Stock Watcher and ONI investors, you may or may not know about this fallen angel Look at the chart and then read story from company.
bigcharts.com.
Related Quotes
EVSI
9
-3 13/16
delayed 20 mins - disclaimer
Thursday May 27, 7:31 am Eastern Time
Company Press Release
Evans Systems, Inc. Responds to Wall Street Journal Article
BAY CITY, Texas--(BUSINESS WIRE)--May 27, 1999--Evans Systems, Inc. (Nasdaq NMS:''EVSI'') issued the follow response to yesterday's Wall Street Journal article regarding the Company.
2nd Quarter Earnings, One-Time Charges, Expenses and Income
On May 24, 1999, ESI disclosed in a press release, unaudited second quarter losses of ($2,051,000) or ($.54) per share for the three months ended March 31, 1999. The reported second quarter results include one time, non-recurring charges. Without these charges, the Company would have reported a net loss of ($594,000), or ($.16) per share.
Mr. Richard Dix, President and Chief Operating Officer, stated, ''It is unfortunate the Wall Street Journal failed to mention that more than 70% of the losses reported in the second quarter were due to one-time, non-recurring charges, which were associated with the sale of assets, expenses of a proposed merger and charge offs to allow the Company to report fair and honest valuations to its shareholders.''
''It is unbelievable that this article punishes the Company for reporting assets and charges in full compliance with SEC regulations and GAAP accounting rules, and fails to provide readers with the details to allow for an honest, individual opinion. It is this article that unfairly punished our shareholders and served only to reward the short sellers yesterday. The Company's short position, as of May 14, 1999, was 419,223 shares. This represents more than 22% of the Company's total float,'' concluded Dix.
Disclosure Issues
J.L. Evans, Sr., Chairman and CEO of Evans Systems, Inc., stated, ''I personally respect the credentials of Mr. Romeo, and thank him for his insights. I believe the Company's disclosures have been full, fair and accurate, and in complete compliance with all applicable SEC rules.''
New Business Model
Dix stated, ''It has been my pleasure to speak with a number of analysts and investment professionals who have expressed an interest in our company. With the increasing number of investment professionals today, it is impossible for me to ascertain who is following our company and still focus on the day to day business. I welcome anyone's phone call to discuss our business model.''
Sale of Non-Core Segments, Consolidation of Operations and Business Valuations
Evans Systems announced in December 1997 its intent to sell non-performing or non-core business assets and explore strategic alternatives. On April 16, 1998, Richard Dix was hired by the Company to lead these efforts. To date, ESI has successfully sold its ChemWay segment, propane gas, Fuelman and Tire Center business units, and 14 non-performing convenience stores. The Company is still confident the strategies and valuations of assets were prudent and fair. Because of the sale of assets, with the previously stated goal of maximizing shareholder value, revenues have proportionately decreased as the company has exited non-strategic business units.
Furthermore, the Company's relationship with its present lender, ChaseBank of Texas, has been positive. However, ESI has sought to replace Chase as the holder of its Senior debt, and the Company is seeking an asset-based lender. As stated in the May 24, 1999 release, ESI management is currently in discussions to replace the existing bank debt. And though there can be no assurance that the Company will be successful it this effort, it is the Company's intent to make positive comments on its efforts in the near future.
In its December 31, 1998 quarterly filing, ESI accounted for Affiliated Resources stock at a value of approximately 50% of its market price, or $3.00 per share, on the close of business on that day. ESI's auditors advised the Company that under GAAP accounting rules, that in the future it must ''mark to market'' all marketable securities.
Nasdaq Listing of Evans Systems, Inc. Stock
The Company feels that the article unfairly raised an issue that had been resolved almost one year ago regarding its listing requirements. On June 1, 1998, ESI disclosed through a press release that it received a letter from Nasdaq that the Company's stock would be subject to delisting from the National Market System (NMS). The basis of the Nasdaq actions was one of its new continued maintenance standards, NASD Marketplace Rule(s) 4450(a)(2), requiring a minimum market value of the public float to exceed $5 million. The Nasdaq notice sited only the market value of the Company's public float. On July 29, 1998, ESI announced, in a press release, that it received a favorable ruling from a Nasdaq Listing Qualifications Panel that the Company's securities were in compliance and would continue to be listed on the Nasdaq's National Market System (NMS).
About Evans Systems, Inc.
Evans Systems, Inc. is currently repositioning itself under as an Internet service provider of e-commerce marketing and advertising to the Convenience Store industry. Currently, business segments include: Convenience Stores, a chain of retail outlets in South Texas; Petroleum Marketing, a distributor of petroleum products; and EDCO Environmental, Inc. which provides environmental soil remediation services.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created hereby. Investors are cautioned that all forward-looking statements contained herein are reasonable, and assumptions could be inaccurate, and therefore, there can be no assurance that forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
--------------------------------------------------------------------------------
Contact:
Evans Systems, Inc.
J. L. "Jerry" Evans, Jr., 409/245-2424
Fax: 409/244-5070
or
Dresner Corporate Services, Inc.
Spencer Maus, 312/726-3200, ext. 205
E-mail: Smaus@Dresnerco.com
|
