<PAGE>
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
(Mark One)
X Quarterly report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the quarterly period ended July 31, 1999.
____ Transition report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the transition period from _____ to ______
Commission File Number 0-14443
WASTE TECHNOLOGY CORPORATION
(Exact Name of Small Business Issuer as Specified in its Charter)
Delaware 13-2842053
(State or Other Jurisdiction of (I.R.S. Employer Incorporation
or Organization Identification No.)
5400 Rio Grande Avenue
Jacksonville, Florida 32254
(Address of Principal Executive Offices) (Zip Code)
(904) 355-5558
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
At August 31, 1999, Registrant had outstanding 5,516,349 shares of
its Common Stock.
Transitional small business disclosure format check one:
Yes ___ No X
<PAGE>
WASTE TECHNOLOGY CORPORATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I. FINANCIAL INFORMATION...........................................................................3
ITEM I. FINANCIAL STATEMENTS
o Consolidated Balance Sheets as of July 31, 1999,
and October 31, 1998...............................................................................3
o Consolidated Statements of Income for the three
months and nine months ended July 31, 1999, and
July 31, 1998 . . . . . ...........................................................................5
o Consolidated Statements of Changes in Stockholders'
Equity for the period from October 31, 1998, to
July 31, 1999......................................................................................7
o Consolidated Statements of Cash Flows for the three
months and nine months ended July 31, 1999, and
July 31, 1998......................................................................................8
o Notes to Financial Statements.....................................................................10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.................................................12
PART II. OTHER INFORMATION
o Signatures........................................................................................16
</TABLE>
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
07/31/99 10/31/98
Unaudited
ASSETS
Current Assets:
Cash and cash equivalents $36,508 $69,349
Accounts receivable, net of allowance
for doubtful accounts of $138,000 1,322,879 1,576,722
Inventories 2,192,955 2,681,288
Prepaid expense and other current assets 506 822
-------------- --------------
Total current assets 3,552,848 4,328,181
Property, plant and equipment at cost 3,627,282 3,616,842
Less: accumulated depreciation 1,735,936 1,559,753
-------------- --------------
Net property, plant & equipment 1,891,346 2,057,089
Other assets:
Other assets 37,597 98,611
Due from Officer 332,395 300,082
-------------- --------------
Total other assets 369,992 398,693
-------------- --------------
TOTAL ASSETS $5,814,186 $6,783,963
See accompanying notes to consolidated financial statements
3
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
07/31/99 10/31/98
Unaudited
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Revolving promissory note 1,007,861 $1,220,555
Note Payable to Director 51,654 -
Current maturities of long-term debt 143,934 142,886
Capital Lease Obligation 17,800 16,871
Accounts payable 1,279,579 1,276,045
Accrued liabilities 525,686 588,053
Customer deposits 514,545 555,905
Accrued Judgment 512,000 495,000
------------- -------------
Total current liabilities 4,053,059 4,295,315
Long-term debt 341,437 449,519
Capital Lease Obligation, less current maturities 657,154 669,175
------------- -------------
Total liabilities 5,051,650 5,414,009
Stockholders' equity
Common stock, par value $.01
25,000,000 shares authorized; 6,179,875
shares issued in 1999 & 1998, respectively 61,799 61,799
Preferred stock, par value $.0001,
10,000 shares authorized, none issued - -
Additional paid-in capital 6,347,187 6,347,187
Accumulated deficit (4,878,650) (4,255,917)
------------- -------------
1,530,336 2,153,069
