General Environmental Management, Inc. announced today just before market close that it has filed its 10Q Report for the quarter ended September 30, 2009. The Form 10Q can be found at http://www.sec.gov.
The company also provided a brief update on the previously announced closing of the acquisition of Santa Clara Waste Water Company, as well as the progress made on the sale of GEM’s field services business.
According to the press release, GEM has taken major actions to eliminate debt, improve GEM’s balance sheet and free up resources to focus on new, profitable markets. To date, the company has: 1) sold GEM Mobile Treatment Services, Inc.; 2) acquired Santa Clara Waste Water Company (SCWW), a profitable, 50-year-old wastewater treatment business; and, most recently 3) executed a definitive agreement to sell the field services business unit for $14 million in cash plus the assumption of $1.1 million of long-term lease obligations. The net cash proceeds from the transaction will be used to retire senior debt and to pursue the company’s new business strategy in the water treatment and waste-to-energy markets.
“Taken together, these strategic moves have created a foundation for GEM to take advantage of opportunities that we believe will lead to profitability and positive cash flow in the coming year,” stated Koziol. “Our shareholders should look at the current quarterly report as a reflection of a work in progress. Our intention is to continue to focus on higher margin business opportunities in the water treatment and waste-to-energy markets in order to maximize shareholder value of our company’s stock. We are very pleased with the progress and advancements the company has made the past few months, especially when considering the difficult economic environment.”
Koziol added, “In regards to the sale of our field services business, we have reached an agreement with Luntz Acquisition (Delaware), LLC, a subsidiary of PSC Environmental Services, LLC, to sell General Environmental Management, Inc. (DE) and its subsidiaries, which include five service centers, the TSDF of GEM Rancho Cordova LLC, and the Island Environmental Services business. The final purchase price will be subject to an adjustment based on the computation of net working capital at closing. We have agreed upon a closing date on or prior to March 1, 2010, subject to the approval of GEM’s shareholders.”
He further stated, “Concluding the sale of our field services business will result in a dramatic improvement of our balance sheet, and will result in a lean business that will put profitability and cash generation as the top priorities. We firmly believe our hard work will pay off once we’ve fully transitioned to the faster-growing water treatment and waste-to-energy markets. After the foundation is laid, we will focus our efforts on building a regional and then national presence.”
General Environmental Management Inc. also reminded the investment community that it will be hosting its first-ever investor conference call today at 4:30 EST / 1:30 PST. After prepared remarks and presentation of the operating results, the call will be open to questions and answers. During the earnings call, General Environmental Management, Inc. will provide detailed information on the acquisition of Santa Clara Waste Water Company (SCWW). GEM Management will also discuss the company’s efforts to acquire, license or partner with waste-to-energy technologies and companies.
The participant dial-in number is: 1-480-629-9712
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