ThermoEnergy Corporation Announces Second Quarter 2013 Results

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ThermoEnergy Corporation Announces Second Quarter 2013 Results

WORCESTER, Mass.--(BUSINESS WIRE)-- ThermoEnergy Corporation (TMEN:OTCBB), a diversified technologies company engaged in the development and sale of patented and/or proprietary wastewater treatment systems and the development of clean combustion technologies for power generation, today announced revenue of $1.08 million for the three-month period ended June 30, 2013.

Mr. James Wood, President and Chief Executive Officer of ThermoEnergy, commented, "The Company continues to accelerate its sales and marketing efforts in the unconventional oil and gas sector, as well as in ThermoEnergy's traditional industrial wastewater treatment markets. This concerted sales effort is resulting in growing recognition within both markets and increased interest in the Company's products."


"The Company's continued field pilots are producing positive results in a variety of different markets," said Mr. Wood. "A recently completed pilot test of the ThermoEnergy TurboFrac® produced water recycling system demonstrated its ability to economically reduce total dissolved solids (TDS) to a fraction of EPA recommended limits for secondary drinking water standards."

Operational and Financial Highlights:

  • Achieved $1.08M in revenues from the sale of industrial based projects.
  • Finalized the NYCDEP contract, resulting in a non-cash gain on contract termination of approximately $4.9 million.
  • Began fabrication and assembly of the UPA bench scale pilot.
  • Continued to increase the Company's presence in the unconventional oil and gas and glycol recycling markets.
  • Fully repaid the $785,000 Project Finance Credit Facility supporting the delivery of the ARP system to Indonesia.
  • Converted $3.7 million of the 8% Bridge Notes and $1.25 million of the 12.5% Convertible Promissory Notes, plus accrued interest, into shares of the Company's Series C Preferred Stock and Warrants.

Financial Results for the Three-Month Period Ended June 30, 2013

For the three-month period ended June 30, 2013 the Company recorded revenues of $1,080,000, compared to $1,900,000 in the second quarter of 2012. Unlike 2012, ongoing revenues are no longer derived from the Company's NYCDEP contract and are fully attributable to the sale and production of the Company's CAST®, RCAST® and ARP™ systems into industrial markets, as well as work performed under UPA's DOE contract to construct a bench scale unit to demonstrate Pressurized Oxy-Combustion (POXC®) using three domestic coals.

Gross profit for the second quarter of 2013 was $177,000. The gross profit was earned on the completion of an ARP system to the domestic metals industry, partially offset by unallocated overhead costs.

General and administrative expenses declined 61% in the second quarter of 2013 to $739,000 as compared to $1.89 million in the second quarter of 2012, further demonstrating the Company's cost reduction efforts.

Engineering costs increased $79,000 to $173,000 in the second quarter of 2013. The increase is similar to the first quarter of 2013 and is due to lower utilization of the Company's engineering team on projects during the period.

Sales and marketing expenses for the second quarter of 2013 was $444,000, a decrease of 50% compared to the second quarter of 2012. The Company has maintained lower consulting expenses as part of the Company's cost reduction efforts, and reduced unbillable pre-sale expenses in the second quarter of 2013.

The Company reported net income for the three-month period ended June 30, 2013 of $1.426 million ($0.01 per basic share), compared to a loss of $2.531 million ($0.03 per basic share) for the same period in 2012. Income was primarily derived by a non-cash gain of $4,878,000 related to final completion of its contract with the NYCDEP during the second quarter of 2013. This gain represents the amount by which project billings exceeded revenues at the time of termination by the customer.

Please see the Company's Form 10-Q filed with the SEC on August 14th for additional details.

About ThermoEnergy Corp.

Founded in 1988, ThermoEnergy is a diversified technologies company engaged in the worldwide development, sales and commercialization of patented and/or proprietary wastewater treatment and recovery systems. The Company has been a pioneer in the development of sustainable water treatment technologies that help customers operate more efficiently, save money, reduce their carbon footprints, and meet sustainability goals. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD LOOKING" STATEMENTS, USUALLY CONTAINING THE WORDS "ESTIMATE", "PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.

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For ThermoEnergy
Media Contact
Marc Bane, 978-443-2378
mbane@banemarketing.com
or
Investor Relations Contact
Chris Camarra, 212-398-3487
ccamarra@allianceadvisors.net

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:

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