U.S. Plastic Lumber Corp. still in the red after restructuring. (Plastics).
Revenues for the fourth quarter 2002 were $9.2 million compared with $10.3 million for the same quarter in 2001, a decrease of 11 percent. This decline was the result of lower revenues from building products and, to a lesser extent, the exiting of the resin trading business.
USPL also reports that during the period in question, it introduced a new formulation to improve its building products' performance. USPL believes the improved formulation will result in higher revenues and improved product performance in 2003 and beyond.
Net loss for the fourth quarter of 2002 was $6.4 million, as compared to $26.8 million for the same quarter in 2001.
For the 12 months ended December 31,2002, USPL reports revenues of $49.0 million, as compared to $57.8 million in 2001. The decline in revenue during the current period was primarily a result of lower sales of USPL's building products and its decision to exit the resin trading business, resulting in no revenue contribution from this business in 2002. Net loss for 2002, including income from the discontinued environmental recycling and remediation business, was $15.8 million, compared with $48.2 million in 2001.
"The completion of the CEI sale and the restructuring of our outstanding convertible debentures in the third quarter of 2002 resulted in a reduction of our total debt from $71.6 million at the end of 2001 to $30.0 million at the end of 2002. In addition, during the fourth quarter we have secured a new $13.0 million credit facility," Mark Alsentzer, USPL chairman, CEO and president, says. "These events have strengthened our financial position and will enable us to more effectively take advantage of the growing market opportunity in both the commercial and consumer markets for our products."
USPL manufactures plastic lumber, returnable packaging and other value-added products from recycled plastic. It is the nation's largest producer of 100 percent HDPE recycled plastic lumber. USPL's brand names include Carefree Xteriors[R], RecycleDesign[TM], Trimax[R], Earth Care[TM] and OEM products including Cyclewood[R]. USPL currently operates three plastic manufacturing centers.
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|Comment:||U.S. Plastic Lumber Corp. still in the red after restructuring. (Plastics).|
|Date:||May 1, 2003|
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