PALM BEACH, Florida, August 16, 2018 /PRNewswire/ --
MarketNewsUpdates.com News Commentary
As accountability for environmental impact grows, leaders in the waste disposal and management space are turning to science to help create a more earth friendly method of waste management. The waste management industry presents an enormous opportunity for evolution and influence, currently standing at a value north of $49 billion, according to IBISWorld. Trends in this space include the aforementioned increased consideration of environmental impacts, as well as the concern for creating efficient methods of disposal in order to create leaner operations. Biological technology treatment is at the forefront of progressive thinking and strategic planning in this respect, giving waste management industry leaders a proven method for evolving disposal and management methods. Active companies in the markets this week include BioHiTech Global, Inc. (NASDAQ: BHTG), Renewable Energy Group Inc. (NASDAQ: REGI), Covanta Holding Corporation (NYSE: CVA), Waste Management Inc. (NYSE: WM), Stericycle Inc. (NASDAQ: SRCL).
BioHiTech Global, Inc. (NASDAQ: BHTG) BREAKING NEWS: BioHiTech Global, a technology and services company that provides cost-effective and sustainable waste management solutions, announced today that it has entered into a letter of intent ("LOI") with Entsorga USA to increase its stake in the nation's first resource recovery facility (the "Martinsburg Facility") utilizing a proprietary high efficiency biological treatment (HEBioT) technology for the disposal and recycling of mixed municipal solid waste (MSW).
The Martinsburg Facility is expected to generate over $7 million in revenue in 2019 when it begins its first year of full operations. Apple Valley Waste, a subsidiary of Gold Medal Group and co-owner of the Martinsburg Facility, has contracted to provide the MSW feed stock for ten years. Approximately 40% or more of the waste processed at the facility will be converted into a clean burning EPA approved alternative fuel (Solid Recovered Fuel or SRF) through the patented HEBioT process. The Solid Recovered Fuel is contracted to be sold for ten years to a privately held company in West Virginia that intends to use it as an approved supplement to fossil fuels in the production of cement.
The LOI contemplates BioHiTech acquiring up to an additional 30% stake in the Martinsburg Facility from Entsorga USA in exchange for a number of shares of BioHiTech common stock to be determined in a definitive agreement. If fully completed, the acquisition would make BioHiTech the largest equity owner of the Martinsburg Facility at over 47%, and enable the Company to consolidate the Martinsburg operations in its financial statements. BioHiTech acquired its original 17.2% stake in the Martinsburg Facility last year for approximately $1 million in cash with an option to purchase an additional 22.4% stake for $1.4 million. The acquisition is subject to entering into a definitive agreement among the parties containing the final terms of the acquisition.
The Company also reported this week financial results for the second quarter ended June 30, 2018. Q2 Financial Highlights included: Revenue: Revenues in Q2 2018 were $909,000, a 65.5% increase compared to revenues of $549,000 in Q2 2017. Recurring revenue from rental, services and maintenance grew by 25.1% to reach $458,000 or 50.5% of total revenue. The increase in rental, service and maintenance is primarily the result of a larger overall number of deployed units. Revenue from equipment sales grew by 9.4% to $200,000. The Company continues to focus more of its resources on its rental model and therefore expects equipment sales to vary based upon reseller activity predominantly in overseas markets. Recurring revenue from management advisory fees related to its new management services contract with Gold Medal in 2018 totaled $251,000. The Company expects that revenue stream to increase over time as Gold Medal expands its business in the coming years. Read the full financial report here. Read today's full announcement and more news for BHTG at http://www.marketnewsupdates.com/news/bhtg.html
In other industry news and developments:
Covanta Holding Corporation (NYSE: CVA) last week announced its agreement to purchase a subsidiary of Babcock & Wilcox Enterprises, Inc. (BW) with the operating and maintenance contracts for two Energy-from-Waste (EfW) facilities in Palm Beach County, Florida for $45 million. The facilities are owned by the Solid Waste Authority (SWA) of Palm Beach County and have a combined capacity of 1.7 million tons per year. The transaction is expected to close during the third quarter of 2018. Stephen J. Jones, Covanta's President and CEO said: "We are pleased to partner with the SWA on these two projects as they are a progressive special district that is committed to sustainable waste management. We look forward to demonstrating our best-in-class operating capabilities at these two high-performing, state-of-the-art facilities."
Waste Management Inc. (NYSE: WM) closed Wednesday up slightly at $90.66 with more than 1.5 million shares traded. Waste Management, Inc., through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations. As of December 31, 2017, the company owned or operated 244 solid waste landfills; 5 secure hazardous waste landfills; 90 MRFs; and 305 transfer stations. It also provides materials processing and commodities recycling services; recycling brokerage services, such as managing the marketing of recyclable materials for third parties; and other strategic business solutions.
Stericycle Inc. (NASDAQ: SRCL) recently announced that it has acquired Stericyle, Inc.'s (SRCL) Controlled Environmental Solutions business ("CES business") for a cash purchase price of $17.0 million on a cash-free and debt-free basis. The CES business, consisting of B&V Testing and Certco services, is a leading provider of testing and certification, environmental monitoring and decontamination services for clean rooms and other controlled environments to ensure safety, regulatory compliance and quality control. For the calendar year ending December 31, 2017, the CES business reported revenues of $8.9 million. Cantel anticipates the acquisition to be accretive to non-GAAP earnings per share in the fiscal year ending July 31, 2019 and beyond, and accretive to GAAP earnings per share in the fiscal year ending July 31, 2020 and beyond. The CES business is made up of highly specialized testing and certification services, control procedures and tailored decontamination technology for the clean room to ensure optimal performance of the environment and end-user compliance to highly regulated industry standards.
Republic Services Inc. (NYSE: RSG) recently announced that its Board of Directors has approved a 3-cent increase in the Company's regular quarterly dividend. The quarterly dividend of $0.375 per share will be paid on Oct. 15, 2018, to shareholders of record on Oct. 1, 2018. "We are pleased to raise our quarterly dividend 9 percent," said Donald W. Slager, president and chief executive officer. "This is the ninth consecutive year we've increased our dividend, demonstrating our confidence in future cash flows and commitment to increase cash returned to shareholders."
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