AERT 1.55 Advanced Environmental Recycling Technologies Announces Second Quarter 2007 Results Business Wire "US Press Releases "
SPRINGDALE, Ark.--(BUSINESS WIRE)--
Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERT) today announced that net sales for the three months ended June 30, 2007 were $25.3 million compared to $28.1 million for the comparable period in 2006, a 9.8% decrease. Net loss in the second quarter of 2007 was $383,919 , or $0.01 per fully diluted share, compared to net income of $1.7 million , or $0.04 per fully diluted share, for the comparable period in 2006.
Please join the Company's earnings conference call at 11:00 a.m. ET on Wednesday, August 1, 2007 . The event will be a live web cast available at the AERT Company web site at www.aertinc.com or at www.earnings.com
About AERT:
Since 1989, 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, receiving 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 www.choicedek.com for more information. AERT operates manufacturing facilities in Springdale, Lowell, and Tontitown, Arkansas ; Junction, Texas ; and Alexandria, Louisiana . For more information on the Company, visit www.aertinc.com.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
Balance Sheets
ASSETS
June 30, December 31,
2007 2006
------------- ------------
(unaudited)
Current assets:
Cash and cash equivalents $ 1,665,125 $ 2,164,532
Restricted cash 1,303,523 787,191
Trade accounts receivable, net of
allowance of $374,894 at June 30, 2007
and December 31, 2006 5,821,042 3,789,302
Other Accounts Receivable 619,776 760,970
Inventories 16,300,265 14,515,845
Prepaid expenses 1,182,785 1,018,657
Deferred tax assets 1,817,866 1,163,017
----------- -----------
Total current assets 28,710,382 24,199,514
----------- -----------
Land, buildings and equipment:
Land 1,988,638 1,988,638
Buildings and leasehold improvements 10,048,582 5,979,223
Machinery and equipment 50,919,222 39,475,682
Transportation equipment 1,175,324 1,243,556
Office equipment 1,003,926 801,231
Construction in progress 812,615 14,762,153
----------- -----------
65,948,307 64,250,483
Less accumulated depreciation 28,742,492 26,728,540
----------- -----------
Net land, buildings, and equipment 37,205,815 37,521,943
----------- -----------
Other assets:
Deferred tax asset 5,604,420 4,293,912
Debt issuance costs, net of accumulated
amortization of $921,236 at June 30,
2007 and $790,532 at December 31, 2006 2,683,686 2,814,390
Debt service reserve fund 2,040,000 2,040,000
Restricted certificate or deposit 850,405 829,961
Other assets, net of accumulated
amortization of $407,023 at June 30,
2007 and $392,736 at December 31, 2006 388,149 350,246
----------- -----------
Total other assets 11,566,660 10,328,509
----------- -----------
Total assets $ 77,482,857 $ 72,049,966
=========== ===========
The notes to our second quarter 2007 Form 10-Q are an integral part of
these financial statements.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
Balance Sheets
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
2007 2006
-------------- -------------
(unaudited)
Current liabilities:
Accounts payable -- trade $ 10,277,651 $ 10,861,648
Accounts payable -- related parties 506,622 494,831
Current maturities of long-term debt 1,669,731 1,673,612
Litigation loss payable 655,769 655,769
Other accrued liabilities 2,437,726 2,509,603
Working capital line of credit 11,459,698 10,060,000
Notes payable -- related parties - 1,000,000
Notes payable -- other 1,337,581 410,181
------------ ------------
Total current liabilities 28,344,778 27,665,644
------------ ------------
Long-term debt, less current
maturities 21,436,201 16,827,717
------------ ------------
Commitments and contingencies
Stockholders' equity:
Class A common stock, $.01 par value;
75,000,000 shares authorized;
46,270,566 and 43,041,164 shares
issued and outstanding at June 30,
2007 and December 31, 2006 ,
respectively 462,706 430,412
Class B convertible common stock, $.01
par value; 7,500,000 shares
authorized, 1,465,530 shares issued
