Heckmann Corp. Misses Earnings Estimates (HEK)

Heckmann Corporation HEK reports Q2 EPS loss of $0.15 versus estimates of $0.01. Heckmann Corporation reports Q2 revenues of $11.6 million versus estimates of $13.66 million. The company said that this was its strongest quarterly revenue and adjusted pretax results in history and that cash and cash equivalents, investments and marketable securities now stands at $235 million. Mr. Richard J. Heckmann, Chairman and CEO of Heckmann Corporation, stated, "Our Haynesville Shale pipeline and network of disposal facilities continued to add customers and commitments as HWR proposes additional facilities and services. Although we handled up to 46,000 barrels per day at our peak in the second quarter, during the initial start-up and integrity testing we encountered technical and operational issues and made required modifications relating to temporary breaks, leaks and equipment optimization associated with the operation of the line.” He added, “Most of the costs to date were in our projections for total pipeline construction and acquisition costs, and the line is operational. Excluding the impact of the $13 million in costs incurred for pipeline start up, integrity testing, maintenance, and remediation, and certain write-offs at China Water, we reached pre-tax break-even during the second quarter, with China Water generating profits while launching a new beverage product to solid customer and market appeal.”