NEWS Finally!!!
National Storm Management, Inc. Reports Results for 2005 Year Revenues up Sharply
Wednesday May 24, 6:41 pm ET
startups in new markets contribute to net loss
GLEN ELLYN, Ill.--(BUSINESS WIRE)--May 24, 2006--National Storm Management, Inc. (PINK SHEETS:NLST - News) today reported results for the fiscal year ended December 31, 2005.
Revenues rose 21 percent to $15.2 million. However, the company reversed its history of yearly profits to post a net loss of $1.6 million, or four cents a share.
* Gains in revenues came primarily from Florida operations following hurricanes in that state.
* Costs of $1.1 million to open five new offices (in Florida, Mississippi and Minnesota) during 2005 contributed to the net loss.
* Sales of $500,000 from developmental offices in Mississippi and Minnesota had little impact on 2005 revenues, yet are expected to generate up to $12 million in 2006.
For the year, National Storm reported revenues of $15,153,760, up sharply from $12,486,913 in 2004. Net loss for the year was $1,642,075, or four cents a share with 42,245,088 basic weighted average common shares outstanding. This compares to net income of $65,952, with zero earnings per share based on 34,000,000 average common shares outstanding.
"We are pushing for rapid growth and that means making significant investments in locations that meet our criteria. We expect the development expenses of 2005 to pay off in the current year and the future," said Terry Kiefer, National Storm's president and CEO. "The Mississippi and Minnesota operations are prime examples of this as they did not benefit our financial results last year but should make a contribution to both top and bottom lines in 2006."
A second key factor impacting last year's results was timing relating to Hurricane Katrina. "National Storm is not in the first round of post-Katrina rebuilding," Mr. Kiefer said. "First-stage restoration is in the central area of total destruction. We locate our offices 50-100 miles out of a city, where there is less damage. In this exceptional Katrina situation, insurance companies have devoted their resources to helping those who have been hit the hardest and our market area has been slow to get their attention. We are seeing this attention now. Although there is a lag between insurance company approval and completion of the work, Katrina-related work will have positive impact on our financials in 2006.
"Overall, we expect solid growth in 2006, especially beginning in the third quarter. Our investments in new locations should pay off and the exceptional delay relating Katrina will be behind us. We continue to seek acquisitions, although there is a lot of room for internal growth at this point as well," Mr. Kiefer said. One example of internal development is the Company's Illinois operation, ABC Exteriors expansion into Indianapolis.
The company also said it is moving forward toward its plan for National Storm to expand its liquidity and recognition in the financial markets. It is currently preparing to register the outstanding shares of its common stock and become an SEC reporting company.
National Storm Management is an expanding national construction company specialized in storm restoration management that works closely with affiliates in seven states. The affiliates are: ABC Exteriors (Illinois), ABC Exteriors (Indiana), Pinnacle Roofing (Orlando, Vero Beach & West Palm Beach, Florida), MSM Builders and Remodelers (Missouri), WRS, Inc (Minnesota), First Class Builders (Maryland), Pinnacle Roofing (Mississippi), First Class Roofing and Siding (Ohio) and Pinnacle Roofing (Louisiana). The company and its affiliates are recognized by all major insurance companies such as State Farm, Allstate, Farmers and many others for storm related claims. The Company is also a member of the National Roofing Contractors Association (NRCA) and the Better Business Bureau.
Should hopefully be an up day Friday!
AI
