SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the Quarterly Period Ended June 30,1999
[ ] 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 0-20986
EVTC, INC.
(Exact name of issuer as specified in its charter)
Delaware 22-3005943
----------------------------------- ---------------------------
(State or other Jurisdiction (I.R.S. Employer
of incorporation or Organization) Identification No.)
121 South Norwood Drive
Hurst, Texas 76053
------------------------------------- ----------------------------
(Address of Principal Executive Offices) (Zip Code)
(817)282-0022
--------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. XX Yes No
The number of shares outstanding of the registrant's common stock is
5,010,719(as of August 12,1999).
Page 1 of 16 pages.
There is one exhibit.
<PAGE>
EVTC,INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, September 30,
ASSETS 1999 1998
---------------------------
Current Assets:
Cash and cash equivalents ................. $ 1,739,694 $ 4,511,195
Accounts receivable, net .................. 7,936,118 5,144,724
Due from officer .......................... 371,016 200,000
Income taxes receivable ................... -0- 1,423,659
Inventories ............................... 9,762,302 7,236,440
Other current assets ...................... 884,596 442,200
Assets of discontinued operations ......... 1,266,479 1,596,948
------------ ------------
Total current assets ............... 21,960,205 20,555,166
Property and equipment, net ................. 1,553,442 1,646,941
Goodwill, net ............................... 524,113 560,965
Other Assets ................................ 579,898 797,896
------------ ------------
Total assets ....................... $ 24,617,658 $ 23,560,968
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable ............................. $ 9,992,380 $ 11,992,380
Accounts payable .......................... 5,838,592 2,338,740
Accrued liabilities ....................... 1,809,669 1,643,593
Liabilities of discontinued
operations .............................. 149,053 476,687
------------ ------------
Total current liabilities .......... 17,789,694 6,451,400
Stockholders' Equity
Common stock .............................. 49,897 49,897
Paid-in-capital ........................... 11,396,532 11,396,532
Retained deficit .......................... (4,618,465) (4,336,861)
------------ ------------
Total stockholders' equity ......... 6,827,964 7,109,568
------------ ------------
Total liabilities and
stockholders' equity ............. $ 24,617,658 $ 23,560,968
============ ============
See Accompanying Notes to Consolidated Financial Statements.
<PAGE>
EVTC,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended June 30 Nine Months Ended June 30
1999 1998 1999 1998
------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales ......................... $ 12,396,286 $ 15,181,642 $ 27,044,754 $ 29,646,331
Cost of sales ..................... 9,756,612 13,867,017 21,071,454 25,286,926
------------ ------------ ------------ ------------
Gross profit ...................... 2,639,674 1,314,625 5,973,300 4,359,405
Selling, general and
administrative expenses ........ 1,843,450 1,967,736 5,549,284 6,025,209
------------ ------------ ------------ ------------
Operating income (loss) ...... 796,224 (653,111) 424,016 (1,665,804)
Interest expense .................. 317,046 305,426 789,575 818,241
Other income, net ................. 37,712 31,066 83,955 137,193
Income(loss) from continuing
operations before income taxes 516,890 (927,471) (281,604) (2,346,852)
Income tax benefit ................ -0- (370,100) -0- (940,149)
------------ ------------ ------------ ------------
Income (loss) from continuing
operations ................... 516,890 (557,371) (281,604) (1,406,703)
Discontinued equipment products
operations:
Loss from discontinued operations,
net of income taxes .......... -0- (194,584) -0- (615,875)
------------ ------------ ------------ ------------
Net income (loss) ................. $ 516,890 $ (751,955) $ (281,604) $ (2,022,578)
============ ============ ============ ============
Income (loss) per share Basic:
Continuing operations ............ $ 0.10 $ (0.11) (0.06) (0.28)
Discontinued operations .......... 0.00 (0.04) (0.00) (0.12)
------------ ------------ ------------ ------------
0.10 (0.15) (0.06) (0.40)
Diluted:
Continuing operations ............ $ 0.10 $ (0.11) (0.06) (0.28)
Discontinued operations .......... 0.00 (0.04) (0.00) (0.12)
------------ ------------ ------------ ------------
0.10 (0.15) (0.06) (0.40)
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
<PAGE>
EVTC,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Nine Months Ended June 30
1999 1998
---------- -----------
Cash Flows From Operating Activities:
