Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

January 28, 2008 17:40 ET

Consolidated Envirowaste Reports 2007 Annual Results

ABBOTSFORD, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2008) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the year ended September 30, 2007. A complete copy of the Company's audited annual financial statements and accompanying management's discussion and analysis is available on SEDAR at www.sedar.com. Excerpts from the annual audited financial statements are as follows:



---------------------------------------------------------------------------
September 30 2007 2006
---------------------------------------------------------------------------

Total Revenues $22,358,945 $29,951,147
Net income (loss) from continuing operations ($871,671) $ 985,132
Earnings (loss) per share-basic ($0.08) $ 0.09
Earnings (loss) per share-diluted ($0.08) $ 0.09
Net income (loss) for the year ($871,671) $ 985,132
Earnings (loss) per share-basic ($0.08) $ 0.09
Earnings (loss) per share-diluted ($0.08) $ 0.09
Weighted average number of common shares
outstanding-basic 10,414,699 10,383,096
Weighted average number of common shares
outstanding-diluted 10,414,699 10,576,148

---------------------------------------------------------------------------


The Company recorded a net loss of $871,671 or $0.08 per share ($0.08 per share diluted) for the year ended September 30, 2007 compared to net income of $985,132 or $0.09 per share ($0.09 per share diluted) for the year ended September 30, 2006.

Record drought conditions in the Florida region and the economic slowdown that began in the third quarter of fiscal 2006 affected all aspects of our operating results for the year. Tipping and processing fees, which are the Company's primary source of revenue, declined by 30% or $7,618,267, reducing overall revenue by 25% or $7,592,202 from $29,951,147 for the year ended September 30, 2006 to $22,358,945 for the year ended September 30, 2007. The combination of extremely dry conditions and excess production capacity in our U.S. operations offset slight improvements in the Canadian operations, reducing operating margins by 8% compared to fiscal 2006 as the Company adjusted its U.S. operations to meet lower demand.

The Company recorded a net loss after income taxes of $440,582, or $0.04 per share ($0.04 per share diluted) for the fourth quarter of 2007, compared to a net loss after income taxes of $410,580, or $0.04 per share ($0.04 per share diluted) for the same quarter of 2006.

Revenue for the quarter, at $4,697,844, was down approximately 10% from $5,213,478 reported in the fourth quarter of 2006. The majority of these revenues in both periods were derived from the operations of the Company's Florida-based subsidiary, Consolidated Resource Recovery Inc. ("CRR Florida"). As in earlier quarters of 2007, the economic slowdown and drought conditions affecting CRR Florida's revenues continued to influence consolidated revenues as CRR Florida's revenue declined 6% in terms of U.S. funds. This, combined with the Canadian dollar's move to parity with the U.S. dollar towards the end of the 2007 fourth quarter, produced a drop in our U.S. operations' revenue in terms of Canadian funds for the quarter of approximately 12% compared to the fourth quarter of 2006. Meanwhile, the Canadian operations experienced a 15% revenue increase in the fourth quarter compared to the fourth quarter of 2006 as the late Canadian West Coast growing season caused by earlier inclement weather extended into the fourth quarter of 2007.

The Company expects the current downward trend in revenues and operating results to continue into the 2008 fiscal year while it adjusts its operations to meet the downturn in economic conditions in the U.S. Southeast. In the anticipated absence of severe weather patterns experienced during the past two to three years, the Company expects operating results to mirror seasonal trends experienced earlier in the decade.

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.

Forward-Looking Statements: This report contains statements that are forward-looking in nature. Readers are cautioned that such forward-looking statements are not guarantees and may involve known and unknown risks and uncertainties that could cause the actual results of the Company to be materially different from those expressed or implied by those forward-looking statements. Such risks include, among others: general economic and business conditions, weather factors, competition, product selling prices, the cost and availability of raw materials, operating costs, changes in foreign currency exchange rates, dependence on contracts, the regulatory environment, seasonality, risk of liability for environmental damage, risks associated with litigation, and concentration of shareholder control. For a fuller description of those risks, please see the sections headed "Critical Accounting Estimates" and "Risk Factors" in management's discussion and analysis for the year ended September 30, 2007, a copy of which is available under the Company's name on SEDAR at www.sedar.com.

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)