SOURCE: CES Synergies, Inc.

CES Synergies, Inc. Logo

May 14, 2015 09:37 ET

CES Synergies, Inc. Reports First Quarter Results -- Gross Margin Improves Over Same Quarter Last Year

CRYSTAL SPRINGS, FL--(Marketwired - May 14, 2015) - CES Synergies, Inc. (OTCQB: CESX) announced results for the quarter ended March 31, 2015.

Revenues for the three months ended March 31, 2015 were $3.5 million, a 9% decrease as compared to revenues of $3.8 million in the comparable 2014 period. During the first quarter of 2015, the remediation segment contributed $2 million to consolidated revenue while the demolition segment contributed $1.4 million. Gross margin was 19% in the first quarter compared to 17% in the first quarter of 2014. The Company reported an operating loss of $0.7 million, or a loss of $0.02 per basic and diluted share, as compared to an operating loss of $0.5 million in the first quarter of last year.

The decrease in revenue in whole can be attributed to over $3.0 million in Federal contracts being delayed into the second or third quarters of 2015. Of note, revenue in the remediation segment increased more than $1.1 million over the same period last year.

John Tostanoski, Chief Executive Officer of CES Synergies, commented, "While historically, the first quarter has always been difficult in our industry, we were pleased to achieve increased gross margin in the quarter, primarily related to a cost reduction program initiated at the beginning of the year. We believe the revenue increase in our remediation segment over the previous year will continue based on the contract backlog we are seeing. During the quarter, we made strategic investments in the business to drive our long term growth, including adding improved project software capabilities and enhancing our equipment, personnel and facilities. These enhancements have significantly improved our positioning to see a broader scope of opportunities."

Mr. Tostanoski continued, "We are seeing a continued increase in construction activity and our pipeline is robust. Examples of contracts secured during the first quarter include a contract for demolition and remediation work at NAS Jacksonville and a demolition and remediation project on residence towers at Florida State University. Our goal is to build upon our positioning as an established leader in the region and contracting selectively to grow geographically."

About CESX: 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: www.crossenv.com.

This release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, and are made in reliance upon the protections provided by such Acts for forward-looking statements. We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties that are beyond our control, and these statements may turn out not to be true. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company's Form SEC filings.

 
CES Synergies and Subsidiaries
Consolidated Statements of Operations
 
   
    
   Three month period
ended March 31,
   
   2015  2014
   (unaudited)  (unaudited)
     
Revenues  $3,523,357  $3,812,585
     
Cost of sales  2,850,038  3,160,075
     
Gross profit  673,319  652,510
       
 General and administrative expenses  1,318,880  1,175,644
     
Operating Income (loss)  (714,878)  (523,134)
       
Other income (expense) net  (69,317)  (52,122)
       
Net income (loss)  $(714,878)  $(575,256)
     
Net income (loss) per basic and diluted share  $(0.02)  $(0.01)
     
Weighted average number of shares outstanding - Basic and Diluted  46,730,500  46,549,000
       

Contact Information