274% Revenue Growth During Second Quarter Following Record First-Quarter Results Reported by Global Water Technologies.GOLDEN, Colo.--(BUSINESS WIRE)--Aug. 16, 1999-- Global Water Technologies, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: GWTR GWTR Groundwater Treatment Rule GWTR German Workshop on Term Rewriting ), a company utilizing advanced technologies and engineered solutions to provide process cooling water to industry and municipalities worldwide, today announced record second-quarter operating results for the quarter ended June June: see month. 30, 1999. Revenues for the second quarter increased 274 percent to $25,311,604 as compared to revenues of $6,774,297 for the same period a year ago. Net income rose to $372,360 or $0.0012 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to a net loss of $51,441 or ($0.0002) per basic and diluted share, for the same period a year ago. New contracts awarded in the second quarter increased by 93 percent resulting in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $25.5 million as of June 30, 1999. The significant increase in revenues was primarily due to the installation of the Company's water cooling Water cooling is a method of heat removal from components. As opposed to air cooling, water is used as the heat transmitter. Water cooling is commonly used for cooling internal combustion engines in automobiles and electrical generators. tower equipment at major power plants. The equipment helps reduce thermal pollution thermal pollution: see water pollution. of public waterways The list of waterways is a link page for any river, canal, estuary or firth. International waterways
Commenting on the quarterly performance, Mr. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Kast, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated: "New contract awards were solid throughout the second quarter as demand for our products and services continued to be strong. Results for the second quarter came in below management's forecast on the heels of a record first quarter. Historical growth trends further support a strong revenue and earnings outlook for year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999." Looking forward, Mr. Kast offered: "As industry - domestic and abroad - is continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. challenged by plant and equipment efficiency limitations with respect to process cooling water, as well as pressures from governmental and environmental groups, many new opportunities are surfacing in the marketplace. Global Water Technologies is capitalizing on these opportunities by providing environmentally sound solutions to its customers, and as a result, becoming an emerging leader in water management services worldwide. To further enhance our capabilities we are forming a new subsidiary to provide process cooling water on an outsource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER basis to our customer base." ABOUT GLOBAL WATER TECHNOLOGIES Global Water Technologies, headquartered in Golden, Colorado The City of Golden is a home rule municipality that is the county seat of Jefferson County, Colorado, United States. Golden lies along Clear Creek at the eastern edge of the foothills of the Front Range of the Rocky Mountains. , is a process water management company utilizing advanced technologies and engineered solutions to provide process cooling water to industry and municipalities worldwide. Psychrometric Systems, Inc. (PSI), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , is an engineering and project management firm which designs and builds industrial water cooling towers. Applied Water Technologies, Inc. (AWT (Abstract Windowing Toolkit) A class library from Sun that provides an application framework and graphical user interface (GUI) routines for Java programmers. AWT was the first user interface development system included in the Java Foundation Classes (JFC). ), another subsidiary, is a service provider of proprietary non-chemical water treatment systems for environmentally sound water purification  It has been suggested that , , and be merged into this article or section. and reclamation ReclamationA claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer orders, changes in laws, new or increased competition, delays in new products, production problems, changes in market demand, market acceptance of new products, seasonality in product purchases, and changes in foreign exchange rates. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors which could materially affect the Company and its operations are included in the Company's filings with the Securities and Exchange Commission and are incorporated herein. -0-
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
June 30, 1999 June 30, 1998
Net revenue:
United States $ 24,583,374 $ 5,571,435
International 728,230 1,202,862
---------- ------------
Total revenues 25,311,604 6,774,297
---------- ------------
Costs and expenses:
Cost of sales 23,446,691 5,635,317
Selling, general and
