GROVELAND, Fla., Sept. 24, 2012 /PRNewswire/ -- Eco Ventures Group, Inc. (OTCBB: EVGI), an emerging producer of diversified sustainable alternative energy, today announced selected highlights of the unaudited financial results for the first six months of 2012 at Energiepark Suptitz, GmbH ("EPS"). On August 7, 2012, EVGI filed an 8K announcing it had signed a definitive agreement to acquire a 75 percent stake in Germany-based EPS, an owner and operator of a diverse portfolio of alternative energy businesses.
These EPS financial results were produced in accordance with International Financial Reporting Standards ("IFRS") and some variation may occur when converted to U.S. GAAP. For consistency, all EPS' financial data included herein is Euros converted to USD at 1:1.29 (the forex conversion ratio at the time the transaction was negotiated).
Historically, EPS' business is seasonal with the second half of the calendar year generating the majority of revenue and cash flow. For the first six months of 2012, ended June 30, EPS' revenue doubled, increasing 102 percent to $24.4 million from $12.1 million in the year-ago period, and compared with $4.7 million in H1-10.
For the first six months of 2012, ended June 30, EPS' EBITDA nearly quadrupled to a first-half $2.1 million, compared with $554,000 and negative EBITDA of -$120,000 in the first half of 2011, and 2010, respectively.
For the trailing twelve months, ended June 30, EPS generated $41.4 million in revenue and EBITDA of $2.8 million.
Additionally, the Company noted that EPS had US$32.4 million in tangible assets on its June 30 balance sheet. This is well above the tangible asset requirement for up-listing the Company's common stock on to a senior U.S. stock exchange -- one component of its business plan.
Commenting on EPS' record first half of 2012 financial results, Mark Cox, Eco Ventures Group President, said, "EPS is off to a strong start in the first half with cash flow scaling well to quadruple, on revenue that doubled, year over year. First-half results were driven by organic growth in its business segments, improving operating margins and increasing market share from new and larger feedstock contracts, enhanced internal operational controls and strengthening supplier relationships.
"Absent any major changes to the marketplace or economy, we expect record EPS top line and EBITDA in the second half and full fiscal year 2012," Mr. Cox added. "This business combination provides powerful operating synergies -- particularly in our biofuel feedstock and other new biofuel production initiatives for both the U.S. and Germany that we expect to implement immediately after closing in the fourth quarter of 2012 and throughout 2013."
The Company noted that it expects EPS will report Fiscal Year 2011 revenue of $29 million and EBITDA of $1.33 million when its U.S GAAP audit is complete. While EPS' FY 2011 results are audited in accordance with IFRS, as its 2011 U.S. GAAP audit progresses, the Company expects $1.6 million, previously classified as a tax grant under "other operating income," will be reclassified as reduced tax liability for more conservative accounting treatment. EPS' 2011 U.S. GAAP financial audit is being performed by a PCOAB certified public accounting firm and will be completed prior to the acquisition closing.
EVGI – EPS Transaction
On July 27, in connection with the EPS transaction, Eco Ventures issued into escrow 28.75 million shares of EVGI common stock, pending the transaction close.
EPS is a diversified alternative energy feedstock, transportation, heat & solar power production company with approximately 50 employees -- whose primary business is the production, processing and brokering of alternative energy feedstocks including rapeseed, palm oil and wood. The acquisition combines two renewable energy companies whose technology, bio fuel and grid-tied energy products will create a diversified international platform with important operating synergies.
About Eco Ventures Group, Inc.
Eco Ventures Group, Inc. ("EVGI") is acquiring and developing a family of ecologically friendly and economically sound businesses committed to providing for society's energy and renewable resource needs (www.ecoventuresgroup.com).
Safe Harbor Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: EVGI encourages those interested in our Company to rely only on information included in our filings with the United States Securities and Exchange Commission which can be found at www.sec.gov. Statements released by Eco Ventures Group, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future to include all those of its intended acquisition of Energiepark Suptitz, GmbH. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
Eco Ventures Group, Inc.
7432 E. Highway 50, Suite 101
Groveland FL 34736
Phone: (352) 557-4830
Email: [email protected]
Tel: (561) 989-3600
SOURCE Eco Ventures Group, Inc.