AERT reports Q1 net loss of US$1.8M, down from net income of US$0.6M a year earlier, on sales drop of US$2M to US$16.7M; decline attributed to decreased ChoiceDek sales as distributor reduced inventories, combined with impact of inclement weather on deman
May 6, 2014
– Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT), a leading plastic recycler and manufacturer of green building products announced today that sales for the quarter ended March 31, 2014 were $16.7 million, $2 million less than the quarter ended March 31, 2013. This decrease was due primarily to decreased ChoiceDek® sales as our distributor reduced inventories. A late spring and inclement weather depressed sales of both the MoistureShield and ChoiceDek lines.
Cost of goods sold, as a percentage of sales, increased by 12.6 percentage points as a result of lower production volume because the company had not regained the production capacity it had prior to the July 2013 fire.
SG&A first quarter costs were up $0.1 million from the first quarter of 2013 and an operating loss of $1.0 million was generated this year versus $1.7 million operating income last year. Net loss for the quarter was $1.8 million versus a net income of $0.6 million for the first quarter of 2013.
AERT's CEO, Tim Morrison, stated, "The extended winter in much of the country led to disappointing sales while the plants struggled to regain capacity and efficiencies lost as a result of the July fire. However, there are reasons for optimism. AERT associates have regained the lost capacity and warmer weather has increased product demand. Further, there is strong demand for our new MoistureShield Pro capstock line. While year-over-year first quarter sales were down we built finished goods inventory in anticipation of future demand."
AERT will host their first quarter conference call and webcast on Wednesday, May 7, 2014 commencing at 11:30 am (EDT)/10:30 am (CDT) to discuss the results. Listeners may participate in a question and answer session toward the end of the webcast by calling 877-561-2747. To listen via internet visit http://aertinc.com/investor-relations/.
About Advanced Environmental Recycling Technologies, Inc.
Since 1989, AERT (OTCBB:AERT) has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. With its constantly evolving portfolio of patented and proprietary recycling technologies, AERT has been widely recognized as a leader in resource conservation innovation and received the EPA Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking. The company recently received an ESGR Patriot Award for its support of our Guard and Reserve Units in the U. S. Armed Forces. AERT converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. The Company is the exclusive manufacturer of ChoiceDek® decking, which is available in multiple colors and is sold in Lowe's Home Improvement stores nationwide. See http://www.choicedek.com for more information. AERT's MoistureShield® decking program is expanding and products are now available throughout the U.S. See http://www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, Arkansas and recently commenced operations at its Green Age recycling facility in Watts, Oklahoma. Investors can access real-time stock quotes and information at http://www.otcmarkets.com. For more information on the Company, visit http://www.aertinc.com. Sign up to receive investor information, including press releases, via email by visiting http://aert.com/ir/PressReleaseOptIn.aspx.
Certain statements in this news release regarding projected results of operations, or, projected results of financial plans or future strategies and initiatives, including, but not limited to, projections of revenue, projections of profitability, any and all future expectation, and plans for future activities may and should be regarded as ``forward-looking statements'' within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause AERT, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. AERT currently is considering, but may or may not in the future implement any or all of the items and issues listed in any planned budget or strategic initiative, due to, among other things, known and unknown risks, uncertainties and other factors.
AERT, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The above-mentioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect AERT, Inc., see AERT, Inc.'s filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for the fiscal year ended December 31, 2013.