Consolidated Envirowaste Industries Inc. (TSX VENTURE: CWD)
announced today its results for the year ended September 30, 2009.
A complete copy of the Company's audited annual financial
statements and accompanying management's discussion and analysis is
available on SEDAR at www.sedar.com. Excerpts from the annual
audited financial statements are as follows:
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September 30 2009 2008
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Total Revenues $18,276,420 $19,411,701
Net loss from continuing operations ($764,835) ($1,097,162)
Loss per share-basic ($0.07) ($0.11)
Loss per share-diluted ($0.07) ($0.11)
Net loss for the year ($764,835) ($1,097,162)
Loss per share-basic ($0.07) ($0.11)
Loss per share-diluted ($0.07) ($0.11)
Weighted average number of common shares
outstanding-basic 10,414,699 10,414,699
Weighted average number of common shares
outstanding-diluted 10,414,699 10,414,699
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The Company recorded a net loss after income taxes of $764,835
or $0.07 per share ($0.07 per share diluted) for the year ended
September 30, 2009 compared to a net loss of $1,097,162 or $0.11
per share ($0.11 per share diluted) for the year ended September
30, 2008. Results for the 2009 fiscal year were characterized by
the varying effects of the continuing economic malaise in Florida
and operating adjustments made by the Company's CRR Florida
subsidiary to meet these conditions, weakening of the Canadian
dollar versus the U.S. dollar until late in the year, higher
capacity utilization in the Company's Canadian operations offset by
poor weather conditions at the onset of the spring growing season
and a continuation of inclement weather on the Canadian Prairies
throughout the remainder of the year, and the decision by
management to establish a valuation allowance for the Company's
U.S. future income tax assets resulting from the continued poor
performance of the U.S. operations in the face of the economic
conditions in Florida.
Total revenue for the year ended September 30, 2009 declined 6%
or approximately $1,135,000, from $19,411,701 for the year ended
September 30, 2008 to $18,276,420. While the Company's U.S. dollar
denominated revenues for the year ended September 30, 2009 fell 22%
in terms of U.S. dollars compared to 2008, currency translation
differences increased its U.S. dollar denominated portion of
revenues by approximately $1,984,000 or 17% to reduce the impact of
the revenue shortfall to only 9% in terms of Canadian funds. Less
volatile fuel costs (44% lower than for fiscal 2008) helped ease
pressure on manufacturing overhead and transportation costs. Having
made significant operational adjustments to the Company's U.S.
operations during the current fiscal year, the Company managed to
increase operating margins during the year ended September 30, 2009
compared to 2008 with strong cost controls on its manufacturing
inputs.
A significant change in income tax amounts between fiscal year
ends 2009 and 2008 also affected the comparative net losses between
the two years, with income tax expense of approximately $141,000
for the year ended September 30, 2009 compared to an income tax
recovery of approximately $669,000 for the year ended September 30,
2008. As management reviewed the U.S. operating results for this
and previous fiscal years, the timing of future income tax asset
benefits, and the prospects of the U.S. subsidiaries' poor results
continuing into and beyond the 2010 fiscal year, management
decided, in consultation with the Company's tax advisors, that the
Company would, more likely than not, be unable to utilize these
future income tax assets prior to expiration, and wrote off these
future income tax assets during the current fiscal year.
The Company recorded a net loss after provision for income taxes
of $935,196, or $0.09 per share ($0.09 per share diluted) for the
fourth quarter of 2009, compared to a net loss after income tax
recoveries of $548,426, or $0.05 per share ($0.05 per share
diluted) for the same quarter of 2008.
Revenue for the quarter, at $3,730,673, was down approximately
15% from $4,401,108 reported in the fourth quarter of 2008. Fourth
quarter comparative translation of the Company's U.S. dollar
denominated revenues improved comparative revenues by approximately
5% or $168,000 as the Canadian dollar rebounded late in the fourth
quarter of fiscal 2009, but not nearly to the levels it was during
last year's fourth quarter.
For the year ended September 30, 2009, cash provided by
operating activities after changes in working capital was
$1,138,742, compared to $867,014 provided by operating activities
after changes in working capital for the year ended September 30,
2008, reflecting a return to the Company's seasonal operating
characteristics and the $474,000 swing in cash provided by the
write-down of the future income tax benefits in the current fiscal
year.
We expect the 2010 fiscal year to reflect seasonal operating
patterns experienced over the past two years. We also expect a
continuation of the challenging Florida economic environment well
into the 2010 fiscal year and beyond. The upward trend in fuel
prices continues to be an operational concern. The Company intends
to maintain strong operating cost controls to optimize operations
in the face of these challenges and to explore new opportunities as
they present themselves.
Consolidated Envirowaste Industries Inc. is a leading processor
of wood and other organic wastes in Western Canada and Florida. The
Company markets and supplies biomass boiler fuel for electric
generation facilities, charcoal manufacturers and pulp and paper
mills in the U.S., bulk landscaping products in both of these
regions, and packaged soil products to major Western Canadian
retailers.
Forward-Looking Statements This report contains statements that
are forward-looking in nature. Readers are cautioned that such
forward-looking statements are not guarantees and may involve known
and unknown risks and uncertainties that could cause the actual
results of the Company to be materially different from those
expressed or implied by those forward-looking statements. Such
risks include, among others: general economic and business
conditions, weather factors, competition, product selling prices,
the cost and availability of raw materials, operating costs,
changes in foreign currency exchange rates, dependence on
contracts, the regulatory environment, seasonality, risk of
liability for environmental damage, risks associated with
litigation, and concentration of shareholder control. For a fuller
description of those risks, please see the sections headed
"Critical Accounting Estimates" and "Risk Factors" in management's
discussion and analysis for the year ended September 30, 2009, a
copy of which is available under the Company's name on SEDAR at
www.sedar.com.
Consolidated Envirowaste Industries Inc.
James E. Darby, Chairman and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Consolidated Envirowaste Industries Inc. Doug Halward
604-856-6836
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