WORCESTER, Mass., March 31, 2011 /PRNewswire/ -- ThermoEnergy Corporation (OTC Bulletin Board: TMEN), a diversified technologies company engaged in the municipal and industrial wastewater treatment and power generation technologies, today announced financial and operational results for the year ended December 31, 2010.
Mr. Cary Bullock, President and Chief Executive Officer of ThermoEnergy said, "Our 2010 results reflect tremendous improvement in the financial health of the Company and the collective effort of our management team to build a stable foundation for business development and growth in 2011. We have resolved most of our legacy issues, improved our balance sheet, strengthened our team, and positioned our company to gain additional market share for our wastewater and energy producing technologies throughout 2011 and beyond. During the year we successfully positioned the company to reduce our liabilities by approximately $14 million as compared to January 2010 and positioned the company for strong revenue growth going forward. We have already booked $1 million in orders for the first quarter and believe we will be able to build upon this success throughout this year."
2010 Key Operational and Financial Highlights:
- Management successfully resolved past legacy issues by recently settling IRS payroll tax issues, resulting in a $2.3 million gain in the fourth quarter of 2010. In addition, the Company reached a settlement with former CASTion shareholders who had threatened litigation.
- The Company's Common Stock was relisted for trading on the OTC bulletin board.
- The Company strengthened the balance sheet by completing a private placement of $5.0 million in equity and restructuring $8.1 million of senior debt.
- The management team was significantly strengthened by hiring a vice president of project management and a vice president of sales, and expanding the sales representative network.
- Appointed of Xavier Dorai, as CEO of Babcock-Thermo Carbon Capture (the Company's joint venture to develop its ZEBS technology), as well as adding world renowned MIT Professor, Dr. Ahmed F. Ghoniem to the Board of Advisors.
- We entered into a strategic alliance with Contego Systems to recover and recycle airport deicing fluid.
2011 Business Outlook:
- Our team submitted engineering specs for all 60% milestones and some 90% milestones of Phase 1 of our $27.1 million contract with the City of New York. Management expects New York City contract to contribute increased revenue in 2011 as the manufacturing phase begins. Phase 2 of the project is valued at $13.4 million.
- We announced Thermo ARP which opens up agricultural and industrial markets for ammonia recovery.
- The sales team has revitalized and rebuilt a strong pipeline for the next 12 months.
- Management began pursuing opportunities in China's large wastewater marketplace.
- Our Babcock-Thermo Carbon Capture, LLC (BTCC) joint venture is in advanced negotiations for a pilot plant to be built and is in discussions with major utilities to advance our ZEBS technology.
Mr. Bullock added, "In 2011 we expect to further execute on our groundbreaking contract with New York City. This contract will assist us in attracting additional wastewater treatment projects throughout the United States and we are working towards converting projects from our pipeline into revenue producing contracts. We remain focused on developing key strategic relationships and expanding our market presence for our energy production division to further enhance our revenues."
Revenues for 2010 were $2.9 million as compared to $4.0 million in 2009 as we transitioned from the legacy business to our new business model. Operating expenses for 2010 were $7.7 million compared to $6.0 million in 2009 due primarily to higher non-cash stock option expenses in the current year.
Net loss attributable to common stockholders for 2010 was $16.8 million and $15.7 million for 2009. The net loss included a non-cash deemed dividend to Series B Convertible Preferred Stockholders of $6.9 million and $2.7M in 2010 and 2009, respectively, as a result of our financing transactions. Excluding non-cash charges related to financing transactions (including deemed dividends, non cash gains and losses, as well as stock option and warrant expenses), EBITDA loss was $5.0 million in 2010 and $5.5 million in 2009. We had cash on hand on December 31, 2010 of $4.3 million.
For additional details, please see our 2010 Form 10-K filed with the SEC today.
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.
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SOURCE ThermoEnergy Corporation