ABCO Energy, Inc, (OTC PINK: ABCE) May 21, 2018, Tucson, Arizona, announced that they have completed and filed the first quarter 2018 10Q financial report and achieved significant gains in sales and profits over the previous year. Sales for the three months ended March 31, 2018 were $522,295 as compared to $212,806 for the same three months in 2017. This is an increase of $309,489 or 146% increase over 2017 sales. The Solar sales revenue in 2018 and 2017 reflected seasonal and changing market conditions in the financing of solar installations and competition from the public utilities in the Arizona markets. ABCO has worked diligently to overcome these changes by focusing on commercial applications and the increased interest of business and government in the LED lighting contracts.
Cost of sales was 63% of revenues in 2018 and 89% of revenues in 2017, resulting in an improvement of 236%. During 2018 and 2017 we have been offering new products and have found our entry market prices for steel parking structures that have added gross margins higher than usual because we use outside contractors for the steel supply and erection on the projects. Our gross profit reflects this decision. We feel that we have made progress in entering the parking shade markets and that our gross margins will stabilize as growth lowers these margins in the future.
Net income from operations for the three-month period ended March 31, 2018 was $33,981 as compared to the net loss of $(132,739) for the same three-month period ended March 31, 2017. Other expenses of interest and derivative calculations reduced the net loss for the quarter to $(6,827) as compared to a loss of $(139,536) in the same period of 2017.
“We are beginning to see a number of changes in our market as our time in business and reputation as a quality provider has helped our firm with a larger number of higher quality projects, and we expect this trend will continue in the future as we expand our markets,” said Charles O’Dowd, President of ABCO Energy. “We are preparing for expansion and expect to use our reputation to help us enter these new market locations. Look for our plans to be published very soon.”
Safe Harbor Statement
Note: Certain statements in this news release may contain “forward-looking” information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-5 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than the statements of fact, included in this press release may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. ABCO undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.
Charles O’Dowd, President