Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

May 31, 2006 13:56 ET

Consolidated Envirowaste Industries Inc. Reports 2006 Second Quarter Results

ABBOTSFORD, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the six months ended March 31, 2006. A complete copy of the Company's report for the six months is available at www.sedar.com. Excerpts from the unaudited financial statements are as follows:



Quarters Ended Six Months Ended
-------------- ----------------
March 31, March 31, March 31, March 31,
2006 2005 2006 2005
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Revenue $ 8,691,667 $ 6,653,408 $ 16,446,271 $ 13,826,989

Income from
continuing
operations before
income taxes $ 1,307,569 $ 123,617 $ 2,021,380 $ 1,155,740

Income (loss) from
continuing
operations after
income taxes $ 745,394 $ (13,538)$ 1,064,346 $ 507,064

Income from
discountinued
operations $ - $ 14,198 $ - $ 29,225

Net income for
the period $ 745,394 $ 660 $ 1,064,346 $ 536,289

Earnings per
share-basic $ 0.07 $ - $ 0.10 $ 0.05

Earniings per
share-diluted $ 0.07 $ - $ 0.10 $ 0.05

Weighted average
common shares
outstanding 10,364,699 10,250,801 10,364,699 10,305,303

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Consolidated Envirowaste Industries Inc. reported second quarter net income of $745,394 or $0.05 per share ($0.05 per share diluted) on revenues of $8,691,667 for the quarter ended March 31, 2006 compared to a net loss from continuing operations of $13,538 or $0.00 per share ($0.00 per share fully-diluted) on $6,653,408 in revenues for the 2nd quarter of fiscal 2005. Revenue growth of 30% and improved operating margins over the comparable quarter of 2005 produced the Company's strongest second quarter results in several years.

The Company recorded net income of $1,064,346 or $0.10 per share ($0.10 per share diluted) for the six months ended March 31, 2006. This compares to income from continuing operations of $507,064 or $0.05 per share ($0.05 per share fully diluted) and overall net income of $536,289 or $0.05 per share ($0.05 per share fully diluted) for the same six month period ended March 31, 2005.

While the Canadian operations reflect seasonal demand, the CRR (Florida) unit dominated the overall performance of the Company for the six months ended March 31, 2006 with revenue from storm activity continuing well into the second quarter and very strong private sector demand. The strong second quarter increased revenues by 19% to $16,446,271 for the six months ended March 31, 2006 compared to revenue of 13,826,989 for the six months ended March 31, 2005. The Florida unit is capitalizing on its significant efforts to gain private sector market share and is benefiting from the success of its existing private sector customer base. Fuel costs continued to increase disproportionately to other operating costs, but the Company was able to adjust its pricing to improve overall margins by 13% over the comparable quarter and 3.7% for the comparative six month period over last fiscal year.

Revenues and net earnings were impacted by the continuing weakness in the US dollar reducing revenue gains by $800,000 and net earnings by approximately $0.01 per share.

The Company generated approximately $1,884,000 in cash flows before changes in working capital for the six months ended March 31, 2006. This compared to $1,360,000 generated from operations before changes in working capital for the first six months of the 2005 fiscal year reflecting higher net earnings and an offsetting $160,000 increase in unrealized foreign exchange losses (cumulative currency translation differences) in the comparable six month periods.

Consolidated Envirowaste Industries Inc. is a leading processor of wood and other organic wastes in Western Canada and Florida. The Company markets and supplies biomass boiler fuel for electric generation facilities, charcoal manufacturers and pulp and paper mills in the U.S., bulk landscaping products in both of these regions, and packaged soil products to major Western Canadian retailers.

Forward Looking Statements This report contains statements that are forward looking in nature. Such statements involve known and unknown risks and uncertainties that may cause the actual results of the Company to be materially different from those expressed or implied by those forward looking statements. Such risks include, among others: general economic and business conditions, weather factors, competition and product selling prices, raw material and operating costs, and changes in foreign currency exchange rates.

Consolidated Envirowaste Industries Inc.

James E. Darby, Chairman and Chief Executive Officer


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Consolidated Envirowaste Industries Inc.
    James E. Darby
    Chairman and Chief Executive Officer
    (604) 856-6836
    (604) 856-5644 (FAX)