Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

February 29, 2008 14:29 ET

Consolidated Envirowaste Reports 2008 1st Quarter Results

ABBOTSFORD, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2008) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the three months ended December 31, 2007. A complete copy of the Company's unaudited interim financial statements and accompanying management's discussion and analysis is available on SEDAR at www.sedar.com. Excerpts from the first quarter unaudited financial statements are as follows:



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For the three months ended December 31 2007 2006
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Total revenues $ 3,807,287 $ 4,846,175
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Net loss for the period $ (628,185) $ (418,418)
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Loss per share-basic $ (0.06) $ (0.04)
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Loss per share-diluted $ (0.06) $ (0.04)
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Weighted average number of common
shares outstanding-basic 10,414,699 10,414,699
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Weighted average number of common
shares outstanding-diluted 10,414,699 10,562,353
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The Company recorded a first quarter loss of $628,185 or $0.06 per share (0.06 per share diluted) for the three months ended December 31, 2007. This compared to a net loss of $418,418 or $0.04 per share ($0.04 per share diluted) for the quarter ended December 31, 2006.

The Company experienced a 21% drop in revenue for the first quarter of 2008 as revenue fell from $4,846,175 for the three months ended December 31, 2006 to $3,807,287 for the three months ended December 31, 2007. There were some positive signs of improvement in revenues during the first quarter of 2008 when compared to last year's first quarter, but they were overridden by a 37% drop in the Company's Florida subsidiary's revenue derived from the private sector which has been hard hit by Florida's economic slowdown and a 14% rise in the value of the Canadian dollar versus its U.S. counterpart for the comparable quarters which reduced revenues by $550,000 upon translation of the Company's U.S. dollar denominated revenues. Lower volume, rising input costs and excess capacity are responsible for the increase in losses and increase in cash flows used in operations for the comparable quarters.

The Company expects the current downward trend in revenues and operating results to continue throughout the 2008 fiscal year while it adjusts its operations to meet 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)