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
                         -----------  -----------  -----------  -----------

  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
  - basic and diluted     51,196,100   42,927,700   50,277,400   42,044,900
                         ===========  ===========  ===========  ===========

Strategic Environmental & Energy Resources,
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
                                               =============  =============
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
                                   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)
                                  ========= =========  =========  =========


J. John Combs III
Chief Executive Officer

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
Email Contact

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
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will present at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they manag...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
As companies adopt the cloud-to-streamline workflow, deployment hasn’t been very seamless because of IT concerns surrounding security risks. The cloud offers many benefits, but protecting and securing information can be tricky across multiple cloud providers and remains IT’s overall responsibility. In his session at 19th Cloud Expo, Simon Bain, CEO of SearchYourCloud, will address security compliance issues associated with cloud applications and how document-level encryption is critical for sup...
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...