National Waste Management Holdings Inc. Reports 298% Increase in Revenue for the First Quarter 2016

Shareholders' Equity Increased by $2.5 Million to $7.9 Million

HERNANDO, Florida, May 16, 2016 /PRNewswire/ -- National Waste Management Holdings, Inc., (OTCQB: NWMH) today announced financial results for the first quarter ending March 31, 2016 and provided a general business update.

First Quarter 2016 Highlights:

  • Revenue for the first quarter of 2016 increased 298% to $1.6 million compared to $390,592 for the same period last year;
  • Shareholders' equity increased to $7.9 million at March 31, 2016, compared to $5.4 million at December 31, 2015;
  • Continues to expand and improve profitability of Gateway Rolloff Services.

Louis Paveglio, CEO of National Waste Management Holdings Inc., stated, "We are pleased to report our revenue has quadrupled 297% to $1.6 million for the first quarter of 2016 while we continue to strengthen our balance sheet with shareholders' equity increasing to $7.9 at March 31, 2016, compared to shareholders' equity of $5.4 million at the end of 2015. The increase in revenue is due to the execution of our business strategy of acquiring accretive companies such as Gateway Rolloff Services, L.P. ("Gateway") and Waste Recovery Enterprises, LLC, both of which we acquired in 2015."

"We continue to grow and improve profitability of Gateway, since completing the acquisition in December of last year. We are aggressively expanding this business and are able to offer better rates and comprehensive end-to-end solid waste solutions for our customers. The feedback from customers has been extremely positive and demand for our services in the region continues to grow. Overall, 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."

"With shareholders' equity increasing to $7.9 million and the addition of an independent board member, we 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 quarter ended March 31, 2016 was $1.6 million versus $390,592 for the quarter ended March 31, 2015. The increase in revenue was due to the acquisitions of Waste Recovery Enterprises 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 first quarter of 2016 was $636,262 or 41% of revenue versus $192,685 or 49% of revenue for the same period in 2015. Operating income for the first quarter of 2016 was $44,014 versus operating income of $71,930 for the first quarter of 2015. Net loss for the first quarter of 2016 was $(41,206) or $(0.001) earnings per share, versus net income of $38,374 or $0.001 earnings per share for the first quarter of 2015.  We incurred a one time charge for a loss on deposits on an acquisition, totaling $72,473.  Without this one time charge to earnings, our net income would have been approximately $31,267 or $0.0005 per share. 

About National Waste Management Holdings Inc.:

National Waste Management Holdings Inc., is a growing and emerging vertically integrated solid waste management company with a concentration on C&D collection, hauling and recycling. National Waste services Florida's west coast and upstate New York and is a distinguished leader in solid waste services. More information may be found at the Company's website: www.nationalwastemgmt.com.

This release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, and are made in reliance upon the protections provided by such Acts for forward-looking statements.  We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties that are beyond our control, and these statements may turn out not to be true. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company's Form SEC filings.

(tables follow)

 

National Waste Management Holdings, Inc.

Consolidated Balance Sheets



Assets


March 31, 2016
(Unaudited)


December 31, 2015
(Audited)


Current assets:






Cash and cash equivalents

$

545,380

$

344,365


Accounts receivable, net


604,156


570,347


Prepaids and other current assets


40,766


38,362


Due from related party


54,473


54,473


                 Total  current assets    


1,244,775


1,007,547


   Property and equipment, net 


4,907,115


5,041,280








Other assets:






   Secured letter of credit


324,950


324,950


   Intangible assets, net


1,340,756


1,413,353


   Goodwill


2,179,183


2,179,183


   Deferred tax asset


36,474


53,662


   Other deposits


13,698


8,750


Total  other assets


3,895,061


3,979,898


Total  assets

$

10,046,951

$

10,028,725








Liabilities and Stockholder's Equity (Deficit)






Current liabilities:






