CENTENNIAL, Colo., Nov. 14 /PRNewswire-FirstCall/ -- CET Services, Inc. (AMEX:ENV) reported revenue for the third quarter ended September 30, 2005 of $1,098,000, up from $489,000 in the year-earlier period. The gain stemmed from an increase in closings on housing units, which account for 94% of revenue for the current period as compared with 75% of the lower revenue recorded in the prior-year period. Water services activity accounts for the remainder of revenue in the respective quarters. Although revenue was significantly higher for current quarter, a net loss of $55,000, or ($0.01) a share, was incurred as compared with net income of $51,000, or $0.01 a share earlier, when direct costs were pared by additional concessions received from the City of Westminster related to the Company's primary development project.
For the nine-month period of 2005, revenue was $1,938,000, down from the $3,236,000 reported for like period of 2004. The reduction in revenue is due in part to the lack of available finished housing units, particularly during the first half of 2005 since completed units at Sites II and III of the Westminster development project did not become available until late in the second quarter. Despite the decline in revenue, with a reduction in overhead expenses and higher other income, the net loss for the current period was substantially unchanged at $276,000, or ($0.05) a share, as compared with a net loss of $279,000, or ($0.05) a share, for the first nine months of 2004.
Steven H. Davis, President and CEO, said, "Construction at Sites II and III of the City of Westminster development was substantially completed, subject to the clean up of 'punch list' items normally encountered with such activities. More than half of the housing units have been sold and additional closings are anticipated before year end." In addition, he stated, "The Company continues to move forward in its discussions with the City of Aurora regarding the Arizona Avenue, LLC development of a five-acre site and construction of 54 housing units." 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 September 30, 2005
(unaudited)
2005 2004
Revenues $1,098,430 $488,553
Net (Loss) Income ($54,621) $50,582
(Loss) Earnings Per Share
Basic & Diluted ($.01) $.01
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, or Dale W. Bleck, CFO, both of CET Services, Inc., +1-720-875-9115
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