Based on U.S. Census Bureau 2002 Economic Census Data, there are 800,000 establishments in the U.S. engaged in either manufacturing or vehicle maintenance. These establishments have a need to remove grease and dirt from machine and engine parts with solvent, and include businesses involved in vehicle maintenance operations, such as car dealerships, automotive repair shops and trucking firms, as well as small manufacturers, such as metal product fabricators and printers. These businesses also generate waste materials such as used oil or waste paint that generally cannot be discarded as municipal trash or poured down a standard drain.

Parts cleaning machines and solvent are used by mechanics in industrial plants and automotive technicians in garages to clean dirty machine parts. Through use, the solvent becomes contaminated with oil and sediment and must be replaced, typically every 4 to 12 weeks. This replacement of solvent is subject to environmental regulations prohibiting disposal with municipal trash or by pouring down the drain.

While large businesses, who generate substantial volumes of industrial and hazardous wastes, generally find it more efficient to employ a staff of highly trained employees to manage this waste and ensure their compliance with the numerous federal, state and local regulations that surround the proper handling of these materials, small and mid-sized businesses that generate lesser quantities of waste often cannot justify such personnel investments. Small and mid-sized businesses typically prefer to outsource these services to providers that can assist them in their disposal of used solvent as well as other wastes, including used oil, waste paint, used oil filters, discarded fluorescent light tubes and other materials subject to regulations designed to protect the environment from pollution.

In its parts cleaning business, the Company provides customers with parts cleaning equipment and chemicals to remove oil and grease from engine parts and machine parts requiring cleaning. Most commonly, the Company provides a parts cleaning machine that contains a petroleum-based solvent in a reservoir.

The Company typically visits its customers every 4 to 12 weeks to remove the used solvent and replace it with clean solvent while at the same time also cleaning and checking the customers’ parts cleaning equipment to ensure that it is functioning properly and assisting the customers with relevant regulatory paperwork. The Company offers a variety of petroleum solvents and water-based (aqueous) chemicals for use in parts cleaning machines. The Company also has a wide range of service schedules from weekly service visits to triannual service visits.

In its containerized waste business, the Company collects drums, pails, boxes, and other containers of hazardous and non-hazardous waste materials from its customers. Typical wastes from vehicle maintenance include used antifreeze, used oil filters, waste paint, and used absorbent material. Typical wastes from manufacturing operations include waste paint and solvents, oily water wastes, used absorbents, and discarded fluorescent lighting tubes. As part of its full-service approach, the Company visits its customers periodically to check their inventory of used or waste materials, and remove full containers as appropriate.

In selected branch locations, the Company provides bulk used oil collection services. The Company offers to visit the customer on a regularly scheduled basis to arrange for the removal of their accumulated oil. This alleviates the customer’s burden of periodically checking to see if they require service.

In selected branch locations, the Company provides vacuum truck services for the removal of mixtures of oil, water and sediment from wastewater pretreatment devices. The Company’s vacuum truck service includes the removal of the oil, water, and sediment so that the customer’s equipment operates as intended. These services are also scheduled on a regular basis.

Cost of sales increased $4.1 million, or 21.8%, to $22.9 million for fiscal 2007 from $18.8 million for fiscal 2006.

Operating costs increased $6.7 million, or 18.2%, to $43.6 million during fiscal 2007 from $36.8 million during fiscal 2006.

Interest expense remained steady at $1.4 million during fiscal 2007.