Date: April 3, 2006
Source: Business Wire
EarthFirst Technologies, Incorporated (OTCBB: EFTI) today announced the Company's results for the fiscal year ended December 31, 2005.
Revenue increased 172% to $41.7 million, up from $15.3 million in 2004. Due to the timing of the Company's acquisition of Electric Machinery Enterprises, Inc. (EME) in August 2004, 2004 revenues reflected only four month's operations of EME.
On a segmented basis, 2005 revenue from EME totaled $41.5 million; revenue from the Company's solid waste remediation business totaled approximately $12,000; and revenue from its new biofuels business totaled approximately $170,000.
Operating income, exclusive of non-cash charges, was $1,423,000 in 2005, compared to an operating loss of $1,796,000 in 2004.
Due largely to non-cash charges associated with a convertible debt financing completed in 2005 and stock-based compensation to entities affiliated with or controlled by the Company's Chairman of the Board, net loss increased to approximately $17.7 million, or $0.035 loss per diluted share, compared to a net loss of approximately $2.3 million, or $0.01 loss per diluted share.
As of December 31, 2005, EarthFirst had $10.4 million in cash and receivables, $18.7 million in stockholders' equity and $4.1 million in net working capital.
The Company has filed its Form 10KSB with the U.S. Securities & Exchange Commission, which includes restated financial statements for the first, second and third quarters, ended March 31, 2005, June 30, 2005 and September 30, 2005, due to a change in the accounting for the convertible note financing transactions. The Company accounted for the free standing warrants, embedded beneficial conversion options, and other derivative financial instruments associated with the convertible notes as paid in capital or equity, in accordance with accounting interpretations at that time. During the fourth quarter of 2005, it was determined that these derivatives should be recorded as liabilities at estimated fair value and similarly adjusted at each subsequent reporting period, based upon changes in the estimated fair market of the financial derivatives.
John Stanton, Chairman and CEO of EarthFirst Technologies, Inc., stated, "In light of our recently announced intentions to merge EarthFirst with Cast-Crete Corporation ("Cast-Crete"), and concentrate our energy technologies into a separate public entity, we have focused on defining the framework for the restructuring. We expect to commit to a course of action in the near future that will accommodate expedited closings of the underlying transactions."
"In the interim, I'm pleased to confirm that each of our operational businesses is performing well," continued Stanton. "EME, Prime Power of Tampa and Prime Power Residential continue to serve as EarthFirst's primary sources of revenue."
Concluding, Stanton noted, "While the contemplated restructuring of EarthFirst is complex, we remain confident that this course of action represents the best opportunity to maximize and deliver long term, profitable and sustainable value for our shareholders. We will announce a timetable for the restructuring and identify milestones within the next two weeks. At that time, the Company will also announce the date of its teleconference for interested parties."
More information: www.earthfirsttech.com.
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