NEW LONDON, Conn., July 30, 2012 (GLOBE NEWSWIRE) -- Evercel, Inc. (Pink Sheets: EVRC) today announced unaudited results of operations for the six months ended June 30, 2012. Consolidated net sales were $4,100,600 compared to $3,868,700 last year. Operating loss for the six months was $89,100 this year versus a $49,800 profit last year primarily due to increased acquisition related expenses at Evercel parent and continued losses at Stretch & Cover. For the second quarter, there was an operating loss of $46,200 this year as compared to a loss of $42,800 last year. Net income at June 30 was $1,067,800 this year and $5,134,700 last year as the result of $1,286,900 and $5,130,000 gains on the sale of Zipcar stock respectively.
New England Crab Co. ("NECC") sales for the six months increased approximately 8% to $3,636,300 from $3,370,600 last year. Net income was $226,900 compared to $213,400 last year. While sales increased and demand remains strong, crab landings in the second quarter were softer than anticipated, limiting sales. Due to the seasonal nature of the crab supply, we expect landings to remain soft for the third quarter.
Stretch and Cover ("SNC") sales for the six months were $89,000 compared to $158,000 last year with losses of $104,300 and $112,000 respectively. As of July 1, 2012, Stretch & Cover has made significant cost reductions in an attempt to reduce losses.
Sontek Medical sales and profits for the six months were comparable to last year at $375,000 and $69,000, respectively.
During the second quarter, the company sold 135,818 shares of Zipcar stock. Subsequent to the quarter end, the company sold another 150,000 shares and presently retains 224,182 shares. Due to these sales, our balance sheet remains strong. Cash at June 30 was $15,575,000 compared to $4,955,000 last year.
We are currently negotiating the acquisition of an early stage provider of digital advertising and promotional services to small businesses. Although it is still in an early stage, the company innovatively addresses a very large market and we are excited about its prospects. At this point there can be no assurance that we will be successful in the acquisition.
Summarized financial information for the Company is as follows:
2012 2011
(unaudited) (unaudited)
Income Statement, 6 months ended June 30:
Revenue $4,100,604 $3,868,674
Gross Profit 963,444 968,036
Operating Profit (Loss) (89,080) 49,784
Other Income (Expense) 1,156,840 5,084,920
Net Income (Loss) 1,067,760 5,134,704
CY Other Comprehensive Income (Loss)* (2,172,204) N/A
06/30/12 12/31/11
Balance Sheet (unaudited)
Cash $15,574,913 $15,155,195
Other Current Assets 8,638,114 10,847,307
Long Term Assets 3,126,692 2,565,550
Total Assets 27,339,719 28,568,052
Current Liabilities $445,355 $569,244
Long Term Liabilities 0 0
Total Liabilities 445,355 569,244
Total Equity $26,894,364 $27,998,808
* Reflects change in unrealized gain on investment in Zipcar common stock from 12/31/11 to 06/30/12.
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).