MedClean Technologies Announces Third Quarter Results
Published: Nov 16, 2010
Some recent highlights include:
- MedClean's current contracted backlog is $1.9 million, an increase of 73% from $1.1 million at December 31, 2009.
- The Company has recruited and trained 11 quota-carrying distributors, targeting 41 states and Canada with 40-plus sales representatives currently trained and selling the MedClean product line. Each distributor has assumed a two to four unit goal for 2011 with an average unit sales price of $600,000. To view important information regarding the MedClean distributor network please click here.
- Two distributors (Barnett Medical and Gamma HealthCare) have purchased initial systems to establish waste processing centers in their respective territories. These systems are currently in backlog and are scheduled for delivery in the first and second quarters of 2011.
- The Company, through its distributor network and direct sales efforts, has created a pipeline of new business opportunities of $25 million as it heads into 2011.
- MedClean has forged partnerships with industry consultants that are actively working with over 700 health care organizations to lower their respective costs. Such relationships continue to introduce the company to the "C" suite to help shorten sales cycles.
- MedClean has developed new partnerships through its active involvement and sponsorship of the Independent Medical Waste Transporters Association (IMWTA.com). Currently the IMWTA has 51 active members in the organization and continues to grow daily.
- MedClean is now positioned to offer its technology as a service by collaborating with its IMWTA partners 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 growing a recurring revenue base. Furthermore, this collaboration is 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 are poised and ready for a break out results in 2011 and beyond," commented David Laky, MedClean's President and CEO. "We believe a strong backlog, rapidly increasing pipeline, a trained distribution channel, excellent industry partners, and an expanded technology and service offering position the Company for exponential growth over the next five years. Our current outlook based on booked business, a strong pipeline, and the company's conservative revenue recognition policies based on system delivery calls for first quarter revenues between $1.0 $1.6 million, second quarter revenues between $1.6 $2.2 million, with revenues targeted to continue to increase into the second half of the year."
Mr. Laky continued, "The management team at MedClean understands that the market evaluates us on results. We continue to balance our ambitious growth objectives while minimizing fixed cash overhead expenses as we move toward positive cash flow and profitability in 2011. The company has access to capital to support its operations to ensure we can execute our growth initiatives in the future."
Third Quarter Financial Results:
Total revenue for the quarter ended September 30, 2010 was $306,825 compared with $1.6 million for the same period in 2009, a decrease of $1.2 million, or 80.1%. 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 recognizable sales revenues meeting revenue recognition policies during the quarter ended September 30, 2010. Revenues derived from the sale of consumables, component parts, service billings, and amortization of maintenance contracts decreased by $20,106 or 6.1% in the current quarter to $306,825. The decrease in service billings was a result of fewer service calls required due to equipment issues. Service billings will continue to fluctuate period to period based upon equipment service requirements.
The gross profit for the three months ended September 30, 2010, was $253,741 (82.8% of total revenue) compared with a gross profit of $914,249 (58.7% of total revenue) for the same three month period of 2009. Gross profit margins increased from 58.7% to 82.7%, or a 40.9% increase. The Company continues to manage operations closely to ensure all service revenues are billed for and recognized promptly.
Net loss for the three month period ended September 30, 2010, was $753,682, or $(0.00) compared to a profit of $339,306, or $0.00 for the same period in 2009.
Year-To-Date Financial Results:
Total revenue for the nine months ended September 30, 2010 was $707,450 compared with $2.3 million for the same period in 2009, a decrease of $1.6 million or 69.6%. Revenues derived from the sale of consumables, component parts, service billings and amortization of maintenance contracts decreased by $391,663 or 35.6% for the same period to $707,450. The Company did not have recognizable sales revenues meeting revenue recognition policies for the nine month period ended September 30, 2010. Gross profit for the nine months ended September 30, 2010, was $417,239 (59.0% of total revenue) compared with a gross profit of $1.2 million (51.0% of total revenue) for the same nine month period of 2009. MedClean's gross profit margins increased from 51.0% to 59.0%, or a 15.7% increase. Net loss for the nine month period ended September 30, 2010, was $(3.4) million, or $(0.00) per share, compared to a net loss of $(4.2) million or $(0.01) for the same period in 2009. Cash used in operating activities for the nine month period ended September 30, 2010 was $1.4 million compared with $1.6 million for the same period ended September 30, 2009, or a reduction of 13%.
The Company has filed its Form 10-Q for the period ended September 30, 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 September 30, 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. 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.