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SPRINGDALE, Ark., Aug. 7, 2015 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (OTCQB:AERT), a leading plastic recycler and manufacturer of green building products announced today that sales for the quarter ended June 30, 2015, were $31.5 million, up $7 million from the second quarter of 2014, reflecting increased ChoiceDek sales as the Company transitioned to selling directly to Lowe's.
Gross Margin for the second quarter of this year, at 20.6%, was down four percentage points from the second quarter of 2014 due to a greater percentage of product shipped freight inclusive and increased raw material costs.
Selling and administration costs for the quarter were up $0.6 million from the same quarter last year due primarily to increased R&D, advertising, and promotional expenses and higher insurance costs.
The second quarter's operating income of $3.0 million was down $0.2 million from the three months ended June 30, 2014 while net income, at $1.7 million, was down $0.8 million from last year.
Tim Morrison, AERT's CEO, said, "The $31.5M second quarter results establishes a new all-time record for net sales in a quarter. The sales were made possible by great partnerships with our customers as well as the tireless efforts of the AERT associates to sell, produce, and ship the record quantities. Much of the increase is a result of our conversion to a direct relationship with Lowe's, which effectively delayed sales from the first quarter into the second quarter. In addition, most of our distributors are enjoying healthy growth of their sales of our decking. Our investment in R&D and additional marketing in the second quarter reduced our bottom line, but should facilitate future growth. AERT continues to provide the best value in the composite decking category and customers continue to appreciate that value."
AERT will host their second quarter conference call and webcast on Wednesday, August 12, commencing 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 855-296-9643. To listen via internet visit http://aert.com/investor-relations/ .
About Advanced Environmental Recycling Technologies, Inc.
Since 1989, AERT (OTCQB: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® 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® 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.
Advanced Environmental Recycling Technologies, Inc. (OTCQB:AERT) trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can access real-time quotes and market information for the company on http://www.otcmarkets.com. For more information on the Company, visit http://www.aert.com. Sign up to receive investor information, including press releases, via email by visiting http://aert.com/contact-us/ .
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, 2014.
CONTACT: For AERT Sarah Pore 479-203-5084 www.aertinc.com/irNEXT ARTICLE
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