AERT Announces Quarterly Earnings.SPRINGDALE Springdale, city (1990 pop. 29,941), Benton and Washington counties, NW Ark.; inc. 1878. It is a poultry-processing center, and there is vegetable canning, printing, and the manufacture of air conditioning ducts, metal and paper products, machinery, transportation , Ark.--(BUSINESS WIRE)--Nov. 17, 1998--Advanced Environmental Recycling Technologies Recycling technology Methods for reducing solid waste by reusing discarded materials to make new products. The three integral phases of recycling are the collection of recyclable materials, manufacture or reprocessing of these materials into new products, and Inc. (Nasdaq:AERTA AERTA Army Environmental User Requirements and Technology Assessments (US Army) ) ("AERT AERT Advanced Environmental Recycling Technologies, Inc AERT Animal Emergency Response Team ") reported that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased to $3,286,357 for the quarter ended Sept. 30, 1998, an increase of $865,874 or 36% over the $2,420,483 reported for the comparable period a year ago. "The initial Texas plant generated net sales of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2,391,826, which resulted in a positive gross margin of $371,948. The result was a quarterly profit of $31,880 from the Texas facility. The new Springdale plant generated approximately $918,661 in sales for the quarter. Expenses and construction costs associated with the opening of the facility contributed to a gross margin of ($272,535) for the three months ended Sept. 30, 1998, with the opening of the company's Springdale facility. The company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of ($646,219) for the quarter compared with a loss of ($180,648) for the comparable period a year ago. Interest expense, which was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to debt discount costs, increased to $344,004 vs. $26,904 for the comparable period a year ago. The net loss was ($990,223) or ($.04) per share compared to ($313,240) or ($.02) per share for the comparable period a year earlier. "The cost of opening the Springdale facility combined with debt discount costs yielded a total of ($1,022,103) loss for the quarter," stated AERT President Joe G. Brooks Brooks , Gwendolyn Elizabeth 1917-2000. American poet known for her verse detailing the dreams and struggles of African Americans. An early volume of poems, Annie Allen (1949), was awarded a Pulitzer Prize. Noun 1. . "The Springdale facility has completed the arduous ar·du·ous adj. 1. Demanding great effort or labor; difficult: "the arduous work of preparing a Dictionary of the English Language" Thomas Macaulay. 2. process of implementing the proper production line equipment. Upon current completion of warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. related equipment work, and an additional production line in Springdale being completed, the company can begin to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution its production plan of improved gross margins and positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ," stated Brooks. Certain of the statements made in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, including those concerning the timing of the expansion at the Springdale facility and previsions of revenue streams from all such production lines. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include the ability of the company to timely and correctly execute its expansion and construction plans and other risks more fully described in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal year 1997 and Form 10-Q Form 10-Q See 10-Q. for the period ended Sept. 30, 1998. (a) For additional information see the 10-Q dated Sept. 30, 1998, filed Nov. 16, 1998, for accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes to the financial statements Notes to the financial statements A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. that should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with these statements. -0-
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC.
BALANCE SHEET
ASSETS
------
Sept. 30,
1998 Dec. 31,
(unaudited) 1997
------------ -----------
Current assets:
Cash and cash equivalents $ 70,530 $ 45,428
Accounts receivable 924,770 540,739
Note receivable 66,571 81,571
Inventories 757,946 735,697
Prepaid expenses and other 175,903 181,474
------------ -----------
Total current assets 1,995,720 1,584,909
------------ -----------
Buildings and equipment, at cost:
Buildings 905,952 692,781
Machinery and equipment 9,720,975 6,209,614
Transportation equipment 91,524 98,242
Office equipment 153,463 156,064
Construction in progress 1,857,568 2,586,483
------------ -----------
12,729,482 9,743,184
Less accumulated depreciation
and amortization 5,049,895 4,093,031
------------ -----------
Net buildings and equipment 7,679,587 5,650,153
------------ -----------
Other assets, at cost less
accumulated amortization of
$264,412 (1998) and $242,999 (1997) 385,369 406,266
------------ -----------
$ 10,060,676 $ 7,641,328
============ ===========
(a) The accompanying notes to the financial statements in the Form
10-Q dated Sept. 30, 1998, should be read in conjunction with
these statements.
