EXHIBIT 99.1
Slide 1
EnTech
Environmental Technologies, Inc.
(OTCBB: EEVT)
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Slide 2
SAFE HARBOR STATEMENT
This presentation may include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 as amended, and Section 21E of the
Securities Exchange Act of 1934. We have based these forward-looking statements
on our current expectations and projections about future events. These
forward-looking statements are subject to known and unknown risks, uncertainties
and assumptions about us and our affiliate companies, that may cause our actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by such forward-looking statements. Factors
that might cause or contribute to such a discrepancy include, but are not
limited to, those identified in our other Securities and Exchange Commission
filings and other public documents, including our Quarterly Report on Form
10-QSB for the period ending March 31, 2004.
In the following presentation are various projections with respect to the
company. The projections are based upon the assumptions and estimates discussed
herein. The projections must be read in conjunction with the assumptions and
estimates associated therewith and with the understanding that there can be no
assurance that all material assumptions and estimates have been considered in
the preparation of the projections or that those assumptions and estimates which
are set forth and relied upon will in fact occur or be applicable to the
company. No representation is made that the projections are or will be accurate
in any degree.
We believe that the projections contained in this presentation contain forward
looking statements. These forward looking statements are based largely on our
expectations and are subject to a number of risks and uncertainties, many of
which are beyond our control. Actual results could differ materially from these
forward looking statements as a result of the factors described herein,
including, among others, regulatory or economic influences. In light of these
risks and uncertainties, there can be no assurance that the forward looking
information contained in the projections or this presentation will in fact
transpire or prove to be accurate. The inclusion of such information should not
be regarded as a representation by us or any other person that the objectives
and plans of the company will be achieved.
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Slide 3
KEY FACTS
SYMBOL EEVT
Exchange OTC Bulletin Board
Location Rancho Cucamonga, California
Employees 182
Shares Outstanding 14,612,499
Warrants 8,475,375
(would generate $19.9mm)
Price as of 6/7/04 $2.25
Market Cap
(fully diluted) $51,947,716
Debt $6,451,269
Insider Ownership 10,150,000
Institutional Ownership 20.4%
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Slide 4
MANAGEMENT
post Environ acquisition
Steve Rosenthal Chairman, CEO
Mike Webb President
Bill Greene Chief Financial Officer
Patrick Schultz COO, Manufacturing & Marketing
Bob Christie COO, Construction & Environmental Services
Doug Parker Director of Sales and Marketing
Bret Covey President, CPI Development
Burr Northrop President, HB Covey - Advanced Fuel Services
Rick Whatley President, Environ Products, Inc.
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Slide 5
TANK TO TANK SOLUTIONS
[graphic of gasmart and tank system]
Construction * Environmental Services * Manufacturing
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Slide 6
ENTECH ENVIRONMENTAL
+ Formed in January 2004
+ To be a leading provider of turnkey services and products to retail
petroleum providers
+ Markets initially focused on California, Arizona and Nevada
+ First to market, vacuum leak detection unit and the acquisition of
Environ Holdings, gives ENTECH the leading edge in complete
"tank-to-tank" product offerings and a worldwide product distribution
network
A TRUE ONE STOP SHOP FOR THE MAJOR OIL COMPANIES.
