SOURCE: CES Synergies, Inc.

CES Synergies, Inc. Logo

August 12, 2014 13:24 ET

CES Synergies, Inc. Reports Second Quarter Results; Revenues Grow 38% With Significant Gross Margin Improvement

CRYSTAL SPRINGS, FL--(Marketwired - August 12, 2014) - CES Synergies, Inc. (OTCQB: CESX) announced results for the quarter and six months ended June 30, 2014.

Revenues for the three months ended June 30, 2014 were $4.7 million, a 38% increase as compared to revenues of $3.4 million in the comparable 2013 period and a 24% increase sequentially, as compared to the first quarter of 2014. During the second quarter of 2014, remediation contributed $1.6 million to consolidated revenue and demolition contributed $3 million. Gross margin increased to 28% in the second quarter compared to 16% in the second quarter of 2013. The Company reported operating profit of $62,000 as compared to an operating loss of $362,000 in the second quarter of last year. CES recorded net income for the second quarter of 2014 of $138,000 or $0.003 per basic and diluted share. 

For the six months ended June 30, 2014, CES recorded revenues of $8.5 million, an increase of 25% as compared to $6.8 million in the first six months of 2013. Remediation contributed $2.8 million to consolidated revenue and demolition contributed $5.5 million. Gross margin was 23% as compared to gross margin of 21% in the first half of 2013. The Company reported an operating loss of $0.5 million for the first six months of 2014 as compared to an operating loss of $0.3 million in the same period of 2013. CES reported a net loss of $0.4 million or a loss of ($0.009) per basic and diluted share for the first half of 2014. 

Clyde A. Biston, Chairman and Chief Executive Officer of CES Synergies, commented, "Our revenue growth and gross margin improvement in the quarter was driven by our demolition segment, which saw a 95% increase in revenues as compared to the second quarter of last year. We used fewer subcontractors and were able to lower job site and other indirect costs, enabling the Company to generate improved gross margin. With our combined remediation and demolition expertise, we believe we are uniquely qualified to pursue and win larger projects which will contribute to continued improved margin performance as compared to 2013. 

"In support of our strategy to expand our geographical reach, during the quarter we added personnel to our sales team. The team brought in several new contracts including remediation projects for the Rivarde Juvenile Detention Facility in Louisiana, as well as demolition projects for the Louisiana Land Trust and for Jackson Barracks, a National Guard facility in New Orleans. Our pipeline remains strong and we believe we are well positioned to capitalize on the opportunities we're seeing in the market," Mr. Biston concluded. 

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 months
ended June 30,
  Six months ended
June 30,
 
   2014  2013   2014   2013  
   (unaudited)  (unaudited)   (unaudited)   (unaudited)  
Revenues  $4,680,854  $3,368,519   $8,493,439   $6,768,486  
Cost of sales   3,353,800   2,822,936    6,513,875    5,326,452  
Gross profit (loss)   1,327,054   545,583    1,979,564    1,442,033  
                     
 General and administrative expenses   1,265,463   907,386    2,441,107    1,702,157  
Operating Income   61,591   (361,803 )  (461,543 )  (260,124 )
                     
Other income (expense) net   76,563   (68,246 )  24,441    (103,478 )
                     
Net Profit (loss)  $138,154   ($430,049 )  ($437,102 )  ($363,602 )
Earnings (loss) per basic and diluted share  $0.003   ($2688.00 )  ($0.009 )  ($2273.00 )
Weighted average number of shares outstanding -- Basic and Diluted   46,549,000   160    46,549,000    160  
                
 
CES Synergies, Inc. and Subsidiaries
Consolidated Balance Sheets
 
   June 30, 2013  December 31, 2013
ASSETS      
Current assets        
 Cash  $315,090  $250,359
 Advances to employees   13,087   20,223
 Contracts receivable (net of allow. for bad debt)   3,773,269   3,965,709
 Inventory   112,870   153,990
 Cost and estimated earnings in excess of billings on uncompleted contracts   696,449   809,548
     Total current assets   4,910,765   5,199,829
Property and equipment, net   2,246,094   2,160,818
Goodwill   1,446,855   1,446,855
Other assets   7,414   29,505
TOTAL ASSETS  $8,611,128  $8,837,007
         
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities        
 Accounts payable  $1,033,885  $1,260,709
 Accrued payroll   24,946   123,356
 Billings in excess of costs and estimated earnings on uncompleted contracts   287,617   518,612
 Current portion long-term debt   666,556   472,372
    Total current liabilities   3,763,304   2,375,049
Long-term debt, net of current portion   3,272,285   4,731,468
   Total long-term liabilities   3,272,285   4,731,468
Stockholders' equity        
 Common stock, authorized $0.001 par value, 250,000,000 shares, at June 30, 2014; 75,000,000 shares, at December 31, 2013        
  Issued: 46,686,500 shares, at June 30, 2014; and 46,525,000 shares, at December 31, 2013   46,686   46,525
 Treasury stock, 80 shares, at cost   0   (129,356)
 Additional paid in capital   1,243,692   1,084,058
 Retained earnings   285,161   722,263
    Total stockholders' equity   1,575,539   1,730,490
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $8,611,128  $8,837,007
       

Contact Information

  • Company Contact: 
    John Tostanoski
    President 
    CES Synergies, Inc. 
    (813) 783-1688
    jt@crossenv.com 

    Investor Contact:
    John Nesbett/Jen Belodeau
    Institutional Marketing Services (IMS)
    (203) 972-9200
    jnesbett@institutionalms.com