CHICAGO, IL reported its third quarter financial results for the
period ended September 30, 2007.
Revenue for the third quarter declined 11 percent to $2.2
million compared to the second quarter of 2007. While revenue was
28 percent lower in the 2007 third quarter period versus the
comparable period in 2006, operating results improved by 14 percent
or $92,588. During the third quarter the company posted a net loss
of $0.7 million, or $0.01 per share, compared to a net loss of $1.1
million, or $0.01 per share in the second quarter. The improvement
in results is due to significantly lower interest expense.
"For the second consecutive year hurricane activity was absent
in the state of Florida," said Terry Kiefer, president and CEO of
National Storm Management. "Also, the production levels in the
Midwest were not sufficient to support our overhead structure.
Accordingly, we have consolidated offices and personnel throughout
the organization. We will use the upcoming winter months to
complete our second response to the SEC's inquiries regarding our
form SB-2, and we will continue to pursue OTC Bulletin Board
trading status," said Kiefer. "Longer term we are prepared to open
two new offices in the spring as the new storm season begins."
About National Storm Management, Inc.
National Storm Management (PINKSHEETS: NSMG) is a national
construction company headquartered in Glen Ellyn, Illinois
providing storm restoration services in seven states. Its operating
affiliates include: ABC Exteriors (Illinois, Indiana and Kentucky);
Pinnacle Roofing (Florida and Louisiana); WRS, Inc. (Minnesota);
and First Class Roofing and Siding (Ohio). The company and its
affiliates are recognized by all major insurance companies such as
State Farm, Allstate, Farmers and others for storm related claims.
The company is a member of the National Roofing Contractors
Association (NRCA) and the Better Business Bureau. More information
is available at www.nationalstorm.com.
Forward-Looking Statements
Certain statements included in this press release may constitute
forward-looking statements. These forward-looking statements relate
to, among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, financial performance, plans to update a
registration statement with the SEC, and other expectations,
intentions and plans contained in this press release that are not
historical fact and involve risks and uncertainties. Our
expectations regarding future revenues depend upon our ability to
develop and supply products and services that meet defined
specifications. When used in this press release, the words "plan,"
"expect," "believe," and similar expressions generally identify
forward-looking statements. These statements reflect our current
expectations, but actual results could differ materially as a
result of many factors, including, but not limited to, severe
weather conditions and the physical damage caused by hail storms
and hurricanes, fluctuations in interest rates and the resulting
impact on financing costs, general economic developments in the
states where we do business, availability of labor, materials and
supplies, our ability to execute our future growth plans and our
ability to timely and accurately prepare quarterly and annual
financial statements. Forward-looking statements are made as of
this press release and we do not undertake any obligation to
provide updates to such statements except where required to so by
law.
National Storm Management, Inc.
CONSOLIDATED BALANCE SHEET
September 30, 2007
Unaudited Unaudited
----------- -----------
2007 2006
September September
30, 30,
----------- -----------
ASSETS
Current assets:
Cash $ 21,894 $ 243,888
Accounts receivable (less respective
allowances) 526,845 825,461
Inventories 36,011 133,777
Management & Salesman Advances 59,863 40,719
Cost in excess of billings 473,933 374,401
Prepaid Expenses 54,859 48,621
Other current assets 79,375 171,634
----------- -----------
Total current assets 1,252,781 1,838,501
Property, plant and equipment 510,955 470,780
Less: Accumulated depreciation and
amortization (326,810) (232,187)
----------- -----------
Property, plant and equipment - net 184,145 238,593
Goodwill - 5,000
Deferred tax asset - net of valuation allowance 1,082,011 848,727
Other 45,567 62,674
----------- -----------
Total assets $ 2,564,504 $ 2,993,495
=========== ===========
LIABILITIES AND STOCKHOLDER EQUITY
Current liabilities:
Current maturities of long-term debt $ 3,602,820 $ 2,060,908
Accounts payable - trade 1,192,289 1,175,923
Other current liabilities 442,121 50,679
Unearned income 768,249
Billings in excess of costs 18,867 609,892
----------- -----------
Total current liabilities 6,024,346 3,897,402
Non-current Liabilities:
Term loan, net of current portion 23,278 21,885
Other long-term obligations - 107,500
----------- -----------
Total long term debt 23,278 129,385
----------- -----------
Total liabilities 6,047,625 4,026,787
----------- -----------
Stockholders' Equity:
Common Stock, 111,865,470 issued and 104,365,470
outstanding at September 30, 2007; 66,692,194
issued and outstanding at September 30, 2006 $ 104,365 $ 66,692
Additional paid in capital 4,882,434 2,835,180
Accumulated Deficit (8,469,920) (3,935,164)
----------- -----------
Total Stockholders' Equity (3,483,121) (1,033,292)
----------- -----------
Total Liabilities and Stockholders'
Equity $ 2,564,504 $ 2,993,495
=========== ===========
* These financial statements and notes thereto present fairly, in all
material respects, the financial position of the company and the
results of its operations and cash flows for the periods presented, in
conformity with accounting principles generally accepted in the
United States, consistently applied and hereby certified by Terry Kiefer,
President for National Storm Management, Inc.
