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Since 1989, 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, receiving 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® 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® 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, Lowell, and Tontitown, Arkansas; Junction, Texas; and Alexandria, Louisiana.
AERT 2008 Second Quarter Earnings Conference Call
Tuesday, August 19, 2008 at 4:15 PM Eastern Time
To listen to the webcast, please click here.
AERT Presents at CANACCORD Adams Global Growth Conference
The AERT presentation will take place at 4:00 PM Eastern on Wednesday, August 13.
To watch the webcast, please click here.
AERT 2008 Annual Shareholders Meeting
The annual shareholders meeting will be held on Thursday, July 24, 2008 at 7:00 p.m. in Salon E of the NWA Holiday Inn located in Springdale, Arkansas. Shareholders are invited to attend and advanced registration is not necessary.
Click here for the Shareholders Meeting Webcast
AERT 2007 Annual Report and Proxy Statement Now Available
The AERT 2007 Annual Report and Proxy Statement aer now available in Adobe PDF format via the links below.
Download AERT 2007 Annual Report
Download AERT Proxy Statement
Press Releases**
5/13/2008
AERT, Inc. First Quarter Conference Call
SPRINGDALE, Ark., May 13, 2008 (PRIME NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (NasdaqCM:AERT - News) today announced it will hold a conference call to discuss the company's 2008 first quarter results on Wednesday, May 14, 2008, at 3:15 PM Central/4:15 PM Eastern time.
A telephone replay of the conference call will be available from 05/14/08 6:00 PM through 06/14/2008 by dialing 1-888-286-8010 and entering the passcode 78000170. The Webcast will be archived on the company's web site until its next earnings release.
You can access the webcast with the by clicking below:
4/9/2008
AERT, Inc. Fourth Quarter and Year-End Conference Call
SPRINGDALE, Ark., April 8, 2008 (PRIME NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERT) today announced it will hold a conference call to discuss the company's 2007 fourth quarter and year-end results on Wednesday, April 9, 2008, at 3:00 PM Central/4:00 PM Eastern time.
Interested parties can listen to the call live on the Internet through the company's web site: www.aert.com or by dialing 1-800.638.5495 and entering the passcode 20262158. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software.
In addition, the Web cast is also available through Thomson's investor portals. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN's individual investor portal powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).
A telephone replay of the conference call will be available from 04/09/2008 6:00 PM through 05/09/2008 by dialing 1-888-286-8010 and entering the passcode 12695873. The Webcast will be archived on the company's web site until its next earnings release.
3/3/2008
New President Named by AERT
Hiring of Senior Manufacturing Executive Strengthens Management Team
SPRINGDALE, Ark.--(BUSINESS WIRE)--AERT, Inc. (Nasdaq:AERT), the leader in the Green building materials market today announced the appointment of Tim Morrison as President of the Company. Mr. Morrison is a former senior executive with a number of prestigious manufacturing companies including: Valspar Corporation, OCI Chemical and Harris Chemical Group.
"On behalf of the Board of Directors, I am pleased to welcome Tim aboard in his new role as President," said Chairman and Company Founder Joe Brooks. "Tim brings over 25 years of manufacturing experience to AERT. With all of the opportunities ahead, such as our entry into China and the launch of our Advanced Resource Recovery Project in Oklahoma, we knew we needed to add a seasoned, industry expert to our management team. After an extensive search, we determined that Tim was the candidate who best shared our values, our passion for the business and our vision for the future. Tim understands our commitment to our customers and is the one who can best help us scale the Company for our anticipated growth and profitability. We are highly confident in his ability to help lead our Company and to drive the next phase of our growth," he concluded.
Commenting on his appointment, Mr. Morrison said, "I'm honored to have been selected to join AERT as its President, and look forward to the tremendous opportunities that lie ahead. I am excited to be a part of AERT as we rapidly grow and expand our business, not just at home but also abroad."
