MELBOURNE, Fla., Nov. 14, 2007 (PRIME NEWSWIRE) -- Alternative Construction Technologies, Inc. (OTCBB:ACCY) released today its third quarter financial results for 2007. Sales increased 48.7% from the comparable 9 month period of 2006, while profits improved from a $592,929 loss, to a $738,055 profit. Net income increased by $1,330,984 in comparison to the same period of 2006. EBITDA increased by $1,523,937 from the same period of 2006. Earnings per share increased from $(.04) for the nine months ended September 30, 2006 to $.07 for the nine months ended September 30, 2007.
ACCY has filed an extension to submit its 10Q for an additional five day period to address and incorporate comments received from the SEC related to its recent SB-2 filing, and to finalize the numbers from its recent acquisition of Alternative Construction by Revels, Inc. In addition, the Company intends to restate its financial statements for the quarter ended September 30, 2006, the year ended December 31, 2006, and the quarters ended March 31, 2007 and June 30, 2007. This restatement affects the consolidated balance sheet only and not the statement of operations or impact earnings. The restatement is only to reclassify stock warrants receivable reflected as an asset instead of as a reduction of equity.
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Sales $3,296,617 $2,449,574 $9,018,330 $6,064,173
Net Income $ 96,736 $ (108,001) $ 738,055 $ (592,929)
EBITDA $ 309,991 $ 15,452 $1,282,877 $ (241,060)
Earnings per Share $ 0.01 $ (0.01) $ 0.07 $ (0.04)
Sales increase from
prior period $ 847,043 $2,954,157
Sales increase from
prior period as a
percent 34.6% 48.7%
Net Income increase
from prior period $ 204,737 $1,330,984
EBITDA increase from
prior period $ 294,539 $1,523,937
Earnings Per Share
increase from
prior period $ 0.02 $ 0.11
Michael W. Hawkins, the Company's CEO stated, "A lightning strike that shutdown operations at our manufacturing plant for a portion of the month of September while waiting on equipment replacement parts had a negative effect on our cost of goods sold. With this extraordinary event in mind, ACCY was profitable for its third consecutive quarter." He further stated, "In light of recent publicity over rising energy prices and green technologies, we see our revenue trend continuing to grow."
Use of Non-GAAP Financial Measures
The press release contains disclosure of EBITDA for certain periods, which may be deemed to be a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Management believes that EBITDA, or earnings before interest, taxes, depreciation and amortization, is an appropriate measure of evaluating operating performance and liquidity, because it reflects the ability of Alternative Construction Company to meet capital expenditures and working capital requirements and otherwise meet its requirements as they become due. The disclosure of EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA should be considered in addition to, and not as a substitute.
Alternative Construction Technologies, Inc. (ACCY) possesses a unique and patented construction technology called the ACTech(r) Panel System that is used in the design and production of state-of-the-art buildings in commercial, residential, industrial and modular building applications. Generically known as structural insulated panels (SIPs), ACCY's revolutionary and efficient construction solution utilizes an inherently better galvanized steel "skin" SIP system to complete energy efficient, stronger, safer, faster, and more economical structure than conventional wood and brick based building products. The patented ACTech(r) SIP system is environmentally-friendly and easier to construct with - not only saving labor cost and cutting construction time, but also reducing recurring monthly heating and cooling energy bills by 30-50% and often more. Most importantly, the ACTech(r) Panel System possesses disaster tolerant strength and has tested stronger than conventional concrete block or wood frame construction. In hurricane projectile tests, the ACTech(r) Panel System has proved to meet or surpass the most stringent wind, projectile and uplift codes in the nation levied by the 2006 Florida Building Code. The ACTech(r) Panel System offers builders and consumers many competitive and comparative advantages of use due to its wide range of attributes. As this new construction technology gains awareness or hurricane- and tornado-prone states establish new building codes and rebuild from recent weather disasters, ACCY believes its' products will be in greater demand.
This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products, which we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.