N-Viro Has Mixed Results in 2000

Apr 13, 2001, 01:00 ET from N-Viro International Corporation

    TOLEDO, Ohio, April 13 /PRNewswire/ -- A net loss of $845,000, or $.32 per
 share, for the year ended December 31, 2000, including a one-time charge of
 $312,000, was reported today by N-Viro International Corp.
 (Nasdaq: NVIC).
     "Financially, the year was disappointing," said J. Patrick Nicholson, CEO
 of N-Viro.  "We had anticipated a break-even year due to a decision in 1999 to
 focus on ongoing revenue contracts in lieu of one-time agreements, which were
 a substantial part of our 1999 revenues.  In addition to reduced revenue, down
 to $4.17 million from 1999's $4.75 million, we also were adversely affected by
 gross profit losses at two privatized operations in New Jersey and Florida and
 legal expenses in defense of N-Viro's proprietary property, including our
 successful litigation with Warren, Ohio.
     "While 2000 financial results were unacceptable," Nicholson said, "many
 developments and results were very positive.
     "In the market development area, he said the trend toward Class A
 technology is accelerating, particularly by the large private contractors.
 These contractors recognize the high costs of digestion, the increasing public
 opposition to Class B and the ability to economically convert to Class A
 operations such as N-Viro.
     Severe criticism of the U.S. Environmental Protection Agency -- by the
 Centers for Disease Control, by EPA whistleblowers, by members of Congress and
 by its own Office of Inspector General -- has impacted the EPA and forced a
 review of its biosolids' policies and practices by the National Academy of
 Science.  N-Viro believes these developments and the efforts of the National
 Biosolids Partnership will result in greater adoption of Class A technologies
 such as N-Viro.
     As for sales, Nicholson singled out several results.  "Research by the
 Canadian Department of Agriculture as well as universities in Ohio and Florida
 to demonstrate the ability of N-Viro Soil(TM) to suppress nematodes has gone
 well. We are already seeing interest in this application increasing prices for
 N-Viro Soil at the farm gate.
     "The Sarnia, Ontario, Canada, Bio-Dry facility," Nicholson said, "utilizes
 mechanical dryers to complement N-Viro's traditional chemical technology and
 is the third dryer facility to come online.  The Bio-Dry system eliminates a
 hazard of fire or explosion so often experienced with traditional biosolids
 dryers.
     "In February 2001, N-Viro completed its demonstration project with
 Environmental Technologies of Delaware (ETD) on N-Viro's new technology to
 disinfect, stabilize and immobilize manures.  A patent has been granted on the
 company's disinfection process and commercialization of its manure technology
 will begin this year.
     According to Nicholson:  "Many stakeholders have expressed concern as to
 the impact of the fall election on N-Viro.  In spite of early perceptions, we
 believe the new EPA will be consistent with the EPA of former President Bush
 and his excellent Administrator William Reilly."
     In all aspects -- market, technology, products and sales -- N-Viro is
 confident in our current market position and is optimistic about its future in
 the 21st Century," Nicholson said.
     N-Viro International Corporation develops and licenses its technology to
 municipalities and private companies.  N-Viro's patented processes use lime
 and/or mineral-rich, combustion byproducts to treat, pasteurize, immobilize
 and convert wastewater sludge and other bio-organic wastes into biomineral
 agricultural and soil-enrichment products with real market value.  More
 information about N-Viro International can be obtained by contacting the
 office or on the Internet at www.nviro.com or by e-mail inquiry to
 info@nviro.com.
     The Company cautions that words used in this document such as "expects,"
 "anticipates," "believes" and "may," as well as similar words and expressions
 used herein, identify and refer to statements describing events that may or
 may not occur in the future.  These forward-looking statements and the matters
 to which they refer are subject to considerable uncertainty that may cause
 actual results to be materially different from those described herein.  For
 example, while the Company believes that trends in sludge treatment are moving
 in favor of the Company's technology, such trends may not continue or may
 never result in increased sales or profits to the Company because of the
 availability of competing processes.
 
                        N-Viro International Corporation
                     Consolidated Statements of Operations
                         Years Ended December 31, 2000
 
                                                      2000           1999
 
     Revenues                                      $4,166,435     $4,749,427
     Cost of revenues                               2,436,942      2,244,540
     Gross profit                                   1,729,493      2,504,887
     Operating expenses                             2,408,250      1,976,452
     Operating income (loss)                         (678,757)       528,435
     Nonoperating income (expense)                    146,249        (57,061)
     Income (loss) before income tax expense         (532,508)       471,374
     Federal and state income tax expense             312,000             --
     Net income (loss)                              $(844,508)      $471,374
     Basic and diluted earnings (loss) per share      $ (0.32)         $0.18
 
 
                          Consolidated Balance Sheets
                                                          December 31,
     ASSETS                                           2000           1999
       Current assets                              $2,176,087     $2,235,732
       Property and equipment                         581,196        596,060
       Long-term assets                             1,994,694      1,940,081
     TOTAL ASSETS                                  $4,751,977     $4,771,873
 
     LIABILITIES & STOCKHOLDERS' EQUITY
       Current liabilities                         $1,865,536     $1,145,920
       Long-term debt, less current maturities        228,738        240,379
       Stockholders' equity                         2,657,703      3,385,574
     TOTAL LIABILITIES & STOCKHOLDERS' EQUITY      $4,751,977     $4,771,873
 
