Photo courtesy of Sennebogen Maschinenfabrik GmbH
Canonsburg, Pennsylvania-based American Environmental Partners Inc. (AEPT) has announced financial results for the third quarter of 2023 that include a net loss and a decrease in revenue from one year ago.
The company, an environmental services company focused on remediation and processing services for infrastructure and industrial companies, is in the midst of streamlining its operations to focus on what it calls core environmental services. The company earlier this year changed its name from American Energy Partners Inc.
In the quarter ending Sept. 20., AEPT's total revenue decreased 21 percent to $6.7 million from $8.5 million from one year ago, primarily due to discontinued unprofitable services in one of its four business lines.
The firm, which has stock that trades in the over-the-counter market, says its loss in this year’s third quarter was $2 million and its loss from operations was less than $250,000.
“As of Sept. 30, 2023, current assets were $14.2 million, including cash on hand of $0.5 million [and] total debt outstanding was $8.1 million,” the company says of its balance sheet.
“These are exciting times for American Environmental Partners,” says Brad Domitrovitsch, board chairman and CEO of AEPT. “We recently rebranded our company as American Environmental Partners to better reflect the services we provide to our customers and to further our strategy to expand our environmental services platform. Additionally, on Oct. 23, we announced our plans to reverse merge into SCWorx Corp., a publicly traded company listed on NASDAQ under ticker symbol WORX. We expect the transaction to close by the end of the first quarter of 2024.
“The environmental services market is highly fragmented with many attractive acquisition targets and growing demand driven by a compelling regulatory environment, both of which are contributing to our opportunities to grow. Gaining access to the public capital markets via the Nasdaq Stock Market should allow us to capitalize on the huge opportunity we see in our market today.”
According to Domitrovitsch, in the near term, AEPT will focus on offering services in its home region. “We believe to be well positioned for sustained growth given our strong market presence in Pennsylvania, Ohio, West Virginia and New York," he says. "Tighter environmental regulations at the federal, state and local levels and growing interest in sustainability are driving demand for our environmental services.”
Among the company’s four business units is Austin Master Services, a full-service, comprehensive environmental services firm specializing in radioactive and mixed waste management solutions. Austin Master Services also lists decontamination, dismantling and demolition among its service offerings.
“Looking to the future, we remain focused on executing our strategy by integrating recent acquisitions and streamlining our business to concentrate exclusively on environmental solutions, which deliver high levels of recurring revenues while reducing costs to deliver sustained profitable growth,” Domitrovitsch says.
