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N-Viro International Corp. Reports Profits on Increased Revenues for the First Quarter 2009

Posted on: Thursday, 14 May 2009, 15:29 CDT

Revenues Increased 16% Over First Quarter 2008

Gross Profits up 69% Over Same Quarter in 2008

Reports Profit for First Quarter Versus Loss in 2008

TOLEDO, Ohio, May 14 /PRNewswire-FirstCall/ -- N-Viro International Corporation (OTC Bulletin Board: NVIC), an environmental and materials operating company that owns patented technologies to convert various types of wastes into beneficial reuse products, including the renewable biofuel N-Viro Fuel(TM) and N-Viro Soil(TM) reports revenues increased 16% for the quarter ended March 31,2008. Wet tons of biosolids processed in the first quarter increased 37% to 26,500 compared with 19,300 tons in 2008.

Financial highlights for the quarter include:

• Revenues for the first quarter 2009 increased 16% to $1.4 million compared with $1.2 million in the year-ago quarter;
• Gross profit increased 69% to $391,000 in 2009 versus $231,000 in first quarter 2008, an increase of $160,000;
• Gross profit margins increased to 29% for the quarter compared with 19.8% for the quarter one year ago;
• Operating expenses decreased 10% to $357,000 as compared to $395,000 during the first quarter of 2008;
• Net income rose to $20,000, or $0.00 per share for the quarter on a fully diluted basis compared with a net loss of $93,000, or $0.02 per share for the same period in 2008;

Timothy Kasmoch, President and CEO of N-Viro said, "The improved first quarter financial performance is the result of the efforts we commenced in 2006 to revitalize and execute our business plan to make N-Viro International a fully-integrated operations company. We have made significant gains in both the manufacturing and marketing of our products. While our margins improved substantially during the quarter we continue to seek ways in which we can further improve them in the upcoming year. We believe that we are well-positioned for future growth, and we believe we can continue our profitability with our current operations and business plan."

"Over the last several years we have demonstrated to our expanding customer base that N-Viro's products, which include N-Viro Soil and N-Viro Fuel, can be used in diverse businesses. Customers are currently using N-Viro Soil for agriculture applications such as soybean, sod, hay, citrus, fruit and corn."

Mr. Kasmoch added, "In January 2009, N-Viro Fuel received alternate energy status from the U.S. Environmental Protection Agency, which we expect will make N-Viro Fuel a more appealing solution for both municipalities as well as private sector customers. Attaining this status has opened the door to discussions with a number of potential customers in both the public and private sectors. For example, we are in preliminary discussions with several companies involved in power generation to commercialize our patented N-Viro Fuel technology.

"We are focusing on our 'green' technologies that we believe are at the forefront of today's environmental-conscious power production market. The Energy Information Administration (EIA) forecast a 14.1% increase in renewable energy usage by 2030. Currently, only 8.5% of the energy utilized in the US comes from renewable sources. We believe that this percentage could grow significantly in light of the current administration's renewable energy agenda supporting renewable alternatives for the generation of electricity. We believe that N-Viro is positioned to play an important part in this important initiative."

"Further, as announced at the end of the first quarter, we recently entered into a five year extension of our lease for our Volusia County facility, from which we currently serve 12 municipalities in Florida. This facility produces our N-Viro Soil class AA product that is used as a beneficial soil amendment, and we are optimistic about increasing our product distribution in the surrounding area. We anticipate increasing the capacity of this facility by expanding the size as well as adding at least one additional shift. In the first quarter of 2009, this facility produced 40,300 tons of N-Viro Soil, an increase in tonnage output of 253% over the first quarter of 2008," he noted.

Mr. Kasmoch continued, "Our Toledo plant continues to process a majority of the city's biosolids and we sell the product to a number of customers in the agriculture business. Because of the large demand for our product, during the first quarter of 2009 we produced N-Viro Soil at a rate of 70,000 tons a year, but we believe that demand is well in excess of that amount."

"We believe that we are well-positioned to benefit from increased demand as we pursue development of regional biosolids processing facilities. Site selection is currently under way as the Company moves forward with project development. N-Viro expects to begin permitting in the coming months. Our profitable first quarter coupled with our potential new business and partnerships, makes us very excited about our company's future."

About N-Viro International (www.nviro.com)

N-Viro International is an environmental and materials operating company that owns patented technologies to convert various types of waste into beneficial alternative fuel products, including the renewable biofuel N-Viro Fuel(TM) and the N-Viro Soil(TM). Its renewable biofuel technology, N-Viro Fuel(TM), has received alternative energy status from the U.S. Environmental Protection Agency, which qualifies the technology for renewable energy incentives. N-Viro International operates processing facilities independently as well as in partnership with municipalities.

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as "expects," "anticipates," "believes" and "may," as well as similar words and expressions used herein, identify and refer to statements describing events that may or may not occur in the future. These forward-looking statements and the matters to which they refer are subject to considerable uncertainty that may cause actual results to be materially different from those described herein. For example, the ability of the Company to generate additional revenues from its N-Viro Soil product, depends on its ability to obtain additional sludge for processing and the continued demand by customers for such product. Such demand may not materialize or may diminish due to general economic conditions and other reasons. Our ability to develop our N-Viro Fuel projects is dependent upon various factors, including obtaining required approvals by third parties, market acceptance of N-Viro Fuel products, including by strategic partners such as power generators, and our ability to obtain project financing, which may be adversely effected by current conditions in the financial markets. Further, while the Company believes that trends in sludge are favorable to the Company's technology, such trends may not continue or may not result in expected increases in sales or profits to the Company because of the availability of competing processes. Additional factors that may cause our expenses to differ from the Company's expectations include, fuel and transportation costs, labor costs and costs relating to the treatment and processing of the biosolids. All of these factors, and other factors, will affect the profitability of our current operations and the development, construction and operation of new facilities utilizing the Company's technologies. Additional information about these and other factors that may adversely affect these forward-looking statements are contained in the Company's reports, including its Annual Report on Form 10-K for the year ended December 31, 2008, and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.

N-VIRO INTERNATIONAL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Periods Ended March 31 Three Months Ended 2009 2008 ---- ---- Revenues $1,350,613 $1,164,046 Cost of Revenues 959,530 933,347 ------- ------- Gross Profit 391,083 230,699 Operating Expenses Selling, general and administrative 357,094 395,393 ------- ------- Operating Income (Loss) 33,989 (164,694) Other Income (Expense) Interest income 480 1,020 Interest expense (14,325) (13,446) Gain on legal debt forgiven - 84,158 ------ ------ (13,845) 71,732 ------- ------ Income (Loss) Before Income Taxes 20,144 (92,962) Federal and state income taxes - - ------ ------ Net Income (Loss) $20,144 $(92,962) ======= ======== Basic and diluted income (loss) per share $0.00 $(0.02) ===== ====== Weighted average common shares outstanding - basic and diluted 4,467,391 4,127,191 ========= ========= Contact: Porter, LeVay & Rose, Inc. 212-564-4700

SOURCE N-Viro International Corp.

Source: PR Newswire

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