Tim comes to AERT with a BS in Chemical Engineering from the University of Alabama, an MBA from the University of Southern California, and training in both Lean Manufacturing and Six Sigma. Tim began his career with Dow Chemical in the hydrocarbons and polyethylene group in 1981 as a Process Engineer. He progressed to Plant Manager before moving to Harris Chemical Group as an equity partner where he led operations, purchasing, and logistics. Most recently he was Site Manager for Valspar’s Texas Division in manufacturing.
2/28/2008
AERT CEO Joe Brooks today made the following statement regarding a recent class action lawsuit, filed Feb. 27. His comments follow verbatim:
SPRINGDALE, Ark.--(BUSINESS WIRE)-- Yesterday afternoon, Advanced Environmental Recycling Technologies, Inc. ("AERT") (NASDAQ:AERT) was blindsided by a wire service report stating that AERT, its distributor, and its customer had been named in a lawsuit. Although AERT is familiar with many of the issues surrounding this case, the company has yet to be formally served. I would like to address some of the scurrilous accusations made in the press release regarding recycled plastics and the implied quality issues related to recycling and green products.
AERT has an 18-year history of producing high-quality green building products based upon its proprietary mixture of polyethylene plastics and wood. AERT has been successfully doing this since 1988, and the company has invested heavily in technology and infrastructure in cleaning, blending, and upgrading recycled plastic materials. The company does not utilize any recycled plastics in its processes until it has been cleaned, heat sterilized, and blended and reformulated into specific/desired ranges for physical properties. Additives and new plastics are also added as needed and AERT monitors this through a state-of-the-art analytical lab in Arkansas.
Therefore, the allegations that AERT puts highly contaminated, recycled plastics including food waste, into decking products are false and completely untrue. In regard to mold and mildew, AERT has been incorporating antimicrobial additives into its decking products for additional surface protection and resistance. The company’s focus is to satisfy its customers and to do the right thing while making a positive impact on the environment and the world we live in. When issues arise, we always strive to work through them for the benefit of our customers.
We find the timing of this action curious and the accusations within the press release reckless. When we find out more about this, AERT will comment appropriately. Thank you.
Joe Brooks
CEO
AERT Inc
2/27/2008
AERT to Present at the Jesup & Lamont Emerging Growth Stock Conference
SPRINGDALE, Ark.--(BUSINESS WIRE)-- AERT Inc. (Nasdaq: AERT), the leader in the Green building materials market will be presenting at Jesup and Lamont's 2008 Emerging Growth Stock Conference on Thursday, February 28, 2008 at the Walt Disney Contemporary resort in Orlando, FL.
Attendance at the conference is by invitation only. A live webcast of the presentation will be broadcast via the Internet. Those interested in listening to the webcast may access it at Jesup and Lamont's website at http://www.jesuplamontconferences.com.
2/20/2008
Designed with Nature in Mind; AERT Launches the MoistureShield(R) Juniper(TM) Collection, An Earth-Friendly Composite Decking
SPRINGDALE, Ark.--(BUSINESS WIRE)--To celebrate 20 years in production, Advanced Environmental Recycling Technologies (NASDAQ: AERT - News) introduces the newest addition to its MoistureShield® Decking line – the Juniper™ Collection. Made using organic cedar, the Juniper Collection is a natural, earth-friendly, long-lasting premium composite decking product created to endure the most severe environmental conditions.
This unique line of organic cedar composite decking is composed of heartwood cedar fibers from Juniper Mexicana, or Texas Cedar, which extract a tremendous amount of water from Texas aquifers. Because cedar overgrowth has led to shortages of water and grazing grasses for wildlife, as well as drinking water for the state’s growing population, ranchers have had to eradicate thousands of acres of Juniper trees.
AERT is now utilizing this discarded cedar, which would otherwise be burned, and is blending it with recycled polyethylene plastic, such as milk jugs, plastic grocery sacks and detergent bottles, to make a composite decking product with a lifetime of value.
