National Waste Management Holdings more than doubles revenue in Q2

National Waste Management Holdings Inc., (NWMH) has announced financial results for the second quarter ending June 30, 2016, and provided a general business update. Second quarter 2016 highlights of the the Hernando, Florida-based emerging vertically integrated solid waste management company with a concentration on C&D collection, hauling and recycling are as follows:

Revenue for the three months ended June 30,2016 increased 226 percent to $1.6 million compared to $479,534 for the same period last year;

• Revenue for the six months ended June 30, 2016 increased 258 percent to $3.1 million compared to $870,126 for the same period last year;
• Shareholders' equity increased to $8.3 million at June 30, 2016, compared to $5.4 million at December 31, 2015;
• Acquired Sivart Services, a roll-off and compactor company located in Worchester, New York, in an all cash transaction

Continues to expand and improve profitability of Gateway Rolloff Services and Waste Recovery Enterprises.

Louis Paveglio, CEO of NWMH stated, "We are pleased to report our revenue has tripled 226 percent to $1.6 million for the second quarter of 2016. The increase in revenue is due to the execution of our business strategy of acquiring accretive companies such as Gateway Rolloff Services, L.P. and Waste Recovery Enterprises,LLC, both of which we acquired in 2015."

"In the second quarter, we acquired Sivart Services, a roll-off and compactor company located in Worchester, New York, in an all cash transaction. We expect this acquisition will generate immediate revenue for the Company. It also allows us to rapidly expand our footprint in the northeast. Currently, we have a permitted waste facility in Bainbridge, New York and the acquisition of Sivart adds tremendous synergies to this business.

In connection with the transaction, we have acquired all of Sivart's contracts and equipment, with some of this equipment being sent to Gateway Rolloff services to help with their rapid growth in Florida. This is one of many acquisitions we have lined up this year, which is consistent with our business strategy to acquire facilities that increase our geographic footprint, augment services to existing customers, and attract new customers in under serviced markets."

We continue to grow and improve profitability of WRE and Gateway, since completing the acquisitions in the fourth quarter of last year. We are aggressively expanding our business and customer base by being able to offer better rates and comprehensive end-to-end solid waste solutions. We have improved our cash flow by 63 percent for the six months ended June 30, 2016, due to our increased sales from our WRE and Gateway acquisitions.

We continue to get positive feedback from our customers and demand for our services in the region continues to grow. We are pleased with the progress our acquisitions have made and we believe we have demonstrated our ability to effectively integrate and organically grow these companies. We have identified several other accretive acquisitions that are consistent with our business strategy and we are in active discussions with several of these companies, which we look forward to announcing later this year."

"We continue to strengthen our balance sheet with shareholders' equity increasing to $8.3 at June 30, 2016, compared to shareholders' equity of $5.4 million at the end of 2015. We also added another independent board member to our board in June. We continue to make progress and are much closer to meeting all of the requirements for listing on a senior national stock exchange, which we believe will provide us a stronger platform for acquisitions, while increasing our visibility within the investment community."

Revenue for the three months ended June 30, 2016 was $1.6 million versus $479,534 for the quarter ended June 30, 2015. The increase in revenue was due to the acquisitions of WRE and Gateway Rolloff during the fourth quarter of 2015 and the execution of our business model, increasing our customer base and expanded sales to current customers.

Gross profit in the second quarter of 2016 was $583,997 or 37 percent of revenue versus $231,902 or 48 percent of revenue for the same period in 2015. Operating income for the second quarter of 2016 was $9,379 versus operating income of $119,357 for the second quarter of 2015. The decrease in operating income was due to non-cash depreciation and amortization expenses of $263,035.

Net loss for the second quarter of 2016 was $(5,913) or $(0.000) earnings per share, versus net income of $64,742 or $0.001 earnings per share for the second quarter of 2015. We incurred a one time charge for a loss on deposits, totaling $18,500.  Without this one time charge to earnings, our net income would have been $12,587 or $0.0002 per share.

The full earnings release is available here.