BETHLEHEM, Pa., Nov. 14, 2011 /PRNewswire/ -- MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the 2011 third quarter for the period ended September 30, 2011.
Some recent highlights include:
The company has dramatically improved its operating structure over the last two years, with improvements to the following key metrics, representing tangible progress:
"The run rate for our current business, not including the incremental maintenance and consumable revenue from any additional system sales or further increases from our newly launched MedClean GPO business line, demonstrates that we have made significant strides in creating a self-sustaining, cash generating business model," stated David Laky, President & CEO of MedClean Technologies, Inc. "The transformation of our business has taken longer than we initially expected, due in large part to the state of the business we inherited, but our efforts have culminated in the creation of a sustainable business model. The expansion of our service offerings into an integrated waste stream service provider adds more opportunity for recurring service revenues and will continue to reduce our dependency on one time sales. As we further prove out our operating results and show the leverage we have developed within our operational model, we believe the market will respond in a positive manner."
In addition to the operational update the Company has indicated above based on tangible results, there are also several other opportunities Management has positioned the company to take advantage of:
Mr. Laky added, "Based on the business overview we have provided here today, and the progress we expect to achieve in the next few months, we anticipate conducting a conference call in conjunction with our fourth quarter and year-end financial disclosure. This call, which is expected to include a question and answer session for shareholders, is expected to be sometime in late March, pending timing of our year-end audit. We feel this will provide the best forum to provide additional color on our progress as over the past six months we have been predominantly focused on operations of the company."
Third Quarter Financial Results:
Total revenue for the quarter ended September 30, 2011 was $602,947 compared with $306,825 for the same period in 2010, an increase of $296,121 million, or 96.5%. In 2011 the Company was able to deliver systems completing contractual obligations and meeting revenue recognition policies totaling $445,200 versus $0 for the period in 2010. Revenues derived from the sale of consumables, component parts, service billings, and amortization of maintenance contracts decreased by $149,079 or 48.6% in the current quarter to $157,146. The decrease in service billings was a result of fewer service calls required due to equipment issues. Service billings will continue to fluctuate period to period based upon equipment service requirements.
Gross profit on system revenue during the three months ended September 30, 2011, was $156,443 compared to $0 for the same period in 2010. Gross profit on the sale of consumables, component parts, service billings and amortization of maintenance contracts during the three months ended September 30, 2011, was $91,608 compared to $253,741 for the same period in 2010.
Net loss for the three month period ended September 30, 2011, was $648,746, compared to a loss of $750,158 for the same period in 2010.
Year-To-Date Financial Results:
Total revenue for the nine months ended September 30, 2011, was $1,387,127, compared with $707,450 for the same period in 2010, an increase of $679,677 or 96.1%. System revenue during the nine month ended September 30, 2011, was $895,200, compared to $0 in 2010. The increase in system revenue was the result of the completion of the Company's first containerized system and the installation of a fixed based system. Revenues derived from the sale of consumables, component parts, service billings and amortization of maintenance contracts decreased by $215,523 or 30.5% in the current period to $491,927. The decrease in service billings was a result of fewer service calls required due to equipment failure. Service billings will continue to fluctuate from period to period based upon equipment failure, whether through operator error or wear and tear, and pre-scheduled service activities such as equipment relocation. Service revenue attributable to contract revenues is recognized at the time of performance and not at the time of contract execution.
The Company has filed its Form 10-Q for the period ended September 30, 2011 with the Securities and Exchange Commission, and investors are encouraged to visit www.sec.gov to review this document, which includes financial tables and additional detail for the quarter ended September 30, 2011.
About MedClean Technologies, Inc.
MedClean Technologies, Inc. is a provider of innovative technology and services for the onsite treatment and disposal of regulated medical waste. MedClean's flagship MedClean® Series systems are fully integrated, turnkey technology solutions that enable hospitals and other healthcare providers to safely, efficiently, and cost-effectively convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste. MedClean was founded in 1997 with corporate headquarters, research and development and distribution facilities located in Bethlehem, Pennsylvania. Further information on MedClean can be found at www.medcleantechnologies.com and in filings with the Securities and Exchange Commission found at www.sec.gov.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," "potential" and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business; including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 31, 2011, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
|SOURCE MedClean Technologies, Inc.|
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