Revenue up 13.6%; Company Profitable for the First Quarter

/EINPresswire.com/ -- CRYSTAL SPRINGS, FL--(Marketwired - May 16, 2016) - CES Synergies, Inc. (OTC PINK: CESX)  (CESX) ("CES" or the "Company"), a full service environmental, asbestos abatement and demolition company, today announced financial results for the first quarter ending March 31, 2016 and provided a general business update.

John Tostanoski, CEO of CES Synergies, commented, "Financial improvements continue as we drive CES to greater profitability and reduced costs. Total revenue for the first quarter of 2016 increased 13.6% to $4.0 million compared to $3.5 million for the same quarter in FY 2015, while net profits increased to $231,637 compared to a loss of $714,878 for the same period. The increase in revenue is particularly pleasing in that it comes with the company's continued drive for increased gross margins, closing the first quarter at 32.8%, right in line with our established goals. We are also pleased that the company's continuing effort to control G&A expenses has resulted in a $254,331 or 19.3% reduction in costs for the quarter, as compared to the previous year."

"The revenue increase is primarily attributable to several large contracts in progress at NAS Jacksonville, U.S. Army -- Fort Benning, GA, Florida Department of Transportation and Eglin Air Force Base. Remediation and insulation sales increased in the first quarter of 2016, while demolition sales had a minor decline. However, we have commenced work on some large scale remediation and demolition projects at the end of the first quarter of 2016 in Florida and Georgia that should allow for current trends to continue."

"We anticipate continued improvement heading into our historically stronger second and third quarters for FY 2016. At the end of the first quarter of 2016, we had a backlog of projects valued in excess of $6 million. As we continue to drive the business with a concentration on our most profitable revenue streams we believe there are significant growth opportunities at the federal, state and local government levels, as well as a revitalized construction industry. We look forward to continued improvement in an increasingly robust marketplace."

About CES Synergies Inc.

CES Synergies, Inc., through its subsidiary, Cross Environmental Services, Inc., is a specialty environmental services company providing quality environmental contracting solutions, demolition and remediation services to commercial and industrial customers, as well as federal, state and municipal entities. More information may be found at the Company's website: www.crossenv.com.

SAFE HARBOR STATEMENT: This press release may contain "forward-looking statements" that are made pursuant to the "safe harbor" provisions as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," and similar expressions. These statements are based upon management's current expectations as of the date of this press release. Such forward-looking statements may include statements regarding the Company's future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses and other future or expected performances. The Company cautions readers there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC.

(tables follow)

CES SYNERGIES, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

                                                     March 31, December 31, 
                                                       2016        2015     
                                                    ---------- ------------ 
                                   ASSETS                                   
Current assets                                                              
  Cash                                              $  191,136 $    229,882 
  Advances to employees                                 12,754       13,770 
  Contracts receivable (net of allow. for bad debt)  3,997,376    4,599,131 
  Inventory                                            145,947      133,715 
  Deferred tax asset- current                           86,098       86,098 
  Prepaids                                              55,145            - 
  Cost and estimated earnings in excess of billings                         
   on uncompleted contracts                          1,402,434      690,553 
                                                    ---------- ------------ 
    Total current assets                            $5,890,890 $  5,753,149 
Property and equipment, net                          1,856,577    1,998,158 
Goodwill                                             1,446,855    1,446,855 
Deferred tax asset- non-current                              -      632,882 
Other assets                                                 -        4,731 
                                                    ---------- ------------ 
TOTAL ASSETS                                        $9,831,935 $  9,835,775 
                                                    ========== ============ 
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities                                                         
  Accounts payable                                  $2,921,296 $  2,911,780 
  Accrued payroll                                       40,456       47,819 
  Billings in excess of costs and estimated earnings                        
   on uncompleted contracts                            181,424      301,398 
  Notes payable                                      1,750,300    1,750,300 
  Current portion long-term debt                                            
  Related party                                              -            - 
  Non-related party                                    457,950      457,950 
                                                    ---------- ------------ 
    Total current liabilities                        5,351,426    5,469,247 
Long-term debt, net of current portion                                      
  Related party                                      3,414,035    3,419,098 
  Non-related party                                    333,464      446,066 
                                                    ---------- ------------ 
    Total long-term liabilities                                   3,865,164 
Stockholders' equity                                                        
  Common stock, authorized: $0.001 par value,                               
   250,000,000 shares, at March 31, 2016; issued:                           
   46,890,500 shares, at March 31, 2016; 46,880,500                         
   shares, at December 31, 2015                         46,890       46,881 
  Additional paid in capital                         1,299,018    1,299,018 
  Retained earnings                                   (612,898)    (844,535)
                                                    ---------- ------------ 
    Total stockholders' equity                         733,010      501,364 
                                                    ---------- ------------ 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $9,831,935 $  9,835,775 
                                                    ========== ============ 

See accompanying Notes to Consolidated Financial Statements

CES SYNERGIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

                                                       Three months ended       
                                                  ----------------------------- 
                                                  March 31, 2016 March 31, 2015 
                                                  -------------- -------------- 
Revenues                                          $    4,000,808 $    3,523,357 
Cost of sales                                          2,686,036      2,850,038 
                                                  -------------- -------------- 
Gross profit                                           1,314,772        673,319 
General & administrative expenses                      1,064,549      1,318,880 
                                                  -------------- -------------- 
Net operating profit/(loss)                              250,223       (645,561)
Other expenses, net                                      (18,586)       (69,317)
                                                  -------------- -------------- 
Profit/(loss) before income taxes                        231,637       (714,878)
Income taxes                                                   -              - 
                                                  ============== ============== 
Net profit/(loss)                                 $      231,637 $     (714,878)
                                                  ============== ============== 
Profit/(loss) per share                                                         
Basic and diluted                                 $         0.01 $        (0.02)
                                                                                
Shares used in computing profit/(loss) per share      46,883,687     46,730,500 
Cash distributions declared per common share                   -              - 

See accompanying Notes to Consolidated Financial Statements

Company Contact: 
John Tostanoski
CEO 
CES Synergies, Inc. 
(813) 783-1688 
jt@crossenv.com