Less: Treasury stock, 663,526 shares at cost 419,306 419,306
Less: Note receivable from shareholders 348,494 363,809
------------- -------------
Total stockholders' equity 762,536 1,369,954
------------- -------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $5,814,186 $6,783,963
See accompanying notes to consolidated financial statements
4
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
Three months ended: 07/31/99 07/31/98
Net Sales $3,347,868 $2,996,640
Cost of Sales 2,620,382 2,615,980
------------- --------------
Gross Profit 727,486 380,660
Operating Expenses:
Selling 234,689 429,063
General and Administrative 356,632 449,978
------------- --------------
Total operating expenses 591,321 879,041
Operating Income (Loss) 136,165 (498,381)
Other Income (Expense):
Interest & Dividends 15,480 15,918
Interest Expense (66,203) (57,220)
Other Income 1,632 3,556
Net Gain on Disposal of Fixed Assets 6,617 -
Provision for Judgment (6,000) (537,000)
------------- --------------
Total Other Income (Expense) (48,474) (574,746)
Less minority interest in income of
consolidated subsidiary - -
------------- --------------
Income (Loss) before income taxes 87,691 (1,073,127)
Income Tax Provision
Current - -
Deferred - -
------------- --------------
NET INCOME (LOSS) $87,691 ($1,073,127)
Basic and diluted loss per share 0.02 (0.20)
Weighted average number of shares 5,516,349 5,266,297
See accompanying notes to consolidated financial statements
5
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
Nine months ended: 07/31/99 07/31/98
Net Sales $7,641,567 $9,343,404
Cost of Sales 6,314,653 7,689,924
------------- --------------
Gross Profit 1,326,914 1,653,480
Operating Expenses:
Selling 712,398 1,080,208
General and Administrative 1,072,520 1,262,436
------------- --------------
Total operating expenses 1,784,918 2,342,644
Operating Income (Loss) (458,004) (689,164)
Other Income (Expense):
Interest income 45,582 50,335
Interest Expense (207,067) (154,840)
Other Income 7,139 11,080
Net Gain on Disposal of Fixed Assets 6,617 -
Provision for Judgment (17,000) (537,000)
------------- --------------
Total Other Income (Expense) (164,729) (630,425)
Less minority interest in income of
consolidated subsidiary - -
------------- --------------
Income (Loss) before income taxes (622,733) (1,319,589)
Income tax provision
Current - -
Deferred - -
------------- --------------
NET INCOME (LOSS) ($622,733) ($1,319,589)
Basic and diluted loss per share (0.11) (0.25)
Weighted average number of shares 5,516,349 5,211,091
See accompanying notes to consolidated financial statements
6
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
for nine months ended July 31, 1999
unaudited
<TABLE>
<CAPTION>
Common Stock
Par Value $.01 Authorized
25,000,000
NUMBER ADDITIONAL
OF SHARES PAR PAID-IN ACCUMULATED
ISSUED VALUE CAPITAL DEFICIT
<S> <C> <C> <C> <C>
Balance at October 31, 1998 6,179,875 $61,799 $6,347,187 ($4,255,917)
Adjustment of Note Receivable
from shareholder - - - -
Net income (loss) - - - (622,733)
------------ ----------- -------------- --------------
Balance at July 31, 1999 6,179,875 $61,799 $6,347,187 ($4,878,650)
<CAPTION>
Treasury Stock
NUMBER TOTAL
OF STOCKHOLDERS'
SHARES COST OTHER EQUITY
<S> <C> <C> <C> <C>
Balance at October 31, 1998 663,526 ($419,306) ($363,809) $1,369,954
Adjustment of Note Receivable
from shareholder - - 15,315 15,315
Net income (loss) - - - (622,733)
------------ ------------ ------------- -------------
Balance at July 31, 1999 663,526 ($419,306) ($348,494) $762,536
</TABLE>
See accompanying notes to consolidated financial statements
7
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
unaudited
<TABLE>
<CAPTION>
For Three Months Ended
07/31/99 07/31/98
<S> <C> <C>
Cash flow from operating activities:
Net income (loss) $87,691 ($1,073,127)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 78,321 74,108
Gain from sale of equipment (6,617) 0
Increase (decrease) from changes in:
Accounts receivable (358,375) 578,865
Inventories 239,390 20,455
Prepaid expenses and other current assets 1,314 18,083
Other assets (5,900) 728
Accounts payable 433,478 60,703
