Aduddell Industries, (OTCBB: ADDL) today reported its financial results for the three and six month period ended June 30, 2007.
For the second quarter of 2007, the Company reported revenues of $14.4 million, and a net loss of $743,318. This compares with revenues in the second quarter of 2006 of $8.6 million and a net profit of $186,982. Revenues for the first six months of 2007 were $24.4 million, up 97% compared to $12.4 million for the same period last year. The increase in revenues for both 2007 periods is primarily attributable to the Company’s restoration division, which added revenues of $6.3 million for the second quarter and $9.5 million through the first half of 2007. The restoration division began in April 2006 with the purchase of Merit Construction and was expanded in December 2006 with the acquisition of Brent Anderson and Associates.
Stan Genega, Aduddell’s President and CEO said, “As compared to last year’s second quarter, revenues rose 67% and gross margin improved to over 17% from approximately 8%. As expected, the second quarter net loss has been substantially reduced compared to the first quarter, however margins have been depressed by delays and cost overruns on a few individual projects. In addition, our bottom line for second quarter continued to be impacted by the higher overhead that was put in place in late 2006 and early 2007 in anticipation of supporting a larger organization and revenue base.”
He continued, “While we have implemented a number of cost reduction initiatives and function consolidations, the full effect of these actions should be reflected in the third and fourth quarters. As a result of these and related actions, we expect administrative cost to decrease by over $670,000 during the third and fourth quarters. In addition we expect a continued increase in our sales volume and improvement in our divisional gross margins. For these reasons, we expect further improvement in our financial performance as the year progresses.”
Mr. Genega also noted, “The Company’s current backlog is approximately $23 million, up from $18 million at this time last year.”
About Aduddell Industries
Aduddell Industries, Inc. is the holding company of Aduddell Roofing, www.aduddell.com, one of the leaders in the commercial roofing industry nationwide. Through Aduddell Roofing and other subsidiaries, Aduddell Industries offers Fortune 500 companies and large governmental agencies a broad range of roofing services, including re-roofing, restoration and repair, new roof construction, sheet metal fabrication, concrete restoration and waterproofing. In addition to work on large projects and high security roofing matters, the company has a nationally recognized track record for handling disaster recovery and emergency projects efficiently and cost effectively.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:-- This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
(See Accompanying Table)
Consolidated Income Statement
Three Months Ended
Six Months Ended
|Cost of sales||11,937,500||7,902,525||20,910,887||10,750,521|
|Selling, general and administrative||3,343,658||575,898||7,445,057||1,888,463|
|Operating Income (Loss)||(1,012,971)||123,077||(4,159,727)||(353,461)|
|Interest and dividend income||83,506||79,925||84,627||281,956|
|Gain(loss) on sale of equipment||(5,340)||22,739||(5,555)||26,239|
Net Income (Loss)
|Net Income (Loss)||(741,236)||161,152||(3,357,129)||18,234|
|Other Comprehensive Income|
Basic Net Income
Diluted Net Income
Reggie Cook, CFO
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609
Lena Cati, 212-836-9611
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