MedClean Technologies Announces 2010 First Quarter Financial Results
5/18/2010 8:39:45 AM
BETHEL, Conn., May 17 /PRNewswire-FirstCall/ -- MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the first quarter of 2010, the period ended March 31, 2010.
Setting the Stage To Meet Full-Year Revenue Expectations:
- MedClean announced an expansion of its Container/Mobile Series product line designed to increase the Company's market opportunity. Expanding beyond the large quantity generators (LQGs) with a focus on hospitals of 300 beds or greater, the introduction of the MedClean 4100/MC4200 positions MedClean to expand its market opportunity by targeting smaller hospitals and other medical facilities. In addition, these products will allow the Company to address the needs of extensive hospital networks and Group Purchasing Organizations (GPOs) that service a mix of large and small hospitals more cost effectively. Lastly, these products will be sold through MedClean's new distributor and manufacturer's representative network to expedite product launch and to accelerate the company's penetration into the market. This line extension increases MedClean's addressable market by over 6,000 possible locations in North America alone.
- The Company partnered with Salesconx, a premier sales organization leveraging a nationwide network of sales and business professionals to rapidly deploy a national sales channel of 15 experienced and highly qualified medical technology representatives who will focus on launching the MC 4100 / 4200 products.
- MedClean signed a distributor agreement with Barnett Medical Services, a premier provider of Medical Supplies and Medical Waste Transportation services for more than 50 years, enabling Barnett to expand its service offerings to include disposal services for municipal solid waste, pathological waste, and nuclear waste, as well as provide preventative and corrective maintenance services to health care clients in the Western region of the United States. The agreement enables both companies to collaborate on and target their integrated technology and services to the more than 230 large quantity medical waste generators and the nearly 1,500 medium quantity medical waste generators in the four-state Western region with the expectation to generate new business yielding $1 million to $2 million in revenue for each company in the first year of the partnership while accelerating toward a target of 10 percent market penetration in this market segment in future years of the relationship.
- The Company signed a distribution agreement with Verde Enterprises LLC, a partnership consisting of a premier provider of municipal solid waste services in New York and New Jersey and one of the region's largest electrical companies. The agreement enables Verde Enterprises LLC to provide onsite integrated medical waste disposal and document destruction technology and services to its affiliated companies' current municipal waste health care customers in New York and New Jersey, addressing the needs of approximately 250 large-quantity medical waste generators in this territory. The agreement is expected to yield a minimum of $1 million to $2 million in new business for each company in the first year of the partnership while accelerating toward more than 10 percent market penetration in this market segment in future years of the relationship.
- MedClean signed a co-marketing agreement with Green Umbrella Solutions, a premier provider of innovative technology and services for HIPAA document destruction and recycling. Green Umbrella Solutions enables MedClean to offer full service HIPAA document destruction and recycling capabilities on site using MedClean equipment already installed on the hospital premises.
"While not yet reflected in our financial results, the first four months of 2010 have been exceedingly productive for MedClean," said David Laky, MedClean's President and Chief Executive Officer. "We set the stage for a very productive year by achieving our short term goals of expanding the product line, increasing multiple channels of distribution, expanding partnerships, enhancing services, and securing $10.2 million in working capital with the most favorable financial terms currently available. Our achievements illustrate that the company has taken the right steps to rationalize its business model, establish a platform to ensure excellent client service delivery, capture of new market share, and delivery of new technology that has the potential to create significant long term share holder value."
Management believes its cash on-hand, current convertible equity line along with current business opportunities is sufficient to fund operations through completion of this latest financing.
First Quarter Financial Results:
The Company reported revenue of approximately $268,867, a sequential increase of approximately 22.8% compared to the fourth quarter of 2009 and a decrease of 35.6% compared to the $417,428 reported for the first quarter last year. The year-over-year decrease was due to the absence of system deliveries during the quarter.
"We are in late-term discussions with several organizations which should result in multiple near-term system sales," added Mr. Laky. "While the sales cycle can be unpredictable, our efforts over the first four months of 2010 focusing on building alliances with strategic partners, is resulting in accelerated sales cycles and increasing interest in our expanded product and service lines. Much of this interest, including these potential near-term agreements, has emanated from our new distribution partners, validating our indirect channel strategy and reinforcing our confidence for the future. Our existing pipeline of qualified opportunities is more than sufficient to enable us to achieve our goal of more than 100% compounded annual growth commencing in 2010."
Gross profit for the first quarter of 2010 was $103,414, or 38.5% profit margin, compared to gross profit of $144,356, or 34.6% profit margin, in the prior-year period. Total operating expenses were $1.7 million compared to operating expenses of $1.6 million in the first quarter last year. Net loss for the first quarter narrowed by 15.9% to $(1.5) million, or $(0.00) per share, compared to a net loss of $(1.9) million, or $(0.00) per share for the same period in 2009.
The Company provides equity based payments to officers, employees and consultants as compensation. The net loss of $1.7 million was impacted by non-cash equity-based compensation recorded as a charge against operations of $1.1 million. Without the charge, MedClean's loss for the three months ended March 31, 2010 would have been $607,295 compared to a $975,938 loss for the same period last year after comparative adjustments. This represents an overall operating improvement of $368,643, or 38%.
Mr. Laky continued, "We are increasingly confident that we have strategically positioned MedClean to capitalize on the many opportunities available for growth in the medical waste disposal and confidential document destruction industry, an opportunity which exceeds $4 billion annually in the U.S. alone. We have significantly expanded our pipeline of additional business opportunities and remain confident in our plan to achieve our long term objectives."
The Company has filed its Form 10-Q for the period ended March 31, 2010 with the Securities and Exchange Commission, and investors are encouraged to visit www.sec.gov to review this document, which includes financial tables and additional detail for the quarter ended March 31, 2010.
About MedClean Technologies, Inc.
MedClean Technologies, Inc. is a provider of innovative technology and services for the onsite treatment and disposal of regulated medical waste and HIPAA document destruction. 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 http://www.medcleantechnologies.com and in filings with the Securities and Exchange Commission found at http://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," 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 2, 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.