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CHEMFIX TECHNOLOGIES, INC. REPORTS YEAR-END RESULTS

 CHEMFIX TECHNOLOGIES, INC. REPORTS YEAR-END RESULTS
 METAIRIE, La., Nov. 11 /PRNewswire/ -- Chemfix Technologies,


Inc. (NASDAQ: CFIX) today reported a fourth quarter loss for fiscal year ended Aug. 31 of $4.5 million, or $.57 per share, on revenues of $4.8 million as compared to 1990's earnings of $753,632, or $.10 per share, on revenues of $6.1 million
 The company reported a net loss for fiscal year ended Aug. 31 of $4.4 million, or $.55 per share, on revenues of $24.5 million as compared to last year's earnings of $2.0 million, or $.28 per share, on revenues of $25.4 million.
 The company stated it had taken a $4.0 million write-off provision against actual and potential losses, including a potential $2.2 million direct development expense on a proposed wastewater sludge management contract with New York City. The loss from operations was $494,000 which is a component of the $4.5 million loss.
 Chairman and Chief Executive Officer Daniel N. Silverman III explained that there were four critical components of the fourth quarter loss. First, the company took a write-down of $2.5 million of actual and potential costs incurred over the past two years pursuant to the development of municipal sludge contracts with its joint venture partner, Air & Water Technologies Corporation. The bulk of these costs, potentially $2.2 million, was incurred in the development of a contract with the city of New York, and includes costs associated with negotiations, legal fees, permit development, engineering, technology enhancements and financing efforts. Silverman further stated that these costs were incurred only because the city of New York consistently gave its complete and ongoing assurances that a $210 million, 6-1/2 year contract would be finalized.
 The city of New York has now indicated that uncertainties over the feasibility of project implementation precludes consummation of the contract. Issues that appear to have influenced the city's decision include an obvious and sustained effort by certain elected officials within the city to challenge the city's entire EPA-approved sludge management program and opposition within the city to the utilization of the venture's end product as landfill cover despite cost savings to the city. Further complicating the contracting process were various lies, misrepresentation and false allegations put forth by certain elected officials and the media over the past few months.
 In response to the current situation, management has undertaken the restructuring of certain operations amounting to a reduction of approximately $1.75 million in ongoing SG&A costs. The company has also instituted an across the board salary and wage freeze. The restructuring of certain operations, shutting down of some offices and associated personnel severance costs resulted in a one-time charge to earnings of $800,000.
 In addition, the company has taken a further write-down of $700,000 on certain receivables, legal fees, and costs associated with past contracts and operations that have been completed, discontinued, or are now in litigation.
 Finally, the company experienced an operating loss of $494,000, or $.06 per share, from ongoing operations in the fourth quarter which included a loss of $140,000 during the start up of the CERRS oil and gas waste processing facility in northern California which came on line in May. The company continued to suffer from recession related postponement of oil and gas soil remediation projects during the quarter in its Western Region, delays in getting two newly permitted facilities on line, and excessively high SG&A expenses resulting from its municipal joint venture activities.
 Chemfix Technologies, Inc. is an environmental services company that provides analysis and treatment of hazardous and nonhazardous waste materials for industry and government.
 -0- 11/11/91
 /CONTACT: Gloria J. Newbern of Chemfix Technologies, 504-831-3600/
 (CFIX) CO: Chemfix Technologies, Inc. ST: Louisiana IN: CHM SU: ERN BN-BR -- AT004 -- 3157 11/11/91 16:37 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 11, 1991
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