SELLERSVILLE, Pa., April 2, 2007 (PRIME NEWSWIRE) -- Delta Mutual, Inc. (OTCBB:DLTM) specializing in energy recovery and construction services through environmentally-friendly technologies and products announces annual results for its fiscal year ended December 31, 2006.
Results from Operations
Revenue for the year was $279,870 compared to $20,000 in 2005. A net loss of $2,542,265 approximated the prior year's loss of $2,580,210. The loss per share was $0.05 compared to $0.10 for 2005. The weighted average number of shares outstanding at the end of the year was 48.4 million, compared to 25.1 million in 2005. For additional details, please refer to our SEC 10-KSB filing.
Revenue increased by $260,000 due to the successful completion of the initial contract to process oil sludge at a refinery in Indonesia. Operating loss increased by $340,000 due to an increase in the SG&A expenses of approximately $500,000. The increase in the SG&A was primarily due to a non-cash expense for stock options of approximately $770,000. On a pure operating basis, SG&A expenses went down approximately $800,000 from the prior year. Total assets increased to $1,044,549 in 2006, which helped to lower the working capital deficit by over $280,000 from the prior year.
Recent Developments
On March 8, 2007, the Company completed an agreement to supply machinery, equipment and services for a factory in Saudi Arabia that will manufacture insulating concrete form (ICF) products. This is the Company's first contract in Saudi Arabia and it's largest to date, valued at $3,369,000.
In Indonesia, negotiations are underway for an expanded contract to process oil sludge at the same refinery over a 12-month period.
Initial production of our ICF wall forming system, known as Delta Wall, began in September 2006. The equipment specified in the Saudi Arabia contract also includes the Delta Wall system.
A new limited partnership was established in November 2006 to acquire a parcel of land in Puerto Rico approved for Section 124 low-income housing and zoned for residential construction. In January 2007, we secured an option to purchase a 13-acre tract in Toa Alta that met these requirements. The first two Section 124 housing projects have been discontinued due to zoning problems.
About Delta Mutual
Delta Mutual, Inc. (www.deltamutual.com) specializes in international energy and resource recovery, and construction services through environmentally friendly technologies and products. The Company provides technology and management expertise through joint ventures and strategic alliances. Delta's environmental business employs technologies that efficiently recover and convert contaminants in soil, water and waste streams into marketable residual materials. Delta's construction business utilizes energy efficient building material systems to construct affordable housing and commercial structures, and is suitable for hurricane and seismic areas.
Forward Looking Statement
This Press Release contains forward-looking statements that involve risks and uncertainties, which may include statements about business strategy and development plans, plans for entering into new business, anticipated sources of funds, including the proceeds from future operations and plans, objectives, expectations and intentions contained in this Press Release that are not historical facts such as "Negotiations are underway for a second contract in Indonesia to process an unlimited amount of sludge on a 12-month basis."" Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those discussed in this Press Release. These risks are outlined in our SEC filings.