CET Services, Inc. Reports 2004 Results
ENGLEWOOD, Colo., March 4 /PRNewswire-FirstCall/ -- CET Services, Inc. (AMEX:ENV) reported revenues of $4,018,000 for 2004, up from $878,000 in 2003.
The increase reflects initial sales of residential housing units at the
Company's first development project in Westminster, Colorado. Ongoing water
services activity, which accounted for virtually all of revenues in 2003,
declined some 30% and accounted for less than 16% of total revenues in 2004. While a net loss of $277,000, or ($0.05) a share, was incurred for the full
year, the initial sale of housing units allowed operations to essentially reach
a breakeven level during the second half of 2004. In the preceding year, net
recovery of a bad debt in the amount of $303,000 and a tax refund from prior
years in the amount of $127,000 pared the reported net loss to $114,000, or
($0.02) a share.
Steven H. Davis, President and Chief Executive Officer, said, "Twenty of the 23
completed housing units at Site I of the Westminster development have been
sold, and the Company began construction of 27 additional units at Sites II and
III of the development during the fourth quarter. Since completion of units at
these latter sites is not expected until the second quarter of 2005, a loss is
likely to be incurred for the first quarter of 2005. During subsequent
periods, the rate of actual closings will be the primary determinant in
achieving profitability." Further, Mr. Davis noted that CET continues to seek additional opportunities
and that subsequent to 2004 year-end, the Company entered into an operating
agreement as 50% owner of a Colorado limited liability company which, in turn,
has contracted with CET for the development of a five-acre site in Aurora,
Colorado on which 54 townhomes will be constructed. Mr. Davis said, "This
agreement is an important step in enlarging the Company's product offerings." Dale W. Bleck, Vice President and Chief Financial Officer, stated, "During the
fourth quarter of 2004, the Company secured a construction loan in the amount
of $2,925,000. The proceeds from the loan along with internal funds should be
sufficient for completion of construction at Sites II and III of the
Westminster project." He also noted that subsequent to 2004 year-end, the
Company purchased a commercial/industrial building in Westminster for $410,000,
against which $307,500 was borrowed from a local lender. The property is
expected to be incorporated in a future development project.
CET Services, Inc. is engaged in niche property development in urban areas with
a preference for projects requiring some degree of remediation.
CET Services, Inc. Year Ended 12/31 2004 2003
Revenues $4,018,308 $878,269
Net (Loss) ($276,748) ($113,719)
Loss Per Share
Basic & Diluted ($0.05) ($0.02)
Weighted Average Shares Outstanding
Basic & Diluted 5,545,090 5,726,591 Statements in this press release that are not strictly historical are
"forward-looking" statements within the meaning of the Safe Harbor provisions
of the federal security laws. Forward-looking statements involve risks and
uncertainties, including, but not limited to, the cyclical nature of
residential housing in general, local economic conditions, interest rate
volatility, weather related factors, and fluctuations in building material
prices and other risks detailed from time to time in the Company's Form 10-KSB
and other regularly filed reports. DATASOURCE: CET Services, Inc.
CONTACT: Steve H. Davis, CEO and President, or Dale W. Bleck, CFO, both of CET Services, Inc., +1-720-875-9115
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