenue to $6 million and $1.3 million
profit was exceptional. We expect 2004 to be another record year for Biorem and
that our other portfolio companies will continue to make progress."
CVF Technologies Corporation is headquartered in Williamsville, New York. CVF is
a technology development company, whose principal business is sourcing, funding
and managing emerging pre-public technology companies with significant market
potential focused principally in the environmental sector. Founded in 1989,
CVF's holdings include five private companies involved in information technology
and environmental products and services.
Certain statements made in this press release which are not historical facts are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that these statements involve risks
and uncertainties, which may cause actual results or achievements to be
materially different from any future results and achievements expressed or
implied by the forward-looking statements. These risks include, but are not
limited to, product demand and market acceptance risks for the products and
technologies of CVF's subsidiary companies and investees; the impact of
competitive products, technologies and pricing; delays or difficulties in
developing, producing, testing and selling new products and technologies; the
ability of the company's subsidiaries and investees to obtain necessary
financing for their operations and to consummate initial public offerings of
their stock; the effect of the Company's accounting policies; the effect of
trade restrictions and other risks detailed in the company's Statement on Form
10-SB/A filed with the U.S. Securities and Exchange Commission and any
subsequent filings with the Commission.
SOURCE CVF Technologies Corporation
CONTACT: Jeffrey I. Dreben, President & CEO, +1-716-565-4711, or Rober
L. Miller, Chief Financial Officer, +1-716-565-4711, both of
VF Technologies
Corporation
URL: cvfcorp.com
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Copyright (C) 2004 PR Newswire. All rights reserved.
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KEYWORD: New York
INDUSTRY KEYWORD: FIN
ENV
SUBJECT CODE: ERN
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