EarthCare Announces Fiscal Year 2000 Results

Apr 19, 2001, 01:00 ET from EarthCare Company

    DALLAS, April 19 /PRNewswire/ -- EarthCare Company (Nasdaq:   ECCO) reported
 today operating results for the year ended December 31, 2000.  These operating
 results are significantly affected by the losses on the planned sales of the
 EarthAmerica and EarthLiquids divisions and the loss on the sale of the Allen
 Tate software division.  For fiscal year 2000, EarthCare's revenues from
 continuing operations consisted of $700,000 in management fees from Liberty
 Waste, a solid waste company operating in and around Tampa, Florida.  In
 December 2000, EarthCare completed its acquisition of Liberty Waste and
 changed its name to EarthCare Resource Management of Florida, Inc. ("ERMF").
 There were no continuing revenues during fiscal year 1999.  For the year ended
 December 31, 2000, the net loss from continuing operations amounted to
 $6.6 million as compared to $5.8 million in 1999.  The increase in the net
 loss is primarily due to additional interest expense incurred during 2000.
     On April 12, 2001, EarthCare's Board of Directors approved a plan to sell
 the Company's EarthAmerica and EarthLiquids divisions.  During the fourth
 quarter of 2000, EarthCare sold its environmental compliance software company,
 Allen Tate Commercial Software.  These three divisions are being reported as
 discontinued operations.  The continuing operations of the Company consist of
 ERMF and EarthCare's corporate office.
     On a pro forma basis, assuming that EarthCare had acquired ERMF at the
 beginning of 1999, EarthCare's pro forma revenues would have been
 $18.5 million in 2000 and $5.9 million in 1999.  This significant growth
 resulted from a full year of operating a franchise solid waste collection
 contract in Hillsborough County, Florida, and to 24% volume growth in ERMF's
 commercial collection solid waste business.  On a pro forma basis, assuming
 that the ERMF acquisition was completed at the beginning of 1999, EarthCare's
 net loss in 2000 would have been $6.7 million as compared to a net loss of
 $6.3 million in 1999.
     EarthCare expects to reduce the level of its corporate expenses during
 2001 following the sale of its EarthAmerica and EarthLiquids divisions.  Due
 in part to the timing of reducing its corporate infrastructure and to the
 non-cash interest expense on its subordinated debentures, EarthCare expects to
 report a loss from continuing operations in 2001.
     Don Moorehead, Chairman and CEO of EarthCare, said, "We are pleased with
 the growth of our solid waste operations in Florida during 2000.  We are going
 to emphasize an improved capital structure during 2001 and take steps
 necessary to return to profitable operations."
     EarthCare also announced the operating results for its three discontinued
 divisions, EarthAmerica, EarthLiquids and Allen Tate.  EarthAmerica reported
 revenue of $47.9 million in 2000 as compared to $38.7 million in 1999.  The
 growth was primarily due to the acquisition of All County Resource Management
 Corporation in March 2000.  EarthAmerica reported a loss from operations of
 $6.1 million in 2000 as compared to $7.7 million in 1999.  This loss in 2000
 resulted from significant investments made in sales and marketing programs,
 development of a new operating system for the division, changes in service
 center management, lack of a successful advertising program, adverse weather
 conditions during the year in the Northeast and Southeast U.S. and a reduction
 in plumbing business volume.  EarthAmerica reported a net loss of
 $11.6 million in 2000 as compared to a net loss of $9.3 million in 1999.  In
 addition to the factors cited, this loss is primarily due to the significantly
 higher level of interest expense during 2000.
     EarthLiquids reported revenues of $36.8 million in 2000 as compared to
 $3.1 million in 1999.  The increase was primarily due to the acquisition of
 International Petroleum Corporation and a full year of operations for Magnum
 Environmental.  EarthLiquids also reported operating income of $3.8 million in
 2000 and $0.2 million in 1999 for the same reasons.  EarthLiquids' net income
 for 2000 was $0.5 million compared to a net loss of $0.3 million for 1999.
     EarthCare's former environmental compliance software division reported a
 loss from operations of $1.9 million in 2000 versus a loss of $0.5 million in
 1999 and a net loss of $2.2 million in 2000 versus a loss of $0.5 million in
 1999.  In October 2000, EarthCare sold this division and recorded a loss from
 the sale of $4.0 million.
     EarthCare also reported a loss from the planned sale of its EarthAmerica
 and EarthLiquids divisions of $60.4 million, based on an expected net sales
 price of $54 million.
     Don Moorehead, Chairman and CEO of EarthCare, said, "We are obviously
 disappointed with the performance of our EarthAmerica and Allen Tate
 operations.  While we are satisfied with the performance of our EarthLiquids
 division during its first full year of operations, we also recognize that we
 need to complete its divestiture in order to move forward in the solid waste
 business.  The sales of EarthAmerica and EarthLiquids will leave EarthCare in
 an excellent position to continue our positive growth trends in the solid
 waste industry."
     On April 9, 2001, EarthCare announced its preliminary results for fiscal
 year 2000.  These operating results have significantly changed because the
 EarthAmerica and EarthLiquids divisions are reported as discontinued
 operations.
     EarthCare Company is a nonhazardous waste services company with business
 units serving the solid and liquid waste needs of a variety of residential,
 commercial, municipal and industrial customers.
     Statements made in this press release that express EarthCare's or
 management's intentions, plans, beliefs, expectations or predictions of future
 events, including preliminary estimates of financial results and guidance for
 future periods, are forward-looking statements.  The words "believe,"
 "expect," "intend," "estimate," "anticipate," "will" and similar expressions
 are intended to further identify such forward-looking statements.  It is
 important to note that the company's actual results or performance could
 differ materially from those anticipated or projected in such forward-looking
 statements.  Other factors that could cause EarthCare's actual results or
 performance to differ materially include risks and uncertainties relating to
 EarthCare's financial condition, market demand and acceptance of EarthCare's
 services, competition, as well as the risks discussed under the heading "Risk
 Factors" in EarthCare's annual report on Form 10-K for the year ended
 December 31, 2000, as filed with the Securities and Exchange Commission.  The
 forward-looking statements contained herein represent the judgment of
 EarthCare as of the date of this press release, and EarthCare expressly
 disclaims any intent, obligation or undertaking to update or revise such
 forward-looking statements to reflect any change in EarthCare's expectations
 with regard thereto or any change in events, conditions or circumstances on
 which any such statements are based.
 
