Oak Brook, Illinois-based Primary Energy Recycling Corporation, a clean energy company that generates revenue from capturing and recycling waste energy from industrial processes, Tuesday announced its financial and operational results for the first quarter ended March 31, 2010.
The company reported revenue of $15.3 million in the first quarter of 2010, an increase of $0.6 million or 4.3 percent, compared with revenue of $14.7 million for the first quarter of 2009. The increase is related to the variable portion of Energy Service revenue. Market conditions in the steel industry improved in the first quarter of 2010 compared to the same period in 2009 and resulted in increased steel production at the company's site hosts.
Operating and maintenance expense for the first quarter of 2010 was $2.6 million, which was essentially flat compared to the first quarter of 2009. General and administrative expense for the first quarter of 2010 was $2.6 million versus $3.2 million for the same period a year ago, representing a decrease of $0.6 million or 17.8 percent. The decrease is primarily due to reductions in accrued property taxes of $0.4 million based upon reductions in tax rates.
Operating income for the first quarter of 2010 was $1.7 million compared to $0.4 million for the first quarter of 2009, an improvement of $1.3 million. The improvement is primarily driven by higher revenue and decreased expenses discussed above.
Interest expense for the first quarter of 2010 was $2.8 million compared to $4.6 million for the first quarter of 2009, a decrease of $1.8 million. This decrease is primarily due to the reduced level of debt outstanding offset by increased deferred finance fees during the first quarter of 2010.
Net loss for the first quarter of 2010 was $0.7 million compared to $5.1 million for the first quarter of 2009, an improvement of $4.4 million. The improvement was the result of the net effect of the items referenced above.
At the end of the first quarter, the Company's cash balance, not including the $3.7 million funded debt service reserve, was $23.0 million after making payments totaling $10.2 million that reduced outstanding senior debt balance.
"The positive momentum that we saw in the steel industry at the end of the year continued in the first quarter of 2010 and was ultimately reflected in our financial results," said John Prunkl, President and CEO of Primary Energy Recycling. "Steel production, which results in large amounts of wasted heat and energy, is an ideal process to benefit from our energy recycling technology. Looking beyond steel, we see significant opportunity for growth in recycled energy and combined heat and power in other industries. Going forward, we intend to focus on paying down our debt, advancing contract renewal negotiations with our current host clients, and evaluating opportunities to diversify our customer base."