MELBOURNE, Fla., May 15, 2008 (PRIME NEWSWIRE) -- Alternative Construction Technologies, Inc. (OTCBB:ACCY) released its first quarter 2008 financial results today. Sales increased 48% over the comparable 3 month period in 2007. The Company recognizes its first loss after five consecutive quarters of profit. Although profits for the first quarter 2008 have declined, revenue numbers continued to be in accordance with the Company's strategic goals, recent sales and marketing efforts. The loss for the quarter was directly related to the delay associated with the passing of the Florida Referendum which slowed educational spending, the recent increase in transportation cost, and the ripple effect of current credit crisis on construction. EBITDA was reported at $69,854 for the period and continued to reflect the Company's ability to maintain growth. Earnings (loss) per share was $(.01) for the three months ended March 31, 2008.
The Referendum, which the Florida State Legislature passed in the first quarter of 2008, is expected to pave the way for the Florida School Boards to reinstitute spending on classrooms in order to comply with the 24 students per classroom mandate as elected by the Florida residents in effect through 2012. Based upon the received increase in purchase orders, challenges associated with the Referendum have now subsided and the Company has resumed normal order and production flow. In addition, as "green" building becomes more popular the Company's Green Building Division remains robust and expects to increase contracts and orders.
Michael W. Hawkins, the Company's CEO stated, "While order flow stalled in the first quarter, it appears to have rebounded nicely in the second quarter. We continue to believe we will meet our guidance for 2008. Our management team has now turned its attention to focus on revenue and profit growth. We remain optimistic of our prospects as our customer base and opportunities continue to grow."
Three Months Ended March 31,
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2008 2007
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Sales $2,554,258 $1,723,940
Net Income (Loss) $ (107,421) $ 108,772
EBITDA $ 69,854 $ 165,802
Earnings (Loss) per Share $ (0.01) $ 0.01
Sales increase from prior
period $ 830,318
Sales increase from prior period
as a percent 48.2%
Net Income decrease from prior
period $ (216,193)
EBITDA decrease from prior period $ (95,948)
Earnings Per Share decrease from
prior period $ (0.02)
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.
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.
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.