Net income (loss) from continuing
operations ....................... $ (281,604) $(1,406,703)
Adjustments to reconcile net
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization .... 545,939 548,629
Changes in assets and liabilities:
Accounts receivable .............. (2,791,394) (4,262,492)
Due from officer ................. (171,016) 100,000
Income taxes receivable .......... 1,423,659 -0-
Inventory ........................ (2,525,862) 5,406,238
Other current assets ............. (442,396) 879,130
Other assets ..................... 217,998 (291,244)
Increase (Decrease) in liabilities:
Accounts payable and accrued
liabilities .................... 3,665,928 (257,830)
Assets of discontinued operations 330,469 683,083
Liabilities of discontinued
operations .................... (327,634) (618,129)
Net cash provided by (used in)
operating activities ......... (355,913) 780,682
Net Cash Used in Investing Activities:
Capital expenditures ................... (415,588) (308,389)
Net Cash Provided By(used in) Financing
Activities:
Proceeds from(Retirement of
short-term debt) ..................... (2,000,000) 442,280
------------ -----------
Net decrease in cash and
cash equivalents ....................... (2,771,501) 914,573
------------ -----------
Cash and cash equivalents - Beginning
of period .............................. 4,511,195 2,321,071
------------ -----------
Cash and cash equivalents - End of
period ................................. $ 1,739,694 $ 3,235,644
============ ===========
See Accompanying Notes to Consolidated Financial Statements.
<PAGE>
EVTC,INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. Nature Of Business And Significant Accounting Policies
EVTC, Inc. (the "Company") was incorporated under the name "Environmental
Technologies Corporation" under the laws of Delaware. In 1997, the Company
changed its corporate name to "EVTC, Inc." but continues to trade and do
business as "Environmental Technologies Corporation." The Company is engaged in
the marketing and sale of refrigerants, refrigerant reclaiming services and
recycling of fluorescent light ballasts and lamps. The Company also manufactured
and distributed refrigerant recycling and recovery equipment prior to the
discontinuation of such operations in July 1998.
The consolidated financial statements include the financial statements of
EVTC, Inc. and its wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated in consolidation.
The financial information furnished herein has not been audited by
independent accountants; however in the opinion of management, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation of the financial position, results of operations and cash flows of
the Company for the three and nine month periods ended June 30,1999 and June
30,1998, respectively, have been made. The results of operations for the
nine-month period ended June 30, 1999 are not necessarily indicative of the
results to be expected for the full year.
Note 2. Income Per Share
Net income (loss) per share for the first nine months and for the third
quarter of fiscal years 1998 and 1999 is computed on the basis of the weighted
average number of common shares outstanding in the period (5,010,719). Options
and warrants were not included in the calculation of diluted earnings per share
for the three-month period ending and the nine month periods ending June 30,
1999 and 1998 because their effect is anti-dilutive.
<PAGE>
Note 3. Income Taxes
Income taxes are accounted for using the asset and liability method.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the carrying amounts of
existing assets and liabilities and their respective tax basis and operating
loss and tax credit carryforwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
At September 30, 1998 the Company recorded a deferred tax asset of
approximately $3 million. This asset consisted mainly of reserves relating to
bad debts and inventory reported differently for financial reporting and tax
purposes, as well as net operating loss carryforwards. Operating losses
sustained in the first nine months of fiscal 1999 increased the deferred tax
asset to approximately $3.1 million at June 30, 1999. Based on estimates of
recoverability, the Company has recorded valuation allowances on the deferred
tax asset of $3 million and $3.1 million at September 30, 1998 and June 30,
1999, respectively. Due to the 100% valuation allowance placed on these assets,
they are reflected at zero value on the Company's September 30, 1998 and June
30, 1999 consolidated balance sheet. The Company has available at June 30, 1999
net operating loss carryforwards of $592,512 which are available to offset
future federal and state taxable income, if any, through 2018.
