SOURCE: National Storm Management, Inc.

November 20, 2007 11:26 ET

National Storm Management Reports Third Quarter 2007 Results

Third Quarter Operating Results Improve Versus Last Year's Third Quarter

CHICAGO, IL--(Marketwire - November 20, 2007) - National Storm Management, Inc. (PINKSHEETS: NSMG) reported its third quarter financial results for the period ended September 30, 2007.

Revenue for the third quarter declined 11 percent to $2.2 million compared to the second quarter of 2007. While revenue was 28 percent lower in the 2007 third quarter period versus the comparable period in 2006, operating results improved by 14 percent or $92,588. During the third quarter the company posted a net loss of $0.7 million, or $0.01 per share, compared to a net loss of $1.1 million, or $0.01 per share in the second quarter. The improvement in results is due to significantly lower interest expense.

"For the second consecutive year hurricane activity was absent in the state of Florida," said Terry Kiefer, president and CEO of National Storm Management. "Also, the production levels in the Midwest were not sufficient to support our overhead structure. Accordingly, we have consolidated offices and personnel throughout the organization. We will use the upcoming winter months to complete our second response to the SEC's inquiries regarding our form SB-2, and we will continue to pursue OTC Bulletin Board trading status," said Kiefer. "Longer term we are prepared to open two new offices in the spring as the new storm season begins."

About National Storm Management, Inc.

National Storm Management (PINKSHEETS: NSMG) is a national construction company headquartered in Glen Ellyn, Illinois providing storm restoration services in seven states. Its operating affiliates include: ABC Exteriors (Illinois, Indiana and Kentucky); Pinnacle Roofing (Florida and Louisiana); WRS, Inc. (Minnesota); and First Class Roofing and Siding (Ohio). The company and its affiliates are recognized by all major insurance companies such as State Farm, Allstate, Farmers and others for storm related claims. The company is a member of the National Roofing Contractors Association (NRCA) and the Better Business Bureau. More information is available at www.nationalstorm.com.

Forward-Looking Statements

Certain statements included in this press release may constitute forward-looking statements. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, financial performance, plans to update a registration statement with the SEC, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations, but actual results could differ materially as a result of many factors, including, but not limited to, severe weather conditions and the physical damage caused by hail storms and hurricanes, fluctuations in interest rates and the resulting impact on financing costs, general economic developments in the states where we do business, availability of labor, materials and supplies, our ability to execute our future growth plans and our ability to timely and accurately prepare quarterly and annual financial statements. Forward-looking statements are made as of this press release and we do not undertake any obligation to provide updates to such statements except where required to so by law.

                      National Storm Management, Inc.
                       CONSOLIDATED  BALANCE  SHEET
                            September 30, 2007


                                                   Unaudited    Unaudited
                                                  -----------  -----------
                                                      2007         2006
                                                   September    September
                                                      30,          30,
                                                  -----------  -----------
 ASSETS
 Current assets:
        Cash                                      $    21,894  $   243,888
        Accounts receivable (less respective
         allowances)                                  526,845      825,461
        Inventories                                    36,011      133,777
        Management & Salesman Advances                 59,863       40,719
        Cost in excess of billings                    473,933      374,401
        Prepaid Expenses                               54,859       48,621
        Other current assets                           79,375      171,634
                                                  -----------  -----------
           Total current assets                     1,252,781    1,838,501

 Property, plant and equipment                        510,955      470,780
        Less: Accumulated depreciation and
         amortization                                (326,810)    (232,187)
                                                  -----------  -----------
           Property, plant and equipment - net        184,145      238,593

 Goodwill                                                   -        5,000
 Deferred tax asset - net of valuation allowance    1,082,011      848,727
 Other                                                 45,567       62,674
                                                  -----------  -----------
           Total assets                           $ 2,564,504  $ 2,993,495
                                                  ===========  ===========


 LIABILITIES AND STOCKHOLDER EQUITY
 Current liabilities:
        Current maturities of long-term debt      $ 3,602,820  $ 2,060,908
        Accounts payable - trade                    1,192,289    1,175,923
        Other current liabilities                     442,121       50,679
        Unearned income                               768,249
        Billings in excess of costs                    18,867      609,892
                                                  -----------  -----------
           Total current liabilities                6,024,346    3,897,402

 Non-current Liabilities:
        Term loan, net of current portion              23,278       21,885
        Other long-term obligations                         -      107,500
                                                  -----------  -----------
           Total long term debt                        23,278      129,385

                                                  -----------  -----------
           Total liabilities                        6,047,625    4,026,787
                                                  -----------  -----------