 

SOURCE N-Viro International Corporation
    TOLEDO, Ohio, April 13 /PRNewswire/ -- A net loss of $845,000, or $.32 per
 share, for the year ended December 31, 2000, including a one-time charge of
 $312,000, was reported today by N-Viro International Corp.
 (Nasdaq: NVIC).
     "Financially, the year was disappointing," said J. Patrick Nicholson, CEO
 of N-Viro.  "We had anticipated a break-even year due to a decision in 1999 to
 focus on ongoing revenue contracts in lieu of one-time agreements, which were
 a substantial part of our 1999 revenues.  In addition to reduced revenue, down
 to $4.17 million from 1999's $4.75 million, we also were adversely affected by
 gross profit losses at two privatized operations in New Jersey and Florida and
 legal expenses in defense of N-Viro's proprietary property, including our
 successful litigation with Warren, Ohio.
     "While 2000 financial results were unacceptable," Nicholson said, "many
 developments and results were very positive.
     "In the market development area, he said the trend toward Class A
 technology is accelerating, particularly by the large private contractors.
 These contractors recognize the high costs of digestion, the increasing public
 opposition to Class B and the ability to economically convert to Class A
 operations such as N-Viro.
     Severe criticism of the U.S. Environmental Protection Agency -- by the
 Centers for Disease Control, by EPA whistleblowers, by members of Congress and
 by its own Office of Inspector General -- has impacted the EPA and forced a
 review of its biosolids' policies and practices by the National Academy of
 Science.  N-Viro believes these developments and the efforts of the National
 Biosolids Partnership will result in greater adoption of Class A technologies
 such as N-Viro.
     As for sales, Nicholson singled out several results.  "Research by the
 Canadian Department of Agriculture as well as universities in Ohio and Florida
 to demonstrate the ability of N-Viro Soil(TM) to suppress nematodes has gone
 well. We are already seeing interest in this application increasing prices for
 N-Viro Soil at the farm gate.
     "The Sarnia, Ontario, Canada, Bio-Dry facility," Nicholson said, "utilizes
 mechanical dryers to complement N-Viro's traditional chemical technology and
 is the third dryer facility to come online.  The Bio-Dry system eliminates a
 hazard of fire or explosion so often experienced with traditional biosolids
 dryers.
     "In February 2001, N-Viro completed its demonstration project with
 Environmental Technologies of Delaware (ETD) on N-Viro's new technology to
 disinfect, stabilize and immobilize manures.  A patent has been granted on the
 company's disinfection process and commercialization of its manure technology
 will begin this year.
     According to Nicholson:  "Many stakeholders have expressed concern as to
 the impact of the fall election on N-Viro.  In spite of early perceptions, we
 believe the new EPA will be consistent with the EPA of former President Bush
 and his excellent Administrator William Reilly."
     In all aspects -- market, technology, products and sales -- N-Viro is
 confident in our current market position and is optimistic about its future in
 the 21st Century," Nicholson said.
     N-Viro International Corporation develops and licenses its technology to
 municipalities and private companies.  N-Viro's patented processes use lime
 and/or mineral-rich, combustion byproducts to treat, pasteurize, immobilize
 and convert wastewater sludge and other bio-organic wastes into biomineral
 agricultural and soil-enrichment products with real market value.  More
 information about N-Viro International can be obtained by contacting the
 office or on the Internet at www.nviro.com or by e-mail inquiry to
 info@nviro.com.
     The Company cautions that words used in this document such as "expects,"
 "anticipates," "believes" and "may," as well as similar words and expressions
 used herein, identify and refer to statements describing events that may or
 may not occur in the future.  These forward-looking statements and the matters
 to which they refer are subject to considerable uncertainty that may cause
 actual results to be materially different from those described herein.  For
 example, while the Company believes that trends in sludge treatment are moving
 in favor of the Company's technology, such trends may not continue or may
 never result in increased sales or profits to the Company because of the
 availability of competing processes.
 
                        N-Viro International Corporation
                     Consolidated Statements of Operations
                         Years Ended December 31, 2000
 
                                                      2000           1999
 
     Revenues                                      $4,166,435     $4,749,427
     Cost of revenues                               2,436,942      2,244,540
     Gross profit                                   1,729,493      2,504,887
     Operating expenses                             2,408,250      1,976,452
     Operating income (loss)                         (678,757)       528,435
     Nonoperating income (expense)                    146,249        (57,061)
     Income (loss) before income tax expense         (532,508)       471,374
     Federal and state income tax expense             312,000             --
     Net income (loss)                              $(844,508)      $471,374
     Basic and diluted earnings (loss) per share      $ (0.32)         $0.18
 
 
                          Consolidated Balance Sheets
                                                          December 31,
     ASSETS                                           2000           1999
       Current assets                              $2,176,087     $2,235,732
       Property and equipment                         581,196        596,060
       Long-term assets                             1,994,694      1,940,081
     TOTAL ASSETS                                  $4,751,977     $4,771,873
 
     LIABILITIES & STOCKHOLDERS' EQUITY
       Current liabilities                         $1,865,536     $1,145,920
       Long-term debt, less current maturities        228,738        240,379
       Stockholders' equity                         2,657,703      3,385,574
     TOTAL LIABILITIES & STOCKHOLDERS' EQUITY      $4,751,977     $4,771,873
 
 SOURCE  N-Viro International Corporation