Hellenic Solutions Corporation Announces Second Quarter Financial Results

Hellenic Solutions Corporation (OTCBB: AEGZF)Hellenic Solutions Corporation (OTCBB: AEGZF) ("Hellenic" or "the Company"), a leading advisory, engineering and construction firm that specializes in the design, construction and equipping of commercial, agricultural and industrial facilities in...

Hellenic Solutions Corporation (OTCBB: AEGZF)

Hellenic Solutions Corporation (OTCBB: AEGZF) ("Hellenic" or "the Company"), a leading advisory, engineering and construction firm that specializes in the design, construction and equipping of commercial, agricultural and industrial facilities in Greece, today announced the Company's financial results for the second quarter ending June 30, 2010.

Financial Highlights for the Quarter Ending June 30, 2010For the three months ended June 30, 2010, revenues totaled $17.2 million compared to $11.7 million for the three months ended June 30, 2009, an increase of approximately $5.5 million, or 47%. Revenues increased primarily due to the increase in availability of grant money from the European Union, which resulted in an increase in demand for new facilities by clients.

Cost of sales totaled $14.6 million for the three months ended June 30, 2010 compared to $9.9 million for the same period in 2009. Cost of sales increased primarily because of the increase in revenues.

For the period ended June 30, 2010 gross profit totaled $2.6 million compared to gross profit of $1.7 million for the three months ended June 30, 2009, representing gross margins of 15.3% and 14.9%, respectively.

Operating expenses for the three months ended June 30, 2010 totaled $281,000 compared to $158,000 for the same period in 2009. This increase was primarily caused by the additional activity from increased revenues and the costs associated with being a publicly reporting company. Income before income taxes increased to $2.2 million an increase of $1.1 million or 96% compared to $1.1 million for the same period in 2009.

Net income for the three months ended June 30, 2010 totaled $1.6 million or $0.08 per share based on 21.1 million per basic and diluted shares outstanding. These results compare to net income of $688,000 and $0.04 per share based on 17.5 million basic and diluted shares outstanding for the same period in 2009 representing an increase of $934,000 or 136%.

Stavros Mesazos, Chief Operating Officer and Executive Chairman of Hellenic commented, "Our business model, strategy and long term relationships have presented us with a unique and prosperous position to continue establishing ourselves as a leader within the engineering and construction industry of Greece. Our long standing relationship with the Ministry of Agriculture has allowed us to continue garnering and fulfilling business opportunities as evidenced by our growing backlog and pipeline which now totals over EUR 301 million. We are very pleased with our ability to increase revenue by 47%, net income by 136% and enhance margins to 15.3%. We are confident that the worst of the economic downturn is behind us and that going forward our expertise and growing reputation will allow us to further our success as a Company and reward our shareholders."

Financial Highlights for the 6 Month Period Ending June 30, 2010For the six month period ended June 30, 2010, revenues totaled $34.6 million compared to $19.7 million for the six month period ended June 30, 2009, an increase of approximately $14.8 million, or 75%. Cost of sales totaled $29.2 million for the six month period ended June 30, 2010 compared to $16.7 million for the same period in 2009. For the six month period ended June 30, 2010 gross profit totaled $5.3 million compared to gross profit of $3.1 million for the same period in 2009, an increase of $2.3 million or 74%. These results yielded gross margins of 15.4% and 15.5%, respectively.

Total operating expenses totaled $411,000 for the first six month period of 2010 compared to $216,000 for the same period in 2009. Income before income taxes totaled $4.6 million for the first six months of 2010 compared to $2.4 million for the same period in 2009, an increase of $2.2 million or 92%.

Net income for the first six months ended June 30, 2010 totaled $3.4 million or $0.17 per basic and diluted share based on 20.0 million weighted average ordinary shares outstanding. These results compare to $1.6 million or $0.09 per basic and diluted share based on 17.5 million weighted average ordinary shares outstanding representing an increase of $1.8 million or 107%.

