2014

Abtech Holdings, Inc. Reports Second Quarter and First Half 2013 Financial Results

SCOTTSDALE, Ariz., Aug. 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 second quarter ended June 30, 2013. Since the beginning of the second quarter 2013, AbTech has:

  • Most significantly, in July received its first major stormwater design-build-operate system installation award for ten outfall pipes totaling up to $12 million with work anticipated to begin in the month of August;
  • Signed teaming agreements with four oil field services companies and is currently working with several more on developing business opportunities across several shale plays;
  • Validated its technology on the produced waters of ten different shale plays in the United States, including the Permian, Fayetteville, Bakken, Cana Woodford, Marcellus, Eagleford, Piceance, Frenchie Draw, and Utica;
  • Completed the conversion of $1.9 million of promissory notes into common stock, reducing total outstanding debt (short-and long-term) to $823,000 and providing the Company with a stronger base to accommodate future capital needs.
  • Entered into a $500,000 short-term loan facility, borrowing $250,000 in June and the remaining $250,000 in July;
  • In August, the Company completed the sale of a secured convertible promissory note for $600,000 due November 9, 2013 and convertible into the Company's common stock at $0.70 per share. The proceeds are intended to fund working capital needs in advance of the Company's recently announced contract award.

"The progress we have begun to experience has been meticulously nurtured for a long time.  The Company has focused on large scale turnkey projects that can be easily replicated across the country. Providing turnkey solutions in what is soon expected to be a rapidly growing stormwater treatment market is game changing for the industry and AbTech. Our recently announced $12 million stormwater project is the first large scale turnkey project for stormwater in the industry.  Projects take longer than individual product sales, but once awarded can be extremely leveragable and easily replicated throughout the country. We expect to commence work on this first, large-scale marquee stormwater contract in the month of August," commented Glenn Rink, CEO of AbTech. "The pieces of our business development effort are now starting to fit into place.  This award for the first notable project is just one of the opportunities we have targeted over the past year.  With this win, we have attracted the attention of many communities that have similar motivations to address stormwater management and or resiliency through future heavy rain storms.  Our evolution into a comprehensive solution model, coupled with innovative technology, is positioning AbTech as a 'go-to' company to address complicated water treatment needs. We eagerly look forward to these next few months, as we work to deliver on the anticipated increase in revenue and order flow."

AbTech reported second quarter 2013 revenues of $134,000 compared to $240,000 for the same period of the previous year and $100,000 in the first quarter of 2013.  AbTech expects its recently announced award projected of up to $12 million to significantly impact its third quarter results. The Company believes that it is gaining traction with its sales growth strategies and is anticipating significant momentum in the second half of the year.

The Company reported a net loss attributable to controlling interest of $(1.3) million or $(0.02) per basic share for the second quarter of 2013.  This compares to the previous year's second quarter net loss attributable to controlling interest of $(2.4) million or $(0.05) per basic share and $(1.2) million or $(0.02) per basic share for the first quarter 2013.  During the second quarter 2013, AbTech reported a loss from operations of $(1.5) million compared to $(1.5) million during the prior year's second quarter and a loss of $(1.4) million during first quarter of 2013.  

For the three months ended June 30, 2013, AbTech's gross profit on revenue totaled $42,000, yielding a gross margin of 32 percent, compared to a gross margin of 36 percent in the three months ended June 30, 2012 and 1 percent for the first quarter of 2013.  The Company continues to anticipate improved gross margins as its volume of Smart Sponge® product sales increase and its engineering design work expands.

Operating expenses during the second quarter of 2013 totaled $1.5 million, a decrease of approximately $82,000 or 5.2 percent over the second quarter of 2012 due primarily to decreased consulting expenditures, as well as the conclusion of the prior year's field testing of produced water products.  Operating expenses increased when compared to the first quarter 2013 by approximately $78,000 or 5.5 percent due largely to increased business development activity leading to higher costs in payroll, consulting fees and operations at the Company's engineering subsidiary, AEWS.  While AbTech anticipates a continued increase in operating expenses going forward, such increases will be closely managed and timed to revenue growth.

Interest expense for the three months ended June 30, 2013 totaled $13,000 compared to $1.3 million during the second quarter of 2012 and $12,000 in the first quarter of 2013.  During 2012, the Company eliminated approximately $6.8 million of 12% convertible promissory notes.  The interest rate on the remaining $480,000 of short term convertible notes that have remained outstanding through both the first and second quarters of 2013 was reduced, through mutual consent of the Company and note holders, from 12% to 6% per annum beginning January 1, 2013.  In addition, on June 14, 2013, AbTech entered into a 6.5% per annum bridge loan promissory note facility totaling up to $500,000.  As of June 30, 2013, the Company had borrowed $250,000 from the promissory note facility. 

For the six months ended June 30, 2013, AbTech reported revenues of $234,000, a 51 percent decrease compared to the same period in 2012, reflecting the allocation of Company resources to securing large scale stormwater projects that could have a significant impact on revenue, such as the recently awarded $12 million contract on the east coast.  Net loss attributable to controlling interest for the six months ended June 30, 2013 totaled $(2.5) million or $(0.04) per basic share compared to $(5.1) million or $(0.11) per basic share for the same period in 2012.

