CENTENNIAL, Colo., Aug. 12 /PRNewswire-FirstCall/ -- CET Services, Inc. (AMEX:ENV) reported revenue for the second quarter ended June 30, 2005, of $701,000, down from $2,249,000 in the year-earlier period, reflecting a decline in housing unit closings. While revenue was down, a higher gross profit and lower administrative expense pared the net loss for the current period to $106,000, or $0.02 share, from $190,000, or $0.03 a share, in the like 2004 period.
For the first half of 2005, revenue was $839,000, down from $2,747,000 in the prior-year period as a result of fewer closings of housing units. The net loss, however, was held to $221,000, or $0.04 a share, down from $329,000, or $0.06 a share, in the first half of 2004, reflecting an increase in gross profit and a reduction in administration expense.
Steven H. Davis, President and CEO, said, "While the year-to-year decline in closings was disappointing, the available inventory of finished units was also lower. At Site I of the Westminster development, only three units were available for sale, and finished housing units at Sites II and III did not become available until late in the second quarter." Further, he noted, "The bulk of the 27 units planned for Sites II and III should be substantially completed and available for sale during the third quarter. However, rising interest rates are becoming a cause for concern with respect to both sales and construction costs." Dale W. Bleck, Chief Financial Officer, reported that, "One of the Company's two remaining water services contracts expired on June 30, 2005, in the normal course of business. The expired contract accounted for approximately 42% of the $326,000 in water service revenue recorded during the first half of 2005. The remaining contract has continued on a month-to-month basis." CET Services, Inc. is engaged in niche market property development in urban areas with a preference for projects requiring some degree of remediation.
CET Services, Inc. Three Months Ended June 30, 2005 (unaudited) 2005 2004
------ ------
Revenues $701,095 $2,248,649
Net Loss $(105,518) $(189,709)
Loss Per Share
Basic & Diluted $(.02) $(.03)
Weighted Average Shares Outstanding
Basic & Diluted 5,554,489 5,554,489 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: Steven H. Davis, CEO and President, +1-720-875-9115, or Dale W.
Bleck, CFO, +1-720-875-9115, both of CET Services, Inc. |