Aqua Care Systems Inc. announces financial results.HOLLYWOOD, Fla.--(BUSINESS WIRE)--Nov. 9, 1995--Aqua Care Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AQCR AQCR Air Quality Control Region (US EPA) AQCR Air Quality Control Regulation ) announced its unaudited financial results for the company for the third quarter ended Sept. 30, 1995. Revenues for this three-month period were $2,975,851, which represented an increase of $354,024, or 14%, over the corresponding three-month period in 1994. This increase in revenues resulted from sales of all seven Aqua Care Systems Inc. subsidiaries in 1995 versus sales of only five subsidiaries in 1994. The net loss for this period was $1,988,115, which included $1,329,858 of non-recurring items, the majority of which was comprised of the write-off of certain goodwill amounts. The loss before such non-recurring items was $658,257, an increase of $493,308 over the loss experienced during the corresponding quarter of 1994. For the nine-month period ended Sept. 30, 1995, the company's revenues were $10,456,175, which represented an increase of $5,869,394, or 128% over the corresponding nine-month period in 1994. The net loss for this period was $2,862,967, which represented an increase of $2,038,212, over the corresponding nine-month period of 1994. William K. Mackey, who became chairman and chief executive officer at the end of May 1995, commented that, "While sales remain strong and continue to increase monthly, the increase in losses are the result of one-time balance sheet write-offs as non-recurring expenses related to consolidation of duplicative du·pli·cate adj. 1. Identically copied from an original. 2. Existing or growing in two corresponding parts; double. 3. manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when paid to staff terminated under the corporate directive to cut operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ." The company has initiated cost savings measures resulting in savings of $1.7 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. As of Sept. 30, 1995, additional procedures have been implemented to further decrease operating expenses and consolidate duplicative operations. Aqua Care Systems Inc. is a Florida-based Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. that was formed in 1990 and which became operational in May 1991 for the purpose of acquiring operating companies operating company A business that engages in transactions with outsiders. primarily in the industrial wastewater treatment Industrial wastewater treatment A group of unit processes designed to separate, modify, remove, and destroy undesirable substances carried by wastewater from industrial sources. and water filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids and purification purification, in religion, the ceremonial removal of what the religion deems unclean. The usual agents of purification are water (as in baptism), bodily alteration (as in circumcision), and fire. industries. -0-
AQUA CARE SYSTEMS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended Sept. 30, 1995
and 1994 (amounts in thousands, except share and per
share data)
(Unaudited)
For the three months For the nine months
ended Sept. 30 ended Sept. 30
1995 1994 1995 1994
REVENUES $2,976 $2,622 $10,456 $4,587 COST OF REVENUES 1,908 1,447 6,720 2,554 GROSS PROFIT 1,068 1,175 3,736 2,033 OPERATING EXPENSES(a) 3,169 1,370 6,705 2,835 LOSS FROM OPERATIONS (2,101) (195) (2,969) (802) OTHER (INCOME)/EXPENSES, net (113) (30) (106) 23 NET LOSS ($1,988) ($165) ($2,863) ($825) Net loss per common share ($0.36) ($0.04) ($0.59) ($0.26) Weighted average number of outstanding shares of common stock 5,469,905 3,869,777 4,835,947 3,144,120 (a): Includes non-recurring items totalling approximately $1.3MM for the three and nine month periods ended Sept. 30, 1995, the majority of which was comprised of amounts realized due to the impairment of certain goodwill amounts. CONDENSED CONSOLIDATED BALANCE SHEET DATA As of Sept. 30, 1995, Dec. 31, 1994 and Sept. 30, 1994 (amounts in thousands, except share and per share data) (Unaudited)
Sept. 30 Dec. 31 Sept. 30
1995 1994 1994
CASH AND CASH EQUIVALENTS $2,336 $0 $310 WORKING CAPITAL $3,522 $415 $1,649 TOTAL ASSETS $13,093 $10,763 $9,753 LONG-TERM DEBT, net of current maturities $2,696 $698 $1,049 STOCKHOLDERS' EQUITY $7,330 $6,339 $6,189 CONTACT: Aqua Care Systems Inc., Hollywood William K. Mackey, Chairman, C.E.O., 305/925-9993 |
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