CARLSBAD, Calif., Feb. 25, 2004 (PRIMEZONE) -- Sub-Surface Waste Management of Delaware, Inc., (OTCBB:SSWM) today announced financial results for the first quarter of fiscal year 2004 ending September 30, 2004. Revenues declined from the same period in the prior year as the company shifted its emphasis from bonded work to non-bonded contracts still in bidding stages.
SSWM CEO Bruce Beattie commented, "This first quarter was a challenging time as we sought to maximize project profit potentials, identify and book new work not requiring performance bonding or substitute letters of credit. We are poised for substantial growth throughout 2004 provided we can raise additional working capital to fund the business demand we have created. I expect the consolidated earnings increases to come from acquired engineering companies and organically from additional projects based upon our better-faster-cheaper-safer technology for environmental cleanup. This should be our year to breakout into full commercialization as our technology is proven, our management has the experience and the company has the public vehicle for fund raising."
The consolidated financial data below has been derived from the Company's Financial Statements for the three months ending December 31, 2003 and 2002. For additional information and a discussion of risk factors, please see the SSWM current 10K & 10Q reports.
Results of Operations
For the three months ended December 31, 2003 compared to the three months ended December 31, 2002.
The Company had revenues of $90,092 during the three months ended December 31, 2003, as compared to $142,698 of revenues for the same period in 2002. Revenues for the three months ended December 31, 2003 consisted primarily of bio-remediation of hydro-carbons in contaminated soil for the state of South Carolina. Gross profit for the quarter ended December 31, 2003 was $2,540 or 2.8% of sales compared to $37,721 or 26.4% of sales for the corresponding period in fiscal 2002. The decrease in sales was due primarily to lower revenues from the State of South Carolina, as contracts there are nearing completion as most of the work necessary to complete the jobs has been previously billed. The lower gross margin in amount and percentage is due to lower volume of work completed during the quarter ended December 31, 2003 compared to the quarter ended December 31, 2002.
Selling, general and administrative ("SG&A") expenses for first quarter of fiscal year 2003 totaled $340,816 compared to $256,564 for the same period in fiscal year 2002. SG&A expenses for the first quarter of fiscal year 2002 consisted of occupancy, payroll, accounting, legal, consulting, and public relations expenses. The increase in SG&A expenses of $84,252 was due primarily to increases in legal and accounting expenses related to being a public company and expenses paid to consultants for marketing and mergers and acquisition expenses.
The Company incurred a net loss of $369,222 and had negative cash flows from operations of $259,758 for the three months ended December 31, 2003 compared to a net loss of $227,101 and negative cash flows from operations of $223,476 for the three months ended December 31, 2002. Basic and diluted net loss per share was $.02 for the three months ended December 31, 2003 and for the three months ended December 31, 2002.
Consolidated Statement For the 3 For the 3
of Losses Months Ended Months Ended
Dec. 31, 2003 Dec. 31, 2002
(unaudited) (unaudited)
------------ ------------
Revenues $ 90,092 $ 142,698
Cost of Goods Sold 87,552 104,977
Gross Profit (loss) 2,540 37,721
Selling, General &
Administrative
Expenses 341,872 257,073
Depreciation 1,056 509
Net Income (loss)
from Operations $ (339,332) $ (219,352)
Other income
(expense):
Interest income $ 189 $ 360
Interest expense $ (30,079) $ (8,109)
Total other income
(expense) $ (29,890) $ (7,749)
Net income (loss)
before income taxes $ (369,222) $ (227,101)
Provision for
income taxes -- --
Net income (loss) $ (369,222) $ (227,101)
Net loss per common
shares outstanding $ (0.02) $ (0.01)
Weighted averages
shares outstanding 18,295,784 11,366,713
Total Assets $ 594,324 --
Total Liabilities $ 1,167,145 --
Total Stockholder
Equity $ (578,231) --
About Sub-Surface Waste Management
Sub-Surface Waste Management Inc. provides comprehensive civil and environmental engineering project management services including specialists to design, permit, build and operate environmental waste clean-up treatment systems using conventional, biological and filtration technologies. SSWM is capitalizing on its patent and patent-pending technology by forming strategic alliances and joint ventures with well-established engineering firms.
Investors and media contact Bruce Beattie at 760/918-1860, ext. 105 or bbeattie@bugsatwork.com; or learn about the company by visiting its Web site at http://www.bugsatwork.com. A research report on SSWM is available at http://www.stocksontheweb.com/sswm.htm and another at http://wfnn.info .
The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the company's status as a startup company with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the company's Form 10-KSB and other publicly available information regarding the company on file with the Securities and Exchange Commission. The company will provide you with copies of this information upon request.