Q-4 Revenues $3.8 Million, An Increase of 105 Percent; 1998 Sales Total $12.4 Million.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 16, 1999-- 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) ) reported that sales for fourth quarter 1998 increased to $3,821,611 vs. $1,866,789 for the comparable period in 1997, an increase of 105%. This increased 1998 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. sales to $12,408,591 vs. $7,982,381 for the year end 1997, up $4,426,210 or 55%. The Company reported a gross margin of $364,214 (9.5%) for the fourth quarter 1998 vs. a gross margin of $46,461 (2.5%) for the comparable period in 1997. Profitability at the Texas plant offset a Springdale plant loss for the quarter and the 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. was reduced to $482,109 in 1998 from a loss of $761,220 from the comparable period a year earlier. Additional charges for the fourth quarter 1998 included a bad debt write off, and debt discount interest charges. This combined with interest costs increased the fourth quarter loss to $948,449 or $.04 per share. This yielded a year-end loss of $3,653,070 or $.16 per share for 1998 vs. $1,156,020 or $.05 per share loss for 1997 after inclusive of inclusive of prep. Taking into consideration or account; including. a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of 757,644 or $.04 per share. AERT AERT Advanced Environmental Recycling Technologies, Inc AERT Animal Emergency Response Team CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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. stated, "Start-up Start-up The earliest stage of a new business venture. and construction problems associated with the new manufacturing facility in Springdale took away from the Company's overall progress and limited third and fourth quarter 1998 operating results. However, the fourth quarter was an important milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. for the Company as non-performing manufacturer built equipment at Springdale was changed out and a second extrusion line was started up. This was accomplished and sales doubled vs. prior periods while this work was underway." With two production lines now in operation at the Springdale facility, the Company is starting to experience significant contributions from the second Springdale production facility. With the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. production limitations and obstacles behind us, the Company's latest plant is now fast improving its efficiencies and beginning to finally contribute to AERT's overall profitability, stated Brooks. "This resulting increased production capacity, combined with a strong customer base and a newly rationalized capital structure, and a pending long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. bond financing has AERT well positioned to meet the ever-increasing needs of the marketplace for low-maintenance 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 . ." Joe G. Brooks further stated with reference to the Company's improving capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , "AERT is generating positive cash flow and growing stronger by the day. It should be noted that the Company has been able to significantly reduce the debt on the construction bridge loan ($1.2 million) used to initially fund the recent $3.9 million (1998) expansion. The remainder of this bridge loan is expected to be retired during the second quarter of 1999. Additionally, over 3.5 million warrants have been allowed to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. , along with their related dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). . "In sum, the fourth quarter 1998 has been an important turning point for AERT, for in addition to the Springdale plant coming on line, tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. also increased to in excess of $3.7 million at Dec. 31, 1998, compared to $2.35 million at the comparable period a year ago. Total assets increased to $10,941,927 at Dec. 31, 1998, vs. $7,641,328 for 1997. Cash and cash equivalents at Dec. 31, 1998, were $614,494 vs. $45,428 for the comparable period in 1997." Additional information will be forthcoming in the near future. 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, including those concerning the Springdale facility and provisions 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 1998. (a) The 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 are an integral part of these financial statements in the Form 10-K dated Dec. 31, 1998, and should be read in conjunction with these statements. -0-
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC.
BALANCE SHEETS
ASSETS
December 31, December 31,
1998 1997
Current assets:
Cash and cash equivalents $ 614,494 $ 45,428
Trade receivables, net of
allowance of $20,000 in 1998 712,894 540,739
Note receivable - 81,571
Inventories 846,571 735,697
Prepaid expenses and other 89,266 181,474
Total current assets 2,263,225 1,584,909
Buildings and equipment:
Buildings and leasehold
improvements 1,041,035 692,781
Machinery and equipment 10,937,425 6,209,614
Transportation equipment 108,355 98,242
Office equipment 159,295 156,064
Construction in progress 1,502,520 2,586,483
13,748,630 9,743,184
Less accumulated depreciation
and amortization 5,452,638 4,093,031
Net buildings and equipment 8,295,992 5,650,153
Other assets, at cost less
accumulated amortization
of $271,570 (1998)
and $242,999 (1997) 382,710 406,266
Total assets $10,941,927 $7,641,328
(a) The accompanying notes are an integral part of these
financial statements in the Form 10-K dated Dec. 31, 1998, and should
be read in conjunction with these statements.
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, December 31,
1998 1997
Current liabilities:
Accounts payable - trade $ 2,606,034 $1,571,598
Accounts payable -
related parties 895,170 1,136,272
Current maturities of
long-term debt:
Related parties 648,425 386,456
Other 199,873 108,454
Current maturities of capital
lease obligations 19,263 -
Accrued liabilities 435,070 310,681
Notes payable,
net of debt discount of $45,255
(1998) and $136,111 (1997) 2,085,325 1,189,097
Total current liabilities 6,889,160 4,702,558
Long-term debt, less current maturities:
Related parties 97,707 465,656
Other 52,747 122,756
Total long-term debt 150,454 588,412
Capital lease obligation 76,922 -
Accrued dividends payable
on redeemable convertible
preferred stock 47,890 -
Commitments and contingencies (Notes 12 and 13)
Stockholders' equity:
Redeemable convertible preferred stock,
$1 par value; 5,000,000 shares
authorized; 2,900 (1998) shares
issued and outstanding 2,900 -
Class A common stock, $.01 par value;
50,000,000 shares authorized;
22,245,639 (1998) and 20,312,969
(1997) issued and outstanding 222,456 203,130
Class B convertible common stock,
$.01 par value; 7,500,000 shares
authorized; 1,465,530 issued and
outstanding 14,655 14,655
Additional paid-in capital 26,984,318 21,926,331
Accumulated deficit (23,446,828) (19,793,758)
Total stockholders' equity 3,777,501 2,350,358
Total liabilities and
stockholders' equity $ 10,941,927 $7,641,328
(a) The accompanying notes are an integral part of these
financial statements in the Form 10-K dated December 31, 1998, and
should be read in conjunction with these statements.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC.
STATEMENTS OF OPERATIONS
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
Sales $12,408,591 $ 7,982,381 $ 6,950,219
Cost of goods sold 11,688,448 7,639,708 7,822,154
Gross margin 720,143 342,673 (871,935)
Loss on disposal of assets - - 178,061
Selling and administrative
costs 3,220,233 2,090,049 1,687,697
Operating loss (2,500,090) (1,747,376) (2,737,693)
Interest expense, net (1,105,090) (166,288) (196,005)
Loss before
extraordinary Item (3,605,180) (1,913,664) (2,933,698)
Extraordinary gain - 757,644 36,666
Net loss before dividends on
redeemable convertible
preferred stock (3,605,180) (1,156,020) (2,897,032)
Accrued dividends on
preferred stock (47,890) - -
Net loss applicable
to common stock $(3,653,070) $(1,156,020) $(2,897,032)
Loss per share of common
stock before
extraordinary gain ($.16) ($.09) ($.15)
Extraordinary gain per
share of common stock - $.04 -
Net loss per share of
common stock
(Basic and Diluted) ($.16) ($.05) ($.15)
Weighted average number of common
shares outstanding 22,895,517 21,800,170 19,134,484
(a) The accompanying notes are an integral part of these
financial statements in the Form 10-K dated Dec. 31, 1998, and
should be read in conjunction with these statements.
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