Message #2 From:
NewsBot Date: August 14, 2006 09:48:00 AM
PWCL News PowerCold(R) Reports Financial Results for Three and Six Months Periods
SAN ANTONIO--(BUSINESS WIRE)--Aug. 14, 2006--PowerCold Corporation (OTCBB:PWCL) reported today revenue of $374,441 for the second quarter and $999,399 for the six months ended June 30, 2006. The Company reported gross profits of $148,060 or 39.5% of revenue for the second quarter and $368,672 or 36.9% of revenue for the six-month period. Second quarter deliveries were delayed because of material shortages and extended lead times from vendors. Current order backlog was reported at $685,000.00.
The Company expects continued new revenue growth from its proprietary products; PlexCoil(R) WDFC Fluid Coolers, Nauticon(R) Evaporative Condensers and Equipment Sales for its proprietary HVAC central system. The Company has continued to improve its manufacturing operations with an emphasis on cost reduction programs improving gross profit margins. PowerCold(R) restructured operations in January 2006 (News Release January 10, 2006) primarily to concentrate on developing, producing and marketing innovative plastic product technology for the HVAC industry that uses DuPont(TM) Caltrel(R) plastic tubing coils (News Release May 9, 2006).
Operating losses for the second quarter was ($713,548). The reported loss from operations included one-time costs of $207,000 for legal and accounting related to the discontinued operations of PowerCold Comfort Air Solutions. Other interest and finance expense of $314,268 included interest on the note payable and one-time costs for options and warrants. The continued high costs of financing expense, investment banking and consulting services kept losses from continued operations higher than expected. The company anticipates that quarterly operating expenses will be at a more tolerable level as the volume of revenue increases.
Total assets for the second quarter were $1,336,347 compared to $1,559,696 for the restructured year ending December 31, 2005. Total Current Liabilities decreased to $4,310,550 for the second quarter ended June 30, 2006 compared to $4,675,702 for the year ending December 31, 2005. Long-term liability for the convertible note payable was reduced to $918,648 from $1,418,648 for the year ending December 31, 2005.
Company management is actively working with investment bankers to raise sufficient capital to support the Company's short-term and long-term growth plans. Subsequently, the Company recently received short-term bridge funding prior to its long-term funding program.
PowerCold Corporation designs, develops and markets unique HVAC products and systems for commercial use. The Company derives its revenues from two principal product line applications. The first is a line of proprietary energy efficient products, including evaporative condensers, heat exchanger systems and fluid coolers for the HVAC and refrigeration industry. The second is a proprietary four pipe integrated central HVAC piping system for large commercial buildings that reduces power costs by up to 50% for air conditioning systems and provides a clean comfort air environment.
PowerCold(R), PlexCoil(R) and Nauticon(R) are registered trademarks of PowerCold Corporation.
DuPont(TM) and Caltrel(R) are trademarks of DuPont or its affiliates and are used under license by PowerCold Corporation.
Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including the inability to generate and secure the necessary product sale, or the lack of acceptance of the company's products by its customers. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.
