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GREEN ISLE ENVIRONMENTAL SERVICES, INC. REPORTS SECOND QUARTER RESULTS

 HOPKINS, Minn., Aug. 10 /PRNewswire/ -- Green Isle Environmental Services, Inc., announced that it will report a loss of $255,261 or $.08 per share on revenues of $7,471,184 for the second quarter of 1993. This compares to a loss of $1,265,688 or $0.40 per share on revenues of $8,628,955 for the same period in 1992. The second quarter 1992 loss included a loss from operations of the deconsolidated Florida waste processing facility of $1,302,318, as well as a loss from discontinued operations of $68,864.
 The loss for the six months ended June 30, 1993 was $1,354,158 or $.42 per share on revenues of $14,190,691 compared to a loss of $1,809,366 or $0.57 per share on revenues of $19,644,500 for the same period in 1992. The 1993 loss includes a $200,000 charge made in the first quarter to record the cumulative effect of an accounting change resulting from the adoption of SFAS 109. The 1992 loss included a loss from the deconsolidated Florida operations of $2,486,831 and a loss from discontinued operations of $105,379. The company no longer controls and only manages the Florida facility under an arrangement with the lender.
 James W. Taylor, president and chief executive officer said, "Although 1993 results are lower than 1992 results exclusive of Florida operations, second quarter of 1993 results were close to our expectations, and showed a marked improvement over the first quarter of 1993. Both operating segments, manufacturing and waste processing showed an improvement in operating results." Taylor continued, "Manufacturing revenues were slightly higher and gross margins showed an improvement reflecting the impact of the continued change in our product mix to more medical products. However, disk drive margins continue to be depressed because of continuing pricing pressures from our customer."
 Commenting on the waste processing results, Taylor stated, "The Eden Prairie facility operated at approximately 75 percent of capacity to match
pellet production to the needs of its customers. Customer demand for pellets is expected to increase significantly by the end of September as a new material handling system becomes operational at our customer site."
 Taylor said, "Revenues and net income for the third quarter will be negatively affected by the one week shutdown of our manufacturing operations to match customer shutdowns in July and the anticipated Eden Prairie shutdown in September for maintenance and equipment upgrades. We are also concerned about recent events at Hennepin County that may affect tipping fees negatively. Any reduction in tipping fees will adversely affect operating results at the facility."
 Commenting on the existing payment default on the loan underlying the Eden Prairie, Minn., facility, Taylor said, "There has been no reportable progress in the discussions with our lender. We are still in default and continue not to make our debt service payments. The continued difficulty in resolving this issue is constraining our ability to move aggressively to improve our future in manufacturing, as well as waste processing."
 As announced earlier, the company's capital and surplus fell below $1 million at the end of the first quarter, 1993. As a result, the company was de-listed from NASDAQ effective July 22, 1993. The company's stock will be quoted in the local over-the-counter "pink sheets" and may also be reported on the NASDAQ OTC Bulletin Board.
 Headquartered in Hopkins, the company owns and operates a waste processing and recycling facility in Eden Prairie, and manages a recycling and composting facility in Pembroke Pines, Fla. The company also manufactures computer disk drive spindles, machined medical products, other machined items and plastic refuse containers.
 GREEN ISLE ENVIRONMENTAL SERVICES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months ended Six months ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Net sales and revenues:
 Waste processing
 revenues $2,408,177 $2,631,684 $4,351,298 $4,949,605
 Manufacturing product
 sales 5,063,007 5,997,271 9,839,393 14,694,895
 Total net sales and
 revenues 7,471,184 8,628,955 14,190,691 19,644,500
 Cost of sales and
 revenues:
 Cost of waste
 processing 1,988,152 2,212,485 3,911,031 4,035,931
 Cost of products 4,364,898 4,861,727 8,683,120 12,048,666
 Total cost of sales
 and revenues 6,353,050 7,074,212 12,594,151 16,084,597
 Gross profit 1,118,134 1,554,743 1,596,540 3,559,903
 Selling, general and
 administrative
 expenses 725,026 885,926 1,421,959 1,636,898
 Loss from operations of
 deconsolidated
 Florida subsidiary -- 1,302,318 -- 2,486,831
 Operating income
 (loss) 393,108 (633,501) 174,581 (563,826)
 Other income (expense):
 Interest income 7,861 21,110 16,009 36,054
 Interest expense (639,972) (545,995) (1,284,299) (1,109,787)
 Other, net (16,258) (38,438) (60,449) (66,428)
 Total other expense (648,369) (563,323) (1,328,739) (1,140,161)
 Loss from continuing
 operations before
 cumulative effect of
 accounting change (255,261) (1,196,824) (1,154,158) (1,703,987)
 Cumulative effect of
 accounting change -- -- (200,000) --
 Loss from discontinued
 operations -- (68,864) -- (105,379)
 Net loss $(255,261)$(1,265,688)$(1,354,158)$(1,809,366)
 Net income (loss) per common
 share data:
 Loss from continuing operations
 before cumulative effect of
 accounting change $(0.08) $(0.38) $(0.36) $(0.54)
 Cumulative effect of
 accounting change -- -- (0.06) --
 Loss from discontinued
 operations -- (0.02) -- (0.03)
 Net loss per share $(0.08) $(0.40) $(0.42) $(0.57)
 Weighted average number of
 shares outstanding 3,191,520 3,158,643 3,191,520 3,158,643
 -0- 8/10/93
 /CONTACT: James W. Taylor or Anwar H. Bhimani, 612-935-7798, both of GIES, Inc./


CO: Green Isle Environmental Services, Inc. ST: Minnesota IN: ENV SU: ERN

DB -- MN012 -- 1334 08/10/93 16:09 EDT
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Date:Aug 10, 1993
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