ENGLEWOOD, Colo., Aug. 11, 2003 (PRIMEZONE) -- CET Services, Inc. (AMEX:ENV) reported that revenues for the second quarter ended June 30, 2003 were $151,000, down from $548,000 a year earlier. Net income for the current quarter was $211,000, or $0.04 a share, as compared to a loss of $717,000, or $0.12 a share in the 2002 period.
For the first half of 2003, revenues were $577,000, down from $1,580,000 in the prior year period. Net income for the six-month period was $58,000, or $0.01 a share, compared with a loss of $1,785,000, or $0.31 a share in the first six months of 2002.
The decline in revenues for both the second quarter and the first half reflect the continuing transition of the Company's activities away from its historic environmental services base to the property development business. However, the latter is not expected to contribute to revenues until the late months of the current year.
Net income for the respective periods was primarily the result of the sale at face value of a previously written off asset and the refund of federal income taxes from prior years. The asset was a note from a former customer, which the Company carried at zero value. Partially offsetting these items was a write down of $321,000 in the potential value of the receivable from Remediation Financial, Inc. ("RFI") resulting from a modification of the Company's agreement. In an effort to help facilitate the sale of certain RFI property and thereby expedite the receipt of payment, the Company agreed to modify its agreement with RFI and accept a flat payment of approximately $2.9 million upon the closing of the sale. However, if the third party does not purchase the property by September 30, 2003, the agreement amendment is voided and the original agreement (August 7, 2002) terms remain in full force.
Steven H. Davis, President and CEO stated, "The Company continues to focus its efforts on property development." He noted that construction of housing units on Phase 1 of the City of Westminster (CO) redevelopment project began in June. Phase 1 encompasses 23 units and, when completed in 2004, 50 affordable housing units will have been built on the project sites.
CET Services, Inc. is currently primarily engaged in niche market property development in urban areas with a preference for projects requiring some degree of remediation.
CET Services, Inc.
Three Months Ended June 30, 2003 (unaudited)
2003 2002
--------------------------
Revenues $151,376 $547,858
Net Income (Loss) $210,699 $(716,960)
Loss Per Share
Basic & Diluted $.04 $(.12)
Weighted Average
Shares Outstanding
Basic & Diluted 5,758,490 5,757,792
Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Safe Harbor provisions of the federal security laws. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, the Company's dependence upon third-party suppliers and other risks detailed from time to time in the Company's Form 10-KSB and other regularly filed reports.