CNV .30/.33:
(COMTEX) B: CVF Technologies Corporation Reports Profitability on 51% Incr
ase in Sales in the First Quarter 2004 ( PRNewswire-F
B: CVF Technologies Corporation Reports Profitability on 51% Increase in Sales i
the First Quarter 2004 ( PRNewswire-FirstCall )
WILLIAMSVILLE, N.Y., May 24, 2004 /PRNewswire-FirstCall via COMTEX/ -- CVF
Technologies Corporation (Amex: CNV) today reported a sales increase of $794,400
or 51% for the first quarter 2004 compared to the first quarter 2003. Net income
of $246,400 was reported for the first quarter of 2004 compared to a loss of
$628,700 for the first quarter 2003. On a per share basis the income per share
of $0.02 per share in the first quarter 2004 compared to a loss of $0.07 per
share in the first quarter 2003.
Sales for the quarter ended March 31, 2004 were $2,353,200 or an increase of
$794,400 (51%) compared to sales of $1,558,900 for 2003 comparable period due
principally to an increase in Biorem sales of $743,200.
Biorem had sales of $1,668,100 during the first quarter 2004 which was an
increase of $743,200 (80%) over the first quarter 2003. Also the company
generated profit before tax of $230,600 compared to profit of $200,100 in the
first quarter 2003.
As discussed in our 10KSB press release, we are working towards producing a net
asset value per share calculation to assist investors in valuing CVF. Early
indications are that this value is approximately $0.85 per share, demonstrating
the undervalued share price that CVF is currently experiencing. A final value
will be determined by an independent appraisal of CVF's portfolio companies in
the near future. We expect the net asset value of CVF to keep increasing in the
coming months and years as the portfolio matures, including increased values
through potential IPO's and/or acquisitions of some of CVF's portfolio
companies.
Management's analysis of cash resources was included in the December 31, 2003,
10KSB as filed on April 2, 2004. Management continues to carefully monitor and
manage the company's liquidity and believes that the analysis included in the
10KSB is a reasonable indication of anticipated overall cash flows. The Company
intends to mitigate the net cash outflow by seeking financing for CVF at the
parent level, or by selling a portion of its holdings in certain investee
companies, as indicated in prior filings. It will also continue to increase
profitability or reduce the losses in its portfolio companies as well as seek
third party financing for them, thereby reducing the cash requirements of CVF to
fund them. This has already been demonstrated in the results of the first
quarter.
RECENT ACHIEVEMENTS OF PORTFOLIO COMPANIES
Biorem - (69% owned by CVF) sales are up 80% in the first quarter and the
company continues to be profitable. Major contracts recently achieved for its
biofilters, to be used in municipal sewage treatment plants and food processing
plants, include a $2.7 million food processing plant in Ontario, Canada.
Biorem's current order backlog is approximately $6 million and has approximately
$150 million of qualified leads that it is targeting. Biorem estimates that
there are over 6,000 municipal sewage treatment plants in the US that can be
target customers for its biofilters. These filters are used primarily for odor
control.
Gemprint(TM) - (65% owned by CVF) continues to expand its market penetration in
New York having sold Gemprint machines to several major diamond wholesalers,
taking the company one step closer to becoming a world standard for diamond
identification.
SRE Controls - (37% owned by CVF) is working to diversify its revenue into other
markets and customers, as it launches its new line of electronic controllers in
markets as diverse as off-road electric vehicles and electric motor scooters. It
is also working to develop contracts with fuel cell and auto manufacturers.
Ecoval - (85% owned by CVF) is continuing to negotiate partnership agreements
with major manufacturers and distributors in the U.S. and Canada, in order to
launch a targeted marketing program for the sale, by all the major retail stores
in the U.S. and Canada, of its natural non-toxic herbicides and insecticides. It
is also continuing to seek agreements with distributors who focus on state and
municipal governments, particularly in the area of mosquito control, which could
help combat the spread of West Nile Virus.
Jeffrey Dreben, President and Chief Executive Officer, stated, "We are pleased
with our 51% increase in sales as well as the achievement of profitability for
the quarter. The 80% increase in profitable sales at Biorem is particularly
satisfying. We are looking forward to continued progress in sales increases and
profitability in the future quarters as well."
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. Founded in 1989, CVF's holdings include five private companies
involved primarily in 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: Robert L. Miller, Chief Financial Officer, +1-716-565-4711, o
Jeffrey I. Dreben, President & CEO, +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: CPR
SUBJECT CODE: ERN
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