Balance Sheet as of June 30, 2010As of June 30, 2010, our cash and cash equivalents totaled $603,000, total current assets were $38.9 million and total assets were $39.1 million. Total current liabilities and total liabilities were both $25.9 million. Total shareholders' equity was $13.2 million. As of June 30, 2010 there were 21.1 million shares outstanding.

Company Business and BacklogThe Company's business model is to design, build and outfit manufacturing facilities, specializing in the agricultural sector, but has the ability to design and construct facilities in a number of other sectors. An integral part of the business model is to develop projects that qualify for grant programs made available to member states within the European Union under the Community Support Framework IV Grant Program. As part of the initial stages in beginning a typical construction project, approval must be obtained by the Greek Ministry of Agriculture. Hellenic believes it has a unique niche by providing total design and build turnkey agricultural facilities for projects approved by the Ministry of Agriculture.

The Company's projects in process and current backlog consists of 17 projects. Under construction are one metal processing unit which was initiated in 2008 and another ten projects which started in 2009, including a tomato processing unit valued at EUR 19.6 million and a slaughter and processing of byproducts unit valued at EUR 6.5 million. Hellenic will begin construction on 3 facilities in the second half of 2010 and 3 others in 2011. The total value of these 17 projects is approximately EUR 93 million.

Hellenic has an additional 34 projects in the pipeline which include those that are currently under application with the Ministry of Agriculture to begin construction. These include an egg processing unit valued at EUR 15 million, a biodiesel production unit valued at EUR 16.2 million and a wine refinery unit valued at EUR 7.8 million. The total value of these 34 projects is approximately EUR 208 million.

Dimitrios Vassilikos, Chief Executive Officer of Hellenic stated, "Our sizeable backlog and pipeline is a testament to our ability to maintain good relations with the Ministry of Agriculture and receive support from the Fourth Community Support IV Grant Program which provides our customers up to 50% of the aggregate project cost. Currently our backlog and pipeline consists primarily of projects within the agricultural sector. In addition to continuing to build our presence within the agricultural industry we see an opportunity to leverage our relationships and expertise to expand into the green and renewable energy sector."

Dimitrios Vassilikos concluded, "For over 20 years we have been developing a turnkey solution for waste management at our client facilities. We have implemented a system in select locations that will utilize animal waste products, processed waste products found in slaughter house and abattoirs, and the natural sun of the Mediterranean via solar panel technology. We then combine these elements to provide biogas/biofuel for the production of electricity at the existing facilities. We believe that this sector can provide an additional EUR 70 million in revenue over the next 3 years."

2nd Quarter Financial Results Conference Call Information Date: Thursday, August 19, 2010 Time: 10:30 a.m. EDT U.S. Dial-In: (877) 941-8602 International Dial-In: (480) 629-9811 Live Webcast: http://viavid.net/dce.aspx?sid000079D2 (http://viavid.net/dce.aspx?sid000079D2)

It is recommended that participants dial in approximately 10 minutes prior to the start of the 10:30 a.m. EDT call. A telephonic replay of the conference call may be accessed approximately two hours after the call through August 26, 2010. Please dial 877-870-5176 for U.S. or 858-384-5517 for international callers and entering the access code, 4350736.

There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available at http://viavid.net/dce.aspx?sid000079D2 (http://viavid.net/dce.aspx?sid000079D2) .

About Hellenic Solutions CorporationHellenic Solutions Corporation, founded in 1979, is a leading engineering and construction firm that specializes in the design, construction, and equipping of commercial, agricultural, and industrial facilities in Greece. Hellenic specializes in the preparation of economic studies for the establishment and installation of new industrial units as well as the modernization and improvements to existing units. Hellenic believes it is one of the only companies in Greece offering a turnkey construction, operational solution and financing to the primary and processing segments of the agricultural industry.

Safe Harbor StatementCertain statements in this news release are forward-looking, including (without limitation) regarding growing revenues and net income , expected results from current projects attracting new business and various Greek and other European governmental agencies willingness and ability to provide funding for businesses to hire the Company to design and build facilities. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of HESC its selling and marketing functions, continued customer satisfaction, contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends is discussed in the Company's Current Report on Form 8-K filed with the SEC on February 17, 2010. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date hereof.