Note 4. Discontinued Operations
During July 1998, the Company's Board of Directors adopted a plan to
discontinue its Recycling and Recovery Equipment business segment. The Company
has initiated a liquidation program to sell all assets of the segment.
Management has ceased operations and continues to liquidate the assets of this
business segment. The Company has recasted the accompanying consolidated
statements of operations to present the operating results of the Recycling and
Recovery Equipment business segment as discontinued operations. The accompanying
consolidated balance sheets segregate assets and liabilities of the discontinued
segment.
<PAGE>
Assets and liabilities of the discontinued Recycling and Recovery Equipment
business segment are as follows:
6/30/99 9/30/98
---------- ----------
Assets
Accounts receivable $ 437,771 $ 130,000
Inventories ....... 798,708 1,436,948
Equipment and other 30,000 30,000
---------- ----------
$1,266,479 $1,596,948
Liabilities
Accounts Payable .. 121,618 165,000
Accrued Liabilities 27,435 311,687
---------- ----------
$ 149,053 $ 476,687
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
The Company's fiscal year-end is September 30.
The following discussion of results of operations for the three-month and
nine month periods ended June 30, 1999 and 1998 should be read in conjunction
with the unaudited condensed financial statements, including notes thereto,
included elsewhere in this Report.
Three months ended June 30, 1999 as compared to the three months ended June 30,
1998
Revenues for the three-month period ended June 30, 1999 were approximately
$12.3 million, as compared to revenues of approximately $15.1 million for the
three-month period ended June 30, 1998, a decrease of approximately $2.8
million, or 18%. The decrease in revenue was primarily due to an industry wide
shortage of R-134a, the primary refrigerant sold by the Company's refrigerant
packaging subsidiary. During the three month period ended June 30, 1999 the
Company was put under a tight allocation of R-134a by its suppliers. The
shortage of R-134a available for sale by the Company was partially off set by
the increase in the average selling price of R-134a. The shortage of R-134a
during the period was a result of several R-134a plants closing and the strong
worldwide demand for the product. The Company believes that world wide
production of R-134a in the future will be sufficient to fulfill demand and
prevent future shortages of the product. Sales of refrigerant R-12 continue to
provide a significant portion of the Company's revenues, although its relative
percentage is declining. The decline in R-12 sales is primarily attributed to
the significant increase in the demand for R-134a, the replacement for R-12, and
the Company's increasing emphasis on refrigerant reclaiming and commercial HVAC
refrigerant sales. The Company's ability to maintain its current level of R-12
and R-134a sales for the foreseeable future will be dependent, to a large
extent, upon the availability of adequate sources of supply. The Company is not
dependent on any one source of refrigerant for its supply of R-12 or R-134a
refrigerant and historically has purchased from a number of manufacturers and
suppliers. The Company's refrigerant reclaiming and separation activities will
continue to serve as an important source of R-12, as well as other CFC and
non-CFC refrigerants.
Offsetting the decline in R-12 and R-134a sales during the quarter is a
significant increase in sales of refrigerant R-22. During the first and second
quarter of fiscal 1999, the Company initiated an aggressive pre-season sales
program to large customers for R-22 and the majority of the shipments were
completed during the three-month period ended June 30, 1999.
The costs of sales for the three month period ended June 30, 1999 were
approximately $9.7 million, as compared to $13.8 million for the three-month
period ended June 30, 1998, a decrease of approximately $4.1 million, or 29%.
This decrease is the result of decreased sales of R-134a and R-12. Gross margin
for the three-month period ended June 30, 1999 represented 21% of revenue
compared to 9% for the three-month period ended June 30, 1998. The improved
gross margin is primarily attributed to the Company's access to low cost R-12
through it's reclaiming and separating activities and strong market demand and
pricing for R-134a.
