Ultra Shield Revenues Grow Profitable in1998|
June 11, 1998 04:50 PM
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--June 11, 1998--Ultra Shield Products International Inc. (Ultra Shield) USPDU , Thursday announced ever-increasing revenues and its first ever profit for the quarter ended March 31, 1998.
Revenues were $714,156, up 280 percent from the $187,848 reported for the quarter ended March 31, 1997. Net income before taxes was $69,224, up 116 percent from losses of $433,668 a year earlier. Income rose 110 percent to one third of one cent per share, compared with per share losses of just over three and one half cents for the quarter ended March 31, 1997.
Shares outstanding were 19,055,831 at March 31, 1998, compared with 11,881,170 a year earlier.
J.W. Rutherford, the company's president and chief executive officer, said the sales increase reflects continued strong demand by fast-food restaurants for the company's line of proprietary "environmentally preferred" specialty chemical products. The enthusiastic response is due to the company's use of high-tech stainless steel Blend Center and Dial-A-Blend dispensers/proportioners, which has improved worker productivity and reduced chemical cost.
Ultra Shield's broad product line consists of water-based products that clean, deodorize, degrease, dishwash, disinfect, and are 100 percent biodegradable and virtually non-polluting. The proprietary cross linking carbon molecule technology that Ultra Shield uses in all of its products results in a Volatile Organic Compound (VOC) level of a mere 1.4 percent. This has given the company a strategic position to take maximum advantage of changes in local and federal law.
On Aug. 15, 1998, a federal mandate becomes law that will force the state of California to enforce its own Volatile Organic Compound law that was originally to take effect on Jan. 1, 1994. This federal law makes it a crime to use any general purpose cleaner that has a VOC level in excess of 10 percent anywhere in the country. Violators face considerable daily fines.
Beginning Jan. 1, 1999, the California South Coast Air Quality Management District will outlaw the use of all petroleum-based solvents for use in California. Typical products currently on the market affected by this new law include solvents, mineral spirits and other hazardous concentrated cleaners.
Ultra Shield's Cleaner Concentrate has been certified as a Clean Air Solvent by the California South Coast Air Quality Management District and is the only product to qualify for clean air, water and soil.
"This certification has opened the floodgates for industrial, commercial, aerospace, janitorial and institutional sales as the only replacement chemical for petroleum-based solvents," Rutherford explained.
The company has installed more than 3,000 Blend Center dispensers at franchises of Taco Bell, Little Caesar's Pizza, Kentucky Fried Chicken, Jack in the Box, Cinnabon, A&W Root Beer, Dairy Queen, Baskin Robbins, Domino's, Papa Johns, Pizza Hut and others.
Ultra Shield products are also used at Disneyland, Disney World, Magic Mountain, Huck Aerospace, Lockheed, Universal Studios, MGM Picture Studios, Long's Drug Stores, Texaco, Arco, Mobil, Shell and 5,500 locations of federal government agencies.
Rutherford states that the company continues in negotiation on distribution agreements with several national concerns.