ThermoEnergy Corporation (TMEN:OTCBB), a diversified technologies
company engaged in the development and sale of patented and/or
proprietary wastewater treatment systems and the development of clean
combustion technologies for power generation, today announced revenue of
$1.08 million for the three-month period ended June 30, 2013.
Mr. James Wood, President and Chief Executive Officer of ThermoEnergy,
commented, "The Company continues to accelerate its sales and marketing
efforts in the unconventional oil and gas sector, as well as in
ThermoEnergy’s traditional industrial wastewater treatment markets. This
concerted sales effort is resulting in growing recognition within both
markets and increased interest in the Company’s products.”
“The Company's continued field pilots are producing positive results in
a variety of different markets,” said Mr. Wood. “A recently completed
pilot test of the ThermoEnergy TurboFrac® produced water recycling
system demonstrated its ability to economically reduce total dissolved
solids (TDS) to a fraction of EPA recommended limits for secondary
drinking water standards.”
Operational and Financial Highlights:
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Achieved $1.08M in revenues from the sale of industrial based projects.
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Finalized the NYCDEP contract, resulting in a non-cash gain on
contract termination of approximately $4.9 million.
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Began fabrication and assembly of the UPA bench scale pilot.
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Continued to increase the Company’s presence in the unconventional oil
and gas and glycol recycling markets.
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Fully repaid the $785,000 Project Finance Credit Facility supporting
the delivery of the ARP system to Indonesia.
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Converted $3.7 million of the 8% Bridge Notes and $1.25 million of the
12.5% Convertible Promissory Notes, plus accrued interest, into shares
of the Company’s Series C Preferred Stock and Warrants.
Financial Results for the Three-Month Period Ended
June 30, 2013
For the three-month period ended June 30, 2013 the Company recorded
revenues of $1,080,000, compared to $1,900,000 in the second quarter of
2012. Unlike 2012, ongoing revenues are no longer derived from the
Company's NYCDEP contract and are fully attributable to the sale and
production of the Company’s CAST®, RCAST® and ARP™ systems into
industrial markets, as well as work performed under UPA's DOE contract
to construct a bench scale unit to demonstrate Pressurized
Oxy-Combustion (POXC®) using three domestic coals.
Gross profit for the second quarter of 2013 was $177,000. The gross
profit was earned on the completion of an ARP system to the domestic
metals industry, partially offset by unallocated overhead costs.
General and administrative expenses declined 61% in the second quarter
of 2013 to $739,000 as compared to $1.89 million in the second quarter
of 2012, further demonstrating the Company’s cost reduction efforts.
Engineering costs increased $79,000 to $173,000 in the second quarter of
2013. The increase is similar to the first quarter of 2013 and is due to
lower utilization of the Company's engineering team on projects during
the period.
Sales and marketing expenses for the second quarter of 2013 was
$444,000, a decrease of 50% compared to the second quarter of 2012. The
Company has maintained lower consulting expenses as part of the
Company’s cost reduction efforts, and reduced unbillable pre-sale
expenses in the second quarter of 2013.
The Company reported net income for the three-month period ended June
30, 2013 of $1.426 million ($0.01 per basic share), compared to a loss
of $2.531 million ($0.03 per basic share) for the same period in 2012.
Income was primarily derived by a non-cash gain of $4,878,000 related to
final completion of its contract with the NYCDEP during the second
quarter of 2013. This gain represents the amount by which project
billings exceeded revenues at the time of termination by the customer.
Please see the Company's Form 10-Q filed with the SEC on August 14th for
additional details.
About ThermoEnergy Corp.
Founded in 1988, ThermoEnergy is a diversified technologies company
engaged in the worldwide development, sales and commercialization of
patented and/or proprietary wastewater treatment and recovery systems.
The Company has been a pioneer in the development of sustainable water
treatment technologies that help customers operate more efficiently,
save money, reduce their carbon footprints, and meet sustainability
goals. Additional information on the Company and its technologies can be
found on its website at www.thermoenergy.com
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