LIABILITIES AND STOCKHOLDERS' EQUITY
Sept. 30,
1998 Dec. 31,
(unaudited) 1997
----------- -----------
Current liabilities:
Accounts payable -- trade $ 2,222,551 $ 1,571,598
Accounts payable -- related parties 805,496 1,136,272
Current maturities of long term debt:
Related parties 579,881 386,456
Other 124,466 108,454
Current maturities of capital lease
obligation 16,165 --
Accrued liabilities 482,534 310,681
Notes payable, net of debt discount
of $192,160 (1998) and $136,111 (1997) 3,023,095 1,189,097
----------- -----------
Total current liabilities 7,254,188 4,702,558
----------- -----------
Long term debt, less current
maturities:
Related parties 193,070 465,656
Other 35,680 122,756
----------- -----------
Total long term debt 228,750 588,412
----------- -----------
Capital lease obligation 82,608 --
----------- -----------
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $1 par value;
5,000,000 shares authorized
Series B Preferred stock,
$1 par value; 900 shares
authorized, 500 (1998) shares
issued and outstanding 500 --
Series C Preferred stock,
$1 par value; 500 shares
authorized, 100 (1998) shares
issued and outstanding 100 --
Class A common stock, $.01 par value;
50,000,000 shares authorized,
22,135,330 (1998) and 20,312,969
(1997) shares issued and outstanding 221,353 203,130
Class B convertible common stock,
$.01 par value; 7,500,000 shares
authorized, 1,465,530 shares issued
and outstanding 14,655 14,655
Additional paid in capital 24,756,901 21,926,331
Accumulated deficit (22,498,379) (19,793,758)
----------- -----------
Total stockholders' equity 2,495,130 2,350,358
----------- -----------
$ 10,060,676 $ 7,641,328
============ ===========
(a) The accompanying notes to the financial statements in the Form
10-Q dated Sept. 30, 1998, should be read in conjunction with
these statements.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended
September 30,
1998 1997
---- ----
Sales $3,286,357 $2,420,483
Cost of Goods Sold 3,186,944 2,063,193
---------- ----------
Gross Margin 99,413 357,290
Selling and Administrative Costs 745,632 537,938
---------- ----------
Operating Loss (646,219) (180,648)
Interest Expense, net (344,004) (26,904)
---------- ----------
Loss Before Extraordinary Item (990,223) (207,552)
Extraordinary Gain (Loss) -- (105,688)
---------- ----------
Net Loss $ (990,223) $ (313,240)
=========== ==========
Loss per share of common stock before
extraordinary item $(.04) $(.01)
Extraordinary gain (loss) per share of
common stock $ -- $(.01)
----- -----
Net loss per share of common stock (Basic
and Diluted) $(.04) $(.02)
===== =====
Weighted average number of common shares
outstanding 23,323,319 20,801,132
========== ==========
Nine months ended
September 30,
1998 1997
---- ----
Sales $8,586,980 $6,115,592
Cost of Goods Sold 8,231,051 5,819,380
---------- ----------
Gross Margin 355,929 296,212
Selling and Administrative Costs 2,212,663 1,282,368
---------- ----------
Operating Loss (1,856,734) (986,156)
Interest Expense, net (847,887) (74,178)
---------- ----------
Loss Before Extraordinary Item (2,704,621) (1,060,334)
Extraordinary Gain (Loss) -- 757,644
---------- ----------
Net Loss $(2,704,621) $ (302,690)
=========== ===========
Loss per share of common stock before
extraordinary item $(.12) $(.05)
Extraordinary gain (loss) per share of
common stock $ -- $ .04
----- -----
Net loss per share of common stock (Basic
and Diluted) $(.12) $(.01)
===== ======
Weighted average number of common shares
outstanding 22,636,210 20,778,969
========== ==========
(a) The accompanying notes to the financial statements in the Form
10-Q dated Sept. 30, 1998, should be read in conjunction with
these statements.
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