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News out...check this part of the PR at bottom
"The Company previously announced its execution of an agreement to acquire Independent Metal Sales, Inc., which is anticipated to bring INSEQ to about $21 million in annualized sales and $2.1 million in annualized EBITDA"
INSEQ Announces Second Quarter Results
Company Projects Profitability Moving Forward With Recently Completed Acquisition
MOUNT ARLINGTON, N.J., Aug 15, 2005 /PRNewswire-FirstCall via COMTEX/ -- INSEQ Corporation ("INSEQ") (OTC Bulletin Board: INSQ) announced today its financial results for the quarter ended June 30, 2005. INSEQ posted a net loss of about $768,000 on revenues of about $314,000 for the quarter ended June 30, 2005. Nearly all of the revenue generated during the quarter related to one month's worth of operations of INSEQ's recently acquired Warnecke Design Service, Inc. ("WDS"), which was profitable for the month of June 2005 on a stand-alone basis. Notably, the Company's net loss for the quarter included the impact of about $750,000 of operating expenses that were attributable to the Company's former development stage activities, about $550,000 of which are not expected by the Company to be recurring expenses.
"The majority of INSEQ's expenses incurred during the quarter related to INSEQ's formation and development stage activities prior to acquiring WDS," said Kevin Kreisler, chairman of INSEQ. "The WDS operation, which was acquired by INSEQ in late May, 2005, generated a net income of about $238,000 on $2.6 million in sales for the six months ended June 30, 2005, and can be expected to produce at least this much in earnings for the balance of the year. We believe that WDS' existing revenue and earnings run rate will be sufficient to bring INSEQ to above its break-even point on a going forward basis, particularly as INSEQ layers on additional sales and acquisitions."
"INSEQ's development plans for the balance of 2005 include increased sales for the WDS operation, the completion of at least one acquisition for the WDS operation, the completion by INSEQ of at least one additional acquisition beyond INSEQ's currently pending acquisition of Independent Metal Sales, Inc., and the completion and launch of INSEQ's secondary commodities trading platform," added Kreisler.
The Company previously announced its execution of an agreement to acquire Independent Metal Sales, Inc., which is anticipated to bring INSEQ to about $21 million in annualized sales and $2.1 million in annualized EBITDA. The Company has received a commitment letter from a conventional creditor for debt financing to support the completion of this transaction, which is scheduled to be completed during the third quarter 2005.
Additional Information
Please refer to the financial statements included in INSEQ's Quarterly Report for the second quarter ended June 30, 2005, on Form 10QSB, which will be filed later today, for a more complete description of INSEQ's results of operations for the quarter ended June 30, 2005.
About INSEQ Corporation
INSEQ Corporation is a publicly traded company whose mission is to directly facilitate the efficient utilization of primary and secondary commodities including metals, chemicals, fuels and plastics. More information on INSEQ is available online at www.inseq.com.
INSEQ is 70% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and contribute to the resolution of environmental challenges.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of INSEQ Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
SOURCE INSEQ Corporation
CONTACT: Jim Grainer, President and Chief Financial Officer, INSEQ Corporation, +1-973-398-8183, Fax: +1-973-398-8037, investorrelations@inseq.com, or Michael Cimini, +1-212-896-1233, mcimini@kcsa.com, or Garth Russell, +1-212-896-1250, grussell@kcsa.com, both of KCSA Worldwide, for INSEQ Corporation
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