HESI ANNOUNCES SECOND QUARTER RESULTS AND UPDATED STATUS OF
HAZARDOUS WASTE DISPOSAL PERMITTING PROCESS
SOUTHPORT, Conn., Nov. 15 /PRNewswire/ -- Hunter Environmental Services, Inc. (NASDAQ: HESI) today announced the results of its second quarter and six month fiscal year 1992 period ended Sept. 30, 1991. Results of operations for the six month period aggregated a net loss of $1,552,000 comprised of $634,000 from Hunter Industrial Facilities, Inc. (HIFI), a majority owned subsidiary of HESI and $918,000 from HESI. Results of the second quarter ended Sept. 30, 1991 were a net loss of $883,000 comprised of $321,000 from HIFI and $562,000 from HESI.
Results of the six month period ended Sept. 30, 1990 aggregated a net loss of $523,000 comprised of $430,000 from HIFI and $93,000 for HESI. Results of the second quarter ended Sept. 30, 1990 were a net loss of $280,000 comprised of $216,000 from HIFI and $64,000 from HESI.
Interest, general and administrative expenses were partially offset by dividend income on the securities received from the disposition of discontinued operations. During fiscal year 1990, HESI discontinued its operational businesses in order to reduce debt and provide working capital for HIFI. Since the first two quarters of fiscal year 1991, the three and six months ended Sept. 30, 1990, HESI has sold a substantial amount of such securities thereby reducing its dividend income from $1,180,000 to $494,000 for the six months and from $590,000 to $247,000 for the three months. This reduction is the predominant cause for the increased loss at HESI.
HIFI's increased expenses have been due to an increase in hazardous waste disposal permitting process activity.
SALT DOME PROJECT PERMITTING STATUS
During fiscal year 1990 HESI made a strategic decision to focus its operations on the development of a facility which will utilize underground salt dome caverns for (1) the disposal of hazardous waste (2) the storage of natural gas and/or other petrochemical products and (3) the development of an adjacent industrial park, all contingent on the receipt of necessary permits by HIFI.
Responding to legislation passed in Texas in June of 1991, the Texas Water Commission (TWC - state regulatory agency primarily responsible for licensing hazardous waste disposal) formed two advisory committees to provide recommendations for rule making in compliance with the new law. The legislation also called for a 120 day moratorium on the permitting of hazardous waste facilities to allow for the rule making process. This resulted in a delay of the evidentiary portion of the TWC hearings on HIFI's permit for hazardous waste disposal in underground caverns in the North Dayton Salt Dome.
One of these committees, the General Rules Citizen Advisory Committee, has completed its review, and in October 1991, the TWC adopted new rules in accordance with the June 1991 legislation. The other committee, the Salt Rules Technical Advisory Committee, is comprised of a panel of experts specializing in salt related product storage and federal regulations regarding hazardous waste disposal facilities. This committee was formed specifically to make recommendations as to the need, if any, for additional rules or guidelines specific to hazardous waste disposal in underground salt dome caverns.
"The EPA has studied the technology for hazardous waste disposal in underground salt dome caverns on two different occasions and found existing federal rules sufficient for permitting," Keith Price, President of HIFI said. "The review that is being undertaken by the TWC through its panel of experts suggests to us that the regulatory agency believes the technology merits serious consideration. We believe it is a solution to many of Texas' hazardous waste problems," Price said.
The Salt Rules Technical Advisory Committee is scheduled to hold its second formal meeting in early December 1991, at which time management expects a status report on the activities of the committee to be made available. Once that status report is reviewed, management will have a better understanding of the timing for the resumption of the evidentiary portion of the TWC hearings on the draft hazardous waste disposal permits. HIFI management now believes that final hazardous waste disposal permits will be issued sometime after the middle of calendar year 1992.
Hunter Environmental Services, Inc. is an environmental service company devoted to developing and providing environmentally safe solutions to the fundamental problems surrounding disposal of hazardous waste.
HUNTER ENVIRONMENTAL SERVICES, INC.
Summary of Financial Information for the Second Quarter and
Six Months to Date of Fiscal 1992
The Periods ended Sept. 30, 1991
Periods ended Six months ended Three months ended
Sept. 30; 1991 1990 1991 1990
Dividend income 494,000 1,180,000 247,000 590,000
General and administ.
Hunter (843,000) (665,000) (504,000) (344,000)
HIFI (634,000) (430,000) (321,000) (216,000)
Interest expense (429,000) (608,000) (165,000) (310,000)
charges(A) (140,000) -- (140,000) --
(Loss) before income
taxes (1,552,000) (523,000) (883,000) (280,000)
(Provision) for income
taxes -- -- -- --
Net (loss) (1,552,000) (523,000) (883,000) (280,000)
Net (loss) per share (.10) (.04) (.05) (.02)
Weighted average number
of common and common
outstanding 15,449,000 13,404,000 16,543,000 13,602,000
(A) -- Non-operating charges relate to the loss on the sale of securities.
/CONTACT: Dennis Oistacher, Chief Operating Officer of HESI, 203-255-8777/
(HESI) CO: Hunter Environmental Services, Inc. ST: Connecticut IN: SU: ERN FC-KW -- NY096 -- 1788 11/15/91 18:01 EST