Evercel, Inc. (Pink Sheets:EVRC) today released a letter to shareholders that discusses the company's 2009 financial results:

Dear Fellow Shareholder:

2009 was a very disappointing year for Evercel. Revenues decreased in 2009 to $6.9 million from $7.4 million in 2008. Losses in 2009 were $751,000 compared to a loss of $64,000 in 2008. Financial tables are available at www.evercel.com.

In April of 2009 we purchased the assets of Stretch and Cover, Inc.("S&C"), an on-line retailer of slipcovers for household furniture. We simultaneously engaged an experienced new management to expand the business. Our efforts were costly and have not been successful to date. S&C lost in excess of $400,000 in the eight months we owned it last year. We began making changes as soon as the results were apparent and by early 2010 were able to effect the significant changes necessary to begin to restore S&C to profitability. These changes included: replacement of key management; resourcing and completely rebuilding the website and data processing infrastructure; rationalization of the cost structure; and changing the marketing focus. As of this writing S&C is not yet profitable but is substantially improved and we are cautiously optimistic that it will become a profit contributor in the future.

New England Crab Company ("NECC") also had a difficult year. The principal challenge was the effects of the U.S. economic recession. Much of NECC's sales are dependent on "white tablecloth" restaurants and casinos which are sensitive to the economic environment. We were able to offset some of this impact by overseas sales in part due to the then strength of the Euro. Recently we have seen some recovery in our restaurant business. The weakness of the Euro has not had an effect yet but it is too soon to be confident.

Zipcar, Inc. has continued its success. Recently Zipcar announced a significant expansion of its operations in Europe through the acquisition of Streetcar Ltd, the leading car share company in London and the filing of an S-1 to register shares for public sale. Zipcar was featured in an August 27, 2009, cover story of Fortune Magazine entitled "The Best New Idea in Business."

Julia Therapeutics LLC ("Julia") has completed the first round of clinical trials of its innovative skin wrinkle reduction technology. The trials were positive for both safety and efficacy. Julia is now engaged in arranging the appropriate financing and partnerships necessary to bring the product to market. Notwithstanding these accomplishments we have decided to write down our investment due to the uncertainty of the outcome and timing of a liquidity event.

Sontek Medical Products ("Sontek"), the company's oldest business has remained consistently profitable. Sales increased 2% and profits increased 20% to $89 thousand.

All of our team is striving to realize the value inherent in Evercel's businesses. Although 2009 was a difficult year, we believe that we can and will be able to operate profitably in the near future. Thank you for your patience.

James D. Gerson, Chairman

Garry A. Prime, CEO

New London, Conn., based Evercel is a multi-industry company whose operations include crab processing for both fresh and frozen markets, sales of Swivel Y-valves used in the treatment of patients on respirators, and Stretch and Cover, Inc., an on-line retailer of slipcovers for household furniture. Evercel also has investments in Zipcar Inc. (car sharing), and Julia LLC (skin wrinkle reduction technology).

CONTACT:  Evercel
          Garry Prime
          860-701-9911
Evercel (CE) (USOTC:EVRC)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Evercel (CE) Charts.
Evercel (CE) (USOTC:EVRC)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Evercel (CE) Charts.