Exhibit 99.1
Cohesant Technologies Reports Record Sales For the Third Quarter and
First Nine Months of Fiscal 2007
INDIANAPOLIS--(BUSINESS WIRE)--Sept. 26, 2007--Cohesant Technologies Inc.
(Nasdaq:COHT) today reported record sales for the third quarter and first nine
months of fiscal 2007.
The Company's GlasCraft subsidiary also reported record sales and net
income for the quarter and for the first nine months of fiscal 2007. For the
three and nine months ended August 31, 2007, GlasCraft's revenues were
$4,934,174 and $13,530,491 an increase of 27% and 24%, respectively, over the
prior year periods. Net income was up 37% to $685,435 for the quarter and 21% to
$1,565,491 for the first nine months when compared to the comparable periods
last year.
In addition to GlasCraft's performance, the Company also saw increased
revenues over the prior period quarter at each of the Company's other business
segments. Consolidated net revenues for the quarter increased 31% to $8,336,036
from $6,370,753 realized in the 2006 period. This marks the first time in
Cohesant's history that quarterly revenues exceeded $8.0 million. Consolidated
year to date revenues of $21,881,265 also set a record improving 11% from
$19,628,750 last year.
Consolidated net income was $431,443, or $.13 on a fully diluted per share
basis for the quarter compared to $378,973, or $.12 earned in the prior year
period. For the nine months ended August 31, 2007 the Company had consolidated
net income of $456,137, or $.14 on a fully diluted per share basis compared to
$1,260,899, or $.39 earned in the same period last year.
Revenues at CIPAR's Rehabilitation segment increased 46% over the prior
year to $1,294,757. This increase was primarily due to a $370,283, or 131%
increase in pipe lining revenues over the same quarter last year. Revenues of
$3,068,813 for the first nine months of fiscal 2007 were $321,318 or 9% less
than last year primarily due to decreased pipe replacement revenue in Western
Canada offsetting an 86% increase in the regions pipe lining revenue. Despite
the improvement in our core pipe lining business, the division suffered a
quarterly net loss of ($55,321) and a year to date net loss of ($313,580). As in
the past two quarters, this loss was primarily caused by overhead costs added to
support the launch of two new businesses - CuraFlo Midwest, the company owned
CuraFlo franchise in Cleveland, and CuraFlo Spincast Services which was formed
with the assets of Triton Insitutech purchased in September 2006. The loss was
further affected by low margins experienced on a pipe lining project in the
Pacific Northwest region.
CIPAR's Franchising and Licensing segment also showed significant revenue
growth over the prior year quarter. Revenue increased $488,921, or 32% to
$2,030,435, compared to the prior year period. This increase was primarily due
to the signing of two Franchisees in the period and to a lesser extent increased
equipment and material sales to existing customers. For the year to date period,
total revenues of $5,061,924 represent a decrease of $49,732 or less than 1%
from the same period last year. The year to date decrease resulted primarily
from the weak first quarter sales of our Raven products. Franchising and
Licensing had net income of $86,013 for the quarter and a net loss of ($76,412)
for the first nine months of fiscal 2007. The net loss in the nine month period
was due weak sales of Raven products in the first quarter and overhead costs
related to the start-up expenses associated with the CuraFlo franchise program
launched in March 2007.
Morris H. Wheeler, the Company's President and Chief Executive Officer,
stated, "Although GlasCraft continues as our strongest performing subsidiary
with substantial sales increases in both its domestic and international markets,
I am pleased with the contributions from our other segments. Raven posted
improved third quarter sales. CuraFlo converted two dealerships into franchises
during the quarter. CuraFlo Midwest completed its first large commercial pipe
lining job and CuraFlo Spincast signed purchase orders during the quarter which
will lead to its first revenues during the fourth quarter. The restructuring of
our operations and the start-up of our CuraFlo Spincast and Franchise operations
occurring late last year are beginning to show results and we are hopeful that
this trend will strengthen in Fiscal 2008, although, until these new businesses
mature, there may be quarter to quarter variability of results".
Cohesant Technologies Inc., based in Indianapolis, Indiana is engaged in
the protection and renewal of drinking water distribution systems and wastewater
collection systems for municipal, industrial, commercial and residential
infrastructure, the design, development, manufacture and sale of specialized
dispense equipment systems, replacement parts and supplies used in the operation
of the equipment in the Composites, Polyurethane Foam, Polyurea, and Specialty
Coatings markets, and the design, development, manufacture and sale of specialty
coatings. The Company markets its products under numerous trade names including;
AquataPoxy, CuraFlo, CuraPoxy, GlasCraft, Guardian, Probler and Raven.
COHESANT TECHNOLOGIES INC.
Summary Financial Data (Unaudited)
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Three Months Ended Three Months Ended
August 31, 2007 August 31, 2006
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Net sales $8,336,036 $6,370,753
Income before income taxes 733,285 611,120
Net income $431,443 $378,973
Net income per share basic and
diluted $0.13 $0.12
Average number of common
shares outstanding:
Basic 3,295,352 3,151,045
Diluted 3,314,990 3,284,140
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Nine Months Ended Nine Months Ended
August 31, 2007 August 31, 2006
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Net sales $21,881,265 $19,628,750
Income before income taxes 773,114 2,033,709
Net income $456,137 $1,260,899
Net income per share
Basic $0.14 $0.40
Diluted $0.14 $0.39
Average number of common
shares outstanding
Basic 3,285,419 3,135,317
Diluted 3,310,568 3,262,860
Certain statements contained in this report that are not historical facts
are forward-looking statements that are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
set forth in the forward-looking statement. These risks and uncertainties
include, but are not limited to, a slow-down in domestic and international
markets for plural component dispensing systems, a reduction in growth of
markets for the Company's epoxy coating systems, customer resistance to Company
price increases, the Company's ability to expand its rehabilitation operations,
and the successful launch of its CuraFlo Franchise, CuraFlo Midwest and CuraFlo
Spincast Services operations.
CONTACT: Cohesant Technologies Inc.
Morris H. Wheeler, 317-871-7611
President & Chief Executive Officer