SystemOne Technologies Reports Third Quarter 2004 Results MIAMI,
Nov. 12 /PRNewswire-FirstCall/ -- SystemOne Technologies Inc.
(OTC:STEK) (BULLETIN BOARD: STEK) today reported its third quarter
2004 operating results. Revenues for the three months ended
September 30, 2004 were $817,000 compared to revenues of $5,519,000
in the corresponding period of 2003, an 85.2% decrease. The Company
reported an operating loss for the three months ended September 30,
2004 of $482,000 compared with an operating profit of $1,102,000 in
the corresponding period of 2003. The Company's net loss for the
three months ended September 30, 2004 was $795,000 or a loss of 16
cents per share, compared with a net profit of $480,000 or a profit
of 10 cents per share, in the corresponding period of 2003. The
Company's net loss to common stock after preferred dividends for
the three months ended September 30, 2004 was $1,212,000 or a loss
of 24 cents per share, compared with a net loss of $86,000 or a
loss of 2 cents per share, in the corresponding period of 2003.
Revenues for the nine months ended September 30, 2004 were
$1,659,000 compared to revenues of $16,829,000 in the corresponding
period of 2003, a 90.1% decrease. The Company reported an operating
loss for the nine months ended September 30, 2004 of $2,204,000
compared with an operating profit of $3,901,000 in the
corresponding period of 2003. The Company's net profit for the nine
months ended September 30, 2004 was $10,868,000 or a profit of
$2.19 per share, compared with a net profit of $1,926,000 or a
profit of 39 cents per share, in the corresponding period of 2003.
The Company's net profit to common stock after preferred dividends
for the nine months ended September 30, 2004 was $9,366,000 or a
profit of $1.89 per share, compared with a net profit of $257,000
or a profit of 5 cents per share, in the corresponding period of
2003. The Company's net profit for the nine months ended September
30, 2004 of $9,366,000 includes one time gains on the
extinguishment of debt in the amount of $10,217,000 and $4,000,000
on the Safety-Kleen settlement. Chief Executive Officer Paul I.
Mansur stated, "We continue to progress with the development of our
national third party distribution network as the Company
transitions from its exclusive distribution arrangement with
Safety- Kleen. We have appointed 25 distributors to date,
representing approximately half of the planned national
distribution network of 50 distributors." Founded in 1990,
SystemOne Technologies designs, manufactures, sells and supports a
full range of self-contained, recycling industrial parts washing
products for use in the automotive, aviation, marine and general
industrial markets. The Company has been awarded 11 U.S. patents
and 13 foreign patents for its products which incorporate
innovative, proprietary resource recovery and waste minimization
technologies. The Company is headquartered in Miami, Florida. This
press release contains forward-looking statements regarding future
events and the future performance of SystemOne Technologies that
involves risks and uncertainties that could cause actual events to
differ materially including the Company's ability to successfully
complete the development of its national third party distribution
network. We refer you to the documents that SystemOne Technologies
files from time to time with the Securities and Exchange
Commission, which contain important factors that could cause its
results to differ from its current expectations. SystemOne
Technologies Inc. Condensed Balance Sheets (In thousands, except
share and per share data) September 30, December 31, 2004 2003
(Unaudited) ASSETS Current assets: Cash and cash equivalents $4,534
$8,359 Receivables, net of allowance of $4 and $0 430 7
Inventories, net of obsolescence reserve of $193 and $183 2,231
1,745 Prepaid and other assets 107 386 Assets held for sale 39 39
Total current assets 7,341 10,536 Property and equipment, net 420
540 Other assets 63 197 Total assets $7,824 $11,273 LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities: Accounts payable and accrued expenses $999
$1,165 Warranty accrual 199 241 Deferred revenue 24 64 Current
installments of long-term debt and obligations under capital leases
101 31 Total current liabilities 1,323 1,501 Long-term debt 15,117
29,150 Warranty accrual, non-current 70 176 Total liabilities
16,510 30,827 Commitments and contingencies Redeemable convertible
preferred stock, $1.00 par value per share. Authorized 1,500,000
shares, 209,569 issued and outstanding (197,376 in 2003), at
liquidation value 20,957 19,738 Less unamortized discount -- (283)
Net redeemable convertible preferred stock 20,957 19,455
Stockholders' deficit: Common stock, $0.001 par value per share.
Authorized 25,000,000 shares, issued and outstanding 4,960,087 5 5
Additional paid-in capital 20,723 20,723 Deficit (50,371) (59,737)
Total stockholders' deficit (29,643) (39,009) Total liabilities,
redeemable convertible preferred stock and stockholders' deficit
$7,824 $11,273 SystemOne Technologies Inc. Condensed Statements of
Operations For the Three and Nine Months Ended September 30, 2004
and 2003 (Unaudited) (In thousands, except share and per share
data) Three Months Ended Nine Months Ended Sept. 30, Sept. 30,
Sept. 30, Sept. 30, 2004 2003 2004 2003 Revenue $817 $5,519 $1,659
$16,829 Cost of goods sold 647 3,470 1,470 10,347 Gross profit 170
2,049 189 6,482 Operating expenses: Selling, general and
administrative 577 863 2,115 2,306 Research and development 75 84
278 275 Total operating expenses 652 947 2,393 2,581 Operating
(loss) income (482) 1,102 (2,204) 3,901 Other (expense) income:
Safety-Kleen termination fee income -- -- 4,000 -- Gain on Notes
repurchase -- -- 10,217 -- Interest expense (350) (754) (1,047)
(2,324) Interest income 17 139 42 389 Other (expense) income, net
(333) (615) 13,212 (1,935) (Loss) income before income tax
provision (815) 487 11,008 1,966 Income tax benefit (provision) 20
(7) (140) (40) Net (loss) income (795) 480 10,868 1,926 Dividends
and accretion of discount on redeemable convertible preferred stock
(417) (566) (1,502) (1,669) Net (loss) income available to common
shares $(1,212) $(86) $9,366 $257 Basic net (loss) income per
common share $(.24) $(.02) $1.89 $.05 Diluted net (loss) income per
common share $(.24) $(.02) $.98 $.04 DATASOURCE: SystemOne
Technologies Inc. CONTACT: Paul I. Mansur, Chief Executive Officer,
SystemOne Technologies Inc., +1-305-593-8015 Web site:
http://www.systemonetechnologies.com/
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