At June 30, 2013, the Company reported a cash and cash equivalents balance of $223,000, accounts receivable of $158,000 and inventory of $449,000.  On June 30, 2013, the Company's short term debt totaled approximately $730,000, net of discounts, and long term debt totaled approximately $93,000.  During the second quarter of 2013 the Company was able to reduce its total liabilities by $1.5 million through the elimination of $1.9 million of non-interest bearing notes which converted into approximately 2.6 million shares of the Company's common stock. 

On June 30, 2013, AbTech had approximately 67.6 million shares of common stock outstanding, an increase of approximately 3.0 million shares from year end 2012, primarily due to the conversion of approximately $1.9 million of debt of the Company's subsidiary, AbTech Industries, into common stock of the Company noted above. The Company's fully diluted shares totaled approximately 91.5 million inclusive of all options (some of which are performance based), warrants, convertible preferred stock of subsidiary and convertible debt, which upon the conversion of all options and warrants would generate approximately $10.3 million in additional working capital for the Company.

Conference Call Details:




Date/Time:

Wednesday, August 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=95408                


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.

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


















   June 30, 2013










(Unaudited)


December 31, 2012

ASSETS









Current assets:





    Cash and cash equivalents                       

$            222,730


$          2,543,898


    Accounts receivable – trade, net

157,854


74,180


    Inventories, net

448,701


397,804


    Deferred charges, net

9,956


10,128


    Prepaid expenses and other current assets

29,956


14,077


Total current assets

869,369


3,040,087











 Fixed assets, net

75,463


72,981


Security deposits

33,940


33,940


Deferred charges, net

-


4,892


Total assets





$            978,600


$       3,151,900





LIABILITIES & STOCKHOLDERS' DEFICIENCY




Current liabilities:





    Accounts payable

$             430,915


$         263,379


    Accounts payable – related party

617


52,636


    Loan from stockholders

9,000


9,000


    Convertible promissory notes, net of discounts

480,000


620,000


    Convertible promissory notes – related party

-


1,185,000


    Promissory notes, net of discounts

241,076


-


    Capital lease obligation – current portion

3,832


3,739


    Customer deposits

54,363


41,584


    Accrued interest payable

7,275


28,676


    Accrued expenses

280,370


190,782

Total current liabilities        

1,507,448


2,394,796





Due to related party

93,403


96,181

Convertible promissory notes – noncurrent portion

-


6,000

Convertible promissory notes – related party – noncurrent portion

-


525,000

Capital lease obligation – noncurrent portion

4,714


6,654


Total liabilities





1,605,565


3,028,631





Commitments and contingencies








Stockholders' equity ( deficiency)





    Common stock, $0.001 par value; 300,000,000 authorized shares; 67,635,938 and 64,638,372 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

67,636


64,638


    Additional paid-in capital

42,510,497


40,372,764


    Non-controlling interest

(1,874,420)


(1,814,388)


    Accumulated deficit

(41,330,678)


(38,499,745)


Total stockholders' equity (deficiency)

(626,965)


123,269


Total liabilities and stockholders' equity (deficiency)

$            978,600


$        3,151,900

 

ABTECH HOLDINGS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








Three Months ended

June 30


Six Months ended

June 30



2013


2012


2013


2012










Net revenues


$   134,066


$   240,285


$    233,603


$    479,792










Cost of revenues


91,597


153,000


190,317


310,279

Gross profit


42,469


87,285


43,286


169,513










Operating expenses









   Selling, general and administrative


1,272,057


1,331,528


2,518,818


2,230,104

   Research and development


221,683


244,493


391,079


423,690

Total operating expenses


1,493,740


1,576,021


2,909,897


2,653,794










  Operating loss


(1,451,271)


(1,488,736)


(2,866,611)


(2,484,281)










Other income (expense)









   Interest expense


(13,260)


(1,342,414)


(25,122)


(2,226,835)

   Gain (loss) on valuation of warrant liability


-


238,153


-


(678,755)

   Other income 


161


902


768


1,100

Total other income (expense), net


(13,099)


(1,103,359)


(24,354)


(2,904,490)










Net loss before income taxes


(1,464,370)


(2,592,095)


(2,890,965)


(5,388,771)










Provision for income taxes


-


-


-


-










Net loss


(1,464,370)


(2,592,095)


(2,890,965)


(5,388,771)










Net loss attributable to non-controlling interest


(182,133)


(144,053)


(370,648)


(264,836)










Net loss attributable to controlling interest


$(1,282,237)


$(2,448,042)


$(2,520,317)


$(5,123,935)



















Basic and diluted loss per common share


$           (0.02)


$           (0.05)


$         (0.04)


$         (0.11)

Basic and diluted weighted average number of shares outstanding


67,198,990


48,707,777


65,965,103


48,319,058










 

SOURCE Abtech Holdings, Inc.



RELATED LINKS
http://www.abtechindustries.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.