New London, Conn., May 9, 2012 (GLOBE NEWSWIRE) -- Evercel, Inc. (Pink Sheets: EVRC) today announced unaudited results of operations for the three months ended March 31, 2012. Consolidated net sales were $2,018,000 compared to $2,062,000 last year. Net loss for the period was $54,000 as compared to a profit of $67,000 last year primarily due to increased expenses at Evercel parent and lower profit at New England Crab Co.
New England Crab Co. ("NECC") had sales of $1,777,000 compared to $1,799,000 last year. Net income was $88,000 compared to $140,000 last year. While sales demand remains strong, year-to-date crab processing volumes were down approximately 10% from last year. Increased raw material costs and regulatory compliance expenses combined to reduce profits. Crab supply is somewhat seasonal and over the next few months we may experience diminished availability.
Stretch and Cover ("SNC") sales were $48,000 compared to $100,000 last year while losses increased to $51,600 from $39,400 last year. SNC continues to struggle as we make the transition from a slipcover manufacturer to a slipcover reseller as well as a reseller of musical instrument products such as guitar picks, strings, and drumsticks. We are planning a substantial cost reduction effective June 1.
Sontek Medical sales and profits increased to $193,000 and $39,000 respectively from $163,000 and $28,000 last year.
Primarily due to the Zipcar IPO and the sale of some of our stock, our balance sheet is substantially stronger than last year. Cash at March 31, 2012, was $14,715,000 compared to $487,000 last year while other assets increased to $14,114,129 from $6,961,718. We no longer have any long-term debt.
We continue to hold 510,000 shares of Zipcar. While we have no immediate need to sell these shares, we intend to use appropriate opportunities to reduce our position.
We have stepped up our pursuit of an acquisition opportunity to capitalize on our strong cash position and remaining net operating tax loss. We have followed up on many leads but have not yet found an opportunity which we are prepared to recommend to our board or shareholders. We will continue to diligently pursue opportunities and continue to welcome suggestions from our shareholders.
Summarized unaudited financial information for the Company is as follows:
2012 2011
Income Statement, Three months ended March 31:
Revenue $2,017,949 $2,061,986
Gross Profit 476,696 500,585
Operating Profit (Loss) (42,924) 92,575
Other Income (Expense) (10,782) (25,680)
Net Income (Loss) (53,706) 66,895
Other Comprehensive Income before taxes 708,900 N/A
Balance Sheet, as of March 31
Cash $14,715,154 $486,597
Other Current Assets 11,569,487 1,814,624
Other Assets 2,544,642 5,147,094
Total Assets 28,829,283 7,448,315
Current Liabilities $175,281 $1,483,582
Long Term Liabilities 0 1,374
Total Liabilities 175,281 1,484,956
Total Equity $28,654,002 $5,963,359
New London, Conn., based Evercel is a multi-industry company whose operations include crab processing for both fresh and frozen markets, sales of Swivel Y-valves used in the treatment of patients on respirators, and Stretch and Cover, Inc., an on-line retailer of slipcovers for household furniture. Evercel also has investments in Zipcar Inc. (car sharing), and Julia LLC (skin wrinkle reduction technology).