NATEC RESOURCES ANNOUNCES SECOND QUARTER RESULTS
NATEC RESOURCES ANNOUNCES SECOND QUARTER RESULTS HOUSTON, July 31 /PRNewswire/ -- NaTec Resources, Inc.
(NASDAQ: NATC) today announced operating results for the second quarter ended June 30, 1992. For the three months ended June 30, 1992, NaTec generated a loss, after preferred stock dividends, of $1.5 million, or $0.06 per share, on revenues of $1.5 million compared with a loss, after preferred stock dividends, of $1.7 million, or $0.07 per share, on revenues of $647,000 for the corresponding three month period of the prior year.
NaTec generated a loss, after preferred stock dividends of $3.1 million, or $0.12 per share, on revenues of $2.0 million for the six months ended June 30, 1992. This compares to a loss, after preferred stock dividends of $3.3 million, or $0.13 per share, on revenues of $1.1 million, for the corresponding six month period of the prior year. Commenting on NaTec's operations, John T. McCormack, president and chief executive officer, stated, "The reduction in the losses for the current quarter and year-to-date periods vs. prior year amounts are due primarily to the continuing cost reduction efforts undertaken by the company. The effect of our cost reductions was offset considerably by costs incurred during the second quarter related to the North American Chemical Company transaction." As previously announced, NaTec has entered into an agreement to sell a 50 percent interest in its nahcolite production facilities to North American Chemical Company. Consummation of this agreement, which is subject to certain conditions including NaTec shareholder approval, will provide NaTec with $10 million over an approximate four year period, subject to reduction if the plant does not meet certain agreed-to production levels. The pollution control operations will remain wholly owned by NaTec and will not be affected by this transaction. Shareholder approval and subsequent closing of the North American transaction is viewed by management as essential to the continued viability of NaTec's operations. NaTec has recently submitted the proposed proxy statement to the Securities and Exchange Commission for preliminary review. The auditors' report on the reissued Dec. 31, 1991 financial statement to be included in the proxy, is expected to include a "going concern" qualification. The company anticipates that this qualification will be cured with the consummation of the North American transaction and resulting cash proceeds to NaTec. Mailing of the proxy statement to shareholders is scheduled to occur subsequent to the SEC's 30-day review period. NaTec Resources is committed to the control of pollutants commonly associated with acid rain. The company provides consulting engineering, injection system installation, operations and maintenance services, and processed sorbent supply. Primary markets are utility, industrial power generation, pulp and paper, refining and municipal solid waste. NATEC RESOURCES, INC. AND SUBSIDIARIES Consolidated Statements of Operations Periods ended Three months Six months June 30 1992 1991 1992 1991 Revenues $ 1,450,602 $ 647,203 $ 1,998,254 $ 1,104,945 Cost of sales 1,141,387 541,979 1,539,144 885,171 Gross profit 309,215 105,224 459,110 219,774 Excess of production costs over inventoried costs 189,497 -- 547,053 -- Operating costs 1,202,625 1,460,007 2,093,571 2,730,925 Loss before interest and taxes (1,082,907) (1,354,783) (2,181,514) (2,511,151) Net interest income (expense) (73,420) (6,685) (160,484) 49,811 Net loss (1,156,327) (1,361,468) (2,341,998) (2,461,340) Preferred stock dividends (357,500) (300,000) (715,000) (800,000) Net loss attributable to common shares $(1,513,827) $(1,661,468) $(3,056,998) $(3,261,340) Net loss per common share $(0.06) $(0.07) $(0.12) $(0.13) Average shares outstanding 25,458,787 25,215,926 25,458,787 25,186,961 -0- 7/31/92 /CONTACT: John T. McCormack of NaTec Resources, 713-552-2344/ (NATC) CO: NaTec Resources Inc. ST: Texas IN: SU: ERN
TS -- NY041 -- 5591 07/31/92 12:08 EDT
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|Date:||Jul 31, 1992|
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