Bahamas Waste Ltd.’s net income plunges 53%
A new business segment and increased fuel costs are behind a 53%plunge in net income year-on-year at Bahamas Waste Limited(BWL), according to the solid and medical waste collection and disposal company’s third quarter unaudited financial statements.
The company’s core revenue supported a cardboard recycling center it acquired this year, which did not break even during the nine-month period ending 30 September 2009, according to BWL Chief Financial Officer Desa Campbell. She also said that the company’s fuel costs were up about 30 percent for the year, or around$100,000.
For the nine-month period ended 30 September 2010, sales and services were$5,708,783, down$66,739 from$5,775,522 for the same period in 2009. For the comparative periods, net income and earnings per share fell to$304,403 and$0.05 respectively, down from$650,730 and$0.09 at 30 September 2009. The company reported 4,200,000 shares outstanding at 30 September 2010.
Cost of sales and direct expenses increased from$3,685,379 for the nine months ended 30 September 2009, to$3,912,812, up$227,433 for the same period this year. Total operating expenses were up about 3.6%or$52,155 to$1,491,568 year-on-year from$1,439,413 for the first nine months of 2009.
The cardboard recycling center’s salary and depreciation costs were a drag on net revenues for about six months of this fiscal year, according to Campbell. She said that the unit is now seeing better volumes and she now expected it to break even monthly. Campbell also said that at the beginning of 2009, fuel costs were in the$2.00 to$3.00 per gallon range, but most recently were up to$3.80 per gallon.
At 30 September 2010, BWL reported net assets of$10,192,267, up$259,546 from$9,932,721 at 30 September 2009. The company acquired Rear Load Commercial Garbage from WasteNot Limited, effective May 1, 2010 for a total purchase price of$400,000, representing$275,000 for property and equipment and$125,000 for goodwill. Net Liabilities were down$44,917 year-on-year to$907,442 from$952,359 at September 30, 2009.