99.1 Press Release dated April 11, 2003.
FOR: ENVIRONMENTAL SAFEGUARDS, INC (ELSF: OB)
FROM: RF Hengen Inc. CORP. CONTACT: James S. Percell, Chmn & Pres
Tel: (908) 508-9000 Tel: (713) 641-3838
FOR IMMEDIATE RELEASE
Environmental Safeguards Reports 2002 Earnings
HOUSTON, April 11, 2003 --- Environmental Safeguards, Inc. (ELSF:OB) today
announced that it had a net loss for the year ended December 31, 2002 of
$3,043,000, equal to ($0.33) per basic and fully diluted share, compared to
prior year net income of $1,507,000 or $0.12 per basic and $0.05 per fully
diluted share. Revenues for the recently completed year were $943,000 compared
to $2,987,000 in 2001, which amount excludes a one time sales transaction
classified as Other Income.
The reduction of revenue and profit was a result of lower equipment utilization
in 2002 due to the completion of contract operations in Mexico at the end of
2001. Additionally, net income for 2001 included the above-mentioned
non-recurring gain on the sale of three of the Company's Indirect Thermal
Desorption Units.
James S. Percell, chairman, president and chief executive of Environmental
Safeguards stated: "Having decided to complete contract operations in most of
our foreign markets, we have taken steps to close down foreign subsidiaries and
concentrate our efforts and resources in the U.S. market, particularly in the
industrial waste management, domestic downstream plants, and manufacturing
industries. Each of these represents a large market segment in which we believe
our proprietary technology and equipment have a distinct competitive advantage
as witnessed by recent contract awards in the domestic United States."
The Company's patented ITD technology uses a heat jacketed rotating chamber that
vaporizes hydro- carbons and hydrocarbon derivatives from contaminated
materials, and a condenser that liquefies the vapor into hydrocarbon liquids of
better than 99% purity, for reuse. A single ITD unit can process one to 10 short
tons of waste per hour, depending on its content. In addition to the United
States, soil remediation and hydrocarbon recycling operations have been
successfully conducted in Mexico, Colombia, Venezuela, Scotland and the U.A.E.
The Company has processed more than 750,000 tons of contaminated waste,
recovering in excess of 15 million gallons of hydrocarbon fluids. More
information on Environmental Safeguards and its subsidiary, OnSite Technology,
can be found at www.onsite2.com.
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The Forward Looking Statements or Projections contained herewith involve risks
and uncertainties which could cause actual results or outcomes to differ
materially from those expressed and, accordingly, should be read in conjunction
with the Company's 10-K for the year ended December 31, 2002, with particular
reference to Information Regarding and Factors Affecting Forward Looking
Statements in the Management Discussion and Analysis of Financial Condition and
Results of Operations.
The comparative results of the years ended December 31, 2002 and 2001 follow:
ENVIRONMENTAL SAFEGUARDS, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(In thousands, except share amounts)
Twelve Months Ended
December 31,
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2002 2001
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Revenue $ 943 $ 2,987
Cost of revenue 1,968 3,546
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Gross margin (1,025) (559)
Selling, general and
administrative expenses 1,713 2,645
Amortization of acquired engineering
design and technology 408 408
Research and development 30 71
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Income (loss) from operations (3,176) (3,683)
Other income (expense):
Gain on sale of assets 6,252
Interest income 2 32
Interest expense (43) (839)
Other (2) 40
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Income (loss) before provision for
income tax and minority interest (3,219) 1,802
Benefit (provision) for income taxes 79 (536)
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Income (loss) before minority interest (3,140) 1,266
Minority interest 97 241
--------- --------
Net income (loss) ($3,043) $ 1,507
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Net income (loss) available to common
stockholders ($3,296) $ 1,169
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Net income (loss) per share:
Basic ($0.33) $ 0.12
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Diluted ($0.33) $ 0.05
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Weighted average shares outstanding:
Basic 10,112 10,112
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Diluted 10,112 23,142
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