National Storm Management, Inc. Reports Results for 2005 Year Revenues up Sharply; startups in new markets contribute to net loss.GLEN ELLYN Glen Ellyn, village (1990 pop. 24,944), Du Page co., NE Ill., a residential suburb of Chicago; inc. 1892. Points of interest include Stacy Tavern, a 19th-century stagecoach stop on the Chicago-Galena route; a wildlife sanctuary; and an arboretum. , Ill. -- National Storm Management, Inc. (PINK SHEETS:NLST NLST Name-List NLST National Lung Screening Trial ) today reported results for the fiscal year ended December December: see month. 31, 2005. Revenues rose 21 percent to $15.2 million. However, the company reversed its history of yearly profits to post a net loss of $1.6 million, or four cents a share. --Gains in revenues came primarily from Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and operations following hurricanes in that state. --Costs of $1.1 million to open five new offices (in Florida, Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by and Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces ) during 2005 contributed to the net loss. --Sales of $500,000 from developmental offices in Mississippi and Minnesota had little impact on 2005 revenues, yet are expected to generate up to $12 million in 2006. For the year, National Storm reported revenues of $15,153,760, up sharply from $12,486,913 in 2004. Net loss for the year was $1,642,075, or four cents a share with 42,245,088 basic weighted average common shares outstanding. This compares to net income of $65,952, with zero earnings per share based on 34,000,000 average common shares outstanding. "We are pushing for rapid growth and that means making significant investments in locations that meet our criteria criteria (krītēr´ē  ),n. . We expect the development expenses of 2005 to pay off in the current year and the future," said Terry Kiefer, National Storm's 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. . "The Mississippi and Minnesota operations are prime examples of this as they did not benefit our financial results last year but should make a contribution to both top and bottom lines in 2006." A second key factor impacting last year's results was timing relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. . "National Storm is not in the first
round of post-Katrina rebuilding," Mr. Kiefer said.
"First-stage first-stagesaid of larva; the first of several larval stages. restoration is in the central area of total destruction. We locate our offices 50-100 miles out of a city, where there is less damage. In this exceptional Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area situation, insurance companies have devoted their resources to helping those who have been hit the hardest and our market area has been slow to get their attention. We are seeing this attention now. Although there is a lag between insurance company approval and completion of the work, Katrina-related work will have positive impact on our financials in 2006. "Overall, we expect solid growth in 2006, especially beginning in the third quarter. Our investments in new locations should pay off and the exceptional delay relating Katrina will be behind us. We continue to seek acquisitions, although there is a lot of room for internal growth at this point as well," Mr. Kiefer said. One example of internal development is the Company's Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. operation, ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. Exteriors expansion into Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. . The company also said it is moving forward toward its plan for National Storm to expand its liquidity and recognition in the financial markets. It is currently preparing to register the outstanding shares of its common stock and become an SEC reporting company. National Storm Management is an expanding national construction company specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. in storm restoration management that works closely with affiliates in seven states. The affiliates are: ABC Exteriors (Illinois), ABC Exteriors (Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). ), Pinnacle pinnacle (pĭn`ĭkəl), minor architectural motif of vertical tapering shape, usually crowning a pier, buttress, or gable. Although sometimes it appears in Renaissance design, as in the Certosa di Pavia, it is almost exclusively a medieval Roofing (Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , Vero Beach Vero Beach (vēr`o), city (1990 pop. 17,350), seat of Indian River co., E Fla., on Indian River (a lagoon and part of the Intracoastal Waterway); founded c.1888, inc. 1919. & West Palm Beach, Florida West Palm Beach, also known as West Palm, is the most populous city in Palm Beach County, Florida, USA. The city is also the oldest incorporated municipality in South Florida. According to the University of Florida's 2006 estimates, the city had a population of 107,617. ), MSM MSM - Micronetics Standard MUMPS Builders and Remodelers (Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. ), WRS WRS Wisconsin Retirement SystemWRS Weather Reconnaissance Squadron (USAF) WRS Worldwide Reference System (USGS) WRS Water Recovery System WRS Wildlife Reserves Singapore , Inc (Minnesota), First Class Builders (Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). ), Pinnacle Roofing (Mississippi), First Class Roofing and Siding (Ohio) and Pinnacle Roofing (Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. ). The company and its affiliates are
