Demolition Revenue Increases 56.3% to $2.9 Million
CRYSTAL SPRINGS, Florida, November 16, 2015 /PRNewswire/ --
CES Synergies, Inc. (CESX) ("CES" or the "Company"), a full service environmental, asbestos abatement and demolition company, today announced financial results for the third quarter ending September 30, 2015 and provided a general business update.
John Tostanoski, CEO of CES Synergies, commented, "Demolition revenue for the third quarter of 2015 increased 56.3% to $2.9 million. The increase in demolition revenues was primarily attributable to five large contracts in progress at NAS Jacksonville, Florida State University, Eglin Air Force Base and FDOT Orange County. Remediation sales decreased in the third quarter of 2015, as we near completion of remediation contracts in Florida and the DTE Power Plant in Michigan. However, we have commenced work on some large scale remediation projects at the end of the third quarter of 2015 in Florida, Georgia and Louisiana that should offset some previous declines as we head into the fourth quarter and 2016."
"We anticipate continued improvement heading into the fourth quarter of 2015, and currently project $18 million in revenue for the fiscal year 2015. We anticipate gross margins for the full-year of 2015 to be between 15% and 18%. During the third quarter of 2015 alone, we won 38 contracts in Florida valued at $1.4 million that are expected to commence in the fourth quarter of 2015. At the end of the third quarter of 2015, we had a backlog of demolition contracts valued at $6.0 million. As we continue to diversify our revenue streams we believe there are significant growth opportunities at the federal and other government levels."
Revenue for the three months ended September 30, 2015 decreased 9.6% to $4.6 million versus $5.1 million for the quarter ended September 30, 2014. The decrease in revenue was due to decreased remediation segment sales in the third quarter of 2015. Gross margin in the third quarter of 2015 was $360,365 or 8% of revenue versus $978,099 or 19% of revenue for the same period in 2014. The decline in gross margin percentage in the quarter ended September 30, 2015 was the result of higher material and labor costs in our contracts.
About CES Synergies Inc.
CES Synergies, Inc., through its subsidiary, Cross Environmental Services, Inc., is a specialty environmental services company providing quality environmental contracting solutions, demolition and remediation services to commercial and industrial customers, as well as federal, state and municipal entities. More information may be found at the Company's website: http://www.crossenv.com.
SAFE HARBOR STATEMENT: This press release may contain "forward-looking statements" that are made pursuant to the "safe harbor" provisions as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," and similar expressions. These statements are based upon management's current expectations as of the date of this press release. Such forward-looking statements may include statements regarding the Company's future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses and other future or expected performances. The Company cautions readers there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC.
CES SYNERGIES, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31, 2015 2014 ASSETS Current assets Cash $ 606,408 $ 149,455 Advances to Employees 14,407 14,006 Contracts Receivable (net of allowance for bad debt) 3,795,879 6,365,274 Inventory 170,685 152,772 Cost and Estimated Earnings in Excess of Billings on Uncompleted Contracts 866,963 229,437 Total current assets 5,454,342 6,910,944 Property and Equipment Furniture, Fixtures, and Equipment 13,184,537 12,767,975 Less: accumulated depreciation (11,031,582) (10,650,758) Net property & equipment 2,152,955 2,117,217 Other assets Goodwill 1,446,855 1,446,855 Other assets 5,206 6,531 Total other assets 1,452,061 1,453,386 TOTAL ASSETS $ 9,059,358 $ 10,481,547 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 2,586,988 $ 2,570,259 Accrued payroll/expenses 687,566 82,391 Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts 282,876 598,645 Notes payable 1,750,300 1,750,300 Current Portion Long-term Debt 595,757 595,757 Total current liabilities 5,903,487 5,597,352 Long-term liabilities Long-term debt, net of current portion 3,779,518 3,337,166 Total long-term liabilities 3,779,518 3,337,166 Stockholders' equity Common Stock, $0.001 par value, authorized 250,000,000 shares, September 30, 2015 and December 31, 2014 Issued: 46,880,500 shares at September 30, 2015; and 46,730,500 shares at December 31, 2014 46,881 46,730 Additional Paid in Capital 1,299,018 1,281,048 Retained earnings (1,969,546) 219,251 Total stockholders' equity (623,647) 1,547,029 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,059,358 $ 10,481,547
CES SYNERGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended Nine Months ended September September 30, September September 30, 30, 2015 2014 30, 2015 2014 Revenues $ 4,647,451 $ 5,142,759 $ 13,292,944 $ 13,636,198 Cost of sales 4,287,086 4,164,660 11,400,234 10,678,535 Gross profit 360,365 978,099 1,892,710 2,957,663 General & administrative expenses 1,254,745 1,243,143 3,848,916 3,684,250 Net operating profit/ (loss) (894,380) (265,044) (1,956,206) (726,587) Other income/ (expenses), net (75,047) (69,375) (232,591) (44,934) Income before income taxes (969,427) (334,419) (2,188,797) (771,521) Income taxes - (81,339) - 81,339 Net profit/ (loss) $ (969,427) $ (415,758) $ (2,188,797) $ (852,860) Earnings per share Basic and diluted $ (0.0207) $ (0.0089) $ (0.0467) $ (0.0183) Shares used in computing earnings per share Basic and diluted 46,880,500 46,686,500 46,880,500 46,686,500 Cash distribu tions declared per common share $ - $ - $ - $ -
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SOURCE CES Synergies, Inc.