METALCLAD CORP. REPORTS RESULTS
METALCLAD CORP. REPORTS RESULTS ANAHEIM, Calif., Nov. 26 /PRNewswire/ -- Metalclad Corp.
(NASDAQ: MTLC) announced today that it experienced a net loss for the nine months ended Sept. 30, 1991, of ($861,711) compared to a net loss of ($73,346) for the comparable period in 1990. The net loss for the third quarter of 1991 was ($421,367) compared to ($75,828) for the third quarter of 1990.
Revenues, derived principally from insulation contracting services and insulation material sales, were up $19,893,756 for the nine months ended Sept. 30, 1991, compared to $20,206,126 in the comparable period in 1990. Revenues for the third quarter declined from $8,050,454 for the quarter ended Sept. 30, 1990, to $5,406,324 for the comparable period in 1991. The company experienced a net loss per share for the nine months ended Sept. 30, 1991, of ($.17) compared to a net loss per share of ($.02) for the comparable period in 1990. The net loss for the three months ended Sept. 30, 1991, was ($.08) compared to ($.02) for the comparable period in 1990. The net loss is primarily attributable to a decrease in oil refinery maintenance work from one of the company's principal customers and increased competition among insulation contractors in the Southern California market. However, the company has experienced substantially increased billing activity in October and November and anticipates a return to profitability in the fourth quarter of 1991. The company also announced today the completion of the acquisition of all of the outstanding shares of Environ Technologies Inc. ("ETI") in exchange for 1,180,000 shares of the common stock of Metalclad. ETI owns 49 percent of the shares of Eco Administracion, S.A. de C.V. ("ECO"), a company organized to develop, construct and operate an integrated waste management facility at a site ECO has secured near San Luis Potosi in Central Mexico. The management of the company believes that the participation in the ownership and operation of ECO provided by ETI offers the company a significant opportunity to expand and diversify its business. Metalclad presently is engaged in the business of industrial insulation contracting in California and Washington and has been seeking to diversify and expand its business in the environmental services industry. The shareholders of ETI include Grant S. Kesler and Ronald E. Robertson, officers, directors and shareholders of Metalclad. Kesler, who became a director and shareholder of Metalclad in March 1991, and Robertson, who became an officer and director of Metalclad in July 1991, co-founded ETI prior to joining Metalclad. Kesler received 840,000 shares and Robertson received 140,000 shares of Metalclad in exchange for their ETI shares. The shareholders of ETI have agreed to place 400,000 of the 1,180,000 shares of common stock in an escrow to be released to the shareholders after ECO has secured permanent financing and commenced construction of the facility or to be released to the company for cancellation in the event that these conditions have not been satisfied within a reasonable period of time. Metalclad also has agreed to enter into a management services contract for the supervision of the project with a consulting firm owned by the former shareholders of ETI, including Kesler and Robertson, pursuant to which the consulting firm would receive 4 percent of the project cost, 5 percent of gross revenues and 25 percent of net operating profit of ECO. The success of this project depends on various factors including securing permits to construct the facility, completion of site engineering, arranging construction financing, construction of the facility and securing customers, none of which can be assured. However, the company announced the following recent developments: -- ECO has been notified by the Mexican government that formal announcement of the grant of the permit to allow construction of the facility will be made at an international environmental conference at San Luis Potosi, Mexico, on Thursday, Nov. 28, 1991. -- Bids for the engineering of the San Luis Potosi facility are expected from Ford, Bacon & Davis Utah Inc., and from Davy Dravo, both of which are the United States subsidiaries of multinational firms and are industry leaders in engineering, design and construction services. -- ECO has explored the feasibility of construction financing with various lenders and expects to receive a preliminary proposal in mid-December. -- ECO expects to finalize an agreement in mid-December with Molten Metal Technology Inc. ("MMT"), a Cambridge, Mass. firm, regarding the licensing of its new molten metal bath technology for disposing of toxic waste materials where the molecular structures of the toxic substances are broken down into non-toxic compounds. Metalclad believes this technology is superior to existing technologies which incinerate toxic materials. METALCLAD CORP. Summary Financial Information (unaudited) Nine months ended Three months ended Sept. 30, Sept. 30, 1991 1990 1991 1990 Revenues $19,893,756 $20,206,126 $5,406,324 $8,050,454 Costs and expenses 20,755,467 20,279,472 5,827,691 7,974,626 Net loss ($861,711) ($73,346) ($421,367) ($75,828) Net loss per share ($.17) ($.02) ($.08) ($.02) Shares outstanding at Sept. 30, 1991: 5,316,740 -0- 11/26/91 /CONTACT: Grant S. Kesler, CEO, or Ronald J. Robertson, chairman of the board, of Metalclad, 714-634-9050; or Bruce H. Haglund of Phillips, Haglund, Haddan & Jeffers, 714-752-6100, for Metalclad/ (MTLC) CO: Metalclad Corp. ST: California IN: SU: ERN
CH-KJ -- LA014 -- 7382 11/26/91 14:18 EST
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|Date:||Nov 26, 1991|
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