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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
November 10, 1995
Date of Report (Date of earliest event reported)
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
(Exact Name of Registrant as specified in its Charter)
Delaware 71-0675758
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1-10367
(Commission File Number)
901 W. Robinson
P. O. Box 1237
Springdale, Arkansas 72765
(501)750-1299
(Address including zip code and telephone number including
area code of Registrants' Principal Executive Office)
.................................................................
(Former name or former address, if changed since last report)
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INFORMATION INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS.
On November 10, 1995, Advanced Environmental Recycling Technologies, Inc.
(the "Company") issued a press release announcing its earnings for the third
quarter ending September 30, 1995. A copy of the November 10, 1995 press
release is included herewith as Exhibit 99 and is incorporated herein by this
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS.
99 Press Release, dated November 10, 1995, disclosing
Company's earnings for the third quarter ending
September 30, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
/s/ Joe G. Brooks
Joe G. Brooks, President
DATE: November 10, 1995
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ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
EXHIBITS INDEX
EXHIBIT NUMBER DESCRIPTION
99 Press Release, dated November 10, 1995, disclosing
Company's earnings for the third quarter ending
September 30, 1995.
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Exhibit 99
NOVEMBER 10, 1995 PRESS RELEASE
ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
AERT ANNOUNCES THIRD QUARTER RESULTS OF OPERATIONS
Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERTA) announced
today that the Company's Composites Unit recorded its first full quarter of
profit; however, composite gains were offset by plastic losses, resulting in
a loss of $495,236 or $.03 per share for the 3rd quarter ended 9/30/95.
Total sales for the 3rd quarter were $1,693,444, representing a 72% increase
over sales of $985,466 in the 3rd quarter of 1994. The Company's Composites
Unit set a sales record of $1,612,106 in the 3rd quarter. This 84% sales
increase over the comparable period ended 9/30/94 yielded a net profit of
$107,567 for the AERT Composites Unit. This compares to sales of $877,869,
or a net loss of $192,545, for the comparable quarter in 1994. However
composite gains were offset by losses in the Plastics Unit. Outside recycled
plastic sales decreased 80% to $81,338, yielding a net loss of $404,236 for
the Plastics Unit during the 3rd quarter. This compared with $108,546 in
sales for the comparable quarter in 1994 and was down from $397,699 in sales
during the 2nd quarter 1995.
The net loss for the quarter of $495,236 or $.03 per share was down from
$666,138 or $.04 per share for the third quarter of 1994. Year-to-date sales
increased 56% to $4,260,418 through the 3rd quarter of 1995, up from
$2,725,016 for the comparable period in 1994. The year-to-date loss through
9/30/95 was $1,646,918 or $.11 per share. This compares to a loss before
extraordinary gain of $2,411,212 or $.18 per share for the first nine months
of 1994 and a net loss for that period of $1,531,839 or $.11 per share.
Of the total sales of $1,693,444 for the quarter ended 9/30/95, 95% or
$1,612,106 were from the Composites Unit. Of such composite sales, 66% were
in the door and window component market, 11% were to the industrial flooring
market, and 23% were to the residential decking market. This compares to
composite sales of $997,965 or 72% of total sales during the second quarter
of 1995. All composites categories increased in sales during the 3rd
quarter.
According to Joe G. Brooks, AERT's President: "Gross margins at our
Composite Unit have showed steady improvement over the past 4 months, as
increased efficiencies have been obtained. Our associates are continuing to
work hard in this area and the operating income and net profit generated this
past quarter by that unit are showing that their efforts are yielding
results. It is unfortunate that we experienced a significant loss in the
Plastics Unit, due primarily to loss of sales. However, our focus continues
to be on our composites business. Sales growth is just beginning in our
residential decking products where initial test markets have been successful
and reorder patterns have met the Company's expectations. However, our
decking sales accounted for only 23% or $375,058 during the 3rd quarter, as
we have been conservative in initiating this product. As increased
distribution into the target markets is now underway, we expect success from
this product category in the future through our Weyerhaeuser distribution
agreement. Accordingly, composite sales are expected to remain strong and
to increase over the upcoming year.
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To accommodate composites growth, the Company will require increased amounts
of recycled plastics and our Plastics Unit will be shifting towards internal
supply requirements. This will allow us to streamline overhead and better
deploy assets. The Company is currently working to further improve
efficiencies at both of its facilities and is preparing to increase composite
extrusion capacity. Initial site evaluations have also commenced as the
Company is looking at potential locations for additional composite
manufacturing facilities and additional sources of wood fiber."
11/10/95
For additional information contact: Joe G. Brooks (915) 446-3430
Recycling Solutions for the 90's
A.E.R.T., Inc. 901 W. Robinson Springdale, AR 72764 501-750-1299
