ENGLEWOOD, Colo., Aug. 9, 2002 -- CET Environmental Services Inc. announced that revenues for the three months ended June 30, 2002 fell 78% to $548,000 from $2,508,000 in the year-earlier period.
The sharp drop in revenue reflects the absence of revenues from the Environmental Protection Agency (EPA), which accounted for approximately $2 million of revenue during the second quarter of 2001 under a contract which expired on January 8, 2002.
With lower revenues, ongoing close-out expenses related to EPA activities and cost overruns related to terrain problems at three water/wastewater projects, a net loss of $717,000 or $0.12 a share was incurred for the current period. A year earlier, overall results were essentially breakeven as the Company reported net income of $16,350.
For the first half of 2002, revenues were $1,580,000, down 76% from the $6,575,000 recorded for the first six months of 2001. The net loss for the current period was $1,785,000 or $0.31 a share, which compares with net income of $28,000 a year earlier.
Steven Davis, President and CEO, noted that the Company continues to press forward with Brownfields redevelopment activity in Colorado. Davis said, "At times, the process can be laborious since it requires the integration of various impact studies, architectural designs, and community input in order to achieve the optimal development plan." He also noted that the water/wastewater activity had been reorganized, and marketing activity had been increased.
"Consequently," said Davis, "losses are likely to be incurred over the balance of 2002, but, hopefully, at a lesser rate than that experienced in the first half. Nevertheless, we remain confident that CET is moving in the right direction for the creation of future shareholder value."
On June 7, 2002, at the Company's Annual Meeting, shareholders re-elected Craig C. Barto, Steven H. Davis, John D. Henderson and George Pratt as Directors; ratified the selection of Grant Thorton LLP as the Company's independent accountants for the year ending December 31, 2002; and defeated a shareholder proposal seeking dissolution.
CET Environmental Services, Inc. is engaged in environmental remediation, Brownfields development and offers a broad spectrum of services related to water treatment and wastewater processing.
