CET Services, Inc. Reports Third Quarter Results Announces
Construction Loan Financing
ENGLEWOOD, Colo., Nov. 12 /PRNewswire-FirstCall/ -- CET Services, Inc. (AMEX:ENV) reported revenues of $488,553 for the third quarter of 2004, up from
$142,653 a year earlier. While the year-to-year increase was significant,
revenues for the current quarter were well below those of the second quarter as
housing unit closings fell below expectations. However, with construction
costs somewhat lower on the units sold during the third quarter and a
year-to-year decline in selling, general, and administration expenses, a net
profit of $50,582, or $0.01 a share, was achieved. In the corresponding
year-earlier period, a net loss of $127,506, or $0.02 a share, was reported.
For the nine-month period of 2004, revenues were $3,235,587, up from $719,788
in the prior year period. The increase arose entirely from the sale of housing
units at the Westminster Redevelopment Project. In the year-earlier period,
ongoing water services activity accounted for all of revenues. Largely as a
result of a high level of planning, remediation, and construction activity at
various sites during the first six months of 2004, a net loss of $278,830, or
$0.05 a share, was incurred for the nine months ended September 30, 2004.
Steven H. Davis, President and CEO, said, "Actual closings during the third
quarter were disappointing, but sales interest picked up in September and two
units were closed in October, leaving only three units unsold out of the 23
units built at Site I." Mr. Davis also stated, "The Company has entered into
an agreement with a general contractor for the construction of 27 housing units
at Sites II and III of the Westminster Development Project and, while the first
units are not expected to be available until March, 2005, the Company has
already received reservations on seven units." Dale W. Bleck, CFO, noted, "Subsequent to the close of the third quarter, the
Company secured a construction loan in the amount of $2.9 million from Vectra
Bank of Westminster." Further, he stated, "Such funds should be sufficient to
achieve completion of the Westminster development." The loan has term of one
year and bears interest at prime plus 0.75%.
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. Three Months Ended September 30, 2004 (unaudited) 2004 2003
Revenues $488,553 $142,653
Net Income (Loss) $50,582 ($127,506)
Earnings (Loss) Per Share
Basic & Diluted $.01 ($.02)
Weighted Average
Shares Outstanding
Basic & Diluted 5,554,489 5,757,792
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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