BETHEL, Conn., April 28, 2011 /PRNewswire/ -- MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the first quarter ended March 31, 2011.
Operating highlights include:
- Completion of the Company's first containerized system. This system will be implemented in a west coast waste-processing center. The processing center is expected to be operational in the second quarter 2011.
- Gross Margins increased from 38.5% to 48.5% compared to the same period last year. The increase in gross margin is a result of the Company converting backlog into revenue in an efficient manner.
- MedClean's backlog was $1.7 million as of March 31, 2011, compared to $986,657 as of March 31, 2010.
"We are excited that our first container is being deployed and that it also coincides with the establishment of a localized waste processing center," stated David Laky, President & CEO. "This milestone also marks the start of the Company converting our backlog to revenue. Our vision has begun to culminate into financial results as our business model has started to deliver tangible results, but we also recognize we are still in the early stages and true progress will be evident only when we reach scale in our business. We still must build quarter by quarter as we move forward, but the groundwork we have laid has set the stage for the Company to have better visibility into our future."
Mr. Laky concluded, "The Company has developed programs to diversify risk associated with depending on large capital sales. Our rental program is showing great promise, the establishment of localized processing centers will contribute to both direct sales revenue and recurring per-pound revenue in certain circumstances, and our e-commerce platform has begun to take shape and may contribute in a manner that exceeds what we had first envisioned. Our partners have done an excellent job developing leads, pipeline, and supporting programs in conjunction with our vision and we expect positive results from those relationships over the next three quarters."
First Quarter Financial Results
Total revenue for the quarter ended March 31, 2011 was $593,624 compared with $268,867 for the same period in 2010, an increase of $324,757 or 120.8%. System revenues during the quarter was $450,000, compared to no system revenue in the first quarter last year. Revenues derived from the sale of consumables, component parts, service billings and amortization of maintenance contracts decreased by $125,243 or 46.6% in the current quarter to $143,624. The decrease in service billings was a result of fewer service calls. Service billings will continue to fluctuate period to period based upon equipment failure, whether through operator error or wear and tear, and pre-scheduled service activities such as equipment relocation. Service revenue attributable to contract revenues is recognized at the time of performance and not at the time of contract execution.
The gross profit for the first quarter of 2011 was $287,709 (48.5% of total revenue) compared with a gross profit of $103,414 (38.5% of total revenue) for the same three-month period of 2010.
Total operating expenses for the first quarter of 2011, was $941,687 compared with $1.7 million for the same three month period in 2010, a decrease of $744,140. In the three months ended March 31, 2011, MedClean recognized non-cash equity based compensation to service providers and employees of $352,733 as compared to $1.1 million recorded as equity based compensation for the three months ended March 31, 2010.
MedClean reported a loss from operations for the first quarter of 2011 of $653,978, compared to a loss from operations of $1,582,413 for the first quarter last year. Net loss for the quarter was $1,126,496, or $0.00 per share, compared to a net loss of $1,585,104, or $0.00 per share last year.
Additional financial detail, including full financial statements, are available in the Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission and available at www.sec.gov.
About MedClean Technologies, Inc.
MedClean Technologies, Inc. is a provider of innovative technology and services for the treatment and disposal of regulated medical waste. MedClean's flagship MedClean® Series systems are fully integrated, turnkey technology solutions that enable hospitals and other healthcare providers to safely, efficiently, and cost-effectively convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste. MedClean was founded in 1997 with corporate headquarters, research and development and distribution facilities located in Bethel, Connecticut. Further information on MedClean can be found at www.medcleantechnologies.com and in filings with the Securities and Exchange Commission found at www.sec.gov.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," "potential" and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business; including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 3, 2010, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
SOURCE MedClean Technologies, Inc.