Abtech Holdings, Inc. Reports First Quarter 2013 Financial Results

SCOTTSDALE, Ariz., May 13, 2013 /PRNewswire/ -- Abtech Holdings, Inc. (OTC QB: ABHD) ("AbTech" or the "Company"), a full-service environmental technologies and engineering firm dedicated to providing innovative solutions to communities, industry and governments addressing issues of water pollution and contamination, today reported financial results for its first quarter ended March 31, 2013.  Since the beginning of the year, AbTech has:

  • received stormwater RFP awards totaling $563,000 with current active bids pending on domestic stormwater projects in excess of $10 million;
  • developed a $3 million pipeline of industrial water treatment projects in Europe which are currently in the contract stage;
  • signed four oil and gas service company teaming agreements with multiple additional teaming, licensing and distribution agreements in various stages of negotiation;
  • designed Smart Sponge® treatment units into the trailer systems expected to be deployed by a major oil field services provider,
  • established an oil and gas project pipeline with immediate proposals totaling $870,000 for which contracts are expected to be awarded over the next 90 days, and additional projects are expected to be added to the pipeline with award decisions expected in the second half of this year;
  • strengthened its balance sheet with the conversion of $1.9 million of debt into common stock, reduced total debt to approximately $480,000; and
  • received the Water Management Company of the Year award at the March 2013 Gulf Coast Oil & Gas Awards.

"In the stormwater market we are methodically following a strategy that we believe will result in the awarding of material projects in the near term.  As previously mentioned in the fourth quarter 2012, several factors, including planning, regulatory and permitting issues, persuaded cities to delay decisions and, consequently, extend the sales cycle beyond our original expectation. These factors have largely been resolved.  Throughout this period, we have worked closely with prospective customers to help them through the process, and we believe additional projects are now imminent," stated Glenn Rink, founder and CEO of AbTech.  "The demand for total water treatment solutions across all our business segments is quite active.  AbTech's integrated approach to providing complete water management solutions is in the early stages of achieving recognition in a growing, global opportunity."

AbTech reported revenues for the three months ended March 31, 2013 of approximately $100,000 compared to $240,000 for the same period of the previous year and $156,000 in the fourth quarter of 2012.  AbTech's current backlog which it expects to book in the second quarter, totals $563,000 and is growing, as is the Company's business proposal pipeline.

The Company reported a net loss attributable to controlling interest of $(1.2) million or $(0.02) per basic share for the three months ended March 31, 2013. This compares to a net loss attributable to controlling interest of $(2.7) million or $(0.06) per basic share for the three months ended March 31, 2012 and $(1.7) million or $(0.02) per basic share for the fourth quarter 2012.  AbTech incurred a loss from operations of $(1.4) million for the three months ended March 31, 2013 versus a loss from operations of $(996,000) in the same period of the prior year and a loss from operations of $(1.6) million in the fourth quarter 2012.

AbTech operated at approximately 3 percent of operating capacity during the three months ended March 31, 2013, which adversely affected gross margins, as excess capacity costs flowed through to cost of revenues.  The Company continues to expect high gross margins for its Smart Sponge® product as it achieves a critical mass in its business activity.  However it should be noted that ancillary and complimentary products and services offered to our customers would likely produce varying margins depending on the product or service and the market segment.

Operating expenses for the three months ended March 31, 2013 totaled $1.4 million, an increase of approximately $338,000 over the same period of 2012 and a decrease of approximately $255,000 compared to the fourth quarter of 2012.  A significant portion of the year over year increase was attributed to an expanded business development effort, including approximately $126,000 in operating costs associated with the Company's engineering subsidiary AEWS.  As AbTech's business grows, operating expenses will be managed to maximize operating margins.

The Company substantially lowered its interest expense for the three months ended March 31, 2013 to $12,000, compared to $884,000 in the same period of 2012 and $483,000 in the fourth quarter of 2012. During 2012, the Company eliminated approximately $6.8 million of convertible promissory notes.  The interest rate on the $480,000 of short term convertible notes outstanding at March 31, 2013 was reduced, through mutual consent of the Company and note holder, from 12% to 6% per annum beginning January 1, 2013.

At March 31, 2013, the Company reported cash and cash equivalents of $1.2 million, accounts receivable of $90,000 and inventory of $452,000.  On March 31, 2013, the Company's short term debt totaled approximately $2.2 million, and long term debt totaled approximately $307,000.  The Company reduced its total debt by approximately $4.1 million during the fourth quarter of 2012. Then, on April 11, 2013, subsequent to the end of the first quarter, the Company eliminated an additional $1.9 million of non-interest bearing notes through conversion into approximately 2.6 million shares of the Company's common stock. 

On March 31, 2013, AbTech common stock outstanding totaled approximately 64.8 million shares, compared to 64.6 million shares at December 31, 2012.  The Company's fully diluted share count decreased by approximately 631,000 during the first quarter of 2013 to approximately 91.4 million (inclusive of all options, warrants and convertible debt) due primarily to the cashless exercise of warrants.  If all remaining outstanding options and warrants were exercised for cash, the Company would receive approximately $10 million in additional capital.

Conference Call Details:

Date/Time:

Tuesday, May 14, 2013 – 1:00 p.m. (ET)

Telephone Number:

800-860-2442

International Dial-In Number:

412-858-4600

Canada Dial-In Number:

866-605-3852

Internet Access:

http://www.videonewswire.com/event.asp?id=93709


   or


www.abtechindustries.com

It is recommended that participants phone-in at least 10 minutes before the call is scheduled to begin. A replay of the conference call in its entirety will be available approximately one hour after its completion via the Internet Access link above.

