General Environmental Management Inc. has moved from being a hazardous waste business to being primarily a non-hazardous wastewater treatment company. The company disposed of its prior businesses and purchased Southern California Waste Water (SCWW). The acquired company was founded in 1959 by six of the major oil companies and continues to provide service today to industrial waste clients and the oil and gas industry in California.
This change in the company’s business model led to General Environmental’s first quarter, since its inception, with positive net income. Net income came in at nearly $4.48 million. The company recently reported first quarter results showed earnings of $0.30 per share and revenues of $1.46 million, all of which were from SCWW.
General Environmental Management expects that this is just the beginning for the company in the wastewater industry. Its SCWW subsidiary is recognized as one of the leading waste water utilities in the United States, successfully treating over 2 billion gallons of wastewater and doing so profitably. The company has profit margins in excess of 30 percent.
The water industry as a whole is large and growing nicely. On a global basis, the industry size exceeds $400 billion and growing rapidly – thanks to the growth in the emerging markets. Here in the United States, there is a $120 billion market for water and its treatment. The US market is expected to at 6%-7% over the next several years. This should come as no surprise since it is estimated that globally there are about 1,500 cubic kilometers of wastewater produced on an yearly basis.
The future for General Environmental Management and its Southern California Waste Water subsidiary looks bright indeed. For more information on the company, please visit their website at www.generalenvironmental.com.
Let us hear your thoughts: General Environmental Management, Inc. Message Board