 
                                 EarthCare Company
                       Consolidated Statements of Operations
 
                                               Year ended December 31,
                                           2000           1999         1998
 
     Revenues                           $  702,477    $      ---    $     ---
 
     Expenses:
       Cost of operations                      ---           ---          ---
       General and administrative        5,791,546     5,148,994    2,821,363
       Sales, marketing and development        ---       273,370       78,457
       Depreciation and amortization       154,872       146,556      103,624
         Operating expenses              5,946,418     5,568,920    3,003,444
 
     Operating loss                     (5,243,941)   (5,568,920)  (3,003,444)
 
     Interest expense                    1,415,313       235,832       94,523
     Other                                (101,221)      (40,619)         ---
 
     Net loss before income tax
      provision (benefit)               (6,558,033)   (5,764,133)  (3,097,967)
 
     Income tax provision (benefit)            ---           ---     (823,002)
 
     Loss from continuing operations    (6,558,033)   (5,764,133)  (2,274,965)
 
     Discontinued operations:
       Income (loss) from
        discontinued operations:
         EarthAmerica                  (11,627,417)   (9,859,742)     845,875
         EarthLiquids                      503,023      (344,182)         ---
         Allen Tate                     (2,239,454)     (478,119)         ---
           Income (loss) from
            discontinued operations    (13,363,848)  (10,682,043)     845,875
 
       Loss from sale of discontinued
        operations:
         EarthAmerica                  (32,043,044)          ---          ---
         EarthLiquids                  (28,380,660)          ---          ---
         Allen Tate                     (4,021,018)          ---          ---
           Loss from sale of
            discontinued operations    (64,444,722)          ---          ---
 
     Income (loss) from discontinued
      operations                       (77,808,570)  (10,682,043)     845,875
 
     Loss before extraordinary item    (84,366,603)  (16,446,176)  (1,429,090)
 
     Extraordinary item - gain on
      early retirement of debt
       (net of income taxes of
       $53,000)                                ---        86,817          ---
 
     Net loss                          (84,366,603)  (16,359,359)  (1,429,090)
     Dividends and accretion of
      discount on 10% Preferred            (62,632)          ---          ---
 
     Net loss available to common
      stockholders                    $(84,429,235) $(16,359,359) $(1,429,090)
 
