National Waste Management Holdings Inc. Reports 50% Increase in Revenue for the Year Ended 2015

31 Mar, 2016, 08:24 ET from National Waste Management Holdings Inc

HERNANDO, Florida, March 31, 2016 /PRNewswire/ --

Gross Margin Improves 323 Basis Points 

Shareholders' Equity Increases to $5.4 Million 

National Waste Management Holdings, Inc. (OTC: NWMH), today announced financial results and provided a business update for the year ended December 31, 2015.

Louis Paveglio, CEO of National Waste Management Holdings Inc., stated, "I am pleased to report our revenue increased 50% to $2.5 million for the year ended December 31, 2015. The increase in revenue is primarily due to the acquisitions we completed in 2015 of Gateway Rolloff Services, L.P. ("Gateway") and Waste Recovery Enterprises, LLC, as well as a growing customer base. Gross margin for 2015 improved 323 basis points to 47% compared to 44% in 2014."

"We have effectively executed on our business strategy by acquiring facilities that increase our geographic footprint, augmenting services to existing customers, and attracting new customers in under serviced markets. In October, we acquired Waste Recovery Enterprises located in Bainbridge, New York. Waste Recovery Enterprises operates a permitted waste processing and disposal facility. The addition of this facility to National Waste's family of permitted facilities provides us with a northeastern presence and an exceptional platform to better serve and expand into key waste markets. In December, we acquired Gateway, a portable dumpster service with pick up and drop off collection, specializing in the removal of debris, garbage, waste, hauling construction, and demolition debris located in Odessa, Florida. This acquisition allows us to combine Gateways' roll-off services with our existing landfill business, while simultaneously offering better rates and comprehensive end-to-end solid waste solutions to our customers. We recently announced that we have successfully expanded and increased the profitability of Gateway since completing the acquisition in December. The feedback from customers has been extremely positive and demand for our services in the region continues to grow. We have identified several other attractive and highly accretive acquisition opportunities that we are actively evaluating and look forward to completing several of these later this year."

"At the end of last year, we announced that we secured a contract with Citrus County in Florida to process their yard waste, which is approximately 10,000-20,000 tons per year at their central landfill location. The terms of this agreement are for three years with three, one year extensions. We have an established relationship and strong foothold with the county and this contract allows us to expand regionally while gaining economies of scale."

"Most importantly, we have strengthened our balance sheet with shareholders' equity increasing to $5.4 million at the end of December 31, 2015 compared to a deficit of ($103,372) at the end of 2014. We have added an independent board member and approved an Employee Stock Ownership Plan to help recruit and retain leading industry talent. The increase in shareholders' equity and addition of another independent board member bring us closer to meeting all of the requirements for listing on a senior national stock exchange. We are in a period of very rapid growth and uplisting to a national exchange will provide us a stronger platform for acquisitions, while increasing our visibility within the investment community."

Revenue for the year ended December 31, 2015 was $2.5 million versus $1.7 million for the year ended December 31, 2014. The increase in revenue was due to the acquisitions we completed last year as well as the addition of new customers and expanded sales to our existing customers. Gross profit for 2015 was $1.2 million or 47% of revenue versus $734,103 or 44% of revenue for the same period in 2014. Operating income for the year December 31, 2015 was $240,219 versus operating income of $248,700 for year ended December 31, 2014. Net loss for the year ended December 31, 2015 was ($62,408) or ($0.001) earnings per share, versus net income of $157,139 or $0.003 earnings per share for the year ended December 31, 2014.  The loss in 2015 is due to the one time non cash write off of landfill acquisition deposits. Without this one time charge off, without adjusting for the change in taxes, the Company would have had net income of $237,592, an increase from prior year. The Company also incurred increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange.

About National Waste Management Holdings Inc.: 

National Waste Management Holdings Inc., is a growing and emerging vertically integrated solid waste management company with a concentration on C&D collection, hauling and recycling. National Waste services Florida's west coast and upstate New York and is a distinguished leader in solid waste services. More information may be found at the Company's website: http://www.nationalwastemgmt.com.

