N-Viro International Corporation Financials
April 3, 2012 Leave a comment
Comparison of 2010 and 2011 Year End Financial Results
Revenue increased $372,000, or 7%, to $5,594,000 for the year ended December 31, 2011 from $5,222,000 for the year ended December 31, 2010.
Our gross profit increased $28,000, or 3%, to $1,033,000 for the year ended December 31, 2011 from $1,004,000 for the year ended December 31, 2010.
The gross profit margin decreased to 18.5% from 19.2% for the same periods.
An increase in total revenue and gross margin from our Florida operation.
The total revenue attributable to Florida in 2011 was $4,442,000, an increase of $583,000 from 2010. This revenue was generated at a gross margin of 20%, up from 17% in 2010. Florida contributed $869,000 of gross profit, an increase of $223,000 over the same period in 2010. A majority of this increase in Florida’s gross profit was from the increased revenue from sludge management fees, which were realized at a lower cost percentage as a result of economies of scale and increased efficiency in sludge handled at the facility.
Pennsylvania Mobile N-Viro Fuel™ Laboratory for Testing
An increase in total revenue of $18,000 from our start up in April 2011, but which sustained a gross loss of $231,000 for the year.
The mobile pilot unit is located at the Allegheny Clarion Valley Industrial Park in Emlenton, Pennsylvania.
Our operating expenses decreased $252,000, or 7%, to $3,516,000 for the year ended December 31, 2011- from $3,767,000 for the year ended December 31, 2010.
The decrease was primarily due to decreases of $799,000 in consulting fees and expenses, $56,000 in office and miscellaneous expenses, $35,000 in legal and related fees and $15,000 of gain on the disposal of assets, offset by an increase of $386,000 in payroll and related costs and $267,000 in director costs. Of the total net decrease of $146,000 in consulting, director and payroll costs. $71,000 were non-cash costs relating to the issuances of stock and stock options.
December 31, 2011 actual cash outlays in these categories decreased by a total of $75,000 over the same period in 2010. As a result of the foregoing factors, we recorded an operating loss of $2,483,000 for the year ended December 31, 2011 compared to an operating loss of $2,763,000 for the year ended December 31, 2010, a decrease in the loss of $280,000.
Our net non-operating income (expense) increased by $1,049,000 to net non-operating income of $843,000 for the year ended December 31, 2011 from net non-operating expense of $206,000 for the similar period in 2010.
The increase in net non-operating income was primarily due to an increase of $873,000 from the gain recorded on warrants issued whose value and number of shares outstanding had decreased from the issuance date, an increase of $93,000 in the gain on extinguishment of certain liabilities no longer due, a decrease of $48,000 in amortization of the stock discount on convertible debentures issued and a decrease of $33,000 from 2010 to 2011 in the gain on the modification of certain debt. Included in the increase in the gain on extinguishment of certain liabilities no longer due is $174,000 of gain recognized for the reversal of a recorded sales tax liability management determined in the fourth quarter 2011 is no longer due.
GAAP 2011 2010 Net Loss $ (1,640,000) $ (2,969,000) Depreciation + Amortization $ 540,000 $ 449,000 Net cash out for fixed assets capitalized or sold $ (71,000) $ (15,000) Stock, stock options and warrants expense $ 2,216,000 $ 2,286,000 Amortization of discount on debentures $ 28,000 $ 108,000 Loss (gain) on market price change of stock warrants issued $ (732,000) $ 140,000 Loss (gain) on bad debts recovered or liabilities written off $ (174,000) $ 20,000 Debt service payments $ (496,000) $ (464,000) “Adjusted cash loss –(Non-GAAP)” $ (329,000) $ (445,000)