SOURCE: Kesselring Holding Corporation

August 14, 2008 18:25 ET

Kesselring Holding Corporation Files 10-QSB, Company's Turnaround Plan Working as Operating Results Improve 40% vs. Prior Quarter

SARASOTA, FL--(Marketwire - August 14, 2008) - Kesselring Holding Corporation (OTCBB: KSSH) announced today that it has filed its recent form 10-QSB with the Securities and Exchange Commission.

The Company is required to file a form 10-QSB with the Securities and Exchange Commission 45 days after the end of its third fiscal quarter, June 30, 2008. This form summarizes the Company's results of operations for the 3rd quarter of 2008 and 2007 and the first nine months of 2008 and 2007.

The Company reported Revenues of $1,996,799, Gross Profit of $604,852, and an Operating Loss of ($466,315) for the 3rd quarter of 2008. This compares to Revenues of $2,407,881, Gross Profit of $627,247, and an Operating Loss of ($1,551,084) for the 2nd quarter of 2008. The 2nd quarter Operating Loss was ($774,484) excluding a restructuring charge of $776,600 which was taken in that quarter. As a result, the 3rd quarter Operating Loss represents a 40% improvement on a comparable basis. The Company reported Revenues of $2,709,466, Gross Profit of $510,135 and an Operating Loss of ($762,711) for the 3rd quarter of 2007.

The Company reported Revenues of $7,102,553, Gross Profit of $1,779,554, and an Operating Loss of ($3,325,027) including the aforementioned restructuring charge of $776,600 for the first nine months of 2008. This compares to Revenues of $9,414,118, Gross Profit of $1,942,972, and an Operating Loss of ($1,162,068) for the same period in 2007.

Since early February, 2008 when a management change took place, the Company has undertaken a plan of action mandated by the Board of Directors to dramatically improve its operating results as quickly as possible by aggressively cutting costs at the holding company, downsizing and refocusing its Kesselring Restoration division to get back to its profitable core business and increasing the profitability and business development efforts of its Washington divisions.

Charles B. Rockwood, Chief Operating and Financial Officer of Kesselring Holding Corporation states: "We have been working very hard to put the company on a path to profitability and while we're pleased with our progress thus far -- this 40% improvement on a comparable basis demonstrates that -- we've got a long way to go in order to achieve our ultimate goal of sustained profitability and growth."

"Despite the 40% improvement in our results, our goal remains to create meaningful shareholder value and management feels we are on our way to doing so. We still have issues to work through and are very appreciative of the support our valued business partners are providing in helping us get back on track in this challenging economic climate," stated Chairman of the Board, Clifford H. Wildes.

"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995

Statements about the expected future prospects of our business, statements about our outlook for internal revenue growth in 2007 and 2008, and all other statements in this release other than historical facts, constitute forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "would," "should," "seeks," "approximately," "intends," "plans," "estimates," or "anticipates" or similar expressions which concern our strategy, plans or intentions. All statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include: conditions in the restoration, construction and building products industries, change in interest rates, the impact of severe weather on the Company's restoration and construction operations, the effect of governmental regulation on the Company and other factors described from time to time in our filings with the Securities and Exchange Commission. The factors described in this paragraph and other factors may affect our business or future financial results. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.

Contact Information

  • Contact:
    Charles Rockwood
    Kesselring Holding Corporation
    941-953-5774 x108
    Email: Email Contact