SAFE HARBOR STATEMENT: This release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, and are made in reliance upon the protections provided by such Acts for forward-looking statements. We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties that are beyond our control, and these statements may turn out not to be true. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company's Form SEC filings.


    

                                National Waste Management Holdings, Inc.
                                   Audited Consolidated Balance Sheets


    Assets                                                        2015              2014
    Current assets:
           Cash and cash equivalents              $             344,365     $     108,642
           Accounts receivable, net                             570,347           105,625
           Prepaids and other current assets                     38,362             3,685
           Due from related party                                54,473             8,400

                                   Total current assets       1,007,547           226,352

           Property and equipment, net                        5,041,280           744,405

    Other assets:
           Secured letter of credit                             324,950           324,950
           Intangible assets, net                             1,413,353            36,325
           Goodwill                                           2,179,183                 -
           Deferred tax asset                                    53,662                 -
           Other deposits                                         8,750            17,412

                                   Total other assets         3,979,898           378,687

                                   Total assets            $ 10,028,725       $ 1,349,444

    Liabilities and Stockholder's Equity (Deficit)
    Current liabilities:
           Accounts payable and accrued expenses         $      228,957     $      19,336
           Current portion of long term debt                    184,932                 -
           Current portion of capital lease obligations          25,131            21,228
           Due to related party                                 742,441            22,308
           Short term related party acquisition notes           350,000                 -          
    Income taxes payable                                         32,242            32,242

                                   Total current liabilities  1,563,703            95,114

    Long-term liabilities:
           Capital lease obligations, net of current portion    102,929           128,060
           Long term debt, net of current portion               419,073
           Environmental remediation obligation                 424,596           424,596
           Loan from shareholder                              2,017,301           756,337
           Long term deferred tax liability                      70,221            48,709

                                   Total liabilities     $    4,597,823       $ 1,452,816

    Commitments and contingencies (see note 5)

    Stockholders' equity (deficit):
           Common stock, no par value; 250,000,000 shares
                     authorized, 62,880,483 and 60,000,000 shares
                     issued and oustanding at December 31, 2015
                     and 2014, respectively                         $ -               $ -
           Preferred stock, no par value; 10,000,000 shares
                     authorized, 1 share and 0 shares issued and
                     outstanding as of December 31, 2015 and
                     2014, respectively                              -                  -
           Additional paid-in capital                         2,456,136             9,454
           Common stock subscribed                            3,150,000                 -
           Retained earnings (deficit)                         (175,234)         (112,826)

           Total stockholders' equity (deficit)               5,430,902          (103,372)

           Total liabilities and stockholders'
           equity (deficit)                                $ 10,028,725       $ 1,349,444

 


   
                                National Waste Management Holdings, Inc.


                                                     Year Ended            Year Ended
                                                    December 31,          December 31,
                                                        2015                  2014

    Revenues                                         2,499,842            $ 1,668,354

    Cost of revenues                                 1,319,169                934,251

                      Gross profit                   1,180,673                734,103
                                                         47.23%                 44.00%
    Selling, general and
    administrative expenses                            940,454                485,403

                      Income from operations           240,219                248,700

    Other income (expenses):
             Interest expense                          (29,970)               (10,610)
             Write off of landfill deposits           (300,000)                     -
             Other expenses                             (4,807)                     -

                      Total other income (expenses)   (334,777)               (10,610)

    Income before income taxes                         (94,558)               238,090

    Income tax expense (benefit)                       (32,150)                80,951

    Net income (loss)                                $ (62,408)             $ 157,139

    Net income per common share:

                      Basic                           $ (0.001)               $ 0.003
                      Diluted                         $ (0.001)               $ 0.003

    Weighted average number of shares outstanding

                      Basic                         60,426,837             56,778,493
                      Diluted                       60,426,837             56,778,493

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

SOURCE National Waste Management Holdings Inc