Accrued liabilities 15,278 (2,559)
Customer deposits (549,321) (213,945)
Accrued Judgment 6,000 537,000
-------------- ---------------
Net cash provided by (used in) operating activities (58,741) 311
Cash flows from investing activities:
Increase in notes receivable from shareholders (13,938) (13,805)
Purchase of property and equipment 0 (8,397)
Proceeds from sale of equipment 6,617 0
Purchase of minority interest 0 0
-------------- ---------------
Net cash used in investing activities (7,321) (22,202)
Cash flows from financing activities:
Increase (decrease) in Debt 91,161 (5,848)
-------------- ---------------
Cash flows provided by (used in) financing activities 91,161 (5,848)
Net increase (decrease) in cash 25,099 (27,739)
Cash at beginning of period 11,409 154,715
Cash at end of period 36,508 126,976
Supplemental schedule of disclosure of cash flow information
Cash paid during period for:
Interest 66,203 56,493
Income taxes - -
</TABLE>
See accompanying notes to consolidated financial statements
8
<PAGE>
WASTE TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
unaudited
<TABLE>
<CAPTION>
For Nine Months Ended
07/31/99 07/31/98
<S> <C> <C>
Cash flow from operating activities:
Net income (loss) ($622,733) ($1,319,589)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 234,961 214,853
Gain from sale of equipment (6,617) 0
Increase (decrease) from changes in:
Accounts receivable 253,843 667,667
Inventories 488,333 (715,187)
Prepaid expenses and other current assets 316 69,830
Other assets (5,900) 2,185
Accounts payable 3,534 628,544
Accrued liabilities (18,205) 105,571
Customer deposits (41,360) (178,580)
Accrued Judgment 17,000 537,000
-------------- ---------------
Net cash provided by (used in) operating activities 303,172 12,294
Cash flows from investing activities:
Increase in notes receivable from shareholders (61,160) (60,785)
Purchase of property and equipment (2,304) (86,193)
Proceeds from sale of equipment 6,617 0
Purchase of minority interest 0 (15,000)
-------------- ---------------
Net cash used in investing activities (56,847) (161,978)
Cash flows from financing activities:
Increase (decrease) in Debt (279,166) 195,877
-------------- ---------------
Cash flows provided by (used in) financing activities (279,166) 195,877
Net increase (decrease) in cash (32,841) 46,193
Cash at beginning of period 69,349 80,783
Cash at end of period 36,508 126,976
Supplemental schedule of disclosure of cash flow information
Cash paid during period for:
Interest 207,067 152,655
Income taxes - -
</TABLE>
See accompanying notes to consolidated financial statements
9
<PAGE>
Waste Technology Corporation and Subsidiaries
Notes to Consolidated Financial Statements
1. Nature of Business:
Waste Technology Corporation (the Company) is a manufacturer of baling
machines which utilize technical, hydraulic and electrical mechanisms to
compress a variety of materials into bales. The Company's customers include
plastic recycling facilities, paper mills, textile mills, and paper recycling
facilities throughout the United States, the Far East, Europe and South
America. The Company has two manufacturing subsidiaries, International Baler
Corp. (IBC), located in Jacksonville, Florida, and International Press and
Shear, Corp. (IPS), located in Baxley, Georgia.
The IPS subsidiary was formed in the second quarter of fiscal 1995 and greatly
expanded the manufacturing capacity of the Company. Operating losses at IPS
are a significant cause of the consolidated losses in the first nine months of
fiscal 1999 and 1998. These losses occurred primarily as a result of the
continuing depressed recycled products markets, as well as higher than
anticipated costs of sales and selling and administrative expenses. In the
fourth quarter of 1998, the Company effectuated significant cost reductions
which will exceed $500,000 on an annual basis. These cost cutting measures
include personnel eliminations, salary reductions, and advertising reductions.
The losses at IPS are significantly lower in 1999 versus 1998 due to the cost
reductions and selected product price increases.
