Welcome!

News Feed Item

Strategic Environmental & Energy Resources, Inc. Reports Record Second Quarter Revenue and Earnings

Q2 Revenue up 46% to a Record $4.3 Million From $2.9 Million in Q2 Last Year

GOLDEN, CO -- (Marketwired) -- 08/11/14 -- Strategic Environmental & Energy Resources, Inc. (SEER) (OTCQB: SENR), a provider of next-generation clean technologies, renewable fuel and waste management innovations, today announced results for its second quarter and six-month period ended June 30, 2014.

"Our sustained focus on top-line growth while carefully monitoring operating costs resulted in record revenue of $4.3 million, record net income of $464,600 and modified EBITDA of $546,200 in the second quarter," said J. John Combs III, Chairman and CEO. "We had a very strong performance by our expanding industrial cleaning businesses, which combined to achieve 77% revenue growth year over year. It is also important to note that our Paragon waste destruction subsidiary has successfully placed its first units, the result of which generated $743,000 in cash and $78,000 in revenue. We're very pleased to see our investment in Paragon contributing so significantly since its recent launch, confirming our expectation that Paragon is an important long-term growth opportunity for SEER."

Second Quarter Results
Total second quarter revenue increased 46% to a record $4.3 million from $2.9 million in the same quarter last year. Services revenue increased 77% year over year to $3.1 million from $1.8 million due to higher demand for the Company's industrial solutions. Services revenue includes industrial and rail car cleaning services performed by the Company's REGS and Tactical Cleaning subsidiaries. The significant increase in services revenue more than offsets a slight decline in product revenue -- to $1.1 million from $1.2 million -- as commencement of certain environmental projects moved from the second quarter into the third quarter. The majority of product revenue was generated by the Company's MV Technologies subsidiary, although the Paragon Waste Solutions subsidiary generated its initial recognizable revenue -- $78,000 -- in the second quarter as the Company continued its transition from development phase into product rollout phase for its CoronaLux™ waste destruction systems. Paragon continues to win new business and is expected to begin contributing more significantly to revenue as additional CoronaLux™ systems are placed into service in medical and refinery waste applications.

Total operating expenses increased 30% to $3.9 million in the second quarter compared to $3.0 million in the same quarter last year. The increase was primarily due to higher services costs in support of the 77% increase in services revenue as well as to increased staffing and other costs in support of the rollout of Paragon's waste destruction technology.

Net income attributable to SEER common stockholders increased to a record $464,600, or $0.01 per share, from a net loss of $17,300, or less than one cent per share, in the second quarter last year. Modified EBITDA before non-controlling interest for the second quarter was $546,200 as compared with $64,700 in the same quarter last year.

Six-Month Results
Revenue in the first half of 2014 increased 28% to $7.1 million from $5.5 million in the same period last year. Services revenue increased 57% year over year to $5.4 million from $3.4 million, reflecting growing demand for the Company's industrial cleaning solutions. Product revenue declined 23% year over year to $1.6 million from $2.1 million but is expected to increase in the second half 2014. Paragon, which received customer deposits and license fees for its CoronaLux™ systems of $743,000 in the first six months of 2014, amortizes revenue under terms of its customer contracts, so non-refundable deposits and license fees received is a more accurate leading indicator of divisional growth and future revenue.

Total operating expenses increased 34% to $7.8 million from $5.8 million for the comparative six-month periods. This increase was attributable to increased labor expenses and higher costs of services generally in line with service revenue growth, and higher selling, general and administrative expense in support of overall revenue growth and start-up activities associated with Paragon's nationwide product rollout. Net loss attributable to SEER stockholders through six months was $570,600, or $0.01 per share, versus $188,800, or less than one cent per share, in the same period last year. Modified EBITDA before non-controlling interest was $207,900 through six months versus a loss of $58,700 in the same period last year.

Use of Non-GAAP Financial Information

The Company believes that the presentation of results excluding certain items in "Modified EBITDA," such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles.

About Strategic Environmental & Energy Resources, Inc.

Strategic Environmental & Energy Resources, Inc. (SEER) identifies, secures, and commercializes patented and proprietary environmental clean technologies in several multibillion dollar sectors (including oil & gas, renewable fuels, and all types of waste management, both solid and gaseous) for the purpose of either destroying/minimizing hazardous waste streams more safely and at lower cost than any competitive alternative, and/or processing the waste for use as a renewable fuel for the benefit of the customers and the environment. SEER has three wholly-owned operating subsidiaries: REGS, LLC; Tactical Cleaning Company, LLC; MV Technologies, LLC; and two majority-owned subsidiaries: Paragon Waste Solutions, LLC; and ReaCH4biogas ("Reach").

For more information about the Company visit: www.seer-corp.com

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of various provisions of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates," and other terms with similar meaning. Although the company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Such forward-looking statements should not be construed as fact. Statements in this press release regarding the cost effectiveness, impact and ability of the Company's products to handle the future needs of customers are forward-looking statements. The information contained in such statements is beyond the ability of the Company to control, and in many cases the Company cannot predict what factors would cause results to differ materially from those indicated in such statements. All forward-looking statements in the press release are expressly qualified by these cautionary statements and by reference to the underlying assumptions.


