CES Synergies Reports Third Quarter 2015 Financial Results and Provides Business Update

Demolition Revenue Increases 56.3% to $2.9 Million

16 Nov, 2015, 07:30 ET from CES Synergies, Inc.

CRYSTAL SPRINGS, Florida, November 16, 2015 /PRNewswire/ --


 

CES Synergies, Inc. (CESX) ("CES" or the "Company"), a full service environmental, asbestos abatement and demolition company, today announced financial results for the third quarter ending September 30, 2015 and provided a general business update.

John Tostanoski, CEO of CES Synergies, commented, "Demolition revenue for the third quarter of 2015 increased 56.3% to $2.9 million. The increase in demolition revenues was primarily attributable to five large contracts in progress at NAS Jacksonville, Florida State University, Eglin Air Force Base and FDOT Orange County. Remediation sales decreased in the third quarter of 2015, as we near completion of remediation contracts in Florida and the DTE Power Plant in Michigan. However, we have commenced work on some large scale remediation projects at the end of the third quarter of 2015 in Florida, Georgia and Louisiana that should offset some previous declines as we head into the fourth quarter and 2016."

"We anticipate continued improvement heading into the fourth quarter of 2015, and currently project $18 million in revenue for the fiscal year 2015. We anticipate gross margins for the full-year of 2015 to be between 15% and 18%.  During the third quarter of 2015 alone, we won 38 contracts in Florida valued at $1.4 million that are expected to commence in the fourth quarter of 2015. At the end of the third quarter of 2015, we had a backlog of demolition contracts valued at $6.0 million. As we continue to diversify our revenue streams we believe there are significant growth opportunities at the federal and other government levels."

Revenue for the three months ended September 30, 2015 decreased 9.6% to $4.6 million versus $5.1 million for the quarter ended September 30, 2014. The decrease in revenue was due to decreased remediation segment sales in the third quarter of 2015. Gross margin in the third quarter of 2015 was $360,365 or 8% of revenue versus $978,099 or 19% of revenue for the same period in 2014. The decline in gross margin percentage in the quarter ended September 30, 2015 was the result of higher material and labor costs in our contracts.

About CES Synergies Inc. 

CES Synergies, Inc., through its subsidiary, Cross Environmental Services, Inc., is a specialty environmental services company providing quality environmental contracting solutions, demolition and remediation services to commercial and industrial customers, as well as federal, state and municipal entities. More information may be found at the Company's website: http://www.crossenv.com.

SAFE HARBOR STATEMENT: This press release may contain "forward-looking statements" that are made pursuant to the "safe harbor" provisions as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," and similar expressions. These statements are based upon management's current expectations as of the date of this press release. Such forward-looking statements may include statements regarding the Company's future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses and other future or expected performances. The Company cautions readers there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC.

 

 (tables follow)

CES SYNERGIES, INC. 

CONSOLIDATED BALANCE SHEETS  

(Unaudited) 


   
                                                   September 30,         December 31,
                                                            2015                 2014

                     ASSETS

    Current assets
    Cash                                      $          606,408    $         149,455
    Advances to Employees                                 14,407               14,006
    Contracts Receivable (net of allowance        
    for bad debt)                                      3,795,879            6,365,274
    Inventory                                            170,685              152,772
    Cost and Estimated Earnings in Excess of
    Billings on Uncompleted Contracts                    866,963              229,437                                                    
    Total current assets                               5,454,342            6,910,944
    Property and Equipment                                                      
    Furniture, Fixtures, and Equipment                13,184,537           12,767,975
    Less: accumulated depreciation                   (11,031,582)         (10,650,758)
    Net property & equipment                           2,152,955            2,117,217

    Other assets
    Goodwill                                           1,446,855            1,446,855
    Other assets                                           5,206                6,531
    Total other assets                                 1,452,061            1,453,386
    TOTAL ASSETS                              $        9,059,358    $      10,481,547

      LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
    Accounts payable                          $        2,586,988    $       2,570,259
    Accrued payroll/expenses                             687,566               82,391
    Billings in Excess of Costs and
    Estimated Earnings on Uncompleted
    Contracts                                            282,876              598,645
    Notes payable                                      1,750,300            1,750,300
    Current Portion Long-term Debt                       595,757              595,757
    Total current liabilities                          5,903,487            5,597,352
    Long-term liabilities
    Long-term debt, net of current portion             3,779,518            3,337,166
    Total long-term liabilities                        3,779,518            3,337,166

    Stockholders' equity
    Common Stock, $0.001 par value,
    authorized 250,000,000 shares, September
    30, 2015 and December 31, 2014
    Issued: 46,880,500 shares at September
    30, 2015; and 46,730,500 shares at
    December 31, 2014                                     46,881               46,730
    Additional Paid in Capital                         1,299,018            1,281,048
                                                       
    Retained earnings                                 (1,969,546)             219,251
    Total stockholders' equity                          (623,647)           1,547,029
    TOTAL LIABILITIES AND STOCKHOLDERS'                      
    EQUITY                                    $        9,059,358    $      10,481,547

CES SYNERGIES, INC. 

CONSOLIDATED STATEMENTS OF OPERATIONS  

(Unaudited) 


   
                      Three Months ended                     Nine Months ended
                    September     September 30,          September         September 30,
                     30, 2015              2014           30, 2015                  2014
    Revenues  $     4,647,451       $ 5,142,759    $    13,292,944         $  13,636,198
    Cost of
    sales           4,287,086         4,164,660         11,400,234            10,678,535
    Gross                                             
    profit            360,365           978,099          1,892,710             2,957,663
    General
    &
    administrative
    expenses        1,254,745         1,243,143          3,848,916             3,684,250
    Net
    operating
    profit/      
    (loss)           (894,380)         (265,044)        (1,956,206)             (726,587)
    Other
    income/
    (expenses),
     net              (75,047)          (69,375)          (232,591)              (44,934)
    Income
    before
    income        
    taxes            (969,427)         (334,419)        (2,188,797)             (771,521)
    Income
    taxes                 -              (81,339)              -                  81,339
    Net
    profit/    
    (loss)     $     (969,427)      $   (415,758)   $   (2,188,797)       $     (852,860)
    Earnings
    per
    share
    Basic
    and
    diluted    $     (0.0207)       $    (0.0089)   $      (0.0467)       $      (0.0183)
    Shares
    used in
    computing
    earnings
    per
    share
    Basic
    and           
    diluted        46,880,500         46,686,500         46,880,500           46,686,500
    Cash
    distribu
    tions
    declared
    per
    common
    share      $           -        $          -     $            -        $           -

 

Investor Relations:
Natalya Rudman
Crescendo Communications, LLC
+1-(212)-671-1020, Ext:304
cesx@crescendo-ir.com

SOURCE CES Synergies, Inc.