ThermoEnergy Corporation Announces 78% Revenue Increase for Q112
WORCESTER, Mass., May 22, 2012 /PRNewswire/ -- ThermoEnergy Corporation (OTCBB: TMEN), a diversified technologies company engaged in the development and sale of patented and/or proprietary wastewater treatment and power generation technologies in global markets, today announced revenue increased 78% to $1.7 million for the three-month period ended March 31, 2012 compared to the three-month period ended March 31, 2011. Gross profit for the three-month period ended March 31, 2012 increased to $260,000.
Mr. Cary Bullock, President and Chief Executive Officer of ThermoEnergy said, "We are pleased with our financial results in the first quarter of 2012 and expect to continue to have strong comparable growth throughout 2012."
Commenting on new business developments, Mr. Bullock noted, "We recently negotiated an agreement with ITEA S.p.A to accelerate the development of emissions-free power generation technology. ITEA is an Italian engineering and technology division of the Sofinter Group, one of the most dynamic European players providing high technology, energy-recovery solutions."
Mr. Bullock, continued, "We shipped a pilot unit for treating and recycling hydrofracking wastewater which we believe will result in multiple system sales. We have signed a contract to deliver a wastewater ammonia recovery demonstration system to Europe during the second quarter and have recently executed a term sheet for the deployment of effluent emission solutions at palm oil plants in Latin America. Our wastewater business is expected to generate significant financial contributions as we execute on our strong contract pipeline in 2012."
Operational and Financial Highlights:
- First quarter revenues increased to $1.7M compared to $0.9M in 2011.
- Gross profit for the quarter increased to $260,000 or 15% of revenues.
- Launched Unity Power Alliance and negotiated an agreement with ITEA S.p.A, to collaborate and accelerate the development of emissions-free power generation fueled by coal.
- Both Companies will contribute patents and IP to Commercialize POXC™
- Shipped a pilot unit for treating and reusing hydrofracking water which management believes will result in multiple system sales and ongoing service revenues.
- Signed contract to deliver ARP demonstration system to an award winning biogas site in Europe in the second quarter of the year.
- Added seasoned industry veteran as our VP of Sales, Alden Whitney.
Financial Results for the Period Ended March 31, 2012
For the three-month period ended March 31, 2012 the Company recorded revenues of $1,688,000, a 78% increase compared to $948,000 recorded in 2011. Our New York City project will be a key sales driver in 2012 as well as work on new industrial business.
Gross profit for the three months ended March 31, 2012 was $260,000 compared to gross loss of $19,000 in 2011. The increase is mainly due to higher gross margins realized on the New York City project in 2012, as we are now in the equipment production phase of the contract which has higher margins than other phases. We will be in this phase in 2012 and 2013.
General and administrative expenses totaled $1,031,000 in the 2012 quarter, a decrease of $365,000 compared to 2011. The decrease is attributable to lower non-cash stock option expense in 2012 as vesting for certain tranches of stock options for our executive officers ended in early 2011, as well as lower legal and professional expenses.
Engineering, research and development expenses totaled $109,000 in the 2012 quarter, an increase of $26,000 compared to 2011.
Selling expenses totaled $703,000 in 2012, an increase of $190,000 compared to 2011. The increase is due to increased sales headcount in 2012, as we focused on new business opportunities with product offerings in Europe and Latin America as well as in new industries such as biogas and hydrofracking.
Net loss attributable to common stockholders for the first quarter of 2012 was $0.02/share as compared to a loss of $0.13/share for 2011. Weighted average shares outstanding for the 2012 and 2011 quarters were 90.3 million and 55.8 million, respectively.
The Company had cash on hand at March 31, 2012 of $1.9 million and no secured debt.
Please see our Form 10-Q filed with the SEC on May 21th for additional details.
Investor Conference Call
The company will host a conference call today at 11:00 a.m. EDT. Management will make a brief presentation focusing on the company's results, strategies and operating plans. Those wishing to dial in to the call via telephone can do so at Toll Free: 1-877-941-4774. Toll/International: 1-480-629-9760 Conference ID: 4540599.
A live webcast will be available at: http://public.viavid.com/index.php?id=100581
Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.
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