SPRINGDALE, Ark., Dec. 23, 2011 (GLOBE NEWSWIRE) -- As 2011 winds down to a close, Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT) would like to wish our shareholders good health and happiness. I am gratified to report that fiscal 2011 was a year of remarkable accomplishments. Whatever the macroeconomic challenges of the past few years, we have always had confidence in our vision of the future – confidence rooted in our absolute belief in the value of our unique products and services. We've clearly shown that it's possible to change the growth trajectory of our Company by investing in technology, skills and innovative capacity. We have reinvigorated our Company by opening new markets, producing new products, redefining productivity and jumpstarting new business initiatives, all of which I expand upon in detail below. Furthermore we're proud and appreciative of our partnership with a strong financial partner, H.I.G. Capital, and will continue to move forward together to execute on our long term strategy and position AERT for the future.
Just to recap, a few of the initiatives we have undertaken over the past few years include building a second extrusion plant, Springdale South, consolidating operations around Northwest Arkansas, and building the Watts, OK green age plastic recycling plant. Several new products have been launched under the MoistureShield® line. In addition, a new technology platform has been built around plastic recycling and reformulation, with the recent notice of allowance of 5 U.S. patents. If expansion and innovation weren't enough, AERT has also been focused on taking care of customers and right sizing our business model for today's economic realities. In fact, in excess of $50 million has been expended over the last several years taking care of customers and positioning AERT for the future, so now it's time to further discuss some exciting thoughts about positively capitalizing on business opportunities in 2012 and beyond.
It's a Different Retail Environment
Inventories have been drastically reduced throughout the remodeling sector channel and in fact our AERT point of purchase sales have been a lot stronger than our numbers previously reflected due to significant channel inventory reductions by our distributor and end customer. Customer inventories are down and selection and product offerings are up; so, going into next year, AERT Associates are on the offensive with a leaner more efficient company preparing to launch several new product lines.
ChoiceDek®
We will start with a new product introduction for ChoiceDek®. ChoiceDek Foundations™ is an exciting new decking product with an enhanced and distinctive wood grained look in conjunction with a hidden fastener system that is being transitioned into Lowe's stores for 2012. This is our first new product line for AERT in Lowe's since 2004 and these products are already hitting stores in the northeastern U.S. In addition, more responsive and timely Special Order Systems (SOS) are being implemented for customers in 2012. ChoiceDek Foundations™ will be in stores nationwide by next spring and the formal introduction will be made at the International Builders' Show in Orlando, Florida in February 2012.
MoistureShield® - The Shining Star
Your MoistureShield® team has continued to expand distribution and has once again driven double digit growth in 2011. MoistureShield® offers time tested encapsulation to the core, superior features, benefits, and pricing versus competitive products. With solid technology your company continues to add products and customers including the nation's premier lumber co-op which was launched in 2011 and will expand distribution in 2012. We are proud to point out that your MoistureShield® North American distribution no involves 16 independent regional distributors and 15 international distributors.
One exciting new product, The Vantage Collection™ line, of reversible colors was well received in the marketplace and several new additions will be introduced at the upcoming International Builders' Show. To learn more please visit our website at www.moistureshield.com. With our decking business demand building, producing decking and accessory products for our growing customer base, both extrusion plants in Springdale and all lines will be running in January.
Recycled Plastic
AERT currently operates two plastic recycling facilities: one in Lowell, AR and another in Watts, OK. These facilities are designed to clean and recycle various streams of plastics into feedstocks for blending and utilization into AERT products. Having these facilities operational gives AERT an advantage over prior periods where we also had to purchase large amounts of outside plastics at higher pricing. This infrastructure hedges AERT against the volatile swings of the petrochemical markets. In addition, the Watts facility is designed to handle and clean tougher more highly contaminated waste streams of plastics which most competitors have difficulty utilizing. Thus, these materials have lower acquisition costs and the facility cleans them up while sometimes generating additional byproducts such as recycled paper for sale the third parties.
With commercial implementation of the patent pending plastic reclamation and reformulation technologies, AERT now has the ability to reformulate and blend these plastic materials back into more consistent usable forms to create value. The company is in the process of initiating sales of its line of new "green age" resins to third party manufacturers. Additional pelletizing equipment has recently been installed and came online in 2011.
Initiating and sustaining large volume sales of recycled plastics is a major initiative of AERT which is aimed to counter and help level out the seasonality of the decking and remodeling business. This long term vision is now fast attaining reality.
In closing there's no question in my mind that AERT is headed in the right direction. The challenge for us in the coming years is to run faster. You can be assured that everyone at AERT is approaching that challenge with confidence in what we do, pride in our accomplishments and a determination to extend the record of excellence we have worked hard to build. Tough times have given us the opportunity to lead. I am confident that we will rise to the challenge of delivering value for our shareholders and customers in 2012.
Thank you for your support of AERT and best wishes for the New Year.
Best regards,
Joe G. Brooks
Founder, Chairman, & CEO
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 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.