     Net loss per share - basic and
      diluted:
       Continuing operations                $(0.50)       $(0.56)      $(0.27)
       Discontinued operations               (5.94)        (1.03)        0.10
       Dividends, accretion of
        discount on preferred
        and extraordinary item                 ---           ---          ---
         Net loss                           $(6.44)       $(1.59)      $(0.17)
 
     Weighted average number of
      common shares                     13,101,022    10,321,164    8,427,407
 
 
                                 EarthCare Company
                            Consolidated Balance Sheets
 
                                                         December 31,
                                                    2000              1999
 
                   ASSETS
 
     Current assets:
       Cash and cash equivalents                 $1,784,361          $281,995
       Accounts receivable, net of
        allowance for doubtful accounts
        of $610,000                               2,450,983               ---
       Prepaid expenses and other current
        assets                                      734,866           611,040
       Net assets of discontinued
        operations                               56,801,400         5,439,440
         Total current assets                    61,771,610         6,332,475
 
     Property, plant and equipment, net          15,472,481           941,701
     Intangible assets, net                       7,311,210               ---
     Other long-term assets                       4,050,065         2,073,611
     Net assets of discontinued operations              ---        61,344,221
 
           Total assets                         $88,605,366       $70,692,008
 
       LIABILITIES AND STOCKHOLDERS'
              EQUITY (DEFICIT)
 
     Current liabilities:
       Accounts payable                          $2,099,158        $1,606,633
       Accrued liabilities                       15,972,512         2,021,045
       Current portion of long-term debt         63,177,353           278,434
         Total current liabilities               81,249,023         3,906,112
 
     Long-term debt                              38,965,666        47,170,172
 
     Commitments and contingencies
 
     Mandatory redeemable convertible
      preferred stock                            10,800,248               ---
 
     Stockholders' equity (deficit):
       Preferred stock, $.0001 par value;
        30,000,000 shares authorized, none
        issued
       Common stock, $.0001 par value;
        70,000,000 shares authorized,
        14,569,349 and 11,250,793 shares
        issued, respectively                          1,457             1,125
       Additional paid-in capital                60,013,157        37,661,400
       Accumulated deficit                     (102,424,185)      (18,046,801)
         Total stockholders' equity
          (deficit)                             (42,409,571)       19,615,724
 
           Total liabilities and
            stockholders' equity
            (deficit)                           $88,605,366       $70,692,008
 
 

