BETHEL, Conn., March 4 MedClean Technologies, Inc. (OTC Bulletin Board: MCLN) today announced financial results for the Company's year ended December 31, 2009.
Full Year Financial Results
The Company reported revenue of $2.5 million, an increase of 21.4% compared to $2.1 million for the year ended December 31, 2008. Gross profit for 2009 was $1.3 million, or 50.3% profit margin, compared to gross profit of $390,000, or 18.6% profit margin, in the prior-year period. The increase in gross margin represents a 170%, or 3,170 basis point improvement. Net loss for the full-year was $(5.4) million, or $(0.01) per share, compared to a net loss of $(7.8) million, or $(0.03) per share for the same period in 2008.
In addition, operations for the second half of 2009, July 1, 2009 through December 31, 2009, net of one-time severance fees $(200,000), one-time stock based finance fees related to the Socius financing transaction $(619,389) and legal/professional fees not related to operations $(33,000) resulted in earnings, excluding these non-recurring costs of $36,149. Cash used in operations averaged $288,000 per month for the first six months of 2009, while cash used in operations was reduced to an average of $30,000 per month for the second six months of 2009. The reduction in cash usage was a result of cash received from increased sales and improved margins coupled with strong expense management.
"During 2009, the company took measures to reduce non-essential operating expenses through staff reduction and the outsourcing of certain business functions," said David Laky, MedClean's President and Chief Executive Officer. "The net effect of the expense reduction programs and business restructuring began to take effect in the second half of 2009 as evidenced by our results. We have positioned MedClean to capitalize on the many opportunities available for growth in the more than $4 billion annual U.S. market for medical waste disposal and confidential document destruction. Our strategy resulted in revenue growth, higher gross margins, and improved operating results driven by effective operational management."
"We believe that as healthcare institutions increasingly look for ways to reduce costs and address environmental issues, MedClean will deliver solutions that meet these objectives," added Mr. Laky. "To enhance our ability to do so, the Company secured a $7.5 million capital commitment, which will allow us to accelerate our growth through direct sales and a focused distribution network of partners. We expect to become the leader in the onsite treatment and disposal of regulated medical waste and HIPAA document destruction. We believe that today we have a differentiated business model, experienced management team, ground breaking technology, balanced distribution channels and access to capital to achieve our objective of more than 100% compounded annual growth over the next five years while achieving 40% to 50% EBITDA. MedClean's differentiated business model, featuring capital purchase, lease, and rental solutions, is generating significant interest from both end-users and distribution partners, which has translated into significant potential sales activity and a pipeline with a strong recurring revenue component. We have also activated our new product development program, which will deliver a solution appropriate for some 200,000 targets in the underserved market segment of healthcare institutions and providers generating less than 100,000 pounds of medical waste annually. We are excited about the opportunities in 2010 and beyond as we believe that the Company has the right products, marketing strategy and management team to become a leader in the industry."
Fourth Quarter Financial Results:
The Company reported revenue of $219,000 for the fourth quarter of fiscal 2009, an increase of 53% compared to $143,000 for the fourth quarter last year. Gross profit for the fourth quarter of 2009 was $111,000, or 50.9% profit margin, compared to gross profit of $(259,000), or (181%) profit margin, in the prior-year period. Net loss for the fourth quarter was $(1,138,696), or $(0.00) per share, compared to a net loss of $(3.5) million, or $(0.01) per share for the same period in 2008.
"We are pleased with our accomplishments in 2009, a year of transformation that created the foundation for the company to leverage new capital to accelerate growth and exceed our objectives over the next five years," commented Mr. Laky.
Strengthened Business Model
Expansion into target markets
The Company has filed its Form 10-K for the period ended December 31, 2009 with the Securities and Exchange Commission, and investors are encouraged to visit www.sec.gov to review this document, which includes financial tables and additional detail for the year ended December 31, 2009.
About MedClean Technologies, Inc.
MedClean Technologies, Inc. is a provider of innovative technology and services for the onsite treatment and disposal of regulated medical waste and HIPAA document destruction. MedClean's flagship MedClean® Series systems are fully integrated, turnkey technology solutions that enable hospitals and other healthcare providers to safely, efficiently and cost-effectively convert bio-hazardous regulated medical waste into sterile, unrecognizable material suitable for disposal as municipal solid waste. MedClean was founded in 1997 with corporate headquarters, research and development and distribution facilities located in Bethel, Connecticut. Further information on MedClean can be found at http://www.medcleantechnologies.com and in filings with the Securities and Exchange Commission found at http://www.sec.gov.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," "potential" and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 3, 2010, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
-- Full-year revenue increased 21.4% to $2.5 million from $2.1 million last year -- Gross margin increased to 50.3% from 18.6% for FY 2008 -- Net loss for the year was $(5.4) million, or $(0.01) per share vs. a loss of $(7.8) million, or $(0.03) per share last year.
SOURCE MedClean Technologies, Inc.