Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

August 26, 2005 13:48 ET

Consolidated Envirowaste Reports 2005 3rd Quarter Results

ABBOTSFORD, BRITISH COLUMBIA--(CCNMatthews - Aug. 26, 2005) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the nine months ended June 30, 2005. A complete copy of the Company's report for the quarter is available at www.sedar.com. Excerpts from the unaudited financial statements are as follows:



Quarter Quarter Nine Months Nine Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
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Revenue $ 8,489,774 $ 7,383,221 $ 22,345,941 $ 17,742,315
Income from
continuing
operations
before income
taxes 633,142 999,189 1,788,882 1,252,790
Income from
continuing
operations
after income
taxes 305,798 646,636 812,862 646,994
Net income
(loss) from
discontinued
operations (514) (148,911) 28,711 (67,681)
Net income for
the period 305,284 497,725 841,573 579,313
Basic earnings
per common
share $ 0.03 $ 0.05 $ 0.08 $ 0.06
Diluted earnings
per common
share $ 0.03 $ 0.05 $ 0.08 $ 0.06
Weighted average
common shares
outstanding 10,364,699 10,247,199 10,325,103 10,153,161

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Consolidated Envirowaste Industries Inc. recorded net income from continuing operations for the three months ended June 30, 2005 of $305,798 or $0.03 per share ($0.03 per share diluted) compared to net earnings from continuing operations of $646,636 or $0.06 per share ($0.06 per share diluted) for the three months ended June 30, 2004. After a net loss from discontinued operations for the quarter of $514 (2004 - $148,911), overall net income for the three months ended June 30, 2005 was $305,284 or $0.03 per share ($0.03 per share diluted) compared to net income of $497,725 or $0.05 per share ($0.05 per share diluted) earned in the same quarter of 2004. Revenue for the quarter increased 15% or $1.1 million to $8,489,774 compared to the third quarter of 2004 driven by revenue growth in its Florida unit. The Company experienced pressure on gross margins during the quarter compared to the third quarter of 2004 caused by higher fuel and raw material costs. Increased activity and fuel cost increases driving freight costs for product deliveries and disposal of site material accounted for a significant increase in direct selling expenses during the nine months ended June 30, 2005 when compared to the third quarter of 2004. After changes in working capital items, the Company generated 1,765,000 in cash flows from operating activities during the quarter compared to generating $1,132,000 in cash flows in the quarter ended June 30, 2004-the change primarily as a result of the $735,000 proceeds from the short term line of credit financing for its Florida unit's acquisition of approximately 200 acres of land for future strategic business purposes.

Strong private sector demand, storm revenue generated in earlier quarters, and continued revenue growth in the Company's Florida unit increased sales for the first nine months of fiscal 2005 by 26% or $4,603,626 to $22,346,000 compared to $17,742,315 for the nine months ended June 30, 2004 in spite of unfavourable currency translation differences. Improvements in revenue for the first three quarters of 2005 were offset by higher operating and selling costs, however, operating income from continuing operations for the nine months ended June 30, 2005 rose $570,290 or 59% to $1,533,784 compared to $963,494 for the same period in 2004. Net income from continuing operations increased 26% or $165,868 for the first three quarters of 2005 to $812,862 compared to $646,994 for the same period last year. Net income from the discontinued Georgia operations of $28,711 compared to a net loss from discontinued operations of $67,681 brought net income for the nine months ended June 30, 2005 to $841,573-an increase of 45% or $262,260-compared to net income of $579,313 for the first three quarters of 2004. For the first nine months of fiscal 2005, Consolidated Envirowaste Industries Inc. generated approximately $2,377,000 in cash flows from operating activities after changes in working capital items, compared to $2,053,000 generated in the first nine months of fiscal 2004. The Company continues to reduce overall debt levels.

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

Consolidated Envirowaste Industries Inc.

James E. Darby, Chairman and Chief Executive Officer


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Contact Information

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