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American Environmental Partners Announces Third Quarter 2023 Financial Results

Continues Progress on Streamlining Operations to Focus on Core Environmental Services Business

CANONSBURG, PA – (NewMediaWire) – November 30, 2023 – American Environmental Partners, Inc. (“American Environmental,” “AEPT” or “the Company”) (PINK: AEPT), a mission critical Environmental Services company focused on remediation and processing solutions for infrastructure and industrial companies, today announced its financial results for the third quarter ended Sept. 30, 2023.

 

Third Quarter 2023 Financial Results

 

Total revenue decreased 21% to $6.7 million from $8.5 million from the year-ago period, primarily due to discontinued unprofitable services in the Apex industrial business lines.

 

General and administrative (“G&A”) expenses were $6.5 million, down 8% from $7.1 million, compared to the three months ended Sept. 30, 2022. The decrease in G&A expenses was primarily due to the discontinuation of services at Apex, partially offset by higher salaries and wages, payroll taxes and employee benefits.

 

Interest expense was $0.6 million in the third quarter of 2023 versus $0.08 million in the third quarter of 2022, primarily due to the rising cost of capital.

 

Loss from operations was $0.24 million. Net loss was $2.0 million, or $0.00 per share.

 

As of Sept. 30, 2023, current assets were $14.2 million, including cash on hand of $0.5 million. Total debt outstanding was $8.1 million.

 

Management Commentary

 

“These are exciting times for American Environmental Partners,” said Brad Domitrovitsch, Chairman and Chief Executive Officer of American Environmental Partners. “We recently rebranded our company as American Environmental Partners to better reflect the services we provide to our customers and to further our strategy to expand our environmental services platform. Additionally, on October 23, we announced our plans to reverse merge into SCWorx Corp., a publicly traded company listed on NASDAQ under ticker symbol: WORX. We expect the transaction to close by the end of the first quarter of 2024.

 

“The environmental services market is highly fragmented with many attractive acquisition targets and growing demand driven by a compelling regulatory environment, both of which are contributing to our opportunities to grow. Gaining access to the public capital markets via the Nasdaq Stock Market should allow us to capitalize on the huge opportunity we see in our market today.

 

“We believe to be well positioned for sustained growth given our strong market presence in Pennsylvania, Ohio, West Virginia and New York. Tighter environmental regulations at the federal, state and local levels and growing interest in sustainability are driving demand for our environmental services. Furthermore, AEPT meets significant regulatory standards for permitting, which has created high barriers to entry for new market participants.

 

“Looking to the future, we remain focused on executing our strategy by integrating recent acquisitions and streamlining our business to concentrate exclusively on environmental solutions, which deliver high levels of recurring revenues while reducing costs to deliver sustained profitable growth.”

 

About American Environmental Partners, Inc.

American Environmental Partners, Inc. (PINK: AEPT) provides mission critical environmental solutions to the energy and infrastructure sectors primarily in Pennsylvania, Ohio, West Virginia, and New York. Our services include remediation and processing solutions for infrastructure and industrial companies. We create shareholder value through the acquisition and growth of environmental services businesses.

 

For additional information, visit: American Environmental Partners, Inc.

 

Safe Harbor

 

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. AEPT cautions readers not to place undue reliance on such statements. AEPT does not undertake, and AEPT specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from AEPT’s expectations and estimates.

 

Company Contact:

Julie Kegley

John Wilfong

Financial Profiles, Inc.

[email protected]

 

American Energy Partners, Inc., and Subsidiaries

Consolidated Balance Sheets

 

September 30, 2023

 

December 31, 2022

Current Assets

 

 

 

Cash

$

510,220

 

 

$

651,194

 

Accounts receivable – Environmental services

 

4,498,217

 

 

 

5,459,330

 

Accounts receivable – Other

 

 

 

 

423,464

 

Inventory

 

82,496

 

 

 

82,496

 

Prepaids and other

 

(1,896,187

)

 

 

48,138

 

Total Current Assets

 

3,194,746

 

 

 

6,664,622

 

Operating lease – right-of-use asset

 

1,609,545

 

 

 

1,609,545

 

Property and equipment – net

 

2,460,577

 

 

 

2,919,562

 

Goodwill

 

6,936,331

 

 

 

6,945,653

 

Other Assets

 

111,838

 

 

 

12,331

 

Total Assets

$

14,313,037

 

 

$

18,151,713

 

 

 

 

 

Current Liabilities

 

 

 

Accounts payable and accrued expenses

$

6,331,639

 

 

$

4,898,180

 

Notes payable

 

2,650,665

 

 

 

3,981,061

 

Operating lease liability

 

848,075

 

 

 

848,075

 

Other Current Liabilities

 

 

 

 

(3,379

)

Total Current Liabilities

 

9,830,379

 

 

 

9,723,937

 

Long Term Liabilities

 

 

 

Notes payable

 

3,740,791

 

 

 

5,216,036

 

Operating lease liability

 

822,490

 

 

 

822,490

 

Total Long-Term Liabilities

 

4,563,281

 

 

 

6,038,526

 

Total Liabilities

 

14,393,660

 

 

 

15,762,463

 

Stockholders’ Equity

 

 

 

Common stock, Class A, $0.001 par value, 1,500,000,000 shares authorized

 

377,288

 

 

 

243,228

 

377,288,277 and 243,228,277 shares issued and outstanding, respectively

 

Additional paid-in capital

 

72,412,252

 

 

 

60,964,413

 

Accumulated deficit

 

(72,870,163

)

 

 

(58,818,391

)

Total Stockholders’ Equity

 

(80,623

)

 

 

2,389,250

 

Total Liabilities and Stockholders’ Equity

$

14,313,037

 

 

$

18,151,713

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements

American Energy Partners, Inc., and Subsidiaries

Consolidated Statement of Operations

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues

 

 

 

 

 

 

 

Oil and natural gas

$

 

 

$

972,364

 



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American Environmental Partners Announces Third Quarter 2023 Financial Results

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