Selling, general, and administrative expenses for the three-month period
ended June 30, 1999 decreased $124,286 from the three-month period ended June
30, 1998. The decrease is primarily attributable to the Company's cost reduction
program initiated late in the first quarter, resulting in reduced marketing,
distribution, and administrative expenses related to Full Circle, Inc., the
Company's refrigerant reclaiming subsidiary. Management anticipates the cost
reduction program to have a continuing impact in the fourth quarter of fiscal
1999.
In fiscal 1998 the Company recorded an income tax benefit only to the
extent the Company was able to carry operating losses back to offset prior year
income. No tax benefit was recorded for operating losses sustained in the nine
months ended June 30, 1999 based on management estimates of the recoverability
of the deferred tax asset related to those losses. Due to losses in fiscal 1998
and the first two quarters of fiscal 1999, the Company did not record a tax
liability for the operating profit for the three month period ended June 30,
1999(See Note 3 Income taxes in Notes to the Consolidated Financial Statements).
The Company's operating results vary from period to period as a result of
weather conditions and the availability and price of refrigerant products
(virgin and reclaimable). The Company's business has historically been seasonal
in nature with peak sales of refrigerants occurring in the second and third
fiscal quarters. Accordingly, the first and fourth fiscal quarters of the
Company's operations have been characterized by inventory build-up and seasonal
operating losses resulting in periodic operating cash flow short falls. The
Company's results of operations for the three-month period ended June 30, 1999
may not necessarily be indicative of the Company's future operating results.
Nine months ended June 30, 1999 as compared to the nine months ended June 30,
1998
Revenues for the nine-month period ended June 30, 1999 were approximately
$27.0 million as compared to revenues of approximately $29.6 million for the
nine-month period ended June 30, 1998, a decrease of approximately 8.7%. The
decrease in revenue was primarily attributed to an overall decrease in R-134a
refrigerant repackaging revenue that was a result of the industry wide shortage
of the product. In addition, the Company experienced a decline in R-12 sales
during the first nine months that was primarily attributed to the continued
decline in demand for R-12, as it is replaced by R-134a. Since the cessation of
production of CFC chemicals at December 31, 1995, the Company has sought to
broaden its revenue base and to increasingly emphasize R-134a and other non-CFC
refrigerants.
In addition to the Company's continued efforts in the refrigerant
repackaging, refrigerant reclaiming and ballast recycling industries, the
Company operates Liberty Technology, Inc (LTI), the nation's largest mixed
refrigerant processing facility. LTI continues to contribute earnings and was a
major source of both CFC and non-CFC refrigerants.
The costs of sales for the nine-month period ended June 30, 1999 were
approximately $21.0 million as compared to approximately $25.2 million for the
nine-month period ended June 30, 1998, a decrease of approximately $4.2 million
or approximately 16.7%. The decrease is primarily attributable to reduced sales
of R-134a and R-12 and the change in refrigerant reclaiming product mix.
Selling and administrative expenses decreased to $5.5 million for the
nine-month period ended June 30, 1999 from $6.0 million for the period ended
June 30, 1998, a 7.9% decrease. The decrease was attributable primarily to the
cost reduction programs implemented by the Company's refrigerant reclaiming
subsidiary.
The Company generated a net loss from continuing operations during the
nine-month period ended June 30, 1999 of approximately $281,000 as compared to a
net loss of $1,406,000 during the nine-month period ended June 30, 1998, a 80%
improvement.
Over the past year world wide production capacity of refrigerant R-134a was
significantly reduced. This decrease in capacity caused a temporary shortage of
refrigerant R-134a, which is a major raw material product for the Company's
refrigerant repackaging operations. Due to the industry shortage of R-134a and
the Company's varied product mix and the seasonality of refrigerant revenues,
the Company's results of operations for the nine month period ended June 30,
1999 may not be necessarily an indication of the Company's future operating
results.
