SOURCE: CES Synergies, Inc.

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May 19, 2014 08:58 ET

CES Synergies, Inc. Reports First Quarter Results

CRYSTAL SPRINGS, FL--(Marketwired - May 19, 2014) - CES Synergies, Inc. (OTCQB: CESX) announced results for the quarter ended March 31, 2014.

Revenues for the three months ended March 31, 2014 were $3.8 million, a 12% increase as compared to revenues of $3.4 million in the comparable 2013 period. During the first quarter of 2014, remediation contributed $0.9 million to consolidated revenue and demolition contributed $2.8 million. Gross margin was 17% in the first quarter compared to 26% in the first quarter of 2013. The Company reported an operating loss of $0.5 million as compared to operating income of $0.1 million in the first quarter of last year. CES recorded a net loss for the first quarter of 2014 of $0.6 million or a loss of $0.01 per basic and diluted share. 

Clyde A. Biston, Chairman and Chief Executive Officer of CES Synergies commented, "We were pleased to achieve increased revenues in the quarter, primarily related to new contract activity. Gross margin performance was impacted in the quarter by increased use of subcontractors and higher job site and other indirect costs, but for the balance of 2014 we expect our gross margins to improve. During the quarter, we made strategic investments in the business to drive our long term growth, including adding high quality business development executives and enhancing our equipment, technology and facilities. These enhancements have significantly improved our positioning to see a broader scope of opportunities." 

Mr. Biston continued, "We are seeing a pick-up in construction activity and our pipeline is robust. Examples of contracts secured during the first quarter include a contract with the Florida Department of Transportation (FDOT) for demolition services as well as a demolition and remediation project with the Hillsborough County Court Annex in Tampa. Our goal is to build upon our positioning as an established leader in the region while making select acquisitions 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:

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,
   2014   2013  
    (unaudited )  (unaudited )
Revenues  $3,812,585   $3,399,967  
Cost of sales   3,160,075    2,503,516  
Gross profit   652,510    896,451  
  General and administrative expenses   1,175,644    794,771  
Operating Income (loss)   (523,134 )  101,680  
Other income (expense) net   (52,122 )  (35,232 )
Net income (loss)  $(575,256 ) $66,448  
Net income (loss) per basic and diluted share  $(0.01 ) $415.29  
Weighted average number of shares           
outstanding - Basic and Diluted   46,549,000    160  
CES Synergies, Inc. and Subsidiaries
Consolidated Balance Sheets
   March 31, 2014  December 31, 2013
Current assets        
  Cash  $72,682  $250,359
  Advances to employees   15,069   20,223
  Contracts receivable (net of allow. for bad debt)   3,294,390   3,965,709
  Inventory   168,378   153,990
  Cost and estimated earnings in excess of billings on uncompleted contracts   946,282   809,548
    Total current assets   4,496,801   5,199,829
Property and equipment, net   2,101,568   2,160,818
Goodwill   1,446,855   1,446,855
Other assets   7,855   29,505
TOTAL ASSETS  $8,053,079  $8,837,007
Current liabilities        
  Accounts payable  $1,329,890  $1,260,709
  Accrued payroll   116,083   123,356
  Billings in excess of costs and estimated earnings on uncompleted contracts   415,424   518,612
  Current portion long-term debt   472,372   472,372
    Total current liabilities   2,333,769   2,375,049
Long-term debt, net of current portion   4,531,675   4,731,468
   Total long-term liabilities   4,531,675   4,731,468
Stockholders' equity        
  Common stock, authorized $0.001 par value, 250,000,000 shares, at March 31, 2014, 75,000,000 shares at December 31, 2013        
   Issued: 46,549,000 shares, at March 31, 2014; 46,525,000 shares, at December 31, 2013   46,549   46,525
  Additional paid in capital   994,079   954,702
  Retained earnings   147,007   722,263
    Total stockholders' equity   1,187,635   1,730,490

Contact Information

  • Company Contact:  
    John Tostanoski
    CES Synergies, Inc.
    (813) 783-1688

    Investor Contact:
    John Nesbett/Jen Belodeau
    Institutional Marketing Services (IMS)
    (203) 972-9200