Made with 90 percent pre- and post-consumer recycled content, the highly water-resistant Juniper Collection is manufactured using AERT’s unique plastic encapsulation process that shields and protects the wood fiber from moisture and insect damage. Additionally, because it is made of natural cedar, the Juniper Collection does not need or contain mildewcides, insecticides, or coloring agents.
The Juniper Collection’s deep wood grain texture gives it the look and feel of real wood, but unlike traditional wood decking, it offers exceptional durability and does not need staining, painting or sealing to maintain its natural beauty. In addition, the Juniper Collection requires no special tools to install, is easy to assemble and is backed by a limited lifetime warranty against rot, decay and insect damage. The Juniper Collection also exceeds the requirements for landscape decking published in the LEED for home standards.
For more information on the MoistureShield Juniper Collection or AERT, please contact AERT Customer Service at 1-866-729-2378. Additional information can also be found online at http://www.aertinc.com or http://www.moistureshield.com.
2/13/2008
AERT Aims to Make 'Green' Focus of '08
SPRINGDALE, Ark.--(BUSINESS WIRE)--
The following is an article by Andrew Jensen about AERT, Inc., which ran in the Northwest Arkansas Business Journal, reproduced with permission of Arkansas Business Publishing Group.
With a slight modification, a classic Barbara Mandrell song sums up Advanced Environmental Recycling Technologies Inc. (NASDAQ:AERT) of Springdale. "We were 'green' before 'green' was cool," said Joe Brooks, CEO of AERT. The company, founded in 1989, has undertaken a series of moves spawned in mid-2007 to take advantage of the sustainability boom and boost its value to investors after slipping from the profitable ranks during its most recent fiscal year, which ended Dec. 31. With nearly $100 million in revenue during 2006, a three-fold increase compared with 2001, AERT plans an all-out push through trade and consumer media platforms to tout its position as a "first mover" with patent-protected technologies in the manufacture of recycled plastics into composite construction products ChoiceDek and MoistureShield.
The course Brooks and AERT began to chart in 2007 preceded the burst of the housing bubble and the subprime credit mess, which dragged down the entire building sector as home sales and new construction fell off dramatically. AERT's stock price felt the hit, falling from as high as $1.75 on June 26, to 98 cents on Nov. 8 after losing $1.5 million in the third quarter ended Sept. 30. It has been below Nasdaq's $1 threshold ever since, triggering a de-listing notification from the exchange on Dec. 21. Companies are notified after their share price remains below $1 for 30 consecutive days and AERT has until June 18 to regain compliance by the share price remaining greater than $1 for 10 consecutive days prior to the deadline. If AERT's price, 95 cents at closing on Feb. 5, does not beat the goal, Brooks said the company has two options. One is to file an appeal and present a plan for how AERT will return to compliance and the second, less appealing choice, is to do a reverse stock split. Brooks called the latter option "not in the best interests of anybody." "If we take care of business and keep moving forward, the rest will work out on its own," Brooks said. "I'm not saying we're insensitive to the stock price, but we can't let every day determine our strategy for the future of our company."
After Brooks sent a letter to investors calling AERT undervalued and assuring them of plans to reinvigorate the company on Jan. 9, the stock price jumped from 76 cents to close at 92 cents on Jan. 10 and has fluctuated within that range since. "What we're doing is in the best interests of every shareholder," Brooks said.
Making Moves
In November, AERT hired Nicholson Kovac, a national advertising firm in Kansas City with around $100 million in annual capitalized billings, to develop a campaign for its MoistureShield Decking product. The ad campaign, which features forest animals approving of AERT products, will be featured in both trade and consumer publications and debuts at the International Builders Show in Orlando Feb. 13-16.
Renee Robinson of Nicholson Kovac said the campaign will target dealers and contractors as well as homeowners through home and garden publications. Efforts are also in progress to get AERT's MoistureShield featured on home improvement television shows.