Liquidity and Capital Resources
The Company had working capital of approximately $4.1 million at June
30,1999, as compared to working capital of approximately $4.1 million at
September 30, 1998. The Company has financed its working capital requirements
through operating cash flow and working capital loans obtained from a bank (the
"Credit Facility). At June 30, 1999, the outstanding loan advance balance was
approximately $10 million.
Borrowings outstanding under the Credit Facility bear interest at the
bank's prime rate plus one and one half percent. The Credit Facility is secured
by eligible accounts receivable, eligible inventory and property and equipment.
At June 30, 1999 the balance outstanding under the Credit Facility was less
than the eligible security by $2,254,620 based on the borrowing base formula. In
addition, the Company has received an extension of it's lending agreement with
the bank through the end of August and the lending agreement provides up to
$1,500,000 of additional financing to the Company in order to accommodate the
Company's seasonal purchasing requirements. The Company is currently negotiating
with a different financial institution to refinance the existing bank note
payable and provide the Company with a long-term credit facility. Based on
negotiations to date and its operating and financial forecast for 1999, Company
management believes they will be able to obtain replacement financing by
September 30, 1999. The Company believes that current cash on hand, cash
provided by operations, and the additional $1,500,000 bank availability is
sufficient to fund the Company's working requirements until a permanent long
term financing is secured. Should the Company not succeed in refinancing the
Credit Facility, the bank has the option to demand payment. The Company may not
have the financial resources available to meet such a demand. The inability of
the Company to refinance its existing indebtedness could have a material adverse
effect on the Company's financial position, results of operations and liquidity.
Net cash used by operating activities for the nine-month period ended June
30, 1999 was $355,913 as compared to net cash provided by operating activities
of $780,682 for the nine-month period ended June 30, 1998. The primary uses of
cash related to the $2.5 million increase in refrigerant inventory levels and
the $2.7 million increase in accounts receivable balances associated with the
seasonality of the refrigerant business segment for the nine months ending June
30, 1999. Net cash used in investing activities for capital expenditures was
$415,588 and $308,389 for the nine-month periods ending June 30, 1999 and 1998,
respectively. Net cash used in financing activities to retire short term bank
debt was $2,000,000 for the nine-month periods ending June 30, 1999 as compared
to the net cash provided by financing activities of $442,280 for the nine month
periods ending June 30, 1998.
The Company had cash and cash equivalents of $1,739,694 and $4,511,195 at
June 30, 1999 and September 30, 1998, respectively.
Due to the average trading price of the Company's Common Stock over the
past 90 days the Company was notified in May by NASDAQ of the decision to
transfer the company's securities to the NASDAQ Smallcap Market effective May
20, 1999. The company has subsequently completed the application and review
process for listing on the NASDAQ Smallcap Market.
As of the date of this report, other than as set forth in this Report, the
Company has no material commitments for capital expenditures, including in
connection with research and development, acquisition of plant and equipment,
additional employees or increases to inventory.
Year 2000
The Company continues to assess the potential issues and costs associated
with the year 2000 and believes that its cost to address such issues would not
be material. The Company has implemented a plan to review year 2000 compliance
of all accounting and operations systems. The Company is in the process of
reviewing year 2000 compliance issues with its vendors, suppliers, and
customers. The Company has upgraded its accounting systems to be year 2000
compliant. During the fourth quarter of this fiscal year, the Company will
complete its compliance resolutions of operational systems for year 2000. At the
present time, the Company believes that costs or consequences of an incomplete
or untimely resolution would not result in the occurrence of a material event or
uncertainty reasonably likely to have a material adverse effect on the Company.
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market
Risk
The principal market risks (i.e., the risk of loss arising from the adverse
changes in market rates and prices) to which the Company is exposed are interest
rates on the Company's debt and short-term investment portfolios. The Company
centrally manages its debt and investment portfolios considering investment
opportunities and risks, tax consequences and overall financing strategies. The
Company's investment portfolios consist of cash equivalents and short-term
marketable securities; accordingly, the carrying amounts approximate market
value. The Company's investments are not material to the financial position or
performance of the Company.