The Company is unable to predict how soon prices will recover, but, based on
previous cyclical dips in corrugated and paper prices, the Company believes
that prices could rise in the relatively near future with a resulting increase
in sales and profits. The Company has introduced new textile balers, new
corrugated balers and has been marketing the new patented hinge side baler.
The Company anticipates that these products will have a significant impact on
sales in the fourth quarter of fiscal 1999.
2. Basis of Presentation:
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three-month period
ended July 31, 1999, are not necessarily indicative of the results that may be
expected for the year ending October 31, 1999. For further information, refer
to the Company's Annual Report on form 10-KSB for the year ended October 31,
1998, and the Management Discussion included in this form 10-QSB.
Certain prior year amounts have been reclassified to conform with the current
year's presentation.
10
<PAGE>
3. Summary of Significant Account Policies:
(a) Principles of Consolidation:
The accompanying consolidated financial statements include the accounts of
Waste Technology Corp. and all of its wholly owned and majority owned
subsidiaries. Intercompany balances and material intercompany transactions
have been eliminated in consolidation.
(b) Basic and Diluted Earnings (Loss) Per Share:
Basic earnings (loss) per share is calculated using the weighted average
number of common shares outstanding during each period. Diluted earnings
(loss) per share includes the net additional number of shares that would be
issued upon the exercise of stock options using the treasury stock method.
Options are not considered in loss periods as they would be antidilutive.
4. Related Party Loan and Notes Receivable:
The Company was indebted in the amount of $438,536 to the General Counsel and
his law firm at July 31, 1999. During 1997, the General Counsel and his law
firm authorized the Company to set off accrued legal fees against the note
receivable from the General Counsel at such time as the Board of Directors
shall determine. Accordingly, accrued legal fees are presented as a reduction
of notes receivable from General Counsel at July 31, 1999.
On December 29, 1995, the Company transferred a life insurance policy,
covering the life of its president, to the president in exchange for a note
receivable. The amount of the note receivable from the president is equal to
the amount of the cash surrender value of the policy at the time of the
transfer. Interest accrues at the rate of 6% per annum. No principal or
interest is due until proceeds from the policy are realized.
5. Revolving Promissory Note:
The Company has a $2,000,000 line of credit with $1,007,861 outstanding at
July 31, 1999, and $1,220,555 outstanding at October 31, 1998. The line of
credit is secured by substantially all assets. Advances under the revolving
line are limited to the aggregate of up to 85% of eligible accounts receivable
less than 90 days old and 30% of eligible raw materials and finished goods
inventory. As of July 31, 1999, the balance of the revolving line approximated
the maximum borrowing capacity available to the Company. The revolving line
bears interest at the prime rate plus 1.5% (9.5% at July 31, 1999) with the
principal amount payable on demand. On March 16, 1999, the company was
notified by its lender that the company was in default of the side agreement
of the loan agreement relating to a judgement (L & A vs. Ram). Since the
judgement has not been satisfied according to
11
<PAGE>
the terms of the side agreement, the lender has placed the company in default
and raised the interest rate to 14.5%. The company is negotiating with the
lender in order to get the interest rate reduced.
Effective August 11, 1999, the lender is reducing the Company's borrowing
limit on inventory over the period August to December 1999.
<TABLE>
<CAPTION>
<S> <C> <C>
o Long-Term Debt:
Long-term debt consists of the following:
07-31-99 10-31-98
-------- --------
o Term note payable to bank at prime rate, due in equal monthly
installments of $9,028, plus interest
through August 2002, secured by substantially all assets. $334,027 $415,278
o Term note payable to Appling County, Georgia at 4.0 % due in equal
monthly installments of $3,417,
including interest through July 2003. 151,344 177,127
o Note payable to director, payable on demand,
non-interest bearing. 51,654 -
--------- --------
537,025 592,405
o Amounts classified as current 195,588 142,886
-------- -------
$341,437 $449,519
======== ========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations: Three Month Comparisons
For the third quarter ending July 31, 1999, the Company had net sales of
$3,347,868 as compared to $2,996,640 in the third quarter of 1998, an increase
of 11.7%. The higher shipments in the quarter were the result of higher
shipments of Consolidated Baler' synthetic rubber balers. Sales of balers to
the recycled products market were approximately the same as in the prior year.
