CONSUMAT SYSTEMS, INC. ANNOUNCES RESULTS
CONSUMAT SYSTEMS, INC. ANNOUNCES RESULTS RICHMOND, Va., Nov. 19 /PRNewswire/ -- Consumat Systems, Inc.
(NASDAQ: CSMT) announced today its financial results for the quarter and nine months ended Sept. 30, 1991. The Company reported a net loss for the quarter of $748,874 or $.24 per share on revenues of $6,047,259 compared with net income of $208,789 or $.07 per share on revenues of $8,316,298 in 1990. There was a net loss for the nine months of $1,282,731 or $.41 per share on revenues of $19,677,786 compared with net income of $218,264 or $.07 per share on revenues of $22,827,085 in 1990.
As previously reported, the Company has entered into agreements among Consumat, Medical Waste Associates (MWA) and others relating to the Baltimore Regional Medical Waste Facility owned by MWA. The closing under these agreements took place on Nov. 15, 1991. In accordance with these agreements, Consumat issued a total of 1,352,379 shares of its Common Stock, bringing its total outstanding shares to 4,507,931. The arrangements reflected in these agreements continue to be subject to rights of rescission if successfully challenged in court by the holders of the bonds on the Facility. A substantial part of the Company's loss for the quarter ($616,870 of the $748,874) resulted from these agreements, reflecting valuation of certain current liabilities and future obligations related to the construction and operation of the Facility. While these transactions had an adverse impact on earnings for the Third Quarter, the issuance of new shares increased the Company's net worth to $1,450,926 at closing. John E. Joyner, Consumat President and CEO, stated that containment of this financial liability in Baltimore will allow the Company to move forward with a strategic plan focused on its manufacturing and landfill operations. Immediate priority corporate objectives include: 1) Attracting capital for working capital requirements including the repayment of the Company's $2,000,000 Note to Environmental Systems Company, 2) Reduction of corporate overhead, 3) Expansion of Project Management and Field Services capability, 4) Expanded marketing of its proprietary air pollution control technology and 5) Expanded landfill related projects in New England. Consumat Systems is the Richmond, Virginia based Company which offers comprehensive waste management services. These services include the design, construction and operation of waste-to-energy systems, landfills and recycling facilities. -0- 11/19/91 /CONTACT: Robert L. Massey, Consumat Systems, Inc., 804-746-4120/ (CSMT) CO: Consumat Systems, Inc. ST: Virginia IN: CST SU: ERN DF -- CH007 -- 5085 11/19/91 16:06 EST
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|Date:||Nov 19, 1991|
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