Annual Shareholder Meeting Details:

Date/Time:

Monday, June 3, 2013—10:00 a.m. (ET) – RSVP REQUIRED

Place:

1120 Avenue of the Americas, 4th Floor (Grannus Financial Offices)



A copy of the power point used during the presentation will be available beginning on June 4, 2013 at www.abtechindustries.com.

Investor Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
212-681-4108
Yvonne@GrannusFinancial.com

or

Lane J. Castleton
Chief Financial Officer
Abtech Holdings, Inc.
480-874-4000
lcastleton@abtechindustries.com

ABOUT ABTECH HOLDINGS, INC. (OTCBB: ABHD) AND ABTECH INDUSTRIES, INC.

AbTech Industries, Inc. (a subsidiary of AbTech Holdings Inc.) is a full-service environmental technologies and engineering firm dedicated to providing innovative solutions to communities, industry and governments addressing issues of water pollution and contamination. Its products are based on polymer technologies capable of removing hydrocarbons, sediment and other foreign elements in stormwater runoff (ponds, lakes and marinas), flowing water (curbside drains, pipe outflows, rivers and oceans), and industrial process and wastewater. AbTech's offerings include the ground-breaking new antimicrobial technology called Smart Sponge® Plus. This technology is effective in reducing coliform bacteria found in stormwater, industrial wastewater, and municipal wastewater. Smart Sponge® Plus is registered with the Environmental Protection Agency (Registration #86256-1). AbTech's teams of water treatment technology experts, civil and environmental engineers, and field operations specialists develop solutions to improve the quality of our limited water resources. AEWS Engineering (a subsidiary of Abtech Holdings, Inc.), is an independent engineering civil and environmental engineering firm partnered with top research and engineering universities. By focusing on bringing new engineering and technology innovation to the water infrastructure sector, AEWS is positioned to be at the forefront of stormwater Best Management Practices development and to deliver the latest in design excellence to its customers. For more information please visit www.abtechindustries.com. More information on AEWS Engineering can be found at www.aewsengineering.com.

This news release contains "forward-looking statements" which are not purely historical and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

 

*** Financial Statements Follow ***

 

ABTECH HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS









March 31, 2013


December 31, 2012








(Unaudited)



ASSETS




Current assets:





    Cash and cash equivalents                    

$   1,230,259


$    2,543,898


    Accounts receivable – trade, net

89,962


74,180


    Inventories, net

451,994


397,804


    Deferred charges, net

10,128


10,128


    Prepaid expenses and other current assets

12,787


14,077


        Total current assets





1,795,130


3,040,087











    Fixed assets, net

75,243


72,981


    Security deposits

33,940


33,940


    Deferred charges, net

2,360


4,892


         Total assets





$   1,906,673


$   3,151,900





LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIENCY)




Current liabilities:





    Accounts payable                 

$     380,283


$     263,379


    Accounts payable – related party

11,103


52,636


    Loan from shareholders

9,000


9,000


    Convertible promissory notes

620,000


620,000


    Convertible promissory notes – related party

1,510,000


1,185,000


    Capital lease obligation – current portion

3,167


3,739


    Customer deposits

41,584


41,584


    Accrued interest payable

36,306


28,676


    Accrued expenses

181,427


190,782

Total current liabilities        

2,792,870


2,394,796





Due to related party

94,827


96,181

Convertible promissory notes - noncurrent portion

6,000


6,000

Convertible promissory notes – related party - noncurrent portion

200,000


525,000

Capital lease obligation – noncurrent portion

5,690


6,654


Total liabilities





3,099,387


3,028,631





Commitments and contingencies








Stockholders' equity (deficiency)





    Common stock, $0.001 par value; 300,000,000 authorized shares;





        64,807,343 and 64,638,372 shares issued and outstanding 





        at March 31, 2013 and December 31, 2012, respectively

64,807


64,638


Additional paid-in capital

40,483,207


40,372,764


Non-controlling interest

(2,002,904)


(1,814,388)


Accumulated deficit

(39,737,824)


(38,499,745)


Total stockholders' equity (deficiency)

(1,192,714)


123,269


Total liabilities and stockholders' equity (deficiency)    

$    1,906,673


$    3,151,900

 

ABTECH HOLDINGS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS






Three Months ended

March 31,



2013


2012






Net revenues



$       99,537



$       239,507

Cost of  revenues



98,720



157,279

Gross profit



817



82,228








Operating expenses







     Selling, general and administrative



1,246,761



898,576

     Research and development



169,396



179,197

Total operating expenses



1,416,157



1,077,773








Operating loss



(1,415,340)



(995,545)








Other income (expense)







     Interest expense



(11,862)



(884,421)

     Loss on valuation of warrant liability



-



(916,908)

     Other income (expense)



607



198

Total other income (expense), net



(11,255)



(1,801,131)

 

Net loss before income taxes



 

(1,426,595)



 

(2,796,676)

Provision for income taxes



-



-

Net loss



(1,426,595)



(2,796,676)

Net loss attributable to non-controlling interest



(188,516)



(120,783)

Net loss attributable to controlling interest



$   (1,238,079)



$   (2,675,893)

Basic and diluted loss per common share



$            (0.02)



$           (0.06)

Basic and diluted weighted average number

 of shares outstanding



 

64,717,505



 

47,930,338

 

SOURCE Abtech Holdings, Inc.



RELATED LINKS
http://www.abtechindustries.com

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