New London, Conn., March 6, 2012 (GLOBE NEWSWIRE) -- Evercel, Inc. (Pink Sheets: EVRC) today released a letter to shareholders that discusses the company's 2011 financial results:
Dear Fellow Shareholder:
Financial results for 2011 significantly improved over 2010. Revenues increased from $6,519,000 to $7,445,000. Loss from operations improved to $85,000 from $531,000 in 2010. Net income increased from a loss of $869,000 (($0.03) per share) in 2010 to a profit of $16,390,000 ($0.59 per share) in 2011. The most significant component of the turn around was the sale of approximately 65 percent of our share ownership in Zipcar, Inc. and the resulting gain of $14,466,000. Our balance sheet is also significantly improved. At December 31, 2011, we had more than $15,000,000 in cash and more than $26,000,000 in current assets. Total liabilities were $569,000, of which $404,000 were income taxes payable. Stockholders’ equity was $27,999,000 or $1.00 per fully diluted share. A copy of our audited financial statements is available on our website, www.evercel.com.
Operationally, New England Crab Company ("NECC") is returning to its historical levels of profitability and earned $355,000 compared to $2,000 in 2010. While it is still early in 2012 and the business is subject to several "commodity type" risks, we expect NECC to have somewhat better profitability in 2012. Sontek Medical Inc. ("SMI") earned $145,000 in 2011, virtually the same as 2010. We expect SMI to continue its consistent performance this year. Our problem operation, Stretch & Cover ("SCI"), lost $451,000 compared to $658,000 in 20l0. Although operations have improved, they remain completely unacceptable. During 2011 we totally revised the supply chain of slipcovers and expanded our product offering beyond home furnishings to musical instrument supplies. We are continuing to try to make this business viable and we will also consider alternatives as we move forward.
We are vigorously continuing our effort to identify an appropriate merger or acquisition candidate before our self-imposed year-end deadline. Our intention is to identify a company whose use of our cash and remaining net operating loss will provide our shareholders with a superior return. While we have evaluated and rejected numerous opportunities to date, we remain dedicated to this effort.
Our thanks go to our dedicated employees, who continue to work diligently on building value and our patient shareholders, who have finally been rewarded for their patience.
Garry Prime, CEO
James Gerson, Chairman
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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).
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