BUGS Releases Third Quarter Financial Results; Mexico Business Development Continues Strong as Existing Contracts Near Completion.CARLSBAD Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif. -- U.S. Microbics, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BUGS) (BCN BCN Beacon BCN Blue Care Network BCN Biblioteca del Congreso Nacional (Chile) BCN Backbone Concentrator Node (routers, Nortel) BCN Banco Central de Nicaragua BCN Broadband Convergence Network :615212) today announced financial results for the third quarter of fiscal year 2006 ended June June: see month. 30, 2006. Compared to the third quarter of last fiscal year, revenues decreased by 75% as contracts neared completion, while gross profits increased to 49% of revenue and 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. rose as business development efforts continued strong in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . BUGS 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. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Brehm commented, "BUGS' revenue decreased in second quarter as we neared the end of several projects in Mexico by our environmental subsidiary, Sub-Surface Waste Management (OTCBB:SSWM SSWM Surface and Storm Water Management ), while starting newer ones that have little initial revenue recognition in the early stages. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. where significantly higher on the reduced revenue, and we expect higher revenues in the last quarter as the new projects ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale now that we have our diagnostic equipment running well in Mexico. The Company anticipates completing the contracting paperwork this quarter for the eleven environmental emergency response centers located throughout the state of Veracruz Veracruz, city, Mexico Veracruz, city (1990 pop. 303,152), Veracruz state, E central Mexico, on the Gulf of Mexico. Rivaling Tampico as the country's main port, it is also the commercial and industrial center of an important oil region, as well as a major and plans to start center implementation shortly thereafter." RESULTS OF OPERATIONS For the Nine Months Ended June 30, 2006, and Nine Months Ended June 30, 2005 The Company had revenues of $447,697 and $76,661 during the nine months and three months ended June 30, 2006, a 38% and 75% decrease, respectively, as compared to $719,715 and $307,253 of revenues for the nine months and three months ended June 30, 2005. Revenues for the nine months ended June 30, 2006, consisted primarily of revenue generated from the contracts for the State of Puebla, Mexico. Revenues for the nine months ended June 30, 2005, consisted primarily of contracts for bio-remediation of hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. in contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. soil for the state of South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , a $100,000 consulting contract with USM USM abbr. 1. United States Mail 2. United States Mint USM n abbr (= United States Mint) → US-Münzanstalt (= United States Mail) → US-Postbehörde Capital Group, and engineering support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services provided in Mexico. The decrease in revenue is due to a decrease in revenue from consulting contracts by USM Capital Group. The cost of revenues for the nine months and three months ended June 30, 2006, was $283,382 and $38,982, compared to $429,359 and $262,402 for the same period in 2005. Gross profit for the nine months and three months ended June 30, 2006, was $164,315 and $37,679, or 37% and 49% of sales, compared to a profit of $290,356 and $44,851, or 40% and 15% of sales, for the corresponding period in fiscal 2005. The higher gross profit revenue in 2005 was due to consolidation of revenue from a $100,000 contract from USM Capital Group with no associated cost of revenue. Selling, general and administrative ("SG&A") expenses for the nine months and three months ended June 30, 2006, totaled $2,864,069 and $1,035,781, compared to $2,536,490 and $743,906 for the same period in fiscal 2005. SG&A expenses for the nine months ended June 30, 2006, consisted mainly of occupancy, payroll, accounting and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . The 13% increase and 39% increase in SG&A expenses for the nine months and three months ended June 30, 2006, were attributed to employee stock option plan expenses and consulting services associated with business development in Mexico. The Company incurred a loss from operations of $2,744,297 and $1,014,964 for the nine months and three months ended June 30, 2006, and had negative cash flows from operations of $1,596,306 for the nine months ended June 30, 2006, compared to a loss from operations of $2,291,191 and $716,740 for the nine months and three months ended June 30, 2005, and negative cash flows from operations of $1,407,759 for the nine months ended June 30, 2005. 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. net loss per share was $(0.01) and $(0.00) for the nine months and three months ended June 30, 2006, compared to a loss of $(0.01) and $(0.00) for the nine months and three months ended June 30, 2005. The Company is expecting the revenues for the year ended September 30, 2006, to be nearly equal to revenues generated the prior fiscal year. Although based on the current financial condition of the Company, additional capital will be required in order for the Company to maintain its ongoing operations. There can be no assurance that the Company or SSWM will be able to raise such capital on acceptable terms. Failure to obtain such capital or generate such revenues would have an adverse impact on the Company's financial position and results of operations and ability to continue as a going concern. The consolidated financial data below has been derived from the Company's Financial Statements for the periods of 9/30/2005, 6/30/2005 and 6/30/2006 as shown. For additional information and a discussion of risk factors, please see the U.S. Microbics current 10-Q and past 10-K reports at www.sec.gov.
