MEDCLEAN TECHNOLOGIES ANNOUNCES POSITIVE CASH FLOW FROM

 

OPERATIONS FOR THIRD QUARTER

 

Third Quarter Revenue Increases 108% Year-Over-Year

 

BETHEL, CT, November 10, 2009 /PRNewswire — MedClean Technologies, Inc. (OTC BB: MCLN) today announced financial results for the Company’s third quarter, the period ended September 30, 2009.

 

Financial Results

 

For the third quarter, the Company reported revenue of $1.6 million, an increase of 108% compared to $749,000 for the third quarter last year. Gross profit for the quarter was $914,000, or 59% profit margin, compared to gross profit of $267,000, or 36% profit margin, in the third quarter last year. Total operating expenses for the quarter were $572,000, down 58% compared to $1.4 million, in the third quarter last year. The Company reported $343,000 in operating income, compared to a loss from operations of $1.1 million last year. Net income for the quarter was $340,000, or $0.00 in income per share (based on 561,542,968 shares outstanding), compared to a net loss of $1.3 million, or $0.00 in loss per share (based on 336,645,470 shares outstanding), for the third quarter last year.

 

The Company generated $364,000 in EBITDA compared to negative EBITDA of $1.0 million in the third quarter last year.

 

Scott Grisanti, the Company’s President and Chief Executive Officer, commented, “MedClean is making progress in its effort to increase awareness and further penetration of its flagship MedClean® Series On-Demand system for cost-effective and environmentally conscious onsite treatment and disposal of regulated medical waste and HIPAA-compliant destruction of confidential documents. This progress is evident by the year-over-year and sequential growth in our revenue. In addition, our efforts to reduce expenses have enabled the Company to generate cash in the quarter. I wish to thank the entire MedClean team for its loyalty and dedication. While we are encouraged with the progress we have made, it is clear the Company requires additional capital to accelerate its growth and extend the MedClean product family to serve small quantity medical waste generators. Management and the board continue to explore strategic opportunities to expand the company’s footprint while pursuing additional capital to further advance its business model.”

 

For the first nine months of 2009, the Company generated revenue of $2.3 million, an increase of 19% compared to the $2.0 million for the first nine months of 2008 and $2.1 million for all of 2008. Gross profit year-to-date was $1.2 million, or 51% profit margin, compared to gross profit of $663,000, or 34% profit margin for the first nine months last year. Total operating expenses year-to-date were $4.5 million, up 41% compared to $3.2 million in the first nine months of last year. The Company reported a $3.3 million operating loss, compared to a loss from operations of $2.5 million last year. Net loss for the first nine months of 2009 was $4.2 million, or $0.01 loss per share (based on 561,542,968 million shares outstanding), compared to a net loss of $4.4 million, or $0.03 loss per share (based on 127,553,445 shares outstanding), for the first nine months last year.

 

The Company provides equity based payments to officers, employees and consultants as compensation. The net loss of $4.2 million was impacted by non-cash equity based compensation recorded as a charge against operations of $3.3 million. Without the charge, our loss for the nine months ended September 30, 2009 would have been $899,000 compared to a $2.7 million loss for the same period last year after comparative adjustments. This represents an overall operating improvement of $1.8 million or 66%.

 

Management Restructuring

 

Subsequent to the quarter, and effective November 10, 2009, the Company announced a restructuring of its senior management team. David J. Laky will be promoted to President and Chief Executive Officer. Previously, Mr. Laky was the Company’s Senior Vice President of Client Services and Technology. Mr. Laky joined MedClean from eResearchTechnology, Inc. where he was General Manager and Vice President of eClinical Group.

 

Simultaneously, Scott Grisanti will transition from President and CEO to Chairman of the Board of Directors. Joseph Esposito, MedClean’s current Chairman, will remain on the board as a director and continue to serve as a consultant to the Company.

 

Mr. Grisanti continued, “We believe this planned succession will best enable MedClean to achieve its near-term and long-term goals. Dave has demonstrated the leadership qualities and the industry expertise necessary to drive MedClean’s growth. His broad based experience managing technology and services functions with full profit and loss responsibility in larger organizations will prove invaluable as we focus on accelerating sales, generating profits, and increasing cash flow. ”

 

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. 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," 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, 2008, filed with the SEC on March 24, 2009, 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.