administrative 1,303,054 1,143,448
Research and
development 12,883 56,285
-------------- -------------
Total costs
and expenses 24,762,628 6,835,050
-------------- -----------
Operating income (loss) 548,976 (60,753)
Other income (expense):
Interest expense, net (48,438) (34,879)
Other, net 2,802 3,742
--------------- -------------
Income (loss) before income
taxes 503,340 (91,890)
Income taxes (benefit) 130,980 (40,449)
---------------- --------------
Net income (loss) before
preferred dividend 372,360 (51,441)
Preferred stock dividend 4,999 -
--------------- ---------------
Net income (loss) for common
shareholders $ 367,361 $ (51,441)
=============== ================
Income (loss) per share:
Basic weighted average
shares outstanding 294,854,250 294,050,000
Basic income (loss) per
share $ 0.0012 $ (0.0002)
=============== =================
Fully diluted weighted
average shares
outstanding 299,156,105 294,050,000
Fully diluted income
(loss) per share $ 0.0012 $ (0.0002)
=============== =================
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Six Months Ended
June 30, 1999 June 30,1998
Net revenues:
United States $ 38,465,487 $ 8,625,110
International 874,988 2,472,193
--------------- -------------
Total revenues 39,340,475 11,097,303
------------- ------------
Costs and expenses:
Cost of sales 35,495,665 9,140,872
Selling, general and
administrative 2,353,464 2,056,134
Research and
development 18,613 108,317
--------------- -----------------
Total costs
and expenses 37,867,742 11,305,323
------------- -------------
Operating income (loss) 1,472,733 (208,020)
Other income (expense):
Interest expense, net (137,040) (65,195)
Other, net 2,802 3,997
--------------- ---------------
Income (loss) before income
taxes 1,338,495 (269,218)
Income taxes (benefit) 414,933 (118,507)
--------------- ----------------
Net income (loss) before
preferred dividend 923,562 (150,711)
Preferred stock dividend 10,000 -
--------------- -----------------
Net income (including the
effect of a change in
accounting principle for
the previous year) 913,562 (150,711)
Cumulative effect of a
change in an accounting
principle - net of $593,119
of related tax effect - (754,296)
--------------- -------------
Net income (loss) available
for common stockholders $ 913,562 $ (905,007)
=============== =============
Income (loss) per share:
Basic weighted average
shares outstanding 294,854,250 294,050,000
Basic income per share
- prior to accounting
change 0.0031 (0.0005)
Cumulative effect of
accounting change - (0.0026)
--------------- ------------
Basic income (loss) per
share available for
common share $ 0.0031 $ (0.0031)
=============== =================
Fully diluted weighted
average shares
outstanding 297,060,078 294,050,000
Fully diluted income
per share - prior to
accounting change 0.0031 (0.0005)
Cumulative effect of
accounting change - (0.0026)
--------------- ------------------
Fully diluted income
(loss) per share $ 0.0031 $ (0.0031)
=============== =================
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
ASSETS June 30, 1999 Dec. 31, 1998
------ (unaudited)
Current assets:
Cash and cash
equivalents $ 284,527 $ 1,751,299
Trade accounts
receivable, net of
allowance for
doubtful accounts of
$388,928 and $50,000,
respectively 14,791,753 8,205,563
Other receivables 619,108 111,365
619,108 111,365
Costs and estimated
earnings in excess of
billings on
uncompleted contracts 10,029,657 3,623,538
Income taxes receivable - 60,960
Inventories 626,932 318,458
Prepaid expenses 450,316 164,304
------- -------
Total
current
assets 26,802,293 14,235,487
------------ ----------
Property and equipment, net 643,237 625,309
Intangibles, net of
amortization 35,744 41,246
Deposits 51,555 106,020
------------- ---------
$ 27,532,829 $ 15,008,062
============ ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current maturities of
long-term debt $ 1,015,221 $ 1,036,159
Accounts payable 20,458,505 7,366,472
Accrued liabilities 1,573,677 1,884,950
Billings in excess of
costs and estimated
earnings on
uncompleted contracts 545,535 1,686,168
Income taxes payable 565,803 213,611
Deferred income taxes 106,632 106,632
------------ -------
Total current
liabilities 24,265,373 12,293,992
------------ ----------
Long-term debt 776,901 1,137,076
Deferred income taxes 78,005 78,005
Stockholders' equity:
Preferred stock,
$0.00001 par value,
20,000,000 shares
authorized:
- Series A; 1,000,000
shares authorized
issued and
outstanding; stated
at redemption value
of $0.0001 100 100
- Series B; 1,000
shares authorized,
250 shares issued
and outstanding;
stated at
redemption value
of $1,000 250,000 250,000
Common stock, $0.00001
par value; 800,000,000
shares authorized;
294,854,250 shares
issued and outstanding 2,948 2,948
Capital in excess of
par value 541,918 541,918
Retained earnings 1,617,584 704,023
--------------- ----------
Total stockholders'
equity 2,412,550 1,498,989
--------------- ----------
$ 27,532,829 $ 15,008,062
============ ===========
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