U.S. MICROBICS, INC., AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
For the Nine Months For the Three Months
Ended June 30, Ended June 30,
-------------------------------------------------------
2006 2005 2006 2005
-------------------------------------------------------
Revenues $ 447,697 $ 719,715 $ 76,661 $ 307,253
Cost of
revenues 283,382 429,359 38,982 262,402
-------------------------------------------------------
Gross profit 164,315 290,356 37,679 44,851
Selling,
general and
administrative
expenses 2,864,069 2,536,490 1,035,781 743,906
Depreciation
and
amortization 44,543 45,057 16,862 17,685
-------------------------------------------------------
Loss from
operations (2,744,297) (2,291,191) (1,014,964) (716,740)
Other income
(expense):
Interest income 818 351
Interest
expense (49,133) (73,017) (8,654) (7,432)
Realized gain
(loss) on sale
of securities 30,525
Minority
interest 189,520 390,174 60,329 128,387
-------------------------------------------------------
171,730 317,157 52,026 120,955
-------------------------------------------------------
Loss before
income taxes (2,572,567) (1,974,034) (962,938) (595,785)
Income tax
expenses -- -- -- --
-------------------------------------------------------
Net loss $ (2,572,567) $ (1,974,034) $ (962,938) $ (595,785)
=======================================================
Net loss per
common share
(basic and
diluted) $ (0.01) $ (0.01) $ (0.00) $ (0.00)
Weighted
average common
shares
outstanding 290,308,517 160,979,031 316,592,399 174,375,628
June 30, 2006 As of
Consolidated Balance Sheet (UNAUDITED) 09/30/2005
(Audited)
Balance Sheet Items
Total Current Assets $ 411,316 $ 549,641
Total Current Liabilities $ 1,765,689 $ 1,930,818
Net Working Capital $ (1,358,373) $ (1,381,177)
Total Assets $ 644,478 $ 767,167
Total Liabilities $ 1,765,689 $ 1,930,818
Minority Interest $ 6,195,720 $ 5,286,868
Total Shareholder Equity $ (7,316,931) $ (6,450,519)
Total Shareholders Equity &
Liabilities $ 644,478 $ 767,167
About U.S. Microbics, Inc. U.S. Microbics is a business development and holding company that acquires, develops and deploys innovative environmental technologies for soil, groundwater and carbon remediation, air pollution reduction and agriculture enhancement. For more information on the company, contact Robert Brehm at 760-918-1860, ext. 102, or visit the website at www.bugsatwork.com. Investors and media contact Robert Brehm at 760-918-1860, ext. 102, or email at bob@bugsatwork.com; or learn about the company by visiting its website at www.bugsatwork.com or www.subsurfacewastemanagement.com or www.mikeymicrobe.com. The information contained in this press release includes 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. . Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the company's status as a startup company The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments, and protection of its intellectual property. The company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial or Plan of Operation" and other sections of the company's Form 10-KSB and other publicly available information regarding the company on file with the Securities and Exchange Commission. The company will provide you with copies of this information upon request. |
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