New London, Conn, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Evercel, Inc. (OTC: EVRC) today announced unaudited results of
operations for the nine months ended September 30,
2012.
Consolidated net sales were $5,747,300 compared to $5,335,500 last
year. Operating loss for the period was $408,000 this year versus a
loss of $74,500 last year primarily due to increased acquisition
related expenses and decreased profitability at New England Crab
Co. Net income before discontinued operations was $2,421,200 this
year and $4,963,100 last year largely as the result of $3,077,900
and $5,130,100 gains respectively on the sale of Zipcar stock.
Net income for the nine months ended September 30, 2012 including the loss of $136,500 from the discontinued operations of Stretch and Cover was $2,284,700. Stretch & Cover, Inc. was sold in August, 2012. During the nine months ended September 30, 2012, Evercel had Other Comprehensive Loss of $4,791,500 which represents a decrease in the market value of unsold shares of Zipcar, Inc. since December 31, 2011. As of September 30, 2012, there was a net unrealized gain of $990,700 on the remaining 174,182 shares of Zipcar, Inc. common stock.
New England Crab Co. ("NECC") sales increased 15 percent to $5,230,900 from $4,558,400 last year. Net income was $8,600 compared to $141,100 last year. While sales improved, labor costs increased significantly due to recently revised FDA regulations. We were unable to pass these costs on to our customers in the quarter. Operations have improved significantly since September and we are optimistic about the remainder of the year.
Sontek Medical sales declined 11% from $579,000 in 2011 to $516,500 in 2012. Net income decreased from $121,900 in 2011 to $83,200 in 2012.
During 2012, the company sold 335,818 shares of Zipcar stock and presently retains 174,182 shares. Due to these sales, our cash balance continued to improve. Cash at September 30 was $17,728,100 compared to $15,155,200 last year.
Evercel continues to actively pursue an acquisition in order to optimize the value of its cash and available net operating loss carry forwards. While it is premature to predict the outcome, the company is optimistic that acquisition negotiations currently under way will, if successful, meet these criteria.
Summarized financial information for the Company is as follows:
2012 2011
(Unaudited) (Unaudited)
Income Statement, 9 months ended June 30:
Revenue $5,747,339 $5,335,507
Gross Profit 955,607 1,241,128
Operating Profit (Loss) (407,994) (74,470)
Other Income (Expense) 2,829,211 5,037,557
Income (Loss) From Discontinued Operations (136,518) 0
Net Income (Loss) 2,284,699 4,963,087
Other Comprehensive Income (Loss) * (4,791,465) N/A
Balance Sheet
09/30/12 12/31/11
(Unaudited) (Audited)
Cash $17,728,118 $15,155,195
Other Current Assets 5,225,741 10,847,307
Long Term Assets 2,906,488 2,565,550
Total Assets 25,860,347 28,568,052
Current Liabilities $368,304 $569,244
Long Term Liabilities 0 0
Total Liabilities 368,304 569,244
Total Equity $25,492,043 $27,998,808
* Reflects change in unrealized gain on investment in Zipcar common stock from 12/31/11 to 09/30/12.
About Evercel:
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. Evercel also has investments in Zipcar Inc. (car
sharing), and Julia LLC (skin wrinkle reduction technology).