SPRINGDALE, Ark., May 11, 2009 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERT), a leading plastic recycler and manufacturer of Green building products, announced today that sales for the quarter ended March 31, 2009 were $16.6 million, down 43% from $29.4 million for the quarter ended March 31, 2008.
Gross margin fell 4 percentage points from 20% to 16% of sales. While cost cutting measures taken in 2008 had a favorable impact on margins, this was more than offset by under-absorption of overhead resulting from lower 1st quarter production together with costs and inefficiencies experienced as a result of a major ice storm in January which disrupted manufacturing operations for several weeks.
SG&A costs were reduced by $2.9 million or 47%. The company recorded an operating loss of $0.5 million for the quarter on reduced sales, down $0.2 million from $0.7 million for the quarter ended March 31, 2008. An income tax benefit for the loss was not recognized resulting in a net loss of $1.6 million versus $1.4 million last year.
Commenting on the results, Joe Brooks, CEO of AERT noted, "A key goal for 2009 is to reduce AERT's overall cost structure and operating costs while maintaining our ability to react to the increase in consumer demand that will inevitably occur. Our AERT associates have achieved significant cost reductions in the face of a severe ice storm which resulted in our area being declared a Federal Disaster Area. The storm caused significant disruption of our operations, several days without power, raw material supply interruption, logistical challenges, and safety concerns."
"AERT, however, has confidence in the ability of the American economy to recover and grow, and in our readiness to participate in that recovery while positively addressing the needs of our nation. Accordingly, we continue with the support of our lenders, suppliers, customers, and associates, to invest in bringing our next generation technologies and products to commercial fruition at our new Watts facility which will be commissioned later this year," he concluded.
AERT's first quarter conference call is scheduled for Monday, May 11th at 4:15 EDT/3:15 CDT. To join the call, please dial 877-419-6603. Web access to the conference call can be found at http://www.aertinc.com/investor.asp.
About Advanced Environmental Recycling Technologies, Inc.
Since 1989, AERT (Nasdaq: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. 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 Weyerhaeuser ChoiceDek(r) decking, which is available in multiple colors and is sold in all Lowe's Home Improvement stores. See http://www.choicedek.com for more information. AERT's MoistureShield(r) decking program is expanding and products are available in many parts of the U.S. now, with national distribution planned for 2009. See http://www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, with a raw materials facility in Junction, Texas and a state-of-the-art recycling facility under construction in Watts, Oklahoma. For more information on the Company, visit http://www.aertinc.com.
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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.
AERT, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The above-mentioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect AERT, Inc., see AERT, Inc.'s filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for the fiscal year ended December 31, 2008.