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INSEQ Announces Third Quarter Results; Company Posts Profit and Projects Continued Profitability Moving Forward
MOUNT ARLINGTON, N.J.--(BUSINESS WIRE)--Nov. 15, 2005--INSEQ Corporation ("INSEQ") (OTC Bulletin Board: INSQ) announced today its financial results for the quarter ended September 30, 2005.
INSEQ realized net income of about $40,000 on revenues of about $1,311,000 for the quarter ended September 30, 2005, and a net loss of about $1,310,000 on revenues of about $1,626,000 for the nine months ended September 30, 2005.
All of the revenue generated during the third quarter and nearly all of the revenue generated during nine months ended September 30, 2005, related to the operations of INSEQ's recently acquired Warnecke Design Service, Inc. ("WDS"). The Company's results of operations for the nine months ended September 30, 2005 included the impact of only four months of operating activity for this new acquisition as well as significant non-recurring expenses that were attributable to the Company's former development stage activities.
The following pro forma results for the nine months ended September 30, 2005 illustrate the impact of the acquisition of WDS as if it were completed on January 1, 2005:
Warnecke Design INSEQ Corporation
Service, Inc. Consolidated
--------------- -----------------
Net Sales $ 3,904,865 $ 3,906,195
Net Income 436,724 (1,068,880)
"We were pleased with WDS' performance during the third quarter as this acquisition essentially gets INSEQ to its break-even mark while priming us for our intended growth," said Kevin Kreisler, chairman of INSEQ. "This is critical to INSEQ as it begins to layer on additional sales and acquisitions and execute on its primary current strategic initiatives."
Pending Acquisitions
Key among INSEQ's disclosed plans for the balance of its fiscal year include the completion of its pending acquisitions of Independent Metal Sales, Inc., and an Ohio-based Specialty Metal Manufacturer. These two acquisitions are expected to bring INSEQ another $17 million in revenue and better than $1.7 million in EBITDA. INSEQ is also targeting consumer appliance distributors for acquisition as it gears up to commence manufacturing and distribution of Ovation Product Corporation's proprietary new water purification appliance.
"The Ovation Purifier is a remarkable new residential scale water purification appliance that we intend to include among our initial array of innovative green products designed to make it easier for consumers and businesses to use natural resources more effectively," added Kreisler, who is also the chairman and chief executive officer of GreenShift Corporation, the majority shareholder of INSEQ. "The WDS acquisition was very strategic to our goals here because of their advanced prototyping and manufacturing capabilities and we expect to rely heavily on WDS for our manufacturing needs moving into 2006."
Manufacturing Contracts
While WDS continues to provide substantial equipment manufacturing services to its clients, including Philips, Honda and Hisan, INSEQ recently executed manufacturing agreements with GreenShift Industrial Design Corporation, Ethanol Oil Recovery Systems, LLC, Mean Green BioFuels Corporation, Ovation Products Corporation, and Tornado Trash Corporation - all of whom are GreenShift portfolio companies.
Kreisler continued: "Many of GreenShift's portfolio companies need speciality manufacturing services in order to cost-effectively deploy their respective technologies. WDS' existing manufacturing base provides each company a leg-up in their respective models and should enhance their economies of scale by enabling them to cost-effectively produce and move more product sooner while driving significant new sales into INSEQ."
Distribution Activities
In addition to INSEQ's plans to distribute innovative green products, INSEQ intends to enhance the distribution of natural resources through its acquired distribution capabilities and its various online distribution platforms.
Kreisler said: "INSEQ's new commodities trading platform remains an integral component of INSEQ's development plans and we continue to expect a 2005 launch. The new INSEQ store will hold exclusive rights to distribute GreenShift's initial array of consumer-driven waste reduction and recycling appliances, including appliances based on GreenShift's Tornado Generator(TM) and Ovation Purifier technologies. The INSEQ trading platform will also be used to enhance the distribution efforts of our various acquisitions and to ultimately make a market in key high-volume liquid subsets of green commodities, including certain metals, chemicals, fuels, plastics, and renewable energy."
Business Outlook
"Much of INSEQ's efforts this year have been about consolidation of resources and, while that process continues, I believe INSEQ is only just starting to prove out its business model," concluded Kreisler. "In that regard, INSEQ expects continued and enhanced profitability moving forward as it executes on its ongoing acquisition, manufacturing and distribution plans."
Additional Information
Please refer to the financial statements included in INSEQ's Quarterly Report for the third quarter ended September 30, 2005, on Form 10QSB, filed yesterday, for a more complete description of INSEQ's results of operations for the quarter ended September 30, 2005.
About INSEQ Corporation
INSEQ Corporation is a publicly traded company whose mission is to directly facilitate the efficient utilization of primary and secondary commodities including metals, chemicals, fuels and plastics. More information on INSEQ is available online at www.inseq.com.
INSEQ is 70% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of INSEQ Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
CONTACT: INSEQ Corporation
Jim Grainer, 973-398-8183
Fax: 973-398-8037
investorrelations@inseq.comwww.inseq.com
SOURCE: INSEQ Corporation
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