BETHEL, Conn., Aug. 22, 2011 /PRNewswire/ -- MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the second quarter ended June 30, 2011.
Operating highlights include:
- One of MedClean's distributors, Gamma, has purchased a MedClean system but a delay by one of MedClean's sub-contractors has resulted in revenue of $455,000 being deferred from June to July. Revenue to date at July 31, 2011 exceeded total revenue for all of 2010.
- MedClean has also completed a sale as a result of its partnership with a major hospital service provider for an autoclave only MedClean System. The hospital is located in Pennsylvania. Revenue from this transaction is expected to be recognized during 2011.
- MedClean continued to expand its distribution network, adding a major new major distributor in the Northeast with capabilities that will expand MedClean's service offering beyond just Regulated Medical Waste (RMW).
- MedClean signed a new lease for its corporate headquarters, which will be moved from Bethel, CT to Bethlehem, PA. This transition is expected to reduce the Company's rent expense by 75% while improving logistics capabilities by locating our warehouse less than two miles from an airport and shipping terminals which is important for the Company's ecommerce business.
- The Company formally launched its GPO (Group Purchasing Organization) line of business. The first transactions, via ecommerce, included selling Covidien Sharps products with the expectations of adding a full line of bag products and corrugated boxes at price points that will make an impact on MedClean's partners and the IMWTA (Independent Medical Waste Transporters Association) member base. Initial sales, based on the first few of what will eventually be many products, totaled slightly more than $10,000 in the first three weeks of the rollout. The first phase of the rollout is expected to be completed by the end of October 2011.
"We are excited that our second localized waste processing center has been established this year and that our vision is starting to make an impact in the market place," stated David Laky, President & CEO. "This milestone also marks the start of the Company converting our backlog to revenue and directly to cash. Our vision is starting to take shape and show up as results in our financial statements as well. We still must build quarter by quarter as we move forward, but the groundwork we have laid has set the stage for the Company to have better visibility into our future."
Mr. Laky commented, "We continued to make strategic process during the quarter, but experienced some downstream delays external of our control which resulted in revenue being shifted from the second quarter into the third quarter. While we are frustrated with these unexpected delays, the agreements demonstrate the increasing demand and MedClean's improving place in the industry. We remain focused on developing and deploying programs to diversify both our risk and our revenue stream, while expanding a third-party distribution network to cost-effectively sell our proprietary systems and components throughout North America."
Mr. Laky continued, "We remain very optimistic about our rental program and we are extremely excited about the potential for our new GPO program. We have partnered with medical supplies industry leader Covidien to sell consumables at attractive price points. Both initiatives, the rental program and the GPO, provide our growing base of distributors with increased value and should materially impact our financial results in the coming year. The establishment of localized processing centers will contribute to both direct sales revenue, recurring per pound revenue in certain circumstances, and purchases through our GPO for the products the processing center and all waste haulers use every day; sharps products, bags, boxes, tape, as well as discounted services through fleet programs we have developed with major tire and battery service centers. Our partners have developed a strong and growing pipeline of leads and we expect positive results from those relationships during the second half of this year."
Results of Operations
Year to Date Ended June 30, 2011 Compared to Year to Date Ended June 30, 2010
Total revenue year to date ended June 30, 2011 was $784,181 compared with $400,625 for the same period in 2010, an increase of $383,556 or 95.7%. This excludes $455,000 in revenue deferred into July due to a delay from one of MedClean's subcontractors.
The gross profit year to date ended June 30, 2011, was $330,047 (42.1% of total revenue) compared with a gross profit of $163,498 (40.8% of total revenue) for the same period of 2010. Total operating expenses year to date ended June 30, 2011, were $2,036,188 compared with $2,816,004 for the same period in 2010, a decrease of $779.816. In the six months ended June 30, 2011, MedClean recognized non-cash equity based compensation to service providers and employees of $779,486 as compared to $1,541,079 as recorded as equity based compensation for the same period in 2010.
Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010
Total revenue for the quarter ended June 30, 2011 was $190,557 compared with $131,758 for the same period in 2010, an increase of $58,799 or 44.6%. This excludes $455,000 in revenue deferred into July as described above.
The gross profit for the three months ended June 30, 2011, was $42,339 (22.2% of total revenue) compared with a gross profit of $60,084 (45.6% of total revenue) for the same three-month period of 2010. Total operating expenses for the three months ended June 30, 2011, were $1,094,502 compared with $1,130,177 for the same three month period in 2010. In the three months ended June 30, 2011, MedClean recognized non-cash equity based compensation to service providers and employees of $426,753 as compared to $401,789 recorded as equity based compensation for the three months ended June 30, 2010.
About MedClean Technologies, Inc.
MedClean Technologies, Inc. is a provider of innovative technology and services for the treatment and disposal of regulated medical waste. MedClean's flagship MedClean® Series systems are fully integrated, turnkey technology solutions that enable hospitals and other healthcare providers to safely, efficiently, and cost-effectively convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste. MedClean was founded in 1997 with corporate headquarters, research and development and distribution facilities located in Bethel, Connecticut. Further information on MedClean can be found at www.medcleantechnologies.com and in filings with the Securities and Exchange Commission found at www.sec.gov.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," "potential" and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business; including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 3, 2010, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
CONTACT: Cameron Donahue Hayden IR (651) 653-1854
SOURCE MedClean Technologies, Inc.