SOURCE: N-Viro International Corp.

N-Viro International Corp.

April 05, 2010 08:00 ET

N-Viro International Corporation Files Form 10-K for 2009

TOLEDO, OH--(Marketwire - April 5, 2010) - N-Viro International Corporation (OTCBB: NVIC) ("N-Viro"), an environmental and materials operating company that owns patented technologies to convert various types of waste into beneficial reuse products, including the renewable biofuel N-Viro Fuel™ and N-Viro Soil™, announced today that on March 31, 2010 it filed its Annual Report on Form 10-K for the year ended December 31, 2009.

For the one year period ended December 31, 2009, N-Viro reported gross revenue of $5.02 million versus $5.00 million for the same period a year ago. The Company also improved their gross profit margin by 7.3%, and reported gross profit of $1,109,000 for 2009 versus $742,000 for 2008, an increase of 49.5%. N-Viro recorded a net loss of $2.41 million in 2009 compared to a net loss of $1.15 million for 2008, an increase in the loss of $1.26 million. This was primarily due to an increase of $1,134,000 in payroll and related costs, $359,000 in consulting fees, $63,000 in director costs and $46,000 in office and travel-related costs.

The Company recorded total operating expenses in 2009 of $3.58 million, but $2.16 million were non-cash expenses for stock and stock options issued during the year and $0.5 million in amortization and depreciation expense, or total non-cash expenses of $2.66 million.

A more detailed description of the financial results is contained in the Annual Report on Form 10-K filed with the SEC on March 31, 2010.

For the last few years, N-Viro has been modifying their business model by evolving away from sales of alkaline admixture and royalty-based revenue agreements that typically generate a higher gross profit margin, to long-term and sustainable revenue based on integrated N-Viro technology and operations, which typically generate a lower gross profit margin. From 2006 to 2009, the percentage of combined revenues generated from the Company's owned and operated facilities in Toledo, Ohio and Volusia County, Florida increased from 46% to 95%. It is anticipated that this shift will allow the Company to enhance future revenue and profits through growth, efficiency and revenue optimization.

Tim Kasmoch, President and CEO of N-Viro International commented, "By focusing on existing and expected new sources of revenue, especially from our N-Viro Fuel technology, in 2010 we expect to improve operating results and have cash to adequately fund operations and new development. We expect that market developments favoring cleaner burning renewable energy sources and ongoing discussions with companies in the fuel and wastewater industries could provide enhanced liquidity and have a positive impact on future operations. We continue to pursue opportunities with strategic partners for the development and commercialization of the patented N-Viro Fuel technology. In addition, we are focusing on the development of regional biosolids processing facilities, and are currently in negotiations with potential partners to permit and develop independent, regional facilities."

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About N-Viro International (www.nviro.com)

N-Viro International is an environmental and materials operating company that owns patented technologies to convert various types of waste into beneficial alternative fuel products. Its renewable biofuel technology, N-Viro Fuel™, has received alternative energy status from the U.S. Environmental Protection Agency, which qualifies the technology for renewable energy incentives. N-Viro operates processing facilities independently as well as in partnership with municipalities.

N-Viro maintains a web site at www.nviro.com, where interested parties can follow the progress of the Company. N-Viro will continue to routinely post press releases on the site and encourages stockholders and interested parties to monitor the site on a regular basis.

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as "expects," "hopes," "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 differ materially from those described herein. For example, while the Company expects business expansion projects to begin in an estimated time frame, such expectations are subject to adverse economic conditions and other factors outside of the Company's control. Further, the Company's ability to increase capabilities and expand capacity is subject to the ability of the Company or its partners to access sufficient capital to pay for this expansion, which will further depend on, among other factors, market acceptance. The Company's ability to achieve profitability of these projects could be negatively impacted if there is a lack of an adequate supply of waste or expenses increase above the Company's expectations -- including fuel and transportation costs, labor costs and costs relating to the treatment and processing of the biosolids and creation of the N-Viro Soil or N-Viro Fuel. In addition, while the Company believes that trends in "greener" energy solutions 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 products and other alternative energy source. All of these factors, and other factors, will affect the profitability of the Company. Additional information about these and other factors that may adversely affect these forward-looking statements are contained in the Company's reports, including its Annual Report on Form 10-K for the year ended December 31, 2009 and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.

                     N-VIRO INTERNATIONAL CORPORATION

                  CONSOLIDATED STATEMENTS OF OPERATIONS


                          Years Ended December 31,
--------------------------------------------------------------------------


                                                    2009          2008
                                                ------------  ------------

REVENUES                                        $  5,021,169  $  5,001,774

COST OF REVENUES                                   3,912,310     4,260,290
                                                ------------  ------------

GROSS PROFIT                                       1,108,859       741,484

OPERATING EXPENSES
  Selling, general and administrative              3,582,979     1,929,777
                                                ------------  ------------

OPERATING LOSS                                    (2,474,120)   (1,188,293)

OTHER INCOME (EXPENSE)
  Interest income                                      1,354         3,306
  Gain on extinguishment of liabilities              147,201        88,785
  Amortization of discount on convertible
   debentures                                        (24,315)            -
  Interest expense                                   (64,313)      (60,513)
                                                ------------  ------------
                                                      59,927        31,578
                                                ------------  ------------

LOSS BEFORE INCOME TAXES                          (2,414,193)   (1,156,715)

  Federal and state income taxes                           -             -
                                                ------------  ------------

NET LOSS                                        $ (2,414,193) $ (1,156,715)
                                                ============  ============


Basic and diluted loss per share                $      (0.51) $      (0.27)
                                                ============  ============

Weighted average common shares outstanding -
 basic and diluted                                 4,688,928     4,274,877
                                                ============  ============



Contact Information

  • For More Information Contact:
    Timothy Kasmoch
    CEO
    Email Contact
    (419) 535-6374