Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

May 30, 2005 17:43 ET

Consolidated Envirowaste Reports 2005 2nd Quarter Results

ABBOTSFORD, BRITISH COLUMBIA--(CCNMatthews - May 30, 2005) - (All amounts in Canadian dollars)

Consolidated Envirowaste Industries Inc. (TSX Venture:CWD) announced today its results for the six months ended March 31, 2005. A complete copy of the Company's report for the quarter is available at http://www.sedar.com. Excerpts from the unaudited financial statements are as follows:



Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
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Revenue $ 6,682,903 $ 5,484,735 $ 13,856,167 $ 10,359,094
Income from
continuing
operations
before income
taxes 123,617 133,948 1,155,740 253,601
Income (loss)
from continuing
operations after
income taxes (13,538) 32,324 507,064 358
Income from
discontinued
operations 14,198 59,651 29,225 81,230
Net income for
the period 660 91,975 536,289 81,588
Basic earnings
per common share $ - $ 0.01 $ 0.05 $ 0.01
Diluted earnings
per common share $ - $ 0.01 $ 0.05 $ 0.01
Weighted average
common shares
outstanding 10,250,801 10,197,748 10,305,303 10,106,400
---------------------------------------------------------------------


Consolidated Envirowaste Industries Inc. recorded a net loss from continuing operations for the three months ended March 31, 2005 of $13,538 or $0.00 per share ($0.00 per share diluted) compared to net earnings from continuing operations of $32,324 or $0.00 per share ($0.00 per share diluted) for the three months ended March 31, 2004. The Company's Georgia subsidiary ceased daily operations on March 31, 2005, and, is presented as discontinued operations on a comparative basis. After net income from discontinued operations for the quarter of $14,198 (2003 - $59,651), overall net income for the three months ended March 31, 2005 was $660 or $0.00 per share ($0.00 per share diluted) compared to net income of $91,975 or $0.01 per share ($0.01 per share diluted) earned in the same quarter of 2004. For the six months ended March 31, 2005, income from continuing operations before income taxes was $1,155,740 compared to $253,601 for the six months ended March 31, 2004. Net income after income taxes and discontinued operations totalled $536,289 or $0.05 per common share ($0.05 per share diluted) for the first six months of fiscal 2005 compared to $81,588 or $0.01 per share ($0.01 per share diluted) for the six months ended March 31, 2004.

Revenue increased 22% or $1.2 million to $6,682,903 for this quarter compared to the second quarter of 2004, but sales were down from the 1st quarter of 2005 by $490,000 when CRR (Florida) was involved with last fall's storm cleanup. The Company had similar gross margins compared to the second quarter of 2004 while operating income rose $76,000 for the quarter compared to the three months ended March 31, 2004, reflecting more seasonal values compared to the 1st quarter of 2005.

Driven by strong results in its Florida subsidiary, the Company's revenue, operating and net income from continuing operations for the six months ended March 31, 2005, continued at a pace well ahead of the first six months of fiscal 2004. Revenue for the first six months of fiscal 2005, following a reduction of nearly $1 million in currency translation differences, is approximately $3.5 million higher than the first six months of 2004. Operating income during the six months was $855,000 higher and net income from continuing operations increased $506,700 compared to the six months ended March 31, 2004, while net income, including discontinued operations, is $454,700 more than the same six months of fiscal 2004. Results from the first quarter of fiscal 2005 have manifested themselves into a stronger balance sheet at March 31, 2005 with improved working capital and debt to equity ratios.

Consolidated Envirowaste Industries Inc. is a leading processor of wood and other organic wastes in Western Canada, Florida and Georgia. The Company markets and supplies biomass boiler fuel for electric generation facilities, charcoal manufacturers and pulp and paper mills in the U.S. as well as bulk landscaping products in each of these regions, and packaged soil products to major Western Canadian retailers.

Consolidated Envirowaste Industries Inc.

James E. Darby, Chairman and Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Consolidated Envirowaste Industries Inc.
    James E. Darby
    Chairman and Chief Executive Officer
    (604) 856-6836
    (604) 856-5644 (FAX)