Strategic Environmental & Energy Resources, Inc.
Consolidated Statements of Operations
(Unaudited)                 Three Months Ended         Six Months Ended
                                 June 30,                  June 30,
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Revenue:
  Products               $ 1,061,400  $ 1,159,300  $ 1,581,500  $ 2,060,900
  Services               $ 3,135,600  $ 1,769,600  $ 5,398,500  $ 3,436,900
  Licensing                   78,700            -       78,700            -
                         -----------  -----------  -----------  -----------
  Total revenue          $ 4,275,700  $ 2,928,900  $ 7,058,700  $ 5,497,800
                         -----------  -----------  -----------  -----------
Operating Expenses:
  Products costs             747,400      824,200    1,127,600    1,396,500
  Services costs           1,988,900    1,385,500    3,570,200    2,584,100
  Licensing costs            123,500            -      123,500            -
  Selling, general and
   administrative          1,062,800      801,500    2,971,600    1,816,100
                         -----------  -----------  -----------  -----------
    Total operating
     expenses              3,922,600    3,011,200    7,792,900    5,796,700
                         -----------  -----------  -----------  -----------
Income (loss) from
 operations                  353,100      (82,300)    (734,200)    (298,900)
                         -----------  -----------  -----------  -----------
Other income (expenses):
  Interest income                  -        2,000            -        4,000
  Interest expense           (19,100)     (29,400)     (42,700)     (53,300)
  Gain on debt
   settlements                     -            -       24,400            -
  Other                       32,800       46,300       16,000       45,000
                         -----------  -----------  -----------  -----------
    Total non-operating
     expense, net             13,700       18,900       (2,300)      (4,300)
                         -----------  -----------  -----------  -----------
Net income (loss)        $   366,800  $   (63,300) $  (736,500) $  (303,200)
Less: Net loss
 attributable to non-
 controlling interest        (97,800)     (46,000)    (165,900)    (114,400)
                         -----------  -----------  -----------  -----------
Net income (loss)
 attributable to SEER    $   464,600  $   (17,300) $  (570,600) $  (188,800)
                         ===========  ===========  ===========  ===========
Net income (loss) per
 share, basic and
 diluted                 $      0.01  $         -  $     (0.01) $     (0.01)
                         ===========  ===========  ===========  ===========
Weighted average shares
 outstanding
  - basic and diluted     51,196,100   42,927,700   50,277,400   42,044,900
                         ===========  ===========  ===========  ===========


Strategic Environmental & Energy Resources,
 Inc.
Consolidated Balance Sheets
                                                  June 30,     December 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS                                          (Unaudited)
Current assets:
  Cash                                         $   1,360,200  $   2,419,100
  Cash - restricted                                  250,000        250,000
  Accounts receivable, net                         2,514,200      1,170,000
  Costs and estimated earnings in excess
   billings on uncompleted contracts                 173,200         78,500
  Inventory                                           39,000         22,400
  Prepaid expenses and other current assets          313,900        253,000
                                               -------------  -------------
    Total current assets                           4,650,500      4,193,000
Property and equipment, net                        3,894,900      1,762,900
Intangible assets, net                               389,700        379,500
Other assets                                          34,600         36,800
                                               -------------  -------------
Total assets                                   $   8,969,700  $   6,372,200
                                               =============  =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                             $   2,227,900  $   1,506,800
  Accrued liabilities                                790,600        924,200
  Billings in excess of costs and estimated
   earnings on uncompleted contracts                 349,300        170,300
  Current portion of payroll taxes payable           943,200        250,600
  Customer deposits                                  330,000        118,000
  Deferred revenue                                   419,500              -
  Current portion of notes payable and capital
   lease obligations                                 383,300        504,700
  Notes payable - related parties, including
   accrued interest                                  130,700        136,900
                                               -------------  -------------
    Total current liabilities                      5,574,500      3,611,500
Payroll taxes payable, net of current portion              -        720,800
Notes payable and capital lease obligations,
 net of current portion                               16,500         48,100
                                               -------------  -------------
Total liabilities                                  5,591,000      4,380,400
                                               -------------  -------------
Stockholders' equity:
  Common stock                                        51,300         47,900
  Common stock subscribed                             50,000         50,000
  Additional paid-in capital                      16,717,700     14,597,700
  Stock subscription receivable                      (50,000)       (50,000)
  Accumulated deficit                            (12,785,800)   (12,215,200)
                                               -------------  -------------
Total stockholders' equity                         3,983,200      2,430,400
Non-controlling interest                            (604,500)      (438,600)
                                               -------------  -------------
Total equity                                       3,378,700      1,991,800
                                               -------------  -------------
Total liabilities and stockholders' equity     $   8,969,700  $   6,372,200
                                               =============  =============


Reconciliation of GAAP to Non-
 GAAP Financial Measures
(Unaudited)
                                   Three months ended    Six months ended
                                        June 30,             June 30,
                                     2014      2013       2014       2013
                                  --------- ---------  ---------  ---------

Net income (loss)                 $ 366,800 $ (63,400) $(736,500) $(303,200)
Non-controlling interest             97,800    46,000    165,900    114,400
Net income (loss) applicable to
 SEER                               464,600   (17,400)  (570,600)  (188,800)
Interest                             19,100    29,400     42,700     53,300
Depreciation and amortization       123,600    93,200    216,700    180,100
EBITDA, including non-controlling
 interest                           607,300   105,200   (311,200)    44,600
Stock-based compensation             36,700     5,500    685,000     11,100
Modified EBITDA, including non-
 controlling interest             $ 644,000 $ 110,700  $ 373,800  $  55,700
                                  ========= =========  =========  =========
EBITDA, excluding non-controlling
 interest                         $ 509,500 $  59,200  $(477,100) $ (69,800)
                                  ========= =========  =========  =========
Modified EBITDA, excluding non-
 controlling interest             $ 546,200 $  64,700  $ 207,900  $ (58,700)
                                  ========= =========  =========  =========

Contacts:

J. John Combs III
Chief Executive Officer
720-460-3522

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
Email Contact
303-393-7044

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, drew upon his own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He also discussed the implementation of microservices in data and application integrat...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...