SOURCE EarthCare Company
    DALLAS, April 19 /PRNewswire/ -- EarthCare Company (Nasdaq:   ECCO) reported
 today operating results for the year ended December 31, 2000.  These operating
 results are significantly affected by the losses on the planned sales of the
 EarthAmerica and EarthLiquids divisions and the loss on the sale of the Allen
 Tate software division.  For fiscal year 2000, EarthCare's revenues from
 continuing operations consisted of $700,000 in management fees from Liberty
 Waste, a solid waste company operating in and around Tampa, Florida.  In
 December 2000, EarthCare completed its acquisition of Liberty Waste and
 changed its name to EarthCare Resource Management of Florida, Inc. ("ERMF").
 There were no continuing revenues during fiscal year 1999.  For the year ended
 December 31, 2000, the net loss from continuing operations amounted to
 $6.6 million as compared to $5.8 million in 1999.  The increase in the net
 loss is primarily due to additional interest expense incurred during 2000.
     On April 12, 2001, EarthCare's Board of Directors approved a plan to sell
 the Company's EarthAmerica and EarthLiquids divisions.  During the fourth
 quarter of 2000, EarthCare sold its environmental compliance software company,
 Allen Tate Commercial Software.  These three divisions are being reported as
 discontinued operations.  The continuing operations of the Company consist of
 ERMF and EarthCare's corporate office.
     On a pro forma basis, assuming that EarthCare had acquired ERMF at the
 beginning of 1999, EarthCare's pro forma revenues would have been
 $18.5 million in 2000 and $5.9 million in 1999.  This significant growth
 resulted from a full year of operating a franchise solid waste collection
 contract in Hillsborough County, Florida, and to 24% volume growth in ERMF's
 commercial collection solid waste business.  On a pro forma basis, assuming
 that the ERMF acquisition was completed at the beginning of 1999, EarthCare's
 net loss in 2000 would have been $6.7 million as compared to a net loss of
 $6.3 million in 1999.
     EarthCare expects to reduce the level of its corporate expenses during
 2001 following the sale of its EarthAmerica and EarthLiquids divisions.  Due
 in part to the timing of reducing its corporate infrastructure and to the
 non-cash interest expense on its subordinated debentures, EarthCare expects to
 report a loss from continuing operations in 2001.
     Don Moorehead, Chairman and CEO of EarthCare, said, "We are pleased with
 the growth of our solid waste operations in Florida during 2000.  We are going
 to emphasize an improved capital structure during 2001 and take steps
 necessary to return to profitable operations."
     EarthCare also announced the operating results for its three discontinued
 divisions, EarthAmerica, EarthLiquids and Allen Tate.  EarthAmerica reported
 revenue of $47.9 million in 2000 as compared to $38.7 million in 1999.  The
 growth was primarily due to the acquisition of All County Resource Management
 Corporation in March 2000.  EarthAmerica reported a loss from operations of
 $6.1 million in 2000 as compared to $7.7 million in 1999.  This loss in 2000
 resulted from significant investments made in sales and marketing programs,
 development of a new operating system for the division, changes in service
 center management, lack of a successful advertising program, adverse weather
 conditions during the year in the Northeast and Southeast U.S. and a reduction
 in plumbing business volume.  EarthAmerica reported a net loss of
 $11.6 million in 2000 as compared to a net loss of $9.3 million in 1999.  In
 addition to the factors cited, this loss is primarily due to the significantly
 higher level of interest expense during 2000.
     EarthLiquids reported revenues of $36.8 million in 2000 as compared to
 $3.1 million in 1999.  The increase was primarily due to the acquisition of
 International Petroleum Corporation and a full year of operations for Magnum
 Environmental.  EarthLiquids also reported operating income of $3.8 million in
 2000 and $0.2 million in 1999 for the same reasons.  EarthLiquids' net income
 for 2000 was $0.5 million compared to a net loss of $0.3 million for 1999.
     EarthCare's former environmental compliance software division reported a
 loss from operations of $1.9 million in 2000 versus a loss of $0.5 million in
 1999 and a net loss of $2.2 million in 2000 versus a loss of $0.5 million in
 1999.  In October 2000, EarthCare sold this division and recorded a loss from
 the sale of $4.0 million.
     EarthCare also reported a loss from the planned sale of its EarthAmerica
 and EarthLiquids divisions of $60.4 million, based on an expected net sales
 price of $54 million.
     Don Moorehead, Chairman and CEO of EarthCare, said, "We are obviously
 disappointed with the performance of our EarthAmerica and Allen Tate
 operations.  While we are satisfied with the performance of our EarthLiquids
 division during its first full year of operations, we also recognize that we
 need to complete its divestiture in order to move forward in the solid waste
 business.  The sales of EarthAmerica and EarthLiquids will leave EarthCare in
 an excellent position to continue our positive growth trends in the solid
 waste industry."
     On April 9, 2001, EarthCare announced its preliminary results for fiscal
 year 2000.  These operating results have significantly changed because the
 EarthAmerica and EarthLiquids divisions are reported as discontinued
 operations.
     EarthCare Company is a nonhazardous waste services company with business
 units serving the solid and liquid waste needs of a variety of residential,
 commercial, municipal and industrial customers.
     Statements made in this press release that express EarthCare's or
 management's intentions, plans, beliefs, expectations or predictions of future
 events, including preliminary estimates of financial results and guidance for
 future periods, are forward-looking statements.  The words "believe,"
 "expect," "intend," "estimate," "anticipate," "will" and similar expressions
 are intended to further identify such forward-looking statements.  It is
 important to note that the company's actual results or performance could
 differ materially from those anticipated or projected in such forward-looking
 statements.  Other factors that could cause EarthCare's actual results or
 performance to differ materially include risks and uncertainties relating to
 EarthCare's financial condition, market demand and acceptance of EarthCare's
 services, competition, as well as the risks discussed under the heading "Risk
 Factors" in EarthCare's annual report on Form 10-K for the year ended
 December 31, 2000, as filed with the Securities and Exchange Commission.  The
 forward-looking statements contained herein represent the judgment of
 EarthCare as of the date of this press release, and EarthCare expressly
 disclaims any intent, obligation or undertaking to update or revise such
 forward-looking statements to reflect any change in EarthCare's expectations
 with regard thereto or any change in events, conditions or circumstances on
 which any such statements are based.
 
