MedClean Technologies Announces 2010 Results
Published: Apr 01, 2011
BETHEL, Conn., March 31, 2011 /PRNewswire/ -- MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the year ended December 31, 2010.
Operating highlights include:
- During the year, the Company entered into new purchase agreements for MedClean systems, the aggregate sales price totaling $1.4 million in 2010 versus purchase agreements totaling $1.2 million in 2009, an increase of $199,267 or 16.4%. Due to revenue recognition policies, revenue and the timing of the orders, revenue from these orders is expected to be recognized in 2011. The Company implemented a new policy in 2009 whereby revenue is only recognized upon the completion of the system installation versus the previous policy based upon percentage of completion.
- MedClean's contracted backlog was $2.1 million as of December 31, 2010, up 11.4% sequentially from $1.9 million as of September 30, 2010 and up 98.8% from $1.1 million at December 31, 2009. The Company expects to recognize a significant portion of backlog during the first half of 2011.
- Three distributor partners (Barnett Medical, Gamma HealthCare, and Sunbelt Medical Systems) have purchased initial systems to establish waste processing centers in their respective territories. These systems are currently in backlog and are scheduled for delivery within the first three quarters of 2011. By developing regionalized processing centers in California, Tennessee and Arkansas, MedClean and its partners can now offer customers low cost, localized service, providing regionalized alternatives competing directly with Stericycle.
Business infrastructure highlights include:
- The Company has built a robust Certified Distributor Partner network with 10 solid organizations and 40-plus sales representatives dedicated to driving sales opportunities to MedClean. To view important information regarding the MedClean distributor network please click here.
- MedClean has developed new waste hauling partnerships through its active involvement and sponsorship of the Independent Medical Waste Transporters Association (IMWTA.com). The IMWTA has 60 active members and continues to add new members weekly.
- MedClean has signed 10-plus qualified regional haulers to Mutually Beneficial Referral Agreements. Under terms of the agreement MedClean will receive a portion of year-one revenue for referring business to the waste haulers. These same regional haulers will be trained and certified to operate MedClean's equipment and will comprise the Company's Certified Service Partner network.
- The Company, through its distributor and partner network has developed a pipeline of new business opportunities representing $30 million of potential business as of March 31, 2011. The continued growth of the sales pipeline indicates that demand in this market is strong and that MedClean appears to be well positioned to make an impact in the medical waste treatment and disposal market.
- The Company has introduced its new eCommerce platform. The platform enables existing customer to electronically purchase consumable supplies via the internet and has been extended to provide the benefits of group purchasing power to MedClean's partner network, extending discounts on fleet services (tires, service, roadside assistance), office supplies, and other products and services directly related to day-to-day operations. The eCommerce business line is expected to grow modestly during 2011.
New Sales Support Programs:
- MedClean has introduced a new service-based program the company has labeled Technology enabled Services (TeS). TeS represents a combination of MedClean equipment and related services provided by its distributor and waste hauling partners that provides the optimal combination of equipment and services in order to maximize savings, deliver quality services, and exceed efficacy standards.
- MedClean has forged exclusive relationships with industry consultants focused on best practices, actively working with more than 700 health care organizations to implement expense reduction programs for their medical waste streams. The program provides introduction of the MedClean TeS solutions to the highest levels of company management and should help shorten sales cycles and maximize customer ROI.
- MedClean has deployed a new Service Agreement financing program through the Company's commercial finance entity MedClean Technologies Financial Services. The program is designed to eliminate the customer's up-front costs while maximizing their ROI. The Service Agreement (while including equipment and services at a fixed price for a fixed period) operates similarly to a rental program, eliminating the need to qualify for long-term leasing or capital purchases, and can be renewed at the end of the term at a discounted rate or at the then current rates for the newest TeS offering.
- MedClean is now positioned to address the needs of both large and small quantity medical waste generators. Collaborating with a nationwide network of transporters enables the Company to leverage its technology to address customer needs while establishing a growing recurring revenue base. Furthermore, this collaboration serves as a catalyst for the company's growing pipeline of business opportunities and provides access to all size waste generators, effectively doubling the Company's target market. In the past the targeted market was limited to hospitals with 300 beds or higher.
"We continue to broaden our distributor sales network, introduce exciting new financing and partner programs, and develop our backlog," commented David Laky, MedClean's President and CEO. "While the length of the sales cycle continues to challenge us, we believe our distributors are moving forward on a variety of fronts and expect increased traction and sales growth during 2011. During the remainder of 2011 we expect to develop additional regionalized processing centers resulting in recurring service revenue. In addition, we plan to continue our traditional one-time equipment sales. Our network of Certified Service Partners and Certified Distributor Partners will be expanded as required, but we will focus primarily on converting pipeline opportunities into new business and completing product installations in order to convert backlog to revenue. Based upon projects already underway in 2011 we anticipate first quarter revenue to be approximately $550,000."
Mr. Laky concluded, "We have reached the point where the groundwork has been laid, the plans for rollout have been developed, obstacles in the sales cycle have been reduced or eliminated, and the distributor and hauler network has been built. The time is now for our collective organization, including our distributors and hauling partners, to produce tangible results. We expect 2011 to be a productive and exciting year."
Full-Year Financial Results:
The Company reported revenue of $0.9 million, a decrease of 65% compared to $2.5 million for the year ended December 31, 2009. In 2009 the Company was able to deliver systems completing contractual obligations and meeting revenue recognition policies totaling $1.2 million. The Company did not have comparable revenue during 2010. Gross profit for 2010 was $0.5 million, or 52.4%, compared to gross profit of $1.3 million or 50.3% in the prior-year period. Net loss for the full-year was $(4.6) million, or $(0.01) per share, compared to a net loss of $(5.4) million, or $(0.01) per share for the same period in 2009.
Total Operating expense for 2010 was $4.8 million compared with $6.6 million for 2009, a decrease of $1.8 million.
The Company has filed its Form 10-K for the period ended December 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 details for the year ended December 31, 2010.
Board of Directors
The Company also announced the appointment of Jay Bendis, an independent director, as Chairman of the Board of Directors, replacing Scott Grisanti, who announced his resignation as Chairman effective today. Mr. Grisanti will continue to serve as a director of the Company.
Mr. Bendis has been President of Transfer Technology Consultants during the past 15 years, a company that specializes in transferring new biotech product concepts from design to commercialization. From 2005 to 2008, he was President and CEO of Clinical Analysis Corp. He was Managing Partner in the Crystal Corridor Group that worked with Kent State University's Liquid Crystal Institute in facilitating liquid crystal technology from 2000 to 2005. From 1995 to 2000 he served as Executive Vice President of American BioMedica Corp. He was also President and Co-founder of Emerging Technology Systems, a Research and Development Company in the diabetic markets from 1993 to 1999. His prior management positions had been with XANAR Laser Corp, a division of Johnson & Johnson as the National Sales Manager and IVAC Corp, a division of Eli Lilly as Sales and Marketing Manager. He has also served as a member of the Edison BioTechnology Center Advisory Council for the State of Ohio and serves on the Boards of several private companies.
"I believe MedClean is poised for long-term sustainable growth and I am excited to help the management team accelerate sales efforts," commented Mr. Bendis. "The sales cycle has been lengthy, but in 2010 the Company managed to build a robust North American sales network in conjunction with targeted programs for hospitals and waste generation facilities which highlight the ROI of MedClean's offerings while eliminating many of the traditional sales barriers associated with selling into this market."
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.
CONTACT: Cameron Donahue of Hayden IR, +1-651-653-1854, for MedClean Technologies, Inc.
SOURCE MedClean Technologies, Inc.