SPRINGDALE, Ark., May 13, 2008 (PRIME NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERT), a leading manufacturer of Green building products, announced today that sales for the quarter ended March 31, 2008 were $29.4 million, up 31% from $22.4 million in the quarter ended March 31, 2007.
Gross margin improved to 20% of sales from 13% for the first quarter of 2007. Operating loss was $723,000, an improvement of $380,000 over the same period ended March 31, 2007. SG&A increased to $6.1 million for the quarter from $3.9 million in Q1 2007. This increase was primarily due to the launch of a national sales and marketing campaign designed to underscore AERT's Green technology and promote AERT's MoistureShield(r) brand and products. The company recorded a net loss for the quarter of $1.4 million which included a one time charge of $484,000 for impairment of certain assets at its Junction, Texas facility. This compares to a loss of $1.2 million for the quarter ended March 31, 2007.
Commenting on the results, Joe Brooks, CEO of AERT noted, "A key goal of 2008 was to restore our revenue to the 2006 level of approximately $100 Million and get back to profitability by year-end. I am encouraged that our first quarter results have kept us on track to meet that goal, putting us at a $117 million annual run-rate. We have continued to expand our product lines, made our first sales to China, increased market share, and invested in our future, " he concluded,
The company will hold its quarterly conference call on May 14th at 4:15 EST. Webcast and Dial-in information to follow.
About Advanced Environmental Recycling Technologies, Inc.
Since 1989, AERT (Nasdaq: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. 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's MoistureShield(r) decking program is expanding and products are available in many parts of the U.S. now, with national distribution planned for 2008. See www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, with a raw materials facility in Junction, Texas and a state-of-the-art recycling facility under construction in Watts, Oklahoma. This LEED certified recycling facility is expected to be operational in the first quarter of 2009. For more information on the Company, visit www.aertinc.com.
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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, 2007 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.