SPRINGDALE, Ark., May 11, 2011 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT), a leading plastic recycler and manufacturer of green building products, announced today that sales for the quarter ended March 31, 2011 were $15 million, down 8.5% from $16.4 million for the quarter ended March 31, 2010. This sales reduction was a result of the reduced sales of ChoiceDek® to BlueLinx who lowered their inventory levels, that was partially offset by increased MoistureShield® sales.
Cost of goods sold was lower in the first quarter of 2011 compared to the first quarter of 2010 due to reduced sales. As a percentage of sales, cost of goods sold increased by 5.2 percentage points, reflecting increased raw material costs and reduced manufacturing overhead absorption.
SG&A costs were up $0.4 million in the first quarter of 2011 compared to the first quarter of 2010 due to a one time charge of $0.4 million for employee stock awards, in connection with the recapitalization.
An operating loss of $0.9 million was incurred in the first quarter of 2011 versus $0.5 million operating income in the first quarter of 2010. However, net income of $0.8 million was realized as a result of a $2.7 million gain on recapitalization. In 2010 a net loss of $0.4 million was recorded in the first quarter.
"AERT successfully completed a complex financing with an affiliate of H.I.G. Capital during the quarter which positively positions the company for growth and allows it to commercialize and enter the recycled plastics market in the near future," stated AERT CEO Joe G. Brooks. "Our AERT team is excited with this new partnership as 'The Future is Now'."
AERT will host their first quarter conference call and webcast on Thursday, May 12, 2011 beginning at 10:00 am (EDT)/9:00 am (CDT) to discuss the results. Listeners may participate in a question and answer session toward the end of the webcast by calling 877-561-2747. To listen via internet visit .
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(r) decking, which is available in multiple colors and is sold in Lowe's Home Improvement stores nationwide. See http://www.choicedek.com for more information. AERT's MoistureShield(r) decking program is expanding and products are now available throughout the U.S. See 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. 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.
CONTACT: For AERT Sarah Pore 479-203-5084 www.aertinc.com/ir