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
September 30, 2007
**UNAUDITED**
-------------------------- --------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
REVENUES:
Net trade sales $ 2,178,115 $ 3,011,186 $ 6,007,503 $ 7,505,748
------------ ------------ ------------ ------------
OPERATING COST AND
EXPENSES:
Cost of product
sold 1,266,233 2,078,709 3,438,522 4,580,143
Selling,
administrative,
and general 1,470,656 1,583,366 4,369,193 4,827,210
Depreciation and
amortization 25,036 25,509 66,828 78,178
------------ ------------ ------------ ------------
2,761,925 3,687,584 7,874,543 9,485,531
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
OPERATIONS (583,810) (676,398) (1,867,040) (1,979,783)
Interest expense (288,385) (20,435) (1,188,594) (71,463)
Other income (loss) 145,020 2,755 151,457 3,139
------------ ------------ ------------ ------------
Income (loss)
before income
taxes and
extraordinary gain (727,175) (694,078) (2,904,177) (2,048,107)
Provision (Benefit)
for income taxes 0 (75) 259,282
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (727,175) $ (694,153) $ (2,904,177) $ (1,788,825)
============ ============ ============ ============
Basic Earnings per
Share:
Weighted - average
shares $ (0.01) $ (0.02) $ (0.03) $ (0.03)
Net earnings (loss) $ (0.01) $ (0.01) $ (0.03) $ (0.02)
============ ============ ============ ============
* These financial statements and notes thereto present fairly, in all
material respects, the financial position of the company and the
results of its operations and cash flows for the periods presented, in
conformity with accounting principles generally accepted in the
United States, consistently applied and hereby certified by Terry Kiefer,
President for National Storm Management, Inc.
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
September 30, 2007
**UNAUDITED**
--------------------------
Nine Months Ended
September 30,
--------------------------
2007 2006
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (2,904,177) $ (1,788,825)
Adjustments to reconcile net income (loss) to
net cash provided by (used for) operating
activities:
Depreciation, and amortization 66,828 78,178
Discounted interest on Fife loan 1,038,970
Forfeiture of security deposits 988 40,309
Loss (Gain) on sale of capital equipment 4,649
Deferred tax benefit (261,000)
Stock and stock options issued for
professional fees 18,175
Changes in components of working capital:
(Increase) decrease in accounts
receivable - net 113,960 (160,477)
(Increase) decrease in inventories 18,779 31,299
(Increase) decrease in advances (17,737) 29,291
Increase (decrease) in cost in
uncompleted contracts (392,891) 620
(Increase) decrease in prepaid expenses (1,620)
(Increase) decrease in other current
assets (20,931) 5,082
Increase (decrease) in accounts payable (193,991) (478,766)
Increase (decrease) in unearned income 768,249
Increase (decrease) in billings in
uncompleted contracts (397,114)
Increase (decrease) in other current
liabilities 28,286 (25,575)
Other, net (21,419) -
------------ ------------
Net cash provided by (used for)
operating activities $ (1,913,820) $ (2,507,040)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ (13,467) $ (26,218)
Proceeds from dispositions of property,
plant and equipment - 12,750
Increase (decrease) in other long-term
liabilities - 107,500
Increase in security deposits - (5,980)
------------ ------------
Net cash provided by (used in)
investing activities $ (13,467) $ 88,052
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock $ 2,187,825 $ 1,692,099
Gain on disposition of convertible debt (140,355)
Repayment of term loan under foreclosure (2,002,870)
Repayment of supplier note payable (41,727) (57,367)
Repayment of installment note payable 2,997
Proceeds from Fife loan 1,900,000 1,000,000
Increase in term loan 325 (13,006)
------------ ------------
Net cash provided by (used in)
financing activities $ 1,906,195 $ 2,621,726
------------ ------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $ (21,091) $ 202,738
Cash and cash equivalents, beginning of period 42,985 41,150
------------ ------------
Cash and cash equivalents, end of period $ 21,894 $ 243,888
============ ============
Cash interest paid for the periods presented: $ 149,624 $ 71,463
============ ============
* These financial statements and notes thereto present fairly, in all
material respects, the financial position of the company and the
results of its operations and cash flows for the periods presented, in
conformity with accounting principles generally accepted in the
United States, consistently applied and hereby certified by Terry Kiefer,
President for National Storm Management, Inc.