 Stockholders' Equity:
 Common Stock, 111,865,470 issued and 104,365,470
  outstanding at September 30, 2007; 66,692,194
  issued and outstanding at September 30, 2006    $   104,365  $    66,692
 Additional paid in capital                         4,882,434    2,835,180
 Accumulated Deficit                               (8,469,920)  (3,935,164)
                                                  -----------  -----------
           Total Stockholders' Equity              (3,483,121)  (1,033,292)
                                                  -----------  -----------

           Total Liabilities and Stockholders'
            Equity                                $ 2,564,504  $ 2,993,495
                                                  ===========  ===========


* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the
  results of its operations and cash flows for the periods presented, in
  conformity with accounting principles generally accepted in the
  United States, consistently applied and hereby certified by Terry Kiefer,
  President for National Storm Management, Inc.






                      National Storm Management, Inc.
                   CONSOLIDATED STATEMENT OF OPERATIONS
                            September 30, 2007
                               **UNAUDITED**

                    --------------------------  --------------------------
                        Three Months Ended          Nine Months Ended
                          September 30,               September 30,
                    --------------------------  --------------------------
                        2007          2006          2007          2006
                    ------------  ------------  ------------  ------------
REVENUES:
Net trade sales     $  2,178,115  $  3,011,186  $  6,007,503  $  7,505,748
                    ------------  ------------  ------------  ------------

OPERATING COST AND
 EXPENSES:
Cost of product
 sold                  1,266,233     2,078,709     3,438,522     4,580,143
Selling,
 administrative,
 and general           1,470,656     1,583,366     4,369,193     4,827,210
Depreciation and
 amortization             25,036        25,509        66,828        78,178
                    ------------  ------------  ------------  ------------
                       2,761,925     3,687,584     7,874,543     9,485,531
                    ------------  ------------  ------------  ------------

INCOME (LOSS) FROM
 OPERATIONS             (583,810)     (676,398)   (1,867,040)   (1,979,783)

Interest expense        (288,385)      (20,435)   (1,188,594)      (71,463)
Other income (loss)      145,020         2,755       151,457         3,139
                    ------------  ------------  ------------  ------------

Income (loss)
 before income
 taxes and
 extraordinary gain     (727,175)     (694,078)   (2,904,177)   (2,048,107)
Provision (Benefit)
 for income taxes              0           (75)                    259,282
                    ------------  ------------  ------------  ------------

NET INCOME (LOSS)   $   (727,175) $   (694,153) $ (2,904,177) $ (1,788,825)
                    ============  ============  ============  ============

Basic Earnings per
 Share:
Weighted - average
 shares             $      (0.01) $      (0.02) $      (0.03) $      (0.03)
Net earnings (loss) $      (0.01) $      (0.01) $      (0.03) $      (0.02)
                    ============  ============  ============  ============


* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the
  results of its operations and cash flows for the periods presented, in
  conformity with accounting principles generally accepted in the
  United States, consistently applied and hereby certified by Terry Kiefer,
  President for National Storm Management, Inc.






                      National Storm Management, Inc.
                   CONSOLIDATED STATEMENT OF CASH FLOWS
                            September 30, 2007
                              **UNAUDITED**

                                                --------------------------
                                                    Nine Months Ended
                                                      September 30,
                                                --------------------------
                                                    2007          2006
                                                ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                               $ (2,904,177) $ (1,788,825)

Adjustments to reconcile net income (loss) to
 net cash provided by (used for) operating
 activities:
       Depreciation, and amortization                 66,828        78,178
       Discounted interest on Fife loan            1,038,970
       Forfeiture of security deposits                   988        40,309
       Loss (Gain) on sale of capital equipment                      4,649
       Deferred tax benefit                                       (261,000)
       Stock and stock options issued for
        professional fees                                           18,175
Changes in components of working capital:
       (Increase) decrease in accounts
        receivable - net                             113,960      (160,477)
       (Increase) decrease in inventories             18,779        31,299
       (Increase) decrease in advances               (17,737)       29,291
       Increase (decrease) in cost in
        uncompleted contracts                       (392,891)          620
       (Increase) decrease in prepaid expenses        (1,620)
       (Increase) decrease in other current
        assets                                       (20,931)        5,082
       Increase (decrease) in accounts payable      (193,991)     (478,766)
       Increase (decrease) in unearned income        768,249
       Increase (decrease) in billings in
        uncompleted contracts                       (397,114)
       Increase (decrease) in other current
        liabilities                                   28,286       (25,575)
       Other, net                                    (21,419)            -
                                                ------------  ------------
         Net cash provided by (used for)
          operating activities                  $ (1,913,820) $ (2,507,040)
                                                ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Capital expenditures                     $    (13,467) $    (26,218)
       Proceeds from dispositions of property,
        plant and equipment                                -        12,750
       Increase (decrease) in other long-term
        liabilities                                        -       107,500
       Increase in security deposits                       -        (5,980)
                                                ------------  ------------
         Net cash provided by (used in)
          investing activities                  $    (13,467) $     88,052
                                                ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Issuance of common stock                 $  2,187,825  $  1,692,099
       Gain on disposition of convertible debt      (140,355)
       Repayment of term loan under foreclosure   (2,002,870)
       Repayment of supplier note payable            (41,727)      (57,367)
       Repayment of installment note payable           2,997
       Proceeds from Fife loan                     1,900,000     1,000,000
       Increase in term loan                             325       (13,006)
                                                ------------  ------------
         Net cash provided by (used in)
          financing activities                  $  1,906,195  $  2,621,726
                                                ------------  ------------