"It's encouraging to see the rest of the world going mainstream," Brooks said. "The whole world is looking at green initiatives and we haven't done as good a job getting the message out."
Also in November, AERT was the only U.S. manufacturer of "green" building materials invited to China's International Exhibition on Housing Industry in Beijing. At the time, AERT announced a strategic partnership with China-based retailer Zhengte Ltd. Zhengte, which specializes in outdoor leisure products, has 37 locations and more than 3,000 employees in China.
In December, AERT hired The Birkhill Group of New York City for corporate communications and investor relations. "We talk about our housing market being soft, (China's) is white hot," said David McCarthy of Birkhill, who has known the Brooks family for 12 years. "There are 30,000 new families entering the middle class every day. They buy homes. They fix up homes. They have such large environmental problems in China. They need to go green. AERT has a run rate of $100 million and there could be a multiple demand of that in China alone."
On Jan. 29, AERT announced plans to break ground on a new plant in Watts, Okla., this year in a partnership that included around $200,000 in incentives with the state and the Cherokee Nation. The first phase of operations is scheduled to begin by the end of 2008. The $13.5 million plant financed by Allstate Investments will eventually create around 250 jobs, 60 to 65 in the initial phase of operations. The LEED-certified facility will lock in raw material costs for AERT through waste reclamation, a crucial economic advantage in an industry that has seen manufacturers of composite materials who use "virgin" plastic drop out of the business entirely because of rising petroleum costs.
While products like aluminum, paper and steel are recycled at rates between 50 percent and 80 percent, only 3 percent of polyethylene plastics are recycled. AERT already collects shopping bags from Wal-Mart, what Brooks calls more of a "clean" plastic, but the Watts plant will also collect more contaminated industrial plastics that contained items like chicken parts. "It's a hedge," Brooks said. "It will be a cost advantage to produce products more competitively and insulate ourselves from the wide swings in oil and oil derivatives."
Appreciation Opportunity
Eric Prouty of Boston-based Canaccord Adams has been with the financial services firm since 2001 and has followed the sustainability industry since the late 1990s. Prouty is well versed on AERT and agreed with Brooks' assertion that the company is undervalued with the full disclosure that Canaccord Adams received compensation during the past 12 months from AERT for investment banking services. He said AERT's recent moves are the right ones. "We think it is taking the right steps in the downturn (of the market)," Prouty said. "The stock has an opportunity for good appreciation once the end-user markets start improving. But like anything that has exposure, it is not without risk if downturn lasts longer than expected." Prouty said the economic advantages of recycling plastic are obvious, and Birkhill's McCarthy said AERT even has the opportunity to sell its excess materials on the world market.
AERT will be able to secure its materials at the Watts plant for around 25 to 30 cents a pound, McCarthy said, compared to the $1 per pound going rate in the world market. Even without the China and Watts deals factored in, McCarthy thinks AERT, which has a current market capitalization of $45.4 million and 47.7 million shares outstanding, should be trading for more than twice its current price.
"The company has $100 million in revenue and this stock should be trading at 1.3 to 1.4 times revenue," McCarthy said. "It's not a commodity company. They have pricing power. A $130 million market cap and 60 million shares outstanding would be a $2.10 stock price without giving any upside value to China or Watts. The goal is realistic if two things happen: normalization of housing market and being properly positioned as a technology company."
For Brooks, it is crucial AERT sets itself apart in the industry and he said there is a lot of "greenwashing" going on with companies making shaky claims of being environmentally friendly. "We're looking for an interesting and active year," Brooks said. "We've got a lot of balls in the air and a lot of opportunities."
Press Release Source: Northwest Arkansas Business Journal
Northwest Arkansas Business Journal by Andrew Jensen. Copyright 2008 by Arkansas Business Publishing Group. Reproduced with permission of Arkansas Business Publishing Group via Copyright Clearance Center.