Assuming the current variable rate debt and investment levels, a one-point
change in interest rates would impact net interest expense by approximately
$100,000.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
On June 28, 1999 the Company filed on Form 8-K reporting an agreement on
the termination of the contract with Colmen Capital Advisors, Inc. which had
been providing investment banking and consulting services to the Company. Under
the agreement, Mr. Peter Colella, Colmen's Managing Partner, and Mr. James
Hellauer, its Executive Director, resigned from EVTC's Board of Directors and
Mr. Hellauer resigned as President and Chief Executive Officer of EVTC. Mr.
George Cannan, EVTC's Chairman of the Board, assumed Mr. Hellauer's
responsibilities as President and Chief Executive Officer. Details are included
in the June 21, 1999 Press Release attached hereto as Exhibit A.
On August 9, 1999 the Company filed on Form 8-K reporting an agreement to
privately sell 792,800 shares of its common stock to a private investor for a
purchase price of $.75 per share. The shares will not be registered under the
Securities Act of 1933, as amended and cannot be resold or otherwise transferred
except in accordance with the provisions of the Act. The Company intends to use
the proceeds of the sale for working capital and general corporate purposes.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EVTC,Inc.
Date: August 16, 1999 By: /s/ David A. Keener
----------------------------------------
David A. Keener
Vice President-CFO
/s/ Darrell E. Brown
----------------------------------------
Corporate Controller
<PAGE>
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
Exhibit A.
Press Release
Hurst, Texas (Business Wire) June 21, 1999 EVTC, Inc. t/a Environmental
Technologies Corp. (NASDAQ/NMS:EVTC news) today announced that it and Colmen
Capital Advisors, Inc. (Colmen) have reached an agreement on the termination of
Colmen's contract with EVTC under which Colmen had been providing investment
banking and consulting services.
Under the agreement, Mr. Pete Colella, Colmen's Managing Partner, and Mr. James
Hellauer, its Executive Director, have resigned from EVTC's Board of Directors
and Mr. Hellauer has resigned as the President and Chief Executive Officier of
EVTC. These changes are effective immediately. George Cannan, EVTC's Chairman of
the Board, will assume Mr. Hellauer's responsibilities as President and Chief
Executive Officer for the immediate future.
EVTC, Inc. is engaged in the marketing and sale of refrigerants, refrigerant
reclaiming services and the recycling of fluorescent light ballasts and lamps.
Except for the historical information contained herein, the matters discussed in
the Release are forward-looking statements that involve risks and uncertainties.
The forward-looking statements in this Release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially due to a variety of factors, including
without limitation the market and the pricing for refrigerant products, weather
conditions, operating costs, inventory risks due to shifts in market demand, the
presence of competitors with greater resources, the Company's need to liquidity,
and other risks detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission.
Contact: EVTC, Inc. t/a Environmental Technologies Corp.
David A. Keener, Chief Financial Officer
(817) 282-0022 x 233
[email protected]
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,739,694
<SECURITIES> 0
<RECEIVABLES> 7,936,118
<ALLOWANCES> 257,440
<INVENTORY> 9,762,302
<CURRENT-ASSETS> 21,960,205
<PP&E> 4,476,093
<DEPRECIATION> 2,922,651
<TOTAL-ASSETS> 24,617,658
<CURRENT-LIABILITIES> 17,789,694
<BONDS> 0
0
0
<COMMON> 49,897
<OTHER-SE> 6,778,067
<TOTAL-LIABILITY-AND-EQUITY> 24,617,658
<SALES> 12,396,286
<TOTAL-REVENUES> 12,396,286
<CGS> 9,756,612
<TOTAL-COSTS> 9,756,612
<OTHER-EXPENSES> 1,843,450
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 317,046
<INCOME-PRETAX> 516,890
<INCOME-TAX> 0
<INCOME-CONTINUING> 516,890
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 516,890
<EPS-BASIC> .10
<EPS-DILUTED> .10
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