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Slide 7
ACQUISITIONS AND FINANCINGS
+ ACQUISITIONS
------------
- CPI Development Dec 03 $5 million
- HB Covey Dec 03 $2.5 million
- AFFS Dec 03 $5 million
- Environ July 04 $25.5 million
+ FINANCINGS
----------
- Barron Cap Partners Jan 04 $2 million
- Private Placement Mar 04 $1.5 million
- Private Placement May 04 $2.5 million
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Slide 8
ENTECH'S CUSTOMERS
7-11
Hertz
Exxon
Shell
BP
Arco
Wal*Mart
Unocal 76
Texaco
Chevron
Mobil
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Slide 9
NATIONWIDE STATION OWNERSHIP
COMPANY LOCATIONS
------- ---------
BP/ Arco 16,300
Exxon/ Mobil 15,913
Conoco/ Phillips 14,338
Shell Oil 20,175
Chevron/ Texaco 8,203
Kroger 810
7-11 5,800
Marathon/ SA 5,982
Citgo 13,813
Other/Dealers 66,237
Total 167,571
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Slide 10
21 year Life Cycle of a Fueling Station
Tear Down Environmental --> New Ground up
Clean up Construction
^ |
| |
| Maintenance
Remodel |
Reimage |
Retrofit Regulatory <--
<-- Compliance
Testing
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Slide 11
ANNUALIZED REVENUE OPPORTUNITY PER STATION
BASED ON 21 YEAR LIFE CYCLE
Recurring Revenues Annualized Costs
------------------ ----------------
Maintenance $7,200
Compliance Testing 5,200
Tank Filtration 600
Re-Imaging 24,000
Annualized Revenue $37,000
In 2003 Entech's Operating Subsidiaries touched over 5,000 stations
Slide 12
CONSTRUCTION
Typical Construction Projects Price Range
----------------------------- ----- -----
Low High
--- ----
New Construction $500,000 $5,000,000
Raze and Rebuild 300,000 1,500,000
Retrofit 5,000 200,000
Re-Image 15,000 150,000
Fuel Construction $ 50,000 $ 350,000
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Slide 13
CONSTRUCTION
+ Competition - SJ Weaver, CE Thomas, Fillner
+ Growth Strategy - Synergistic cross selling between segments, expanding
hypermarket sales, major oil roll out programs, CVMS installations,
property capitalization allows vendor discounts of 2-5%
2003 2004 est 2005 est
---- -------- --------
Sales $28.1 million $25 to 26.5 million $35 to 38 million
Gross Profit
Margin 13.5% 6% 13.6%
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Slide 14
[Various pictures; gas stations, holding tank and food mart]
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Slide 15
FUTURE FUELS AND CLEAN AIR,
ALTERNATIVE FUELS
[pictures of fuel areas]
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Slide 16
ENVIRONMENTAL SERVICES & MAINTENANCE
>> Transport and disposal of Haz and Non Haz Material
>> Drums, vacuum trucks, super sacks, filters, spill clean up, clarifiers
>> Fuel Storage Tank Cleaning and Filtration
>> Ethanol change out, removal of water, algae, debris
>> Compliance Testing & Regulatory Code Inspection
>> Environmental Supply Warehouse - Product Sales
>> 24/7 Maintenance
>> Nozzle to back room, weights and measures, calibration, monitors
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Slide 17
REGULATORY COMPLIANCE
Regulation/Requirement Frequency Low High
- ---------------------------- --------- --- ----
SB 989 (CA) New/remodel/every 3 years $2,500 $3,500
461 R (CA) Quarterly to annually 800 1,000
Monitor Certification (US) Annually 200 400
Clarifier Clean Out (US) Annually 1,500 2,000
AB 2481 (CA) 7/1/04 New/remodel 7,800 17,800
UL 971 Pipe Standards (US) 1/1/05 New/remodel 10,000 15,000
Curb Pump Hose each (US) Every 18 months 25 250
Fuel Filtration (US) Annually to 18 months $1,200 $3,500
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Slide 18
[various pictures]
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ENVIRONMENTAL SERVICES
+ Competition - Tanknology, CE Thomas, Service Station Systems
+ Growth Strategy - Synergistic cross selling, expanding the hypermarket
services, new station start ups, SB 989 tests, add Northern California
division, add Arizona division, Georgia, Pennsylvania fuel filtration
projects, adoption of new environmental regulations.
2003 2004 est 2005 est
---- -------- --------
Sales $9.8 million $9 to 9.5 million $13 to 14.2 million
Gross Profit Margin 43.1% 36.1% 45.2%
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Slide 20
AB 2481 COMPLIANCE
CONSTANT VACUUM MONITORING
[picture of the monitor]
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Slide 21
AB 2481 COMPLIANCE
CONSTANT VACUUM MONITORING
+ California requires "double-walled" Underground Storage Tanks and Lines
+ Assembly Bill 2481 requires the airspace between the two walls to be
monitored for leakage
+ Becomes Compliance Regulation - effective July 1, 2004 all new permits.