   Accounts  payable and accrued expenses

$

276,577

$

228,957


   Current portion of long term debt


162,382


184,932


   Current portion of capital  lease obligations


26,215


25,131


   Due to related party


514,067


742,441


   Short term related party acquisition notes


100,000


350,000


   Accrued preferred stock dividends


50,000


-


   Income taxes  payable


10,736


32,242


Total  current liabilities


1,139,977


1,563,703








Long-term liabilities:






   Capital  lease obligations, net of current portion


95,955


102,929


   Long term debt, net of current portion


383,677


419,073


   Environmental  remediation obligation


424,596


424,596


   Loan from shareholder


-


2,017,301


   Long term deferred tax liability


70,221


70,221


                Total  liabilities    

$

2,114,426

$

4,597,823








Stockholders' equity (deficit):






   Common stock, no par value; 250,000,000 shares






authorized, 66,623,312 and 62,880,483 shares

issued and outstanding at March 31, 2016 and

December 31 2015, respectively. 

$

-

$

-


Class  1 Preferred stock, no par value; 10,000,000






shares authorized, 1 share and 0 shares issued

and outstanding as of March 31, 2016 and

December 31, 2015, respectively               


-


-


Class  2 Preferred stock, no par value; 10,000,000






shares  authorized, 2,000,000 share and 0 shares

issued and outstanding as of March 31, 2016

and December 31, 2015, respectively


2,000,000




Additional  paid-in capital


6,198,965


2,456,136


Common stock subscribed


-


3,150,000


Retained earnings  (deficit)


(266,440)


(175,234)


Total  stockholders' equity (deficit)


7,932,525


5,430,902


Total  liabilities  and stockholders' equity (deficit)

$

10,046,951

$

10,028,725


 

National Waste Management Holdings, Inc.

Statement of Operations

(Unaudited)










Three Months


Three Months




Ended March 31,


Ended March 31,




2016


2015

Cash flow from operating activities:






Net income (loss)


$

(41,206)

$

38,374

Adjustments to reconcile net income to






net cash provided by operating activities:






Depreciation and amortization expenses



258,151


41,023

Non-cash professional  expenses



64,455


-

Non cash write off of acquisition deposits



50,000



(Increase) decrease in assets:






Accounts receivable, net



(33,809)


27,506

Other current assets



(2,404)


(8,399)

Deposits



(4,948)


-

(Decrease) increase in liabilities:






Accounts payable and accrued expenses



30,319


31,020

Related party accrued interest



-


1,891

Income taxes payable



(21,506)


20,583

Deferred tax assets and liabilities, net



17,188


-

Net cash provided by operating activities


$

316,240


151,998

Cash flows from investing activities:






Purchases of property and equipment



(51,389)


-

Net cash used in investing activities


$

(51,389)

$

-

Cash flows from financing activities:






Issuance of  long term debt



-


-

Payments on long term debt



(57,946)


-

Payments on capital  lease obligation



(5,890)


(9,273)

Net cash provided by (used in) financing activities


$

(63,836)

$

(9,273)

Net increase (decrease) in cash


$

201,015

$

142,725

Cash, beginning of period



344,365


108,642

Cash, end of period


$

545,380

$

251,367

Supplemental  disclosure of cash flow information:






Cash paid during the year for interest


$

17,065


6,275

Cash paid during the year for income taxes


$

-

$

-

Supplemental  schedule of non-cash activities:






Issuances of shares subscribed


$

3,150,000

$

-

Short term acquisition note paid on behalf of Company by a
related party


$

250,000



Conversion of shareholder debt to 10% cumulative preferred
stock


$

2,000,000



Conversion of shareholder debt to non-interest bearing
accrued short term payable (remaining difference from
Preferred Conversion of Shareholder Debt)


$

17,301



Preferred stock dividends accrued, not paid


$

50,000



Conversion of related party payable to restricted common
stock


$

592,829



 

Investor Relations:
Natalya Rudman
Crescendo Communications, LLC
(212) 671-1020, Ext:304
nwmh@crescendo-ir.com

 

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SOURCE National Waste Management Holdings, Inc.