SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
August 15, 1997
---------------
Date of Report
(Date of earliest event reported)
Consolidated Eco-Systems, Inc.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Idaho
-----
(State or other jurisdiction of incorporation)
0-25970 82-0464589
------- ----------
(Commission file number) (IRS employer identification number)
6807 West 12th Street
Little Rock, Arkansas 72204
--------------------- -----
(Address of principal executive offices) (Zip code)
(501) 664-7745
--------------
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
On August 15, 1997, the Registrant issued the following press release:
Consolidated Eco-Systems Announces
Expected Loss for Second Quarter
Little Rock, Ark.--August 15, 1997--Consolidated Eco-Systems, Inc.
(Consolidated Eco), formerly Exsorbet Industries, Inc. (Nasdaq Small Cap: EXSO),
today announced that, based on its preliminary results, it anticipates reporting
a loss of approximately $4.9 million for the quarter ended June 30, 1997. Of
this amount, the Company anticipates that approximately $3.75 million will
reflect non-cash items that are not expected to recur and $450,000 in
depreciation and amortization expenses.
Total revenues for the quarter are expected to be approximately $7.5
million. James J. Connors, Jr., President and CEO, said, "We have elected to
take write downs for items we believe no longer provide benefit to the Company
and that will allow us to go forward with a clean slate. We believe that these
losses are not indicative of any problems with current operations or management
and we are going forward with our current business plan."
Edward M. Penick, Jr., Chief Financial Officer of the Company, said, "We
believe that the current business plan is right on track. For example, our 7-7
subsidiary had a positive income of about $50,000 in June which is the first
positive month that it has had since our acquisition. Also, KRISA, SpilTech, and
Eco-Systems all had good quarterly results. We believe that the overall loss is
not indicative of future operations, but consists primarily of items that we
believed needed to be cleaned up so that they did not continue to be problems in
the months and years ahead. "
The Company has applied for an extension of time until August 19, 1997 to
file financial results for the quarter ended June 30, 1997 with the United
States Securities and Exchange Commission.
Consolidated Eco-Systems Inc. (www.consolidatedeco.com) is a diversified
environmental and industrial technology/service company providing
state-of-the-art technical solutions for problems in site remediation, coal and
petroleum tar liquefication and recycling, hazardous waste/spill cleanup
services, civil and environmental engineering, management and environmental
consulting, and construction project management. Consolidated Eco performs
project work in the United States and Eastern Europe.
This press release contains forward-looking statements with respect to the
results of operations and business of the company that involves risk and
uncertainties. These risks and uncertainties are detailed from time-to-time in
the company's filing with the Securities and Exchange Commission, including the
Company's Report on Form 10-K for the year ended December 31, 1996.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused Report to be signed on its behalf by the undersigned
hereunto duly authorized.
CONSOLIDATED ECO-SYSTEMS, INC.
By: /s/ James J. Connors, Jr.
-------------------------------------
James J. Connors, Jr., President