 

Contact:

 

Cameron Donahue

Hayden IR

(651) 653-1854

 

MEDCLEAN TECHNOLOGIES, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

September 30,

December 31,

 

 

 

2009

 

 

 

2008

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash

$

249,225

 

$

1,922,401

Accounts receivable, net of $15,589 and $23,081 allowance as of

 

 

 

 

 

 

 

September 30, 2009 and December 31, 2008, respectively

 

 

265,809

 

 

 

176,284

Revenues in excess of billings

 

 

7,679

 

 

 

7,679

Inventory

 

 

838,538

 

 

 

886,351

Prepaid expenses

 

 

42,717

 

 

24,925

Total current assets:

 

 

1,403,968

 

 

 

3,017,640

Property, plant and equipment, net

 

 

243,455

 

 

 

285,304

Other assets

 

 

 

 

 

 

 

Deposits

 

 

38,260

 

 

38,260

Total assets

$

1,685,683

 

 

 

3,341,204

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

$

241,882

 

$

653,785

Payroll liabilities

 

 

244,381

 

 

 

390,857

Deferred revenue

 

 

230,648

 

 

 

136,691

Customer deposits

 

 

87,520

 

 

 

386,428

Billings in excess of revenue

 

 

618,673

 

 

620,639

Notes payable

 

 

211,722

 

 

 

202,947

Total current liabilities:

 

 

1,634,826

 

 

 

2,391,347

Stockholders' equity

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 3,500,000,000 shares

 

 

 

 

 

 

 

authorized; 561,542,968 shares issued and outstanding as of

 

 

 

 

 

 

 

September 30, 2009 and December 31, 2008

 

 

56,154

 

 

 

56,154

Additional paid in capital

 

 

24,302,081

 

 

 

20,988,502

Accumulated deficit

 

 

(24,307,378)

 

 

 

(20,094,799)

Total stockholders' equity:

 

 

50,857

 

 

 

949,857

Total liabilities and stockholders' equity

 

$

1,685,683

 

$

3,341,204

 

 

 

MEDCLEAN TECHNOLOGIES, INC.

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  September 30,

Nine months ended September 30,

 

Revenues

 

 

2009

 

 

 

2008

 

 

 

 

2009

 

 

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenues earned

$

1,229,361

 

$

571,243

$

1,229,361

 

$

1,425,466

 

Sales and service revenues

 

 

326,931

 

 

177,515

 

 

 

1,099,113

 

 

 

529,273

 

Total revenues

 

 

1,556,292

 

 

 

748,758

 

 

 

2,328,474

 

 

1,954,739

 

Cost of sales

 

 

642,043

 

 

482,239

 

 

 

1,141,080

 

 

1,291,321

 

Gross profit

 

 

914,249

 

 

266,519

 

 

 

1,187,394

 

 

 

663,418

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

250,768

 

 

339,227

 

 

 

3,314,347

 

 

 

1,029,217

 

General and administrative expenses

 

 

299,811

 

 

 

1,015,049

 

 

 

1,121,347

 

 

 

2,098,740

 

Depreciation

 

 

20,998

 

 

 

19,585

 

 

 

 

65,157

 

 

 

63,900

 

Total operating expenses

 

 

571,577

 

 

1,373,861

 

 

 

 

4,500,851

 

 

3,191,857

 

Income (loss) from operations

 

 

342,672

 

 

(1,107,342)

 

 

 

 

(3,313,457)

 

 

(2,528,439)

 

Other income and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

-

 

 

 

40,290

 

 

 

 

944

 

 

 

40,904

 

Interest expense

 

 

(3,366)

 

 

(253,324)

 

 

 

 

(900,066)

 

 

 

(1,867,256)

 

Net Income (loss) before income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

taxes

 

 

339,306

 

 

(1,320,376)

 

 

 

 

(4,212,579)

 

 

(4,354,791)

 

Provision for income taxes (benefit)

 

 

-

 

 

-

 

 

 

 

-

 

 

 

-

 

Net income (loss)

$

339,306

$

(1,320,376)

 

$

(4,212,579)

 

 

$

(4,354,791)

 

Income (loss) per common share,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

basic

$

0.00

 

$

(0.00)

 

$

(0.01)

 

 

$

(0.03)

 

Income (loss) per common share,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

fully diluted

$

0.00

$

(0.00)

 

$

(0.01)

 

 

$

(0.03)

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

outstanding, basic

 

 

561,542,968

 

 

336,645,470

 

 

 

561,542,968

 

 

127,553,445

 

Weighted average common shares

 

 

 

 

 

 

336,645,470

 

 

 

561,542,968

 

 

127,553,445

 

outstanding, fully diluted

 

 

561,542,968