NET INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS                           $    (21,091) $    202,738
Cash and cash equivalents, beginning of period        42,985        41,150
                                                ------------  ------------
Cash and cash equivalents, end of period        $     21,894  $    243,888
                                                ============  ============

Cash interest paid for the periods presented:   $    149,624  $     71,463
                                                ============  ============


* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the
  results of its operations and cash flows for the periods presented, in
  conformity with accounting principles generally accepted in the
  United States, consistently applied and hereby certified by Terry Kiefer,
  President for National Storm Management, Inc.






                     National Storm Management, Inc.
              CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                            September 30, 2007
                              **UNAUDITED**


                              Common
                               Stock  Additional
                                Par    Paid in     Retained   Stockholders'
                    Shares     Value   Capital     Earnings      Equity
                  =========== ======= ==========  ===========  ===========
Balance, January 1,
 2004              25,751,670 $25,752             $  (314,052) $  (288,300)
  Net income                                           65,952       65,952
  Dividends paid -
   owners
   discretionary
   draw                                              (247,915)    (247,915)
  Common stock
   issued in
   connections
   with new
   entities         8,248,330   8,248                  (8,248)           -
                  =========== ======= ==========  ===========  ===========
Balance,
 December 31,
 2004              34,000,000 $34,000             $  (504,263) $  (470,263)
  Issuance of
   stock options
   for
   professional
   fees             6,800,000   6,800    746,200                   753,000
  Acquisition of
   assets of
   N.S.M. Inc       6,000,000   6,000     (1,000)           -        5,000
  Common stock
   issued           2,313,903   2,314    397,284            -      399,598
  Net income
   (loss)                                          (1,642,075)  (1,642,075)
                  =========== ======= ==========  ===========  ===========
Balance,
 December 31,
 2005              49,113,903 $49,114 $1,142,484  $(2,146,338) $  (954,740)
  Issuance of
   stock options
   for
   professional
   fees                     -       -          -            -            -
  Common stock
   issued          16,510,973  16,511  1,402,153            -    1,418,664
  Net income
   (loss)                                          (1,094,672)  (1,094,672)
                  =========== ======= ==========  ===========  ===========
Balance, June
 30, 2006          65,624,876 $65,625 $2,544,637  $(3,241,010) $  (630,748)
  Issuance of
   stock options
   for repayment
   of debt          3,000,000   3,000     (3,000)           -            -
  Proceeds from
   sales of stock
   on Fife loan                            6,961                     6,961
  Common stock
   issued           1,067,318   1,067    321,039            -      322,106
  Net income
   (loss)                                          (2,324,733)  (2,324,733)
                  =========== ======= ==========  ===========  ===========
Balance,
 December 31,
 2006              69,692,194 $69,692 $2,869,637  $(5,565,743) $(2,626,414)
  Issuance of
   stock options
   for repayment
   of debt         29,033,464   8,900  1,818,924            -    1,827,824
  Net income
   (loss)                                          (2,177,002)  (2,177,002)
Balance, June
 30, 2007          98,725,658 $78,592 $4,688,561  $(7,742,745) $(2,975,592)
                  =========== ======= ==========  ===========  ===========
  Issuance of
   stock options
   for repayment
   of debt          4,000,000   4,000    215,645            -      219,645
  Net income
   (loss)                                            (727,175)    (727,175)
Balance,
 September 30,
 2007             102,725,658 $82,592 $4,904,206  $(8,469,920) $(3,483,122)
                  =========== ======= ==========  ===========  ===========


* These financial statements and notes thereto present fairly, in all
  material respects, the financial position of the company and the
  results of its operations and cash flows for the periods presented, in
  conformity with accounting principles generally accepted in the
  United States, consistently applied and hereby certified by Terry Kiefer,
  President for National Storm Management, Inc.

Contact Information

  • For Investor Inquiries:
    Scott Knoll
    630-469-7663