National Storm Management, Inc.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
September 30, 2007
**UNAUDITED**
Common
Stock Additional
Par Paid in Retained Stockholders'
Shares Value Capital Earnings Equity
=========== ======= ========== =========== ===========
Balance, January 1,
2004 25,751,670 $25,752 $ (314,052) $ (288,300)
Net income 65,952 65,952
Dividends paid -
owners
discretionary
draw (247,915) (247,915)
Common stock
issued in
connections
with new
entities 8,248,330 8,248 (8,248) -
=========== ======= ========== =========== ===========
Balance,
December 31,
2004 34,000,000 $34,000 $ (504,263) $ (470,263)
Issuance of
stock options
for
professional
fees 6,800,000 6,800 746,200 753,000
Acquisition of
assets of
N.S.M. Inc 6,000,000 6,000 (1,000) - 5,000
Common stock
issued 2,313,903 2,314 397,284 - 399,598
Net income
(loss) (1,642,075) (1,642,075)
=========== ======= ========== =========== ===========
Balance,
December 31,
2005 49,113,903 $49,114 $1,142,484 $(2,146,338) $ (954,740)
Issuance of
stock options
for
professional
fees - - - - -
Common stock
issued 16,510,973 16,511 1,402,153 - 1,418,664
Net income
(loss) (1,094,672) (1,094,672)
=========== ======= ========== =========== ===========
Balance, June
30, 2006 65,624,876 $65,625 $2,544,637 $(3,241,010) $ (630,748)
Issuance of
stock options
for repayment
of debt 3,000,000 3,000 (3,000) - -
Proceeds from
sales of stock
on Fife loan 6,961 6,961
Common stock
issued 1,067,318 1,067 321,039 - 322,106
Net income
(loss) (2,324,733) (2,324,733)
=========== ======= ========== =========== ===========
Balance,
December 31,
2006 69,692,194 $69,692 $2,869,637 $(5,565,743) $(2,626,414)
Issuance of
stock options
for repayment
of debt 29,033,464 8,900 1,818,924 - 1,827,824
Net income
(loss) (2,177,002) (2,177,002)
Balance, June
30, 2007 98,725,658 $78,592 $4,688,561 $(7,742,745) $(2,975,592)
=========== ======= ========== =========== ===========
Issuance of
stock options
for repayment
of debt 4,000,000 4,000 215,645 - 219,645
Net income
(loss) (727,175) (727,175)
Balance,
September 30,
2007 102,725,658 $82,592 $4,904,206 $(8,469,920) $(3,483,122)
=========== ======= ========== =========== ===========
* These financial statements and notes thereto present fairly, in all
material respects, the financial position of the company and the
results of its operations and cash flows for the periods presented, in
conformity with accounting principles generally accepted in the
United States, consistently applied and hereby certified by Terry Kiefer,
President for National Storm Management, Inc.
For Investor Inquiries: Scott Knoll 630-469-7663
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