recognized by all major insurance companies such as State Farm,
Allstate This article is about the American insurance company. For the line of automobiles, see Allstate (automobile). The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. , Farmers and many others for storm related claims. The Company is also a member of the National Roofing Contractors Association (NRCA NRCA National Roofing Contractors Association NRCA Natural Resources Conservation Authority NRCA National Rehabilitation Counseling Association NRCA Natural Resources Council of America NRCA Natural Resources Conservation Areas ) and the Better Business Bureau. FORWARD-LOOKING for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. INFORMATION Certain statements included in this press release may constitute 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements relate to, among other things, the company's expectations for future revenue and earnings growth, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and actual results could differ materially depending on the a number of factors, including, but not limited to, our ability to develop and supply products and services that meet defined specifications, availability of supplies and materials, the occurrence of harsh weather that results in additional demand for our services, our ability to develop a significant non-seasonal revenues, the specific timing of when the insurance industry's attention focuses beyond those areas hardest hit by Hurricane Katrina to the areas where the company has established offices, the ability of the company to arrange delayed payments with various creditors, the ability of the company to raise sufficient capital on economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: viable terms, interest rates, adverse outcomes in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and the occurrence of casualties common to the repair and restoration of buildings. We do not undertake any duty to update any forward-looking information contained in this press release.
National Storm Management, Inc.
Consolidated Balance Sheets
December 31, 2005 2004
----------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 41,150 $ 72,643
Accounts receivable (less allowance of
$41,498 and $98,540 respectively) 664,984 1,386,271
Salesmen & Management advances 70,010 272,675
Inventories 165,076 429,452
Costs of uncompleted contracts in excess
of related billings 554,410 97,065
Prepaid commissions 45,223 114,193
Other current assets 180,114 41,534
----------------------------------------------------------------------
Total Current Assets 1,720,967 2,413,833
Property, Plant and Equipment, net 307,952 388,270
Intangibles 5,000 95,083
Deferred tax asset - net of valuation
allowance 587,727 --
Other 97,004 43,600
----------------------------------------------------------------------
Total Assets $ 2,718,650 $ 2,940,786
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current Liabilities
Billings on uncompleted contracts in
excess of related costs $ 789,281 $ 1,417,382
Accounts payable 1,654,690 1,145,426
Current portion on long term obligations 1,118,275 34,443
Other current liabilities 76,254 64,857
Deferred intangible payments -- 100,000
----------------------------------------------------------------------
Total Current Liabilities 3,638,500 2,762,108
Non-Current Liabilities
Term loans, net of current portion 34,891 148,941
Other long--term obligation -- 500,000
----------------------------------------------------------------------
Total Liabilities 3,673,391 3,411,049
----------------------------------------------------------------------
Commitments and Contingencies
Stockholders' Interest
Common stock, $.001 par value;
200,000,000 shares authorized;
49,113,903 and 34,000,000 shares
issued and outstanding as of December 31,
2005 and 2004, respectively 49,114 34,000
Paid in capital 1,142,484 ----
Accumulated deficit (2,146,338) (504,263)
----------------------------------------------------------------------
Total Stockholders' Equity (954,740) (470,263)
----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 2,718,650 $ 2,940,786
----------------------------------------------------------------------
National Storm Management, Inc.
