AERT Reports Year End Operating Results; Gross Margin Up 14%; Sales up 61% YOY for Record Year.Business Editors & Environmental Writers 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)--April 11, 2000 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) ), a leader in wood composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate technology, today reported that gross margin improved to $2.75 million or 14% of sales, for the year ended Dec. 31, 1999. The Company also reported 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 of $19.9 million for the year ended Dec. 31, 1999, a 61% increase over the prior year. The Company reported a decrease in 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. , to $1 million for the year ended Dec. 31, 1999, vs. $2.5 million for the previous year. This was accomplished despite the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down for efficiency upgrades of the Texas plant during portions of the fourth quarter. Factoring in interest expense, accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. dividends and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, the net loss was $1.76 million or $.07 per share vs. a net loss of $3.65 million or $.16 per share for the prior year. "AERT AERT Advanced Environmental Recycling Technologies, Inc AERT Animal Emergency Response Team completed most of its initial capital expansion projects during 1999, expending $4.1 million. The third Springdale production line is only the first of many improvements that will increase our production substantially," stated AERT Chairman, 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. . Advanced Environmental Recycling Technologies Inc. manufactures a growing line of composite building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . made from recycled polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n plastic and waste wood fiber. The Company's products are marketed under the trade names MoistureShield(R) and ChoiceDek(R) in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. homebuilding market. AERT currently operates a manufacturing facility in Texas and a recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. and manufacturing facility in Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. . Construction on a third facility in Arkansas will begin later in the year. Certain of the statements made in this press release by Joe G. Brooks 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. 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 other factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in greater detail in the Company's Securities Commission filings. (a) For additional information see pending 10-K dated Dec. 31, 1999, 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.
Advanced Environmental Recycling Technologies Inc.
Balance Sheets
Assets
--------
December 31, December 31,
1999 1998
---- ----
Current assets:
Cash $ 187,173 $ 614,494
Bond Escrow Fund 16,593,696 -
Accounts receivable, net
of allowance of $20,000 in
1999 and 1998 1,587,368 712,894
Inventories 1,274,771 846,571
Prepaid expenses and other 149,682 89,266
------------ -------------
Total current assets 19,792,690 2,263,225
------------ -------------
Buildings and equipment:
Buildings and leasehold
improvements 1,044,096 1,041,035
Machinery and equipment 13,981,153 10,937,425
Transportation equipment 162,400 108,355
Office equipment 210,024 159,295
Construction in progress 2,747,290 1,502,520
------------ -------------
18,144,963 13,748,630
Less accumulated depreciation
and amortization 7,227,875 5,452,638
------------ -------------
Net buildings and equipment 10,917,088 8,295,992
Other assets, at cost less
accumulated amortization of
$300,161 (1999) and $271,570
(1998) 746,015 382,710
------------ -------------
$ 31,455,793 $ 10,941,927
============ =============
(a) For additional information see pending 10-K dated Dec. 31, 1999,
for accompanying notes to the financial statements that should
be read in conjunction with these statements.
Advanced Environmental Recycling Technologies Inc.
Liabilities and Stockholders' Equity
--------------------------------------
December 31, December 31,
1999 1998
---- ----
Current liabilities:
Accounts payable -- trade $ 5,110,787 $ 2,606,034
Accounts payable -- related
parties 1,535,997 895,170
Current maturities of long-term
debt:
Related parties 494,265 648,425
Other 46,824 199,873
Current maturities of capital
lease obligation 23,189 19,263
Accrued liabilities 933,543 435,070
Notes payable -- related parties 550,000 -
Notes payable -- other, net of
debt discount of $45,255 (1998) 2,354,944 2,085,325
Bonds Payable 16,500,000 -
------------ -------------
Total current liabilities 27,549,549 6,889,160
------------ -------------
Long-term debt, less current maturities:
Related parties - 97,707
Other 5,923 52,747
------------ -------------
Total long-term debt 5,923 150,454
Capital lease obligation 53,733 76,922
------------ -------------
Accrued dividends payable on
convertible preferred stock 337,890 47,890
------------ -------------
Commitments and contingencies
(Note 6)
Stockholders' equity, per
accompanying statement:
Preferred stock, $1 par value;
5,000,000 shares authorized 2,900 2,900
Class A common stock, $.01 par
value; 75,000,000 shares
authorized 242,515 222,456
Class B convertible common stock,
$.01 par value; 7,500,000 shares
authorized 14,655 14,655
Additional paid-in capital 28,459,192 26,984,318
Accumulated deficit (25,210,564) (23,446,828)
------------ -------------
Total stockholders' equity 3,508,698 3,777,501
------------ -------------
Total liabilities and stockholders'
equity $ 31,455,793 $ 10,941,927
============ =============
(a) For additional information see pending 10-K dated Dec. 31, 1999,
for accompanying notes to the financial statements that should
be read in conjunction with these statements.
Advanced Environmental Recycling Technologies Inc.
Statements of Operations
Year ended Year ended
December 31, December 31,
1999 1998
---- ----
Sales $ 19,917,133 $ 12,408,591
Cost of goods sold 17,166,024 11,688,448
------------ -------------
Gross margin 2,751,109 720,143
Selling and administrative costs 3,766,779 3,220,233
------------ -------------
Operating loss (1,015,670) (2,500,090)
Interest expense, net (458,066) (1,105,090)
------------ -------------
Loss before extraordinary gain (1,473,736) (3,605,180)
Extraordinary gain - -
------------ -------------
Loss before dividends on
redeemable convertible preferred
stock (1,473,736) (3,605,180)
Accrued dividends on preferred
stock (290,000) (47,890)
------------ -------------
Net loss applicable to common
stock $ (1,763,736) $ (3,653,070)
============ =============
Loss per share of common stock
before extraordinary gain ($.07) ($.16)
Extraordinary gain per share of
common stock - -
------------ -------------
Net loss per share of
common stock (Basic and Diluted) ($.07) ($.16)
Weighted average number of common
shares outstanding 24,598,715 22,895,517
============ =============
Year ended
December 31,
1997
----
Sales $ 7,982,381
Cost of goods sold 7,639,708
------------
Gross margin 342,673
Selling and administrative costs 2,090,049
------------
Operating loss (1,747,376)
Interest expense, net (166,288)
------------
Loss before extraordinary gain (1,913,664)
Extraordinary gain 757,644
------------
Loss before dividends on
redeemable convertible preferred
stock (1,156,020)
Accrued dividends on preferred -
stock ------------
Net loss applicable to common
stock $ (1,156,020)
============
Loss per share of common stock
before extraordinary gain ($.09)
Extraordinary gain per share of
common stock .04
------------
Net loss per share of
common stock (Basic and Diluted) ($.05)
Weighted average number of common
shares outstanding 21,800,170
============
(a) For additional information see pending 10-K dated Dec. 31, 1999,
for accompanying notes to the financial statements that should
be read in conjunction with these statements.
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