NEW LONDON, Conn., Oct. 27, 2011 (GLOBE NEWSWIRE) -- Evercel, Inc. (Pink Sheets: EVRC) today announced unaudited results of operations for the 9 months ended September 30, 2011. Consolidated net sales were $5,336,000 compared to $5,114,000 last year. Net income was $4,963,000 compared to a loss of $407,000 last year, largely as a result of a $5,130,000 gain on the sale of 350,000 shares of Zipcar, Inc. (NADAQ: ZIP)
New England Crab Co. ("NECC") had sales of $4,558,000 compared to $4,143,000 last year. Net income was $141,000 compared to a loss of $37,000 last year. Crab landings were nearly the same as last year. However, sales were up 10 percent due to price increases and somewhat lower finished goods inventory. Gross profit margins were 18.4 percent in 2011 compared to 15.4 percent in 2010. The improvement was due to a combination of a better mix of products and improved direct labor expense.
Stretch and Cover ("SNC") sales were $198,000 compared to $350,000 last year. The loss improved from $296,000 last year to $175,000 this year. SNC is very much a work in progress. We have virtually stopped all direct importing of slipcovers. We are instead beginning to market others’ production on our web site. In addition, we have begun marketing musical instrument replacement products such as guitar picks and strings and drum sticks. We believe that by "leaning down" our operating costs and adding products we can succeed. We have a new manager for this operation who we believe has the right mix of experience and entrepreneurial spirit to lead the effort.
Sontek Medical sales and profits were comparable to last year at $579,000 and $122,000, respectively.
Our balance sheet is substantially stronger than last year. Cash at Sept. 30 was $5,259,000 compared to $667,000 last year. We have paid off approximately $1,000,000 of long-term and short-term debt related to the acquisition of Stretch & Cover and the purchase of the NECC facility. We no longer have any long-term debt.
We have 1,078,571 shares of Zipcar which are now freely tradable. While we have no immediate need to sell these shares, we intend to use appropriate opportunities to reduce our position.
We continue to pursue opportunities for merger/acquisition which will capitalize on our strong cash position and remaining net operating tax loss. While we have followed up on many leads and pursued various offerings, we have not yet found an opportunity which we are prepared to recommend to our board or shareholders. We will continue to diligently pursue opportunities and welcome suggestions from our shareholders.
Summarized financial information for the Company for the 9 months ended 09/30/2011 and 09/30/2010 is as follows:
2011 2010
Income Statement Information
Revenue $5,335,507 $5,113,518
Gross Profit 1,241,128 1,169,612
Operating Profit (Loss) (74,470) (283,827)
Other Income (Expense) 5,037,557 (123,605)
Net Income (Loss) 4,963,087 (407,433)
Balance Sheet Information
Cash $5,259,475 $667,161
Other Current Assets 1,260,133 1,751,874
Other Assets 4,454,484 5,387,060
Total Assets 10,974,092 7,806,095
Current Liabilities $184,541 $1,277,130
Long Term Liabilities 0 183,829
Total Liabilities 184,541 1,460,959
Total Equity $10,789,551 $6,345,136
New London, Conn., based Evercel is a multi-industry company whose operations include crab processing for both fresh and frozen markets, sales of Swivel Y-valves used in the treatment of patients on respirators, and Stretch and Cover, Inc., an on-line retailer of slipcovers for household furniture. Evercel also has investments in Zipcar Inc. (car sharing), and Julia LLC (skin wrinkle reduction technology).