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Slide 22
NATIONAL AND WORLD WIDE MARKET ADVANTAGE
At present there is NO OTHER APPROVED tank and line continuous vacuum monitor
device available to allow station owners to comply with the California State
Assembly Bill 2481 July, 2004 deadline.
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Slide 23
JUST HOW BIG IS THE MARKET FOR THE CVMS?
+ 45,000 Underground Storage Tanks in California
+ Unit price range is $7,800 - $10,800
+ Installation cost average is $10,000
+ New construction in CA alone should average 1,000 new tanks per year
+ Call Center monthly monitoring charge
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Slide 24
[environ logo]
ENTECH ENVIRONMENTAL TECHNOLOGIES TO ACQUIRE ENVIRON PRODUCTS, INC.
ANNOUNCED MAY 6, 2004
>> Est. 1990
>> Flexible pipe innovator/manufacturer/leader
>> Recognized provider of top-quality products by all Major Oil Companies
>> 750 Worldwide distributors
>> Worldwide specified product provider for BP and Exxon/Mobil
>> Completes EEVT's management team and "Tank to Tank" solution
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Slide 25
environ CUSTOMER PROFILE
>> Major Oil Customers
o Exxon/Mobil o BP/Amoco/Arco
o Chevron o Equiva
o Shell Central America o Shell Caribbean
o Sun Oil (Sunoco) o Tosco
o Southland o Conoco/ Philips
o Shell South America
Esso CCA & S. America
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Slide 26
environ
[various pictures of parts]
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Slide 27
environ
THE KIVA "ENVISION" DISPENSER
picture of dispenser in the middle surrounded by pictures of:
Retail, Ticketing, Off site services, vending, on site services, instant coupons
Loyalty programs
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Slide 28
environ
DISPENSER MARKET
o 8.7 average fueling positions per site in the U.S.
o 5-7 years average dispenser replacement cycle, (up from 5 years)
o 155,000 retail dispensers are sold on average each year
o 364,500 retail fueling facilities worldwide
o 1,458,000 retail fueling dispenser population world wide
o $1.6 BILLION GLOBAL MARKET for fueling systems equipment
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Slide 29
environ
ENVIRON MANUFACTURING
+ Competition - Total Containment, OPW - Pieces, NUPI
+ Growth Strategy - New products (curb pump hose), UL 971, GeoFlex pipe,
CVMS, expansion abroad, adoption of new environmental regulations
2003 2004 est 2005 est
---- -------- --------
Sales $22.1 million $26.5 million $38.5 million
Gross Profit Margin 32.9% 34.1% 49.9%
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Slide 30
environ
ENVIRON'S ACQUISITION TERMS
+ Cash - $5.5 million
+ Stock - 6,896,923*
+ Debt - $5.1 million
+ Rationale - 750 distributor network, international
presence, environmental technology
leader, product support
* 3,384,615 common shares subject to earn out performance
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Slide 31
CONSOLIDATED '03 & '04 AND '05 ANNUAL PRO FORMA INCOME-
ASSUMES $20MM RAISE
+ Construction
+ Service
+ Environ/Manufacturing
2003 2004 est 2005 est
---- -------- --------
Sales Range $38.0 million $41 to $45 million $80 to $90 million
Gross Profit Margin 21.2% 20.8% 33.5%
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Slide 32
$20 MILLION USE OF FUNDS
+ Acquisition of Environ Holdings $5.5 million
+ Working Capital $9.9 million
+ Completion of all acquisitions $4.4 million
+ Commissions and Fees $1.2 million
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Slide 33
INVESTMENT HIGHLIGHTS
>> Unique turnkey "tank to tank" service and product provider
>> Meaningful cross selling synergies
>> Experienced management team
>> Favorable environmental trends
>> Significant new products
>> CVMS
>> Curb pump hose
>> Kiva dispenser
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