BUGS Reports First Quarter FY 2004 Results; Company Identifies New Opportunities in California, Mexico and Michigan.Business Editors 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.--(BUSINESS WIRE)--Feb. 27, 2004 U.S. Microbics Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : BUGS) today announced consolidated financial results for the first quarter of fiscal year 2004 ending September September: see month. 30, 2004. Revenues declined from the same period in the prior year as the company's remediation subsidiary, Sub Surface Waste Management (SSWM SSWM Surface and Storm Water Management ) shifted its emphasis from bonded work to non-bonded contracts still in bidding or pre-commencement stages including new cleanup opportunities in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and 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. and engineering work in Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). . 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 Brehm commented, "During the first quarter SSWM changed its operations strategy to shift their contract procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. efforts to bidding contracts not requiring bonding. The SSWM engineering staff spent significant time bidding and prospecting new work which doesn't produce revenue during these efforts. Consequently our three month revenues were less than comparative revenue a year ago. On the other hand we have a much higher near-term potential for larger contracts with good profit margins with technically and financially capable partners. We believe this effort will begin to show results in the third quarter of FY 2004 as we start to win, mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. and recognize project revenues. With the increasing awareness of the effects of rocket pollution and our pay-for-performance cleanup solutions, 2004 could be our year to breakout into full commercialization as our technology is proven, our management has the experience and SSWM has the financing vehicle to raise capital for its growth." The consolidated financial data below has been derived from the Company's Financial Statements for the three months ending December 31, 2003 and 2002. For additional information and a discussion of risk factors, please see the U.S. Microbics current 10K & 10Q reports available on the company Web site at http://bugsatwork.com or the S.E.C. Web site at www.sec.gov. Results of Operations FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 COMPARED TO THE THREE MONTHS ENDED DECEMBER 31, 2002. The Company had revenues of $90,092 during the three months ended December 31, 2003, as compared to $183,098 of revenues for the same quarter in fiscal 2002. Revenues for the three months ended December 31, 2003 and 2002 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 and ground water. The cost of revenues was $74,464 for quarter ended on 12/31/03 compared to $95,282 for the quarter ended 12/31/02. For the quarter ended December 31, 2003, the Company has gross income of $15,628 (17.3% of revenue) compared to gross income of $87,816 (48.0% of revenue) for the quarter ended December 31, 2002. Revenue is recognized under the percentage completion method, based on cost. The decrease in sales was due primarily to lower revenues from 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. , as contracts there are nearing completion as most of the work necessary to complete the jobs has been previously recognized as revenue. The lower gross margin in amount and percentage is due to lower volume of completed jobs and fixed overhead spread over fewer projects during the quarter ended December 31, 2003 compared to the quarter ended December 31, 2002. Selling, general and administrative ("SG&A") expenses for first quarter of fiscal year 2003 totaled $1,028,837 compared to $1,389,086 for the same period in fiscal year 2002. SG&A expenses for the first quarter of fiscal year 2003 consisted of occupancy, payroll, accounting, and legal, consulting and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most expenses. The decrease of $360,249 in SG&A was due primarily to lower consulting and legal fees for the quarters ended in 2003 compared to 2002. The Company incurred a net loss of $968,036 for the quarter ended December 31, 2003, compared to a net loss of $1,187,501 for the same quarter in fiscal 2003. The lower net loss was primarily due, as noted above, to a reduction in SG&A expenses of 360,249. The Company had negative cash flows from operations of $318,510 for the three months ended December 31, 2003 compared to negative cash flows from operations of $407,652 for the three months ended December 31, 2002. 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 $.01 for the three months ended December 31, 2003 compared to a loss of $.02 per share for the three months ended December 31, 2002. The decrease was due primarily to the increase in average shares outstanding of 114,934,254 for the three months ended December 31, 2003 compared to 52,287,910 for the corresponding three months ended December 31, 2002.
Consolidated For the 3 Months For the 3 Months
Statement of Losses Ended Ended
December 31, 2003 December 31, 2002
(unaudited) (unaudited)
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Revenues $90,092 $183,098
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Cost of Goods Sold 74,464 95,282
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Gross Profit (loss) 2,540 87,816
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Selling, general &
Administrative Expenses 1,028,837 1,389,086
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Net Income (loss) from
Operations $(1,013,209) $(1,301,270)
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Other income (expense): -- --
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Interest expense (net) $(34,795) $(7,749)
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Realized Gain (Loss) on Sale
of Securities -- $100,000
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Total other income (expense) $(34,795) $92,251
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Net income (loss) before income
taxes $(1,048,004) $(1,209,019)
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Provision for income taxes -- --
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Minority Interest 79,968 21,518
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Net income (loss) $(968,036) $(1,187,501)
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Net loss per common shares
outstanding $(0.01) $(0.02)
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Weighted averages shares
outstanding 114,934,254 52,287,910
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12/31/03 9/30/03
(Unaudited) (Audited)
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Total Assets $690,926 $642,381
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Total Liabilities $2,989,059 $2,359,036
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Total Stockholder Equity $(2,298,133) $(1,716,655)
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About U.S. Microbics Inc. U.S. Microbics is a business development and holding company that facilitates and develops the deployment of environmental technologies through its two divisions, USM USM abbr. 1. United States Mail 2. United States Mint USM n abbr (= United States Mint) → US-Münzanstalt (= United States Mail) → US-Postbehörde Solutions and USM Capital. The company has holdings in more than eight corporations, including five majority owned subsidiaries. For more information on the company visit the Web site at http://bugsatwork.com. About Sub-Surface Waste Management Sub-Surface Waste Management Inc. provides comprehensive civil and environmental engineering project management services including specialists to design, permit, build and operate environmental waste clean-up treatment systems using conventional, biological and 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 technologies. SSWM is capitalizing on its patent and patent-pending technology by forming strategic alliances and joint ventures with well-established engineering firms. For more information on the company and its services, contact Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Beattie at 760-918-1860, ext. 105 or e-mail at bbeattie@bugsatwork.com; or learn about the company by visiting its Web site at http://www.bugsatwork.com/19.asp. A research report on SSWM is available at http://www.stocksontheweb.com/sswm.htm and another at http://wfnn.info. An E-Profile of SSWM is available for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. at http://www.bugsatwork.com/index.asp. About USM Capital Group Inc. USM Capital Group Inc. (UCGI) is the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. subsidiary of U.S. Microbics Inc. The UCGI mission is to provide financial resources and services to private and publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . For further information about U.S. Microbics or USM Capital Group, contact Robert Brehm by phone at 760-918-1860, ext. 102 or learn about the company by visiting the Web site at http://www.usmcapital.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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