The Company had net income of $87,691 in the third quarter of 1999 as compared
to a loss of $1,073,127 in the third quarter of 1998, which include a reserve
for a judgement of $537,000 including interest thereon, related to the
Company's former subsidiary Ram Coating Technology, Inc.
The judgement is being appealed.
The improvement in operating income from an operating loss of $498,381 to
operating income of $136,165 in the quarter was the result of the higher
shipments, improved gross profit margins, as well as lower selling and
administrative expenses. Contributing factors to the third quarter profit
12
<PAGE>
improvement were the strong market acceptance of the Company's unique new
products, concentration on high gross profit niche markets and the addition of
several productive dealers. Selling expenses were reduced by $194,374 and
general and administrative expenses were reduced by $93,346 in the second
quarter of 1999, verus the second quarter in fiscal 1998. These cost
reductions are the result of personnel eliminations, salary reductions, and
lower advertising and travel expenses. Responsibility for sales, marketing,
and purchasing have been assumed by senior management with no plans to replace
departed personnel.
Results of Operations: Nine Month Comparison
Net sales in the first nine months of fiscal 1999 were $7,641,567 as compared
to $9,343,404 in the prior year, a decline of 18.2%. The lower sales were the
result of lower shipments to the recycled products markets at both the
International Baler and International Press and Shear operations in the first
six months of the current fiscal year.
Net loss for the first nine months of 1999 was $622,733 versus a loss of
$1,319,589 in the corresponding period of 1998. The loss in the first nine
months of 1999 was due to lower shipments at all operating units of the
Company and was directly related to continued weakness in the corrugated board
and paper markets for recycled materials. As stated previously, 1998 included
a reserve for the judgement of $537,000.
Gross profit margins remained approximately the same even though shipments
were 18.2% lower in 1999. This is the result of more favorable product mix,
cost reductions, and price increases on certain products, offset by lower
absorption of manufacturing overhead.
The Company is continuing its review of all aspects of its operations in order
to determine what additional actions may be taken in order to allow the
Company to return to profitability even if the recycled products markets
remain depressed. The Company has moved production of certain baler models to
Jacksonville and has also eliminated a number of support staff in Baxley
maintaining only critical personnel. As order activity increases full
production can resume. The Company has introduced new textile balers, new
corrugated balers and has been marketing a new patented hinge side baler. The
Company anticipates that these products will have a significant impact on
sales in the fourth quarter of fiscal 1999 and 2000.
The order backlog as of August 31, 1999, was $3,971,000 as compared with
$2,615,000 at August 31, 1998.
Financial Condition:
Working capital decreased from $32,866 at October 31, 1998, to a deficit of
$500,211 at July 31, 1999. This decrease is due to the overall operating
results of the first half of 1999. The entire balance of the line of credit is
included as a current liability. The line of credit is for a period of two
years, accrues interest at 1 1/2% above the prime rate and is secured
primarily by accounts receivable and
13
<PAGE>
inventories. As of July 31, 1999, the balance of revolving line approximated
the maximum borrowing capacity available to the Company. On March 16, 1999,
the company was notified by its lender that the company was in default of the
loan agreement relating to the judgement (L & A vs. Ram). Since the judgement
has not been satisfied according to the terms of the side agreement, the
lender has placed the company in default and raised the interest rate to
14.5%.
The term note with SouthTrust Bank had a balance of $334,027 at July 31, 1999,
and is due in equal monthly installments of $9,028, plus interest at the prime
rate to August 2002. The term note payable to Appling County, Georgia is due
in equal monthly installments of $3,417 including interest at 4.0% through
July 2003.
