Yesterday after the closing bell, General Environmental Management Inc. (GEM) announced its financial results for the three months ended March 31, 2010. The company reported first-quarter GAAP (generally accepted accounting principles) earnings per share (EPS) at $0.30. For the first time in Company history, GEM has recorded a quarterly net income. Total net income for the quarter was calculated at $4,477,955.
In the press release, the company made it clear that revenues for the first quarter are strictly from the Southern California Waste Water (SCWW) subsidiary, due to the discontinuation of all other segments of the GEM hazardous waste business. Revenues for the subsidiary were reported at $1.46 million, up 28% from $1.14 million for the same time period in 2009. The new company direction to a primarily non-hazardous wastewater treatment driven business model provides the foundation to build a strong enterprise.
First quarter gross profits totaled $172,769, down from $272,437 reported for the same time period in 2009. This reduction in 2010 gross profits was mainly attributed to a $150,000 one-time remediation expense to improve the facility in Santa Paula. Future quarterly results will not have recurring expenses from the facility’s improvements. Monetary gain on the sale of the GEM Delaware facility and its subsidiaries equaled $8.687 million.
The company’s operating expenses included a non-cash charge in the first quarter totaling $380,000 related to the issuance of S-8 shares for business development. The current weighted average shares of common stock outstanding, basic, and diluted is 15,057,653.
Chief Executive Officer of GEM Timothy Koziol commented, “We are pleased with the results shown in our first quarter. For the first time in the Company’s inception we have positive net income. I firmly believe that the decision to pursue the non-hazardous wastewater strategy has been a wise one and look forward to building and developing our business model. While our financial statements only include the revenue through SCWW as footnotes, we expect that our 2nd quarter results will be more clearly defined as the non-hazardous wastewater treatment becomes our sole revenue source.”
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