AERT Announces Third Quarter 2010 Results
SPRINGDALE, Ark., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT) announced today that sales for the quarter ended September 30, 2010 were $16.2 million, down 15% from $19.1 million for the third quarter of 2009. The revenue reduction is due primarily to reduced economic activity in the remodeling sector and subsequent reductions in inventory levels at our distributors.
Third quarter gross margin improved from 0% in 2009 to 14% this year. The 2009 margin was negatively impacted by a $5.1 million accrual relating to claims arising from the class action lawsuit.
Selling and administrative costs for the quarter were down $0.1 million as costs were controlled despite additional spending on advertising and promotion.The company recorded an operating loss of $0.7 million for this year's third quarter, an improvement from the $3.1 million operating loss (after the $5.1 million accrual) reported for the three months ended September 30, 2009. Commenting on the results, Joe Brooks, CEO of AERT, noted, "Although economic activity slowed substantially in our sector for the third quarter, AERT has taken this opportunity to retool and rework our extrusion facilities as the company prepares to launch several new exciting products in 2011 at the International Builders Show. The company also continues to expand its MoistureShield® distribution network to work to position increase in market share in 2011. The AERT Green Age Plastic Recycling and Reclamation program is also currently being expanded to finish capacity additions to initiate processing and sales of recycled plastics." "This was a tough quarter but we're proud of the hard work of our associates and the support of all parties involved to improve and move AERT forward," stated Brooks. AERT's second quarter conference call is scheduled for Monday, November 15 th at 4:00 pm EST/3:00 pm CST. To join the call, please dial 1-877-561-2747. Web access to the conference call can be found at http://www.aertinc.com/ir/webcasts.aspx . 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(r) 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(r) 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/contact.aspx The AERT, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4905 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.
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