 
                                 EarthCare Company
                       Consolidated Statements of Operations
 
                                               Year ended December 31,
                                           2000           1999         1998
 
     Revenues                           $  702,477    $      ---    $     ---
 
     Expenses:
       Cost of operations                      ---           ---          ---
       General and administrative        5,791,546     5,148,994    2,821,363
       Sales, marketing and development        ---       273,370       78,457
       Depreciation and amortization       154,872       146,556      103,624
         Operating expenses              5,946,418     5,568,920    3,003,444
 
     Operating loss                     (5,243,941)   (5,568,920)  (3,003,444)
 
     Interest expense                    1,415,313       235,832       94,523
     Other                                (101,221)      (40,619)         ---
 
     Net loss before income tax
      provision (benefit)               (6,558,033)   (5,764,133)  (3,097,967)
 
     Income tax provision (benefit)            ---           ---     (823,002)
 
     Loss from continuing operations    (6,558,033)   (5,764,133)  (2,274,965)
 
     Discontinued operations:
       Income (loss) from
        discontinued operations:
         EarthAmerica                  (11,627,417)   (9,859,742)     845,875
         EarthLiquids                      503,023      (344,182)         ---
         Allen Tate                     (2,239,454)     (478,119)         ---
           Income (loss) from
            discontinued operations    (13,363,848)  (10,682,043)     845,875
 
       Loss from sale of discontinued
        operations:
         EarthAmerica                  (32,043,044)          ---          ---
         EarthLiquids                  (28,380,660)          ---          ---
         Allen Tate                     (4,021,018)          ---          ---
           Loss from sale of
            discontinued operations    (64,444,722)          ---          ---
 
     Income (loss) from discontinued
      operations                       (77,808,570)  (10,682,043)     845,875
 
     Loss before extraordinary item    (84,366,603)  (16,446,176)  (1,429,090)
 
     Extraordinary item - gain on
      early retirement of debt
       (net of income taxes of
       $53,000)                                ---        86,817          ---
 
     Net loss                          (84,366,603)  (16,359,359)  (1,429,090)
     Dividends and accretion of
      discount on 10% Preferred            (62,632)          ---          ---
 
     Net loss available to common
      stockholders                    $(84,429,235) $(16,359,359) $(1,429,090)
 
     Net loss per share - basic and
      diluted:
       Continuing operations                $(0.50)       $(0.56)      $(0.27)
       Discontinued operations               (5.94)        (1.03)        0.10
       Dividends, accretion of
        discount on preferred
        and extraordinary item                 ---           ---          ---
         Net loss                           $(6.44)       $(1.59)      $(0.17)
 
     Weighted average number of
      common shares                     13,101,022    10,321,164    8,427,407
 
 
                                 EarthCare Company
                            Consolidated Balance Sheets
 
                                                         December 31,
                                                    2000              1999
 
                   ASSETS
 
     Current assets:
       Cash and cash equivalents                 $1,784,361          $281,995
       Accounts receivable, net of
        allowance for doubtful accounts
        of $610,000                               2,450,983               ---
       Prepaid expenses and other current
        assets                                      734,866           611,040
       Net assets of discontinued
        operations                               56,801,400         5,439,440
         Total current assets                    61,771,610         6,332,475
 
     Property, plant and equipment, net          15,472,481           941,701
     Intangible assets, net                       7,311,210               ---
     Other long-term assets                       4,050,065         2,073,611
     Net assets of discontinued operations              ---        61,344,221
 
           Total assets                         $88,605,366       $70,692,008
 
       LIABILITIES AND STOCKHOLDERS'
              EQUITY (DEFICIT)
 
     Current liabilities:
       Accounts payable                          $2,099,158        $1,606,633
       Accrued liabilities                       15,972,512         2,021,045
       Current portion of long-term debt         63,177,353           278,434
         Total current liabilities               81,249,023         3,906,112
 
     Long-term debt                              38,965,666        47,170,172
 
     Commitments and contingencies
 
     Mandatory redeemable convertible
      preferred stock                            10,800,248               ---
 
     Stockholders' equity (deficit):
       Preferred stock, $.0001 par value;
        30,000,000 shares authorized, none
        issued
       Common stock, $.0001 par value;
        70,000,000 shares authorized,
        14,569,349 and 11,250,793 shares
        issued, respectively                          1,457             1,125
       Additional paid-in capital                60,013,157        37,661,400
       Accumulated deficit                     (102,424,185)      (18,046,801)
         Total stockholders' equity
          (deficit)                             (42,409,571)       19,615,724
 
           Total liabilities and
            stockholders' equity
            (deficit)                           $88,605,366       $70,692,008
 
 SOURCE  EarthCare Company