SOURCE: CES Synergies, Inc.

CES Synergies, Inc. Logo

May 16, 2016 14:48 ET

CES Synergies Reports First Quarter 2016 Financial Results and Provides Business Update

Revenue up 13.6%; Company Profitable for the First Quarter

CRYSTAL SPRINGS, FL--(Marketwired - May 16, 2016) - CES Synergies, Inc. (OTC PINK: CESX)  (CESX) ("CES" or the "Company"), a full service environmental, asbestos abatement and demolition company, today announced financial results for the first quarter ending March 31, 2016 and provided a general business update.

John Tostanoski, CEO of CES Synergies, commented, "Financial improvements continue as we drive CES to greater profitability and reduced costs. Total revenue for the first quarter of 2016 increased 13.6% to $4.0 million compared to $3.5 million for the same quarter in FY 2015, while net profits increased to $231,637 compared to a loss of $714,878 for the same period. The increase in revenue is particularly pleasing in that it comes with the company's continued drive for increased gross margins, closing the first quarter at 32.8%, right in line with our established goals. We are also pleased that the company's continuing effort to control G&A expenses has resulted in a $254,331 or 19.3% reduction in costs for the quarter, as compared to the previous year."

"The revenue increase is primarily attributable to several large contracts in progress at NAS Jacksonville, U.S. Army -- Fort Benning, GA, Florida Department of Transportation and Eglin Air Force Base. Remediation and insulation sales increased in the first quarter of 2016, while demolition sales had a minor decline. However, we have commenced work on some large scale remediation and demolition projects at the end of the first quarter of 2016 in Florida and Georgia that should allow for current trends to continue."

"We anticipate continued improvement heading into our historically stronger second and third quarters for FY 2016. At the end of the first quarter of 2016, we had a backlog of projects valued in excess of $6 million. As we continue to drive the business with a concentration on our most profitable revenue streams we believe there are significant growth opportunities at the federal, state and local government levels, as well as a revitalized construction industry. We look forward to continued improvement in an increasingly robust marketplace."

About CES Synergies Inc.

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.

SAFE HARBOR STATEMENT: This press release may contain "forward-looking statements" that are made pursuant to the "safe harbor" provisions as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," and similar expressions. These statements are based upon management's current expectations as of the date of this press release. Such forward-looking statements may include statements regarding the Company's future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses and other future or expected performances. The Company cautions readers there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC.

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CES SYNERGIES, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

  March 31,
2016
  December 31,
2015
 
ASSETS
Current assets        
  Cash $ 191,136   $ 229,882  
  Advances to employees   12,754     13,770  
  Contracts receivable (net of allow. for bad debt)   3,997,376     4,599,131  
  Inventory   145,947     133,715  
  Deferred tax asset- current   86,098     86,098  
  Prepaids   55,145     -  
  Cost and estimated earnings in excess of billings on uncompleted contracts   1,402,434     690,553  
    Total current assets $ 5,890,890   $ 5,753,149  
Property and equipment, net   1,856,577     1,998,158  
Goodwill   1,446,855     1,446,855  
Deferred tax asset- non-current   -     632,882  
Other assets   -     4,731  
TOTAL ASSETS $ 9,831,935   $ 9,835,775  
             
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities            
  Accounts payable $ 2,921,296   $ 2,911,780  
  Accrued payroll   40,456     47,819  
  Billings in excess of costs and estimated earnings on uncompleted contracts   181,424     301,398  
  Notes payable   1,750,300     1,750,300  
  Current portion long-term debt            
  Related party   -     -  
  Non-related party   457,950     457,950  
    Total current liabilities   5,351,426     5,469,247  
Long-term debt, net of current portion            
  Related party   3,414,035     3,419,098  
  Non-related party   333,464     446,066  
    Total long-term liabilities         3,865,164  
Stockholders' equity            
  Common stock, authorized: $0.001 par value, 250,000,000 shares, at March 31, 2016; issued: 46,890,500 shares, at March 31, 2016; 46,880,500 shares, at December 31, 2015   46,890     46,881  
  Additional paid in capital   1,299,018     1,299,018  
  Retained earnings   (612,898 )   (844,535 )
    Total stockholders' equity   733,010     501,364  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,831,935   $ 9,835,775  

See accompanying Notes to Consolidated Financial Statements

CES SYNERGIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

  Three months ended  
  March 31, 2016   March 31, 2015  
Revenues $ 4,000,808   $ 3,523,357  
Cost of sales   2,686,036     2,850,038  
Gross profit   1,314,772     673,319  
General & administrative expenses   1,064,549     1,318,880  
Net operating profit/(loss)   250,223     (645,561 )
Other expenses, net   (18,586 )   (69,317 )
Profit/(loss) before income taxes   231,637     (714,878 )
Income taxes   -     -  
Net profit/(loss) $ 231,637   $ (714,878 )
Profit/(loss) per share            
Basic and diluted $ 0.01   $ (0.02 )
             
Shares used in computing profit/(loss) per share   46,883,687     46,730,500  
Cash distributions declared per common share   -     -  

See accompanying Notes to Consolidated Financial Statements

Contact Information

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