CES Synergies Reports Third Quarter 2015 Financial Results and Provides Business Update
Demolition Revenue Increases 56.3% to $2.9 Million
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
[email protected]
SOURCE CES Synergies, Inc.
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