Energy BioSystems Announces Reduced Operating Costs in
Third Quarter Earnings Report
PR Newswire - November 16, 1998 10:20
THE WOODLANDS, Texas, Nov. 16 /PRNewswire/ --
Energy BioSystems Corporation (Nasdaq: ENBC), which is commercializing
biotechnology-based processes for the petroleum refining and
production industries, today reported results for the third quarter of 1998.
For the quarter ended September 30, 1998, the company reported
revenues of $485,241 compared with revenues of $352,652 for the same
period a year ago. The company reported a net loss of $1,720,644, or
$0.19 per share, versus a loss of $2,569,904, or $0.29 per share, for
the same period a year ago. The net loss per share included six cents
per share for periodic accretion and accrued dividends on the
company's Series B Convertible Preferred Stock issued in the first quarter of 1997.
"We have reduced our quarterly loss by approximately one-third versus
the same period last year through personnel reductions and other
expense reduction programs," noted William E. Nasser, chairman and
chief executive officer of EBC.
"At the same time, our stronger focus is on the development of the
company's core biocatalytic desulfurization (BDS) technology to
demonstrate a commercially viable level of catalyst activity, extent
of desulfurization, and increased catalyst longevity. We have made
significant progress in these three key critical performance
parameters for the commercialization of this technology," he continued.
Nasser said increased revenues in the third quarter resulted from
increases in sponsored research revenues offset in part by decreased
interest and investment income.
He also noted that as announced earlier this month, the company has
begun exploring business alliances for commercialization of a
potentially new industrial chemical that is a byproduct of its BDS
process. He said that studies indicate that the substance, hydroxy
phenyl benzene sulfinate (HPBS), can be a lower-cost and potentially
biodegradable building-block in the manufacture of detergents.
Energy BioSystems Corporation is a United States based leading edge
biotechnology company developing biocatalytic processes for commercial
petroleum refining and industrial production. The company has
developed special knowledge in working with Rhodococcus and related
bacterial genera and applied this knowledge to biocatalysis. Expertise
in oxygenase biochemistry, particularly related to complex cellular
pathways; and expertise in multi- phase systems add to our
capabilities. The company's principle focus has been on developing
biocatalytic desulfurization, a proprietary process using enzymes to
remove sulfur from petroleum, including fuels, while operating at mild
temperature and pressure. This process is expected to help refiners
and vehicle manufacturers worldwide meet increasingly stringent
environmental regulations in a more cost effective manner. Additional
information about Energy BioSystems is available at the company's web
site: www.energybiosystems.com.
Energy BioSystems Corporation Statement of Operations (Unaudited)
Quarter Ended Quarter Ended September 30, 1998 September 30, 1997
Revenues $485,241 $352,652
Net Loss ($1,720,644) ($2,569,904)
Loss Per Share ($0.19)(A) ($0.29)(B)
Shares Used in Computing
Loss Per Share 13,006,238 11,767,017
(A) Net loss per share includes $0.06 attributable to periodic accretion
and accrued dividends on the Series B Preferred Stock issued in
February and March 1997.
(B) Net loss per share includes $0.07 attributable to periodic accretion
and accrued dividends on the Series A Preferred Stock issued in
October 1994 and the Series B Preferred Stock issued in February and
March 1997.
Energy BioSystems Corporation
Summary Balance Sheet
September 30, 1998 December 31, 1997
(Unaudited)
Assets:
Current Assets $4,872,449 $11,368,461
Long term Assets 2,907,957 3,596,598
Total Assets $7,780,406 $14,965,059
Liabilities & Shareholders'
Equity:
Current Liabilities $405,120 $1,266,836
Stockholders' Equity 7,375,286 13,698,223
Total Liabilities &
Stockholders' Equity $7,780,406 $14,965,059
Energy BioSystems Corporation
Summary of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
1998 1997
Net Loss $ (6,769,999) $ (7,070,426)
Cash Flow from Operations
(Other than Net Loss) 899,732 849,824
Cash Flow from Investing Activities 528,521 5,381,612
Cash Flow from Financing Activities 224,900 10,266,232
Net Decrease in Cash & Cash Equivalents (5,116,846) 9,427,242
Cash & Cash Equivalents at Beginning
of Period 9,661,310 3,106,004
Cash & Cash Equivalents at End
of Period $ 4,544,464 $ 12,533,246
This document contains forward-looking statements that are subject to certain risks, uncertainties and
assumptions. Should one or more of such risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those indicated in such
forward-looking statements. For a discussion of such risks and assumptions, see "Risk Factors"
included in the Company's annual report or Form 10-K for the year ended December 31, 1997.
SOURCE Energy BioSystems Corporation
/CONTACT: investors, Paul G. Brown III, Chief Financial Officer of
Energy BioSystems Corporation, 281-364-6140/
/Web site: energybiosystems.com
(ENBC) |
