Environmental Management Solutions (EMS-TSX) has announced improved results for the three and six months ended June 30, 2006.
In the three months ended June 30, 2006, revenues from continuing operations were $17.4 million, compared with $17.1 million reported in the same period of 2005. The net growth in revenue is a result of an increase year over year in waste management revenues that more than offset a decrease in revenue derived from environmental contracting. The company will continue to build its revenue model around long-term, recurring revenue contracts and augment it with short-term project oriented work.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.6 million for the second quarter of 2006, essentially unchanged from $1.7 million in the same period of 2005.
EMS reported a net loss from continuing operations of $19 thousand for the three months ended June 30, 2006 compared with a net loss of $2.2 million for the same period in 2005. After discontinued operations, net income was $0.4 million, or $0.01 per share, for the second quarter compared with a net loss of $8.8 million, or $0.23 per share, in the same quarter of the prior year.
For the six months ended June 30, 2006, EMS maintained its strong revenues from continuing operations with revenues of $26.9 million compared with $25.3 million for the six months ended June 30, 2005. The 6 per cent increase in revenues comes from the company’s core waste management operations that service municipal, industrial, commercial and institutional clients.
EBITDA was $1.2 million for the six months ended June 30, 2006, unchanged from a year earlier. Net loss from continuing operations was $1.6 million, or $0.04 per share, significantly improved from a loss of $5.1 million, or $0.14 per share, for the first half of 2005. After discontinued operations, the company’s net loss was $1.0 million, or $0.02 per share, compared with a loss of $13.7 million, or $0.36 per share a year earlier.
The company’s full financial statements and management’s discussion and analysis for the three and six months ended June 30, 2006 and 2005 have been filed with SEDAR and are available at www.sedar.com
“The latest quarter continues to reflect the changes we have made to our business model. We are heading in the right direction,” said Tony Busseri, President and CEO of EMS “We expect continued improvement in our operating results during the third quarter of 2006”.
Mr. Busseri added: “Our announcement last week that the company has secured a new $13.5 million, three-year contract with the City of Toronto, is an important step in building EMS. We expect to continue to grow organically, leveraging the assets we already own and operate, and we are now starting to selectively consider acquisition opportunities that fit our business model and would immediately enhance shareholder value.”
Environmental Management Solutions Inc. is Canada’s leading environmental services company specializing in the management of organic-based waste streams and contaminated soils, with an emphasis on beneficial re-use. EMS provides cost-effective solutions to municipal, commercial and industrial clients in Eastern Canada and the northern United States through its subsidiaries GSI Environment Inc. and Tanknology Canada Inc. GSI provides integrated environmental services which include the land application, composting or disposal of organic wastes, eco-product sales, environmental contracting, and contaminated soil treatment and recycling. Tanknology provides storage tank precision leak testing and statistical inventory reconciliation, compliance testing, and facility compliance and tank system audits. Environmental Management Solutions is listed on the Toronto Stock Exchange under the ticker symbol EMS.
Contact Tony Busseri, President and Chief Executive Officer, Environmental Management Solutions Inc., at 905-335-2100.