Consolidated Envirowaste Industries Inc.
TSX VENTURE : CWD

Consolidated Envirowaste Industries Inc.

June 01, 2009 14:43 ET

Consolidated Envirowaste Reports 2009 2nd Quarter Results

ABBOTSFORD, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - Consolidated Envirowaste Industries Inc. (TSX VENTURE:CWD) announced today its results for the six months ended March 31, 2009. 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 second quarter unaudited financial statements are as follows:



Quarters Ended Six Months Ended
---------------------- ------------------------
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
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Revenue $4,379,556 $4,585,292 $8,170,296 $8,392,579

Income (loss) before
income tax provision $158,201 ($243,562) ($531,216) ($1,038,457)
Income (loss) after income
tax provision $61,373 ($160,836) ($455,105) ($789,021)

Earnings (loss) per
share-basic $0.01 ($0.02) ($0.04) ($0.08)
Earnings (loss) per
share-diluted $0.01 ($0.02) ($0.04) ($0.08)

Weighted average common
shares outstanding-basic 10,414,699 10,414,699 10,414,699 10,414,699

Weighted average common
shares outstanding
-diluted 10,414,699 10,414,699 10,414,699 10,414,699

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A gain from the disposal of equipment by the Company's CRR Florida subsidiary helped the Company record second quarter net income of $61,373 or $0.01 per share ($0.01 per share diluted) for the three months ended March 31, 2009 compared to a net loss of $160,836 or $0.02 per share ($0.02 per share diluted) for the quarter ended March 31, 2008. The second quarter operating loss-before other income and income taxes-of $85,089 improved significantly from the $280,355 loss suffered in the three months ended March 31, 2008 as the Company made operational adjustments to meet economic conditions in Florida and early spring colder than normal weather conditions in Western Canada.

Results for the first six months of the 2009 fiscal year continue to reflect the poor results of the first quarter, economic conditions in the Florida region, and improvements from operational adjustments in the face of the lower demand for the Company's services.

The net loss for the six months ended March 31, 2009 was $455,105 or $0.04 per share ($0.04 per share diluted) compared to a net loss of $789,021 or $0.08 per share ($0.08 per share diluted). Revenue declined 3% or $222,283 to $8,170,296 for the six months ended March 31, 2009 assisted by a favourable currency translation difference of approximately $1.3 million compared to $8,392,579 and a $1.15 million unfavourable currency translation difference for the six months ended March 31, 2008. Current economic conditions in Florida and the late spring season in Western Canada were largely responsible for the revenue decline.

The Company improved operating margins for the six months ended March 31, 2009 compared to the second quarter of fiscal 2008 through a combination of operating and pricing adjustments and strong cost controls. Fuel costs in the US operations for the first six months of fiscal 2009, at 50% of the costs incurred for the same period last year were a welcome relief, however the Company recognizes that this may be only a temporary respite and look to the future with considerable concern with the most recent diesel fuel price increases and the effect further increases might have on future operating costs.

With no immediate end to the U.S. financial and general economic crisis in sight, the Company expects operating conditions for CRR Florida to remain very challenging throughout the remainder 2009, with little prospect of any meaningful recovery on the horizon. A continuation of the recent rise in diesel fuel prices will cause additional operational challenges during the remainder of the 2009 fiscal year. We are cautiously optimistic that weather conditions will improve in Western Canada sufficient to allow us to recoup sales lost in the second quarter from the late spring season in the third quarter.

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)