General Environmental Management Implements New Business Model to Drive Profitability and Higher Margins
April 26 2010 - 7:01AM
Business Wire
General Environmental Management Inc. (GEM) (OTCBB: GEVI)
continues to implement its revised business model to expand from an
environmental services only company to an enterprise that begins
with the treatment and disposal of non-hazardous wastewater at its
subsidiary, Southern California Waste Water (SCWW), and expands to
include a full spectrum of environmental services for its clients.
The Company aims to establish a nationwide network of environmental
facilities.
“GEM has been providing a premium level of environmental
solutions to clients in the Western Region of the United States for
over seven years,” stated Timothy Koziol, Chief Executive Officer
of GEM. “In 2002, we researched the landscape of environmental
service companies and determined there was a need for a higher
level of service in the Western U.S. Our team then began building a
business model centered on GEMWare, our proprietary software
designed to give GEM and its clients the data needed to properly
manage regulated waste, a Treatment, Storage and Disposal Facility
(TSDF) for the consolidation of waste, and a network of service
centers.”
Mr. Koziol continued, “Last year, based on the current economic
changes, GEM’s Board of Directors decided the Company should change
its focus from a purely services based company to an enterprise
with a foundation in a fixed based treatment and disposal facility,
like SCWW. With that decision we sold both service lines, the
mobile treatment services business and the hazardous waste services
only business, and acquired SCWW, a non-hazardous wastewater
treatment facility in Santa Paula, California. Our plans are to
grow the business organically and develop state-of-the-art systems
for operations, sales, compliance, finance, and human resources at
SCWW which can then be deployed at other acquired facilities.”
Bill Mitzel, President and Chief Operating Officer of GEM, said,
“In the environmental sector all regulated waste must be ultimately
treated and disposed of properly at permitted facilities. Because
of this, the final treatment and disposal facilities generally have
greater stability in their revenues streams and higher margins.
SCWW is a tremendous asset because of its ability to treat and
dispose of non-hazardous wastewater. We are excited about our
business strategy to push greater volume through SCWW and develop
the kind of systems we created previously for efficiency, increased
revenue, greater margins and scalability.”
“We were thrilled to sell SCWW to GEM and become part of their
growing wastewater plans,” said Doug Edwards, Chief Strategy
Officer of GEM and former owner of SCWW. “Our management team
believed there was more potential and growth available if we joined
with GEM. SCWW is the first piece of what we expect to be a much
larger network of non-hazardous wastewater facilities. We believed
in our future with GEM to the extent that we sold CLW, the parent
company of SCWW, to GEM prior to the completion of the sale of its
hazardous waste services only business to Luntz Acquisition
(Delaware) LLC.”
Mitzel commented, “Our business model, centered around a
permitted, non-hazardous waste, fixed based treatment and disposal
facility, like SCWW, generates greater margins for us than those
achieved by our previous model. Our change of focus has resulted in
margins up to eight times greater than those maintained by our
hazardous waste services only model.”
Koziol added, “The water industry domestically is a $120 billion
market and growing with increasing demands from industry,
government and consumers. Globally the water market, which exceeds
$400 billion, is third in size behind only power generation and
oil. Diminishing world water supplies will only aid the Company in
securing more non-hazardous wastewater business in the future.
Within the water industry, we believe the wastewater sector has
great potential for building value by developing the type of
systems needed for profitable and efficient operations that can be
deployed for greater scale. We look forward to building a growing
enterprise of wastewater facilities utilizing the experience of our
management team.”
Koziol concluded, “GEM’s new business model is more in tune with
the needs of today. Our experienced teams have managed to build
real value with our state-of-the-art SOP systems. Our systems are
completely scalable, using the SCWW platform, for regional and
national expansion. GEM will continue to grow as we build
organically and seek out acquisitions and reformulate them to the
GEM standards. We believe that 2010-2011 will be years of enormous
growth for GEM. As GEM prepares for an incredibly active year, we
have dedicated ourselves to ensuring that our shareholders are kept
apprised of news and information as events occur."
About General Environmental Management, Inc.
General Environmental Management, Inc. (www.go-gem.com) owns and
operates a non-hazardous wastewater treatment facility, Southern
California Waste Water (www.scww.com), in Santa Paula, Calif., as
well as provides various environmental services and solutions. GEM
is headquartered in Pomona, Calif.
FORWARD-LOOKING STATEMENTS
This press release may include "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical facts,
included in this press release that address activities, events or
development that the company expects, believes or anticipates will
or may occur in the future are forward-looking statements. These
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company,
which may cause the Company's actual results to differ materially
from those implied or expressed by the forward-looking statements.
The Company assumes no duty whatsoever to update these
forward-looking statements or to conform them to future events or
developments.
General Enterprise Ventu... (PK) (USOTC:GEVI)
Historical Stock Chart
From Jun 2024 to Jul 2024
General Enterprise Ventu... (PK) (USOTC:GEVI)
Historical Stock Chart
From Jul 2023 to Jul 2024