Strategic Environmental & Energy Resources Discusses Preliminary Q1 2013 Results and Recent Developments
COMMERCE CITY, Colo., May 7, 2013 /PRNewswire/ -- Strategic Environmental & Energy Resources, Inc. (SEER) reported record revenue for the first quarter of 2013: approximately $2.6 million, more than a 230% increase when compared with $1.1 million recorded during the same period last year. The Company reported a negative adjusted EBITDA* during Q1 2013 of approximately $115,000. The Company's Chief Executive Officer, John Combs, pointed out "The slight loss on record revenue was the result of a an increase in expenses related to hiring and training personnel associated with growth in our services business, and on-going R&D and installation costs of the Company's medical waste treatment affiliate, Paragon."
"Given this solid revenue growth early in the year when the company is usually less active in its service division, we believe we are on target to achieve or exceed our projected 2013 revenue, without taking into account any additional revenue which we expect to generate in the future from three of our new ventures, Paragon Waste Solutions, Benefuels, or our working relationship with Armada Water Assets," said Combs.
On March 1, the Company hired a new Chief Financial Officer, Monty Lamirato, with 16 years of experience in public accounting and 19 years of experience as a CFO with domestic and international public and private companies in diverse industries, including oil & gas. Mr. Lamirato has special expertise in SEC compliance and reporting, GAAP accounting, operations studies, financial modeling and systems, and SOX 404 compliance. "Engaging Mr. Lamirato represents a tremendous leap forward for the Company and brings senior management talent to the company where it needed it most." said Combs.
Late last year, the Company engaged new Chicago-based auditors, LJ Soldinger Associates. The company's 2012 and 2011 audits were completed on May 7 and the Company expects to file its Report on Form 10 with the United Stated Securities and Exchange Commission in mid-May.
Paragon Waste Solutions ("PWS")
Late last year, PWS appointed the inventor of its waste destruction technology, FortunatoVillamagna, as its president to accelerate the commercialization of its patent-pending solid waste treatment CoronaLux™ technology. PWS filed its non-provisional patent application on April 9 for the new technology. PWS intends to first market its technology into the medical waste field and then move into other related markets such as pharmaceutical and ship-board waste treatment.
In February 2013, PWS, through its medical waste partner, Medical Waste Solutions ("MWS"), was awarded an 18-month R&D permit from California's South Coast Air Quality Management District to install and operate its CoronaLux™ technology. Upon installation of its system at MWS's Southern California facility, PWS intends to commence commercial operations this year. "The issuance of this permit was the consummation of over two years of effort and a major accomplishment for PWS," stated Mr. Villamagna. In addition, PWS initiated a joint venture with Sterall Inc., a South Florida medical waste services company. On May 6th, PWS successfully completed the Florida Department of Health validation test of its first commercial production unit installed at Sterall's South Florida facility. This test was the last prerequisite to submitting the various applications required for commercial operation in that state. Once the permits are received, PWS intends to commence commercial operations with Sterall in Florida and other areas.
Based on the various results to date and very preliminary marketing efforts, PWS is receiving multiple inquiries from several medical waste treatment companies for the placement of CoronaLux™ technology in the field.
REGS, SEER's refinery and oil field services company, had record first-quarter sales. This was in part due to commencing sustained operations in additional refineries and energy companies in both Kansas and Oklahoma as a result of an industry merger between existing customers. To accommodate the positive demand trend for its services and projected growth, REGS acquired additional operating assets and hired and trained approximately 16 additional service staff in Q1 2013. REGS has recently entered into a long-term service contract with Armada Water Assets, Inc., a rapidly growing water treatment company with existing facilities in several of the country's most productive oil & gas fields. REGS has been engaged to oversee and perform all aspects of the water treatment process, from offload, to treatment/recycle, to disposal. Mike Cardillo, REGS' President said "the opportunities created by the merger and increasing activity in the oil & gas sector, specifically oil field water treatment, should continue to create sustained growth opportunities for REGS."
MV Technologies ("MV")
MV also posted record first-quarter revenue and currently has a backlog of orders totaling approximately $2.6 million from clients that include some of the nation's largest breweries, refineries, food processors, and landfill energy developers. In Q1 2013, MV was issued a patent for its oil field variable volume vapor recovery unit ("V3RU"), a closed-looped, highly efficient Green House Gas emission solution for oil field condensate tank vapor capture, recycle and management. MV continues to pursue aggressively a comprehensive patent and intellectual property development strategy. "We are pleased with the increase in backlog and to see MV's solutions continuing to gain accelerating recognition as providing the most cost effective approach to critical process gas management issues," said John Jenkins, MV President.
About Strategic Environmental & Energy Resources, Inc.
Strategic Environmental & Energy Resources, Inc. is a leading provider of technology-based industrial services in the environmental, renewable energy, oil & gas field, refining, waste management, and rail sectors. The Company has three wholly-owned operating subsidiaries: REGS, LLC (d/b/a Resource Environmental Group Services), that provides industrial services to companies in the oil & gas fields, petroleum, industrial, manufacturing, and medical industries; Tactical Cleaning Company, LLC, a dedicated fixed and mobile railcar and tanker truck cleaning company with multiple facilities; MV, LLC (d/b/a MV Technologies), an innovative developer and provider of technology-based renewable energy alternatives and economic environmental solutions related to emission and vapor control; and a majority- owned subsidiary, Paragon Waste Solutions, LLC, with patent-pending "cold-plasma" technology designed to treat multiple solid waste steams both on-site and at collection facilities.
For more information about the Company visit: www.seer-corp.com
*Adjusted EBITDA is a non-GAAP financial measure. This measure represents results of operations of the company net of any expenses related to interest, depreciation and amortization and stock based compensation expense. Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of various provisions of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates," and other terms with similar meaning. Specifically, statements about demand for, and effectiveness of, the Company's products and services are forward looking statements. Although the company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Such forward-looking statements should not be construed as fact. The information contained in such statements is beyond the ability of the Company to control, and in many cases the Company cannot predict what factors would cause results to differ materially from those indicated in such statements. All forward-looking statements in the press release are expressly qualified by these cautionary statements and by reference to the underlying assumptions.
SOURCE Strategic Environmental & Energy Resources, Inc.