• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

CVF Technologies Corporation Reports Profit of $223,700 for the First Six Months 2005

Posted on: Monday, 15 August 2005, 18:00 CDT

WILLIAMSVILLE, N.Y., Aug. 15 /PRNewswire-FirstCall/ -- CVF Technologies Corporation (BULLETIN BOARD: CNVT) today reported a profit for the first six months 2005. Net income of $223,700 or $0.02 income per share, was reported for the first six months of 2005 compared to a net loss of $435,900 or ($0.04) loss per share, for the first six months 2004. The profitability of CVF during the period was due primarily to the sale of some of its holdings in Biorem. CVF's business model generates profitability as its holdings increase in value and CVF decides to realize on some of its profits. Also, as its holdings become more profitable CVF may receive income through dividend payments.

When CVF no longer consolidates a key holding such as Biorem, then the revenue growth of CVF will no longer be evident in its consolidated figures, but can be found in the footnotes to its financials and its 10-QSB.

Net loss of $175,000 or ($0.01) loss per share, was reported for the second quarter of 2005 compared to a net loss of $682,300 or ($0.06) loss per share for the second quarter of 2004.

Since CVF no longer consolidates Biorem's and SRE's revenue, CVF's revenue for the six months ended June 30, 2005 was $248,000 compared to revenues of $4,661,600 for the prior year's period.

As a result of Biorem going public on January 21, 2005 CVF's 30% ownership position in Biorem is valued at approximately $8.1 million (US) or $0.58 value per CVF common share, as of August 12, 2005. CVF can best be valued by looking at growth prospects for its portfolio companies and the resultant increase in the value of its holdings, as has been demonstrated with Biorem. CVF is examining a number of options as to how it can pass this increased value on to its shareholders as it is not currently being reflected in its share price. CVF's recent 2% decrease in its Biorem share ownership is due primarily to the issuance by Biorem of new treasury stock related to its acquisition of Biocube.

RECENT ACHIEVEMENTS OF PORTFOLIO COMPANIES

Biorem -- (30% owned by CVF) Biorem's revenue for the six months ended June 30, 2005 was $4,205,300 (Cdn) with a net profit of $240,000 (Cdn). Record new orders of $5,500,000 (Cdn) were booked for the second quarter 2005 increasing Biorem's backlog to $10,600,000 (Cdn), 71% higher than last year. These record bookings and increased backlog numbers are indicative of Biorem's excellent growth prospects in the coming months as these bookings and backlogs become recognized as revenue.

On July 1, 2005 Biorem purchased the business and assets of Biocube LLC, Victor, NY through a new wholly owned US subsidiary, BIOREM Environmental Inc. Biocube manufactures a unique line of modular biofilters for odor control in the small to intermediate airflow range and has more than 300 systems installed worldwide. Biocube sales during the calendar year ended 2004 were $3,000,000.

Ecoval Corp -- (85% owned by CVF) Ecoval's licensing agreement with Scotts is continuing to develop as Ecoval's herbicide is now available in every major chain in Canada, including both Walmart & Home Depot, for the first time. Ecoval received its first royalty payment from Scotts during the last 30 days. Ecoval is also negotiating with other distributors for the professional and governmental markets in the US and Canada.

What is particularly relevant for Ecoval is the trend of municipalities in Canada and the U.S. banning the use of chemical pesticides, while exempting Ecoval's natural products. We expect this trend to manifest in a significant increase in Ecoval's sales for 2006 and beyond. An example of this trend is the use of Ecoval's herbicide for the landscaping around Canada's National Parliament in Ottawa.

Gemprint(TM) -- (65% owned by CVF) Gemprint is continuing to work on the implementation of its distribution agreement with The Laksmi Group in India (one of the largest wholesalers and manufacturers of diamond jewelry products in India). Gemprint is also continuing to negotiate similar agreements with major North American diamond distributors.

Gemprint's identification technology may also benefit from Homeland Security regulations in the U.S. concerning the flow of illegal diamonds funding terrorist organizations as well as civil wars in Africa.

CVF Technologies Corporation is headquartered in Williamsville, New York. CVF is a technology development company, whose principal business is sourcing, funding and managing emerging pre-public technology companies with significant market potential. Founded in 1989, CVF's holdings include four private companies involved primarily in environmental products and services.

Certain statements made in this press release which are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve risks and uncertainties, which may cause actual results or achievements to be materially different from any future results and achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, product demand and market acceptance risks for the products and technologies of CVF's subsidiary companies and investees; the impact of competitive products, technologies and pricing; delays or difficulties in developing, producing, testing and selling new products and technologies; the ability of the company's subsidiaries and investees to obtain necessary financing for their operations and to consummate initial public offerings of their stock; the effect of the Company's accounting policies; the effect of trade restrictions and other risks detailed in the company's Statement on Form 10-SB/A filed with the U.S. Securities and Exchange Commission and any subsequent filings with the Commission.

For more information please contact: http://www.cvfcorp.com/

CVF Technologies Corporation

CONTACT: Robert L. Miller, Chief Financial Officer, or Jeffrey Dreben,President & CEO, both of CVF Technologies Corporation, +1-716-565-4711

Web site: http://www.cvfcorp.com/

Source: PRNewswire-FirstCall

More News in this Category