SPRINGDALE, Ark., Nov. 3, 2011 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT) announced today that sales for the quarter ended September 30, 2011 were $17.8 million, up 10% from $16.2 million, for the third quarter of 2010. The sales increase was primarily due to increased MoistureShield® sales as distribution was expanded with the introduction of new products as well as additional new customers.
Third quarter gross margin improved over last year's third quarter by 3.2 percentage points, reflecting lower overhead due largely to reduced headcount and lower employee and property insurance costs.
Selling and administrative costs for the quarter were reduced by $0.1 million. Increased advertising and promotional expenses were offset by reduced administration expenses and employee costs.
The company recorded operating income, for the three months ended September 30, 2011, of $0.2 million as compared to a $0.7 million operating loss for the same period last year.
Commenting on the results, Joe G. Brooks, CEO of AERT noted, "Our AERT team continues to focus on streamlining AERT's cost structure while positioning for future growth opportunities during this difficult economic time in our industry. The supply chain inventory of ChoiceDek® premium product was reduced significantly through the quarter. This inventory reduction resulted in lower sales for AERT yet POS sales of ChoiceDek® remained consistent with last year. Phase II of our Watts, OK recycling facility is very close to start-up and we have third party customers awaiting the introduction of our new line of recycled plastic 'green' resins."
AERT will host their third quarter conference call and webcast to discuss the results on Friday, November 4th , commencing at 11:30 am (EDT)/10:30 am (CDT). Listeners may participate in a question and answer session towards the end of the webcast by calling 877-561-2747. To listen via the internet, visit http://aert.com/ir/webcasts.aspx.
About Advanced Environmental Recycling Technologies, Inc.
Since 1989, AERT (OTCBB: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. The company recently received an ESGR Patriot Award for its support of our Guard and Reserve Units in the U. S. Armed Forces. 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 ChoiceDek® decking, which is available in multiple colors and is sold in Lowe's Home Improvement stores nationwide. See http://www.choicedek.com/">http://www.choicedek.com for more information. AERT's MoistureShield® decking program is expanding and products are now available throughout the U.S. See http://www.moistureshield.com/">http://www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, Arkansas and recently commenced operations at its Green Age recycling facility in Watts, Oklahoma. Investors can access real-time stock quotes and information at http://www.otcmarkets.com. For more information on the Company, visit http://www.aertinc.com/">http://www.aertinc.com. Sign up to receive investor information, including press releases, via email by visiting http://aert.com/ir/PressReleaseOptIn.aspx.
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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 Private 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, 2010.