Hellenic Solutions Corporation Condensed Consolidated Balance Sheets June 30, 2010 December 31, 2009 ----------------- ----------------- (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 603,005 $ 57,159 Contract receivables 5,939,818 22,548,331 Other receivables 23,499 -- Costs in excess of billings 31,954,893 -- Prepaid expenses 433,559 4,271,458 Other assets 22,091 -- ----------------- ----------------- Total current assets 38,976,865 26,876,948 ----------------- ----------------- LONG TERM ASSETS Property, plant & equipment, net of accumulated depreciation 102,111 27,795 ----------------- ----------------- Total long term assets 102,111 27,795 ----------------- ----------------- Total assets $ 39,078,976 $ 26,904,743 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Lines of credit $ 7,056,391 $ 11,356,165 Due to suppliers 15,565,243 7,376,566 Payable to shareholder 1,626,441 -- Taxes Payable 1,590,837 -- Accounts payable and accrued liabilities 12,633 129,709 ----------------- ----------------- Total current liabilities 25,851,545 18,862,440 ----------------- ----------------- LONG TERM LIABILITIES Deferred taxes -- 569,674 Other liabilities -- 25,685 ----------------- ----------------- Total long term liabilities -- 595,359 ----------------- ----------------- Total liabilities 25,851,545 19,457,799 ----------------- ----------------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY Preference shares, $0.00064 par value, 20,000,000 shares authorized, none issued and outstanding -- -- Ordinary shares, $0.00345728 par value; 100,000,000 shares authorized; 21,133,481 and 17,538,964 issued and outstanding as of June 30, 2010 and December 31, 2009, respectively 73,064 60,637 Additional paid in capital 4,299,626 41,696 Cumulative translation adjustment (1,771,241) 125,914 Retained earnings 10,625,982 7,218,697 ----------------- ----------------- Total shareholders' equity 13,227,431 7,446,944 ----------------- ----------------- Total liabilities and shareholders' equity $ 39,078,976 $ 26,904,743 Hellenic Solutions Corporation Condensed Consolidated Statements of Income (Unaudited) Six Months Ended Six Months Ended June 30, 2010 June 30, 2009 ---------------- ---------------- Revenues $ 34,551,179 $ 19,739,977 Cost of sales 29,233,053 16,680,013 ---------------- ---------------- Gross profit 5,318,126 3,059,964 Operating Expenses Selling, general and administrative expenses 410,516 216,306 ---------------- ---------------- Total operating expenses 410,516 216,306 Income before other expenses 4,907,610 2,843,658 ---------------- ---------------- Other expenses Interest and other expense (328,563) (456,668) ---------------- ---------------- Total other expenses (328,563) (456,668) Income before income taxes 4,579,047 2,386,990 Provision for income taxes (1,171,762) (743,759) ---------------- ---------------- Net income $ 3,407,285 $ 1,643,231 Net income per share - basic and diluted $ 0.17 $ 0.09 Weighted average ordinary shares outstanding - basic and diluted 19,990,062 17,538,964

Hellenic Solutions Corporation Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Three Months Ended June 30, 2010 June 30, 2009 ------------------ ------------------ Revenues $ 17,184,565 $ 11,681,194 Cost of sales 14,558,265 9,939,670 ------------------ ------------------ Gross profit 2,626,300 1,741,524 Operating expenses Selling, general and administrative expenses 280,578 157,544 ------------------ ------------------ Total operating expenses 280,578 157,544 Income before other expenses 2,345,722 1,583,980 ------------------ ------------------ Other expenses Interest and other expense (151,847) (466,410) ------------------ ------------------ Total other expenses (151,847) (466,410) Income before income taxes 2,193,875 1,117,570 Provision for income taxes (572,219) (429,760) ------------------ ------------------ Net income $ 1,621,656 $ 687,810 Net income per share - basic and diluted $ 0.08 $ 0.04 Weighted average ordinary shares outstanding - basic and diluted 21,133,481 17,538,964

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