Amerex Group Reports 2007 Third-Quarter Results
November 20 2007 - 9:36AM
PR Newswire (US)
Highlighted by Double Digit Revenue Growth for Nine Months NEW
YORK, Nov. 20 /PRNewswire-FirstCall/ -- Amerex Group, Inc.
(OTC:AEXG) (BULLETIN BOARD: AEXG) , a leading provider of
environmental and hazardous waste treatment services, today
reported results for the third quarter and nine-month period ended
Sept. 30, 2007, highlighted by a double-digit increase in
year-to-date revenues and continued investment in the Company's
national growth strategy. New York City-based Amerex, which works
with industrial clients and municipalities to treat, remediate and
transport hazardous and industrial waste, reported a net loss of
$2.7 million, or $0.17 per diluted share, on revenues of $2.2
million in the quarter ended Sept. 30, 2007, compared with a net
loss of $764,000, or $0.26 per diluted share, on revenues of $2.3
million in the same period of 2006. The third quarter results
included more than $2.0 million of non-operating expenses related
to the ongoing recapitalization of the Company, which has included
remeasurement of equity obligations, amortization of capitalized
financing fees and other expenses. For the current nine-month
period, Amerex reported a net loss of $5.8 million, or $0.33 per
diluted share, on revenues of $6.5 million, compared with a net
loss of $3.6 million, or $2.50 per diluted share, on revenues of
$4.7 million in the same period of 2006. The Company attributed the
37 percent increase in revenues to the expansion of existing
business lines and the launch of a new contract with a leading
national retailer. The Company reported that it reduced its
operating loss by more than 50 percent in the first nine months of
2007 compared to the prior nine-month period ending Sept. 30, 2006,
reflecting efforts to manage the business efficiently and execute
on its business plan. "I am pleased with our year-to-date results,
which reflect our progress toward building the Company into a
national provider of environmental services," said Amerex CEO
Nicholas Milano. "Our disciplined expense management remains a key
focus as evidenced by management's commitment to further reducing
operating expenses as a percentage of revenue, improving our
process controls and better utilization of our facilities." During
the third quarter, the Company closed on financing for a bridge
loan in the amount of $750,000 with Professional Offshore
Opportunity Fund, Ltd. in August of 2007. The Company also noted
that it is pursuing a sale/leaseback of its property in Pryor,
Okla., proceeds of which will be used to pay down its Senior
Convertible Notes and further facilitate debt- reduction. In
addition, the Company is currently considering the sale/leaseback
of its property owned in Harrison County, Texas. Each of these
initiatives is intended to improve the Company's liquidity and
increase working capital, allowing it to pursue strategic
acquisitions in line with the Company's long-term growth plan.
Management reiterated that its transportation logistics model
remains a key competitive advantage within the hazardous waste
treatment and disposal industry. The Company's increased
utilization of rail-based transportation is a safer, more
cost-effective mode of transporting hazardous waste from treatment
to disposal sites when compared to traditional truck-based
transport. Milano concluded: "We've continued to generate
operational momentum during fiscal 2007 supported by investments in
key personnel and expanded services and strategic partnerships.
Looking ahead, we intend to build on that foundation in order to
further establish Amerex as a company that can provide innovative,
cost-efficient and high quality services to customers throughout
the U.S." The Company also reported it restated the 2006 results in
response to comments issued by the FASB ("Accounting for
Registration Payment Arrangements") and the SEC (Securities and
Exchange Commission). The impact of the restatement on 2006 and
previous years results is more fully discussed in the filing, which
can be accessed at http://www.sec.gov/. About Amerex Group, Inc.
Founded in 2005, Amerex Group (OTC:AEXG) (BULLETIN BOARD: AEXG) is
a leading provider of environmental and hazardous waste management
services for federal and municipal government entities including
the DEA, as well as Fortune 100 and middle-market commercial
customers. The Company currently serves four-end markets:
industrial/hazardous waste disposal, industrial wastewater
transport/disposal, methamphetamine site cleaning and emergency
response services. Headquartered in New York City, Amerex has a
growing network of waste treatment facilities and regional offices
serving the West Coast, lower Midwest and Southern U.S. For more
information, visit http://www.amerexcos.com/. Cautionary Statement
Regarding Forward-Looking Statements: This news release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial. Although we
believe that our plans, intentions and expectations reflected in or
suggested by these forward-looking statements are reasonable, we
cannot assure you that we will achieve or realize these plans,
intentions or expectations. Forward-looking statements are
inherently subject to risks, uncertainties and assumptions,
including whether this asset acquisition is consummated. Many of
the forward-looking statements contained in this news release may
be identified by the use of forward-looking words such as
"believe," "expect," "anticipate," "should," "appears," "planned,"
"will," "may," "intend," "estimated," and "potential," among
others. Important factors that could cause actual results to differ
materially from the forward-looking statements we make in this news
release include market conditions, our ability to negotiate
satisfactory terms to the transactions described in this release,
the completion of due diligence to our satisfaction, the successful
negotiation of definitive agreements, environmental and other
regulatory issues and our ability to finance and consummate the
transaction on terms we find acceptable, in addition to those set
forth in reports or documents that we file from time to time with
the United States Securities and Exchange Commission. All
forward-looking statements attributable to Amerex or a person
acting on its behalf are expressly qualified in their entirety by
this cautionary language. DATASOURCE: Amerex Group, Inc. CONTACT:
Jeff Lambert, or Karen Keller, , both of Lambert, Edwards &
Associates, for Amerex Group, Inc., +1-616-233-0500 Web site:
http://www.amerexcos.com/
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