Deep Green reports record Q3 earnings

Deep Green Waste & Recycling Inc., a Saint Simons Island, Georgia-based waste, recycling and remediation services company for commercial customers, reports top- and bottom-line growth in its financial results for the third quarter and nine months ending Sept. 30.

Revenues increased by 145 percent to a quarterly record of $902,987 compared with $368,512 in the third quarter based on “robust organic growth and recent acquisitions,” Deep Green says. Gross margins of 82 percent and prudent expense management led to substantial profitability growth, as well.

“I am thrilled to report that the immense effort put forth by our dedicated team to methodically improve performance over the past year has resulted in an organization positioned to drive value for shareholders,” Deep Green CEO Bill Edmonds says. “Posting over $900,000 of quarterly revenue and achieving 82 percent gross margins proves we now have an efficient, high-quality operation with tremendous earnings potential moving forward.”

Operating income in the third quarter was $327,751 compared with an operating loss of $74,506 in the same period last year. For the nine months ending Sept. 30, Deep Green grew revenues by 65 percent to $1,315,097 and swung to positive gross margins of $1,026,167 from $495,615 last year.

On a GAAP basis, the company reports a net loss of $226,090 in the latest quarter, primarily due to noncash derivative liability expenses. Excluding the noncash derivative liability expense, the company had an adjusted net income of $227,138.

Lyell Environmental Services, a wholly owned subsidiary of Deep Green, secured a $1.995 million contract for asbestos removal at Vanderbilt University Medical Center, which added to the company’s third-quarter gains. The 20-week remediation project follows a year of tremendous growth in which Deep Green increased quarterly revenues by 145 percent along with 82 percent gross margins in its fiscal third quarter.

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The Vanderbilt contract serves as an inflection point, Deep Green says. According to the company, the execution of the $2 million engagement is expected to “open up significant new opportunities in the region.”

The project also accelerates Deep Green’s Middle Tennessee expansion. The company says it “sees room for over 40 percent organic revenue growth in the Nashville market alone by extending its asbestos and lead removal capabilities.”

“We intend to leverage our strong reputation and technical expertise to capture market share,” says David Bradford, president of Deep Green Waste and Recycling.

Beyond Nashville, management has set its sights on other Tennessee metro regions like Memphis, Knoxville, Chattanooga and Huntsville to cultivate a deeper presence. Deep Green also plans to continue developing its service verticals, such as lead remediation, to penetrate new markets.

“The combination of geographic and capability expansion provides several avenues to sustain the impressive profitable growth achieved this past year,” Deep Green says.

Deep Green says it will continue to target additional acquisitions and add new remediation services to complement its existing capabilities in the waste, recycling and environmental remediation services markets.