Sales Up 45%, Operating Income Swings to Profit
SPRINGDALE, Ark., May 7, 2012 (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, 2012 were $21.8 million, up 44.9% from $15 million for the quarter ended March 31, 2011. The sales increase was due to the introduction of ChoiceDek® Foundations™, a new product line for Lowe's, the expansion of MoistureShield® nationwide, a warmer than normal weather pattern, and the general improvement in the market.
Cost of goods sold, as a percentage of sales, decreased by 2.8 percentage points, reflecting lower fixed costs as a percentage of sales.
SG&A first quarter costs were down $0.1 million from the first quarter of 2011 and operating income of $0.8 million was generated this year as compared to an operating loss of $0.9 million for the first quarter of 2011. A gain on recapitalization of $2.7 million boosted last year's first quarter net income to $0.8 million while the first quarter of 2012 had a net loss of $0.3 million.
AERT's President, Tim Morrison, stated, "Both our MoistureShield® and ChoiceDek® brands have experienced double digit growth versus first quarter 2011. Professional builders nationwide continue to choose the value and durability of our MoistureShield® product over competing offerings. We are excited with the consumer's response to our new ChoiceDek® Foundations™ decking sold exclusively at Lowes. The transition to the ChoiceDek® Foundations™ line, begun in the fourth quarter of last year, when all the estimated costs were expensed, is essentially complete."
Joe G. Brooks, CEO, stated, "We continue to expand capabilities at our new recycling plant in Watts, OK as a means of diversifying our business and are excited about the prospects for 2012."
AERT will host their first quarter conference call and webcast on Wednesday, May 9, 2012 beginning at 11:00 am (EDT)/10:00 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 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.