Our auditors, KPMG LLP, have stated in the "Report of Independent Accountants"
for October 31, 1998, to the shareholders of Waste Technology Corporation that
there is "substantial doubt" about the Company's ability to continue as a
going concern. The Company's Management and Board of Directors have
substantial concern over recent operating performances, however, they believe
that it has several viable options to continue as a going concern for the
following reasons:
The Company has taken certain actions to reduce operating costs including
the elimination of personnel, implementing salary reductions for
management, and cutting expenditures wherever possible. These cost
cutting actions should result in annual savings in excess of $500,000 and
were implemented in the fourth quarter of fiscal 1998.
The Company currently has a substantially higher backlog with improved
gross profit margins. The increase in the sold order backlog plus current
quote activity permits a cautious confidence for improved profit in
future quarters.
The Company is in the process of exploring other financial arrangements
or alternatives to replace the line of credit with Foothill Capital
Corporation.
The Company has no commitments for any material capital expenditures. Other
than as set forth above, there are no unusual or infrequent events or
transactions or significant economic charges which materially affect the
amount of reported income from continuing operations.
This "Management's Discussion and Analysis" contains forward-looking
statements within the meaning of Section 21B of the Securities and Exchange
Act of 1934, as amended. These forward-looking statements represent the
Company's present expectations or beliefs concerning future events. The
Company cautions that such statements are necessarily based on certain
assumptions which are subject to risks and uncertainties, including, but not
limited to, changes in general economic conditions and changing competition
which could cause actual results to differ materially from those indicated.
Therefore, the Company may have to consider additional financing and/or
operating alternatives to insure the Company will continue as a going concern.
14
<PAGE>
Year 2000 Compliance:
The Company believes it has fully achieved Year 2000 compliance for all
internal systems. Costs associated with compliance were immaterial and have
been fully incurred. The Company is in the process of examining key vendor and
customer relationships to determine, to the extent practical, the degree of
such parties' Year 2000 compliance.
Should a key vendor or customer have a systems failure due to the century
change, the Company believes that the most significant impact would likely be
the inability to receive inventory on a timely basis. While the Company does
not expect any such impact to be material, it is developing contingency plans
to address this possibility.
Inflation:
The costs of the Company and its subsidiaries are subject to the general
inflationary trends existing in the general economy. The Company believes that
expected pricing by its subsidiaries for balers will be able to include
sufficient increases to offset any increase in costs due to inflation.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigned hereto duly authorized.
Dated: September 14, 1999 WASTE TECHNOLOGY CORPORATION
BY: /s/Ted C. Flood
Ted C. Flood, President
(Chief Executive Officer)
BY: /s/William E. Nielsen
William E. Nielsen
Chief Financial Officer
(Principal Financial and Accounting Officer)
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigned hereto duly authorized.
Dated: September 14, 1999 WASTE TECHNOLOGY CORPORATION
BY:
Ted C. Flood, President
(Chief Executive Officer)
BY:
William E. Nielsen
Chief Financial Officer
(Principal Financial and Accounting Officer)
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
financial statements and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> JUL-31-1999
<CASH> 36,508
<SECURITIES> 0
<RECEIVABLES> 1,460,879
<ALLOWANCES> 138,000
<INVENTORY> 2,192,955
<CURRENT-ASSETS> 3,552,848
<PP&E> 3,627,282
<DEPRECIATION> 1,735,936
<TOTAL-ASSETS> 5,814,186
<CURRENT-LIABILITIES> 4,053,059
<BONDS> 0
0
0
<COMMON> 61,799
<OTHER-SE> 700,737
<TOTAL-LIABILITY-AND-EQUITY> 5,814,186
<SALES> 3,347,868
<TOTAL-REVENUES> 3,347,868
<CGS> 2,620,382
<TOTAL-COSTS> 3,211,703
<OTHER-EXPENSES> (17,729)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,203
<INCOME-PRETAX> 87,691
<INCOME-TAX> 0
<INCOME-CONTINUING> 87,691
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 87,691
<EPS-BASIC> .02
<EPS-DILUTED> .02
</TABLE>
