GROVELAND, Fla., Sept. 24, 2012 /PRNewswire/ -- Eco Ventures
Group, Inc. (OTCBB: EVGI), an emerging producer of diversified
sustainable alternative energy, today announced selected highlights
of the unaudited financial results for the first six months of 2012
at Energiepark Suptitz, GmbH ("EPS"). On August 7, 2012, EVGI filed an 8K announcing it
had signed a definitive agreement to acquire a 75 percent stake in
Germany-based EPS, an owner and
operator of a diverse portfolio of alternative energy
businesses.
These EPS financial results were produced in accordance with
International Financial Reporting Standards ("IFRS") and some
variation may occur when converted to U.S. GAAP. For
consistency, all EPS' financial data included herein is Euros
converted to USD at 1:1.29 (the forex conversion ratio at the time
the transaction was negotiated).
Historically, EPS' business is seasonal with the second half of
the calendar year generating the majority of revenue and cash flow.
For the first six months of 2012, ended June 30, EPS' revenue doubled, increasing 102
percent to $24.4 million from
$12.1 million in the year-ago period,
and compared with $4.7 million in
H1-10.
For the first six months of 2012, ended June 30, EPS' EBITDA nearly quadrupled to a
first-half $2.1 million, compared
with $554,000 and negative EBITDA of
-$120,000 in the first half of 2011,
and 2010, respectively.
For the trailing twelve months, ended June 30, EPS generated $41.4 million in revenue and EBITDA of
$2.8 million.
Additionally, the Company noted that EPS had US$32.4 million in tangible assets on its
June 30 balance sheet. This is well
above the tangible asset requirement for up-listing the Company's
common stock on to a senior U.S. stock exchange -- one component of
its business plan.
Commenting on EPS' record first half of 2012 financial results,
Mark Cox, Eco Ventures Group
President, said, "EPS is off to a strong start in the first half
with cash flow scaling well to quadruple, on revenue that doubled,
year over year. First-half results were driven by organic growth in
its business segments, improving operating margins and increasing
market share from new and larger feedstock contracts, enhanced
internal operational controls and strengthening supplier
relationships.
"Absent any major changes to the marketplace or economy, we
expect record EPS top line and EBITDA in the second half and full
fiscal year 2012," Mr. Cox added. "This business combination
provides powerful operating synergies -- particularly in our
biofuel feedstock and other new biofuel production initiatives for
both the U.S. and Germany that we
expect to implement immediately after closing in the fourth quarter
of 2012 and throughout 2013."
The Company noted that it expects EPS will report Fiscal Year
2011 revenue of $29 million and
EBITDA of $1.33 million when its U.S
GAAP audit is complete. While EPS' FY 2011 results are
audited in accordance with IFRS, as its 2011 U.S. GAAP audit
progresses, the Company expects $1.6
million, previously classified as a tax grant under "other
operating income," will be reclassified as reduced tax liability
for more conservative accounting treatment. EPS' 2011 U.S. GAAP
financial audit is being performed by a PCOAB certified public
accounting firm and will be completed prior to the acquisition
closing.
EVGI – EPS Transaction
On July 27, in connection
with the EPS transaction, Eco Ventures issued into escrow 28.75
million shares of EVGI common stock, pending the transaction
close.
EPS is a diversified alternative energy feedstock,
transportation, heat & solar power production company with
approximately 50 employees -- whose primary business is the
production, processing and brokering of alternative energy
feedstocks including rapeseed, palm oil and wood. The
acquisition combines two renewable energy companies whose
technology, bio fuel and grid-tied energy products will create a
diversified international platform with important operating
synergies.
About Eco Ventures Group, Inc.
Eco Ventures Group, Inc. ("EVGI") is acquiring and
developing a family of ecologically friendly and economically sound
businesses committed to providing for society's energy and
renewable resource needs (www.ecoventuresgroup.com).
Safe Harbor Statement
Safe Harbor statement under the Private Securities
Litigation Reform Act of 1995: EVGI encourages those
interested in our Company to rely only on information included in
our filings with the United States Securities and Exchange
Commission which can be found at www.sec.gov.
Statements released by Eco Ventures Group, Inc. that are not purely
historical are forward-looking within the meaning of the "Safe
Harbor" provisions of the Private Securities Litigation Reform Act
of 1995, including statements regarding the company's expectations,
hopes, intentions, and strategies for the future to include all
those of its intended acquisition of Energiepark Suptitz, GmbH.
Investors are cautioned that forward-looking statements involve
risk and uncertainties that may affect the company's business
prospects and performance. The company's actual results could
differ materially from those in such forward-looking statements.
Risk factors include but are not limited to general economic,
competitive, governmental, and technological factors as discussed
in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K.
The company does not undertake any responsibility to update the
forward-looking statements contained in this release.
Contact
Eco Ventures Group, Inc.
7432 E. Highway 50, Suite 101
Groveland FL 34736
Phone: (352) 557-4830
Email: info@ecoventuresgroup.com
Investor Contact:
Mirador Consulting
Frank Benedetto
Tel: (561) 989-3600
SOURCE Eco Ventures Group, Inc.