Consolidated Statements of Income
Year ended December 31, 2005 2004
----------------------------------------------------------------------
Revenues $15,153,760 $12,486,913
----------------------------------------------------------------------
Operating Costs and Expenses
Material and direct labor costs 9,652,180 7,678,047
General and administrative expenses 7,477,402 4,142,123
Depreciation and amortization 202,889 397,795
----------------------------------------------------------------------
Total Operating Costs and Expenses 17,332,471 12,217,965
----------------------------------------------------------------------
Income from Operations (2,178,711) 268,948
----------------------------------------------------------------------
Other Income (Expense)
Interest expense (91,222) (5,303)
Cost associated with reorganization
and merger -- (171,291)
Impairment of advances - related party -- --
Other, net 40,131 (20,331)
----------------------------------------------------------------------
Total Other Income (Expense) (51,091) (196,925)
----------------------------------------------------------------------
Income before Income Taxes (2,229,802) 72,023
Provision (Benefit) for Income Taxes (587,727) 6,071
----------------------------------------------------------------------
Net Income $(1,642,075) $ 65,952
----------------------------------------------------------------------
Pro Forma Information (Unaudited)
Income before Income Taxes -- 72,023
Pro forma tax provision -- 25,928
----------------------------------------------------------------------
Pro forma Net Income $(1,642,075) $ 46,095
----------------------------------------------------------------------
Basic earnings per common share $ (0.04) $ 0.00
------------ ------------
Basic weighted average common per share
outstanding 42,245,088 34,000,000
============ ============
National Storm Management, Inc.
Consolidated Statements of Stockholders' Equity
Common Stock
-------------------- Additional
Par Paid - In Retained Stockholders'
Shares Value Capital Earnings Equity
----------------------------------------------------------------------
Balance,
January 1,
2004 25,751,670 $25,752 $- $(314,052) $(288,300)
Net income - - 65,952 65,952
Distributions
paid - owners - - (247,915) (247,915)
Common stock
issued upon
incorporation
of
NSMS, Inc. 8,248,330 8,248 - (8,248) -
----------------------------------------------------------------------
Balance,
December 31,
2004 34,000,000 $34,000 $- $(504,263) $(470,263)
Net income - - (1,642,075) (1,642,075)
Issuance of
stock &
stock
options for
professional
fees 6,800,000 6,800 746,200 - 753,000
Acquisition
of assets
of N.S.M.
Inc. 6,000,000 6,000 (1,000) 5,000
Common
stock
issued 2,313,903 2,314 397,284 - 399,598
----------------------------------------------------------------------
Balance,
December 31,
2005 49,113,903 $49,114 $1,142,484 $(2,146,338) $(954,740)
----------------------------------------------------------------------
National Storm Management, Inc.
Consolidated Statements of Cash Flows
Year ending December 31, 2005 2004
----------------------------------------------------------------------
Cash Flows from Operating Activities
Net income (loss) $(1,642,075) $ 65,952
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities
Depreciation and amortization 202,889 397,795
Allowance for doubtful accounts -- 49,585
Deferred income tax benefit (587,727) --
Stock and stock options issued for
professional fees 253,000 --
Changes in assets and liabilities
Accounts receivable, net 721,287 (561,035)
Advances 202,665 (247,137)
Inventories 264,376 (429,452)
Uncompleted contracts (1,085,446) 1,185,456
Prepaid commissions and other
assets (140,325) (140,009)
Accounts payable 479,210 602,006
Other current liabilities 11,397 (43,269)
----------------------------------------------------------------------
Net cash provided by (used in) operating
activities (1,320,749) 879,892
----------------------------------------------------------------------
Cash Flows from Investing Activities
Capital expenditures (81,807) (230,972)
Decrease in other long-term liabilities (500,000) --
Acquisition of intangibles (100,000) (311,355)
----------------------------------------------------------------------
Net cash used in investing activities (681,807) (542,327)
----------------------------------------------------------------------
Cash Flows from Financing Activities
Distributions paid - owners --- (247,915)
Increase in note payable 1,000,000 ---
Issuance of common stock 899,598 ---
Principal proceeds (payments) for
term loan 71,465 (17,007)
----------------------------------------------------------------------
Net cash provided by (used) in financing
activities 1,971,063 (264,922)
----------------------------------------------------------------------
Net Increase (Decrease) in Cash and Cash
Equivalents (31,493) 72,643
Cash and Cash Equivalents, beginning of year 72,643 --
----------------------------------------------------------------------
Cash and Cash Equivalents, end of year $ 41,150 $ 72,643
----------------------------------------------------------------------
Cash paid for taxes $ -- $ 864
----------------------------------------------------------------------
Cash paid for interest $ 91,222 $ 5,303
----------------------------------------------------------------------
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