Ecosphere Technologies Announces Q2 2013 Record Net Income Of $27.3 Million And EPS Of $0.17 An Increase Of $26.4 Million And $0.17 Over Q2 2012
STUART, Fla., Aug. 14, 2013 (GLOBE NEWSWIRE) -- Ecosphere Technologies, Inc. (OTCBB:ESPH), a water engineering, technology licensing and innovative U.S. manufacturing company, today announced results for the quarter ended June 30, 2013 in its quarterly report on Form 10-Q, reflecting record Net Income for the second quarter of $27.3 million, compared to $0.9 million in the same period in 2012. The Company announced Basic and Fully Diluted EPS of $0.17, an increase of $0.17 versus the same period in 2012.
Net Income of $27.3 million for the quarter was primarily the result of a $29.5 million gain on the deconsolidation of EES, attributed from the sale of an additional 12% interest in its energy subsidiary, Ecosphere Energy Services, LLC ("EES") to Fidelity National Financial ("FNF") in May 2013. The accounting for the sale of 12% of the Company's interest in EES allowed the Company to recognize the fair value of its remaining interest in EES on its balance sheet, increasing its total recognized assets by more than $25 million and shareholders equity to approximately $18.4 million. FNF and Ecosphere Technologies now own 39% and 31% of EES, respectively.
David Brooks, CFO of Ecosphere Technologies, stated, "For the first time in the Company's history, our balance sheet reflects the value of one of our seven core verticals in which the Company's patented, revolutionary Ozonix® technology can be applied. In 2009, the Company granted EES the exclusive rights to Ecosphere's patented Ozonix® technology for use in the global energy field of use. The Company retains 100% of the global rights to monetize its patented Ozonix® technology in all other non-energy related water treatment industries and plans to realize similar value as recently realized from the development and sale of its ownership interest in EES."Brooks continued, "The true and complete value of the patented Ozonix® technology can be realized through the sale of a portion or all of the global intellectual property rights for Ecosphere's patented Ozonix® process in non-energy related verticals. The true value we have created for our shareholders is not reflected in our financial statements, as these verticals have not been monetized yet. The sale of our interests in EES confirms our belief that the value of each of these additional verticals is significant. The Company is successfully implementing its long-term strategy of patenting, commercializing, and licensing our environmental technologies and that strategy continues throughout the development of the energy sector and beyond."
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