Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

August 31, 2009 18:58 ET

Consolidated Envirowaste Reports 2009 3rd Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2009) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the nine months ended June 30, 2009. A complete copy of the Company's unaudited interim financial statements and accompanying management's discussion and analysis is available on SEDAR at www.sedar.com. Excerpts from the third quarter unaudited financial statements are as follows:



Quarters Ended Nine Months Ended
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June 30, June 30, June 30, June 30,
2009 2008 2009 2008
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Revenue $6,375,451 $6,618,014 $14,545,747 $15,010,593

Income (loss) before income
tax provision $ 613,449 $ 86,418 $ 82,233 ($ 952,039)
Income (loss) after income
tax provision $ 625,466 $ 240,285 $ 170,361 ($ 548,736)

Earnings (loss) per
share-basic $ 0.06 $ 0.02 $ 0.02 ($ 0.05)
Earnings (loss) per
share-diluted $ 0.06 $ 0.02 $ 0.02 ($ 0.05)

Weighted average common
shares outstanding-basic 10,414,699 10,414,699 10,414,699 10,414,699

Weighted average common
shares outstanding-diluted 10,414,699 10,414,699 10,414,699 10,414,699
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The Company recorded third quarter net income of $625,466 or $0.06 per share ($0.06 per share diluted) for the three months ended June 30, 2009 compared to net income of $240,285 or $0.02 per share ($0.02 per share diluted) for the third quarter ended June 30, 2008 as the Company benefited from operational adjustments made to meet economic conditions in Florida and improved weather conditions compared to the second quarter on the Canadian West Coast.

Results for the first nine months of the 2009 fiscal year continue to reflect economic conditions in the Florida region, seasonal trends, and improvements from operational adjustments in the face of the lower demand for the Company's services.

Net income for the nine months ended June 30, 2009 was $170,361 or $0.02 per share ($0.02 per share diluted) compared to a net loss of $548,736 or $0.05 per share ($0.05 per share diluted). Revenue declined 3% or $464,846 to $14,545,747 for the nine months ended June 30, 2009 assisted by a favourable currency translation difference of approximately $1.8 million compared to $15,010,593 for the nine months ended June 30, 2008. Current economic conditions in Florida and the poor weather in the Prairie regions of Western Canada were largely responsible for the revenue decline.

The Company improved operating margins for the nine months ended June 30, 2009 compared to the third quarter of fiscal 2008 through a combination of operating and pricing adjustments and strong cost controls. Fuel costs in the US operations for the first nine months of fiscal 2009, at 45% of the costs incurred for the same period last year were a welcome relief, however the Company recognizes that this may be only a temporary respite and look to the future with considerable concern with the most recent diesel fuel price increases and the effect further increases might have on future operating costs.

With no immediate end to the U.S. financial and general economic crisis in sight, the Company expects operating conditions for CRR Florida to remain very challenging throughout the remainder 2009, with little prospect of any meaningful recovery on the horizon. A continuation of the recent rise in diesel fuel prices will cause additional operational challenges during the remainder of the 2009 fiscal year. The Company intends to maintain strong operating cost controls and optimize operations to face these ongoing challenges while anticipating normal fourth quarter seasonal values.

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. Readers are cautioned that such forward-looking statements are not guarantees and may involve known and unknown risks and uncertainties that could 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, product selling prices, the cost and availability of raw materials, operating costs, changes in foreign currency exchange rates, dependence on contracts, the regulatory environment, seasonality, risk of liability for environmental damage, risks associated with litigation, and concentration of shareholder control. For a fuller description of those risks, please see the sections headed "Critical Accounting Estimates" and "Risk Factors" in management's discussion and analysis for the year ended September 30, 2008, a copy of which is available under the Company's name on SEDAR at www.sedar.com.

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)