RCAI Provides Guidance for Fourth Quarter 2004
LAKE FOREST, Calif.--April 30, 2004--RCAI (Reclamation Consulting & Applications, Inc.) (OTCBB:RCAA) today announced guidance for the fourth quarter 2004.Fourth Quarter 2004 Outlook
The company expects its fourth quarter product revenue to grow by more than 50 percent sequentially due to the successful development of markets by the company's distributors in the United States and Canada for the ALDEROX(TM) line of products. The company believes that its fourth quarter revenues will be between $250,000 and $300,000, assuming no exceptional changes in North American economies. Gross margins are expected to remain between 50 and 52 percent. There are no further expenses expected for R&D during the fourth quarter 2004. Based upon these revenue and expense levels, profit margins are estimated to be between 46 and 48 percent. Increase in revenue will translate into substantially larger increases in earnings due to the company's operating structure.
About RCAI's Products
The ALDEROX(TM) line of non-stick and cleaning products are a completely non-hazardous, 100-percent biodegradable blend of various all-natural materials. With the use of this product, asphalt slides easily from truck beds, concrete is easily released from forms and molds, and clay/mud is inhibited from sticking to the undercarriages of vehicles and equipment. The use of ALDEROX(TM) products substantially reduces operating and maintenance costs.
RCAI has recently introduced its bio-diesel product to the rapidly growing alternative/renewable fuels market in the commercial marine and heavy equipment industries.
About RCAI
With headquarters in Lake Forest, RCAI develops, manufactures and markets a diversified range of environmentally friendly asphalt release agents (ALDEROX(TM) ASA-12(TM)), concrete form oils (ALDEROX(TM) KR7(TM)) and non-stick industrial vehicle and equipment coatings for the oil-sands harvesting and mining industries (ALDEROX(TM) TSR(TM)) based on proprietary, patent-pending ALDEROX(TM) formulation technology. RCAI is also the exclusive distributor of bio-diesel to the commercial marine industry worldwide for Topia Energy, Inc., Canada's largest producer and supplier of bio-diesel. RCAI is represented in the United States by North American Systems Inc., in Canada by Canadian Release Agents Inc. and in Puerto Rico and the Caribbean by CHC LLC.
Forward-Looking Statements
Except for any historical information contained herein, this news release contains forward-looking statements regarding the company's future financial performance, the performance of new products and the company's ability to bring new products to market that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms and conditions associated with licensees', the impact of competitive products and pricing, and general economic conditions as they affect the company's customers, as well as other risks detailed from time to time in the company's SEC reports.
For more information about RCAI and the company's comprehensive list of product offerings, please call the company directly at tel. 949-609-0590. Information can also be requested via email to info@rca-inc.com or through RCAI's Web site at http://www.rca-inc.com. RCAI's head office is located at 23832 Rockfield Blvd., Suite 275, Lake Forest, CA 92630; telephone 949-609-0590; fax 949-609-0594.
Note to Editors: The RCAI logo, ALDEROX(TM), ASA-12(TM), KR7(TM) and TSR(TM) are registered trademarks of Reclamation Consulting & Applications, Inc.