and outstanding at June 30, 2007 and
December 31, 2006 14,655 14,655
Warrants outstanding; 2,834,340 at
June 30, 2007 and 4,606,132 at
December 31, 2006 1,377,330 2,519,389
Additional paid-in capital 40,701,890 37,891,274
Accumulated deficit (14,854,703) (13,299,125)
------------ ------------
Total stockholders' equity 27,701,878 27,556,605
------------ ------------
Total liabilities and stockholders'
equity $ 77,482,857 $ 72,049,966
============ ============
The notes to our second quarter 2007 Form 10-Q are an integral part of
these financial statements.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2007 2006 2007 2006
--------------------------- -------------------------
Net sales $ 25,342,796 $ 28,105,770 $47,709,836 $ 55,771,019
Cost of goods
sold 21,352,994 19,625,232 40,881,582 41,336,165
-------------------------- -------------------------
Gross margin 3,989,802 8,480,538 6,828,254 14,434,854
Selling and
administrative
costs 4,044,282 4,935,881 7,920,754 9,056,124
Operating income
(loss) (54,480) 3,544,657 (1,092,500) 5,378,730
Net interest
expense (958,894) (658,852) (1,793,355) (1,330,382)
-------------------------- -------------------------
Income (loss)
before income
taxes (1,013,374) 2,885,805 (2,885,855) 4,048,348
Income tax
provision
(benefit) (629,455) 1,162,708 (1,330,277) 1,419,309
-------------------------- -------------------------
Net income
(loss)
applicable to
common stock $ (383,919) $ 1,723,097 $(1,555,578) $ 2,629,039
========================== =========================
Income (loss)
per share of
common stock
(Basic) $ (0.01) $ 0.04 $ (0.03) $ 0.07
========================== =========================
Income (loss)
per share of
common stock
(Diluted) $ (0.01) $ 0.04 $ (0.03) $ 0.06
========================== =========================
Weighted average
number of
common shares
outstanding
(Basic) 47,329,295 40,678,164 46,294,901 40,054,317
========================== =========================
Weighted average
number of
common shares
outstanding
(Diluted) 47,329,295 45,384,891 46,294,901 44,375,950
========================== =========================
The notes to our second quarter 2007 Form 10-Q are an integral part of
these financial statements.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30,
2007 2006
--------------------------
Cash flows from operating activities:
Net income (loss) applicable to common
stock $(1,555,578) $ 2,629,039
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Depreciation and amortization 2,219,614 2,034,363
Provision for doubtful accounts - 161,185
Deferred tax provision (benefit) (1,330,277) 1,112,309
(Increase) decrease in other assets 58,070 (654,113)
Increase in cash restricted for letter
of credit and interest costs (57,670) (311,647)
Changes in current assets and current
liabilities (4,065,686) (4,818,664)
-------------------------
Net cash provided by (used in) operating
activities (4,731,527) 152,472
-------------------------
Cash flows from investing activities:
Purchase of certificate of deposit - (1,000,000)
Purchases of land, buildings and
equipment (1,272,268) (4,192,667)
Net cash used in investing activities (1,272,268) (5,192,667)
-------------------------
Cash flows from financing activities:
Net borrowings on line of credit 1,399,698 6,600,000
Proceeds from issuance of notes 5,750,000 2,503,225
Payments on notes (2,696,123) (3,859,961)
Increase in cash restricted for payment
of long-term debt (458,662) (260,896)
Decrease in outstanding advances on
factored receivables - (2,450,788)
Proceeds from exercise of stock options
and warrants, net 1,509,475 3,637,164
Net cash provided by financing activities 5,504,388 6,168,744
Increase (decrease) in cash and cash
equivalents (499,407) 1,128,549
Cash and cash equivalents, beginning of
period 2,164,532 1,748,023
Cash and cash equivalents, end of period $ 1,665,125 $ 2,876,572
The notes to our second quarter 2007 Form 10-Q are an integral part of
these financial statements.
Source: Advanced Environmental Recycling Technologies, Inc.