1/29/2008
Cherokee Nation Partners with Oklahoma & AERT to Bring Reclamation Plant to their Reservation
TAHLEQUAH, Okla.--(BUSINESS WIRE)--
In a move that would bring about 250 new jobs, the Cherokee Nation in conjunction with the state of Oklahoma is helping Arkansas company, AERT (NASDAQ:AERT)build a plastics waste mining and reclamation facility near Watts, Okla. Plant operations are expected to commence by the end of 2008.
Initial funding for the $13.5 million plant was recently completed and financed by Allstate Investments in conjunction with an Adair County revenue bond which reaches maturity in 15 years.
Cherokee Nations Communications Officer Mike Miller said the tribe and Adair County partners helped convince the Springdale, Ark. based Advanced Environmental Recycling Technologies to build a plant in the small eastern Oklahoma town. The tribe's pitch for the AERT facility included financial incentives and assistance with hiring.
"CNB (Cherokee Nation Businesses) joined the effort to help bring jobs to the area by offering some financial incentives, which could total as much as $200,000," Miller said. "Cherokee Nation Career Services, led by Diane Kelley, agreed to help them with screening, training and recruiting job applicants when they start the hiring process."
AERT CEO, Joe Brooks said in building the reclamation plant AERT will be incorporating new technology and will be better utilizing resources which will lessen the company's dependence on petrochemicals and decrease the risk of potential supply problems.
AERT expects to employ 60 to 65 workers once the first phase of construction is completed. Planned expansion could raise the total to 265 employees with an expected average wage of nearly $14 per hour.
Miller said the tribe realizes that AERT is working with state entities to ensure the plant complies with environmental regulations. The plant will also be designed for LEED certification. The facility will be a national example of Green redemption and manufacturing and will improve the carbon footprint for all parties involved. The tribe has also worked with the Oklahoma Department of Transportation and other agencies to make sure the roads around the facility can handle the truck traffic and the anticipated growth.
A ground breaking ceremony is anticipated in the near future.
Portions of this release courtesy of the Cherokee Phoenix.
1/9/2008
AERT's 2008 Letter to Shareholders
AERT, Inc. (NASDAQ CM: AERT):
Dear Shareholders,
On behalf of AERT and its Board of Directors, I am writing to share with you a number of exciting developments that I strongly believe will favorably affect AERT's near term future, and to communicate to you why I believe our company is in a unique market position to once again rapidly grow both our top and bottom lines.
1. We ARE a Green company. It is currently estimated that 100 billion dollars will be spent over the next 5 years on green building products and this estimate continues to grow. Many companies claim to be "green," but our product lines are and have always been directly responsive to consumer and investor demand for environment-friendly technologies, processes, and products.
2. AERT has continued to grow and gain market share. In the renovation and remodeling categories, many of our competitors have lost ground. Some have even ceased operations during this past year. AERT, on the other hand, has continued to expand capacity and distribution. Over the past 18 months, we have added 9 regional distributors for our MoistureShield(R) line of green decking products and components. With 14 distributors currently, we anticipate achieving nationwide distribution of MoistureShield(R) by April 1, 2008. Meanwhile, sales of Weyerhaeuser ChoiceDek(R) continue to expand, and retail sales levels have increased year over year.
3. We have taken major steps to rein in raw material costs and mitigate supply uncertainties. While oil and petrochemical prices have skyrocketed, AERT has invested heavily in plastic recycling technology and infrastructure. Our new Advanced Resource Recovery Project (ARRP), which we announced last month, will reduce our raw material costs and improve and ensure supply. The ARRP facility, with infrastructure and support provided by Oklahoma government authorities and the Cherokee Nation, has recently been funded by Allstate Investments. This facility will allow us to recycle various sources of previously non-renewable polyethylene plastics from the waste stream, which will create a proprietary source of lower cost raw materials and help to insulate AERT from raw material price fluctuations in the future.
4. AERT has begun selling in China. And we've received the endorsement and recognition of business and political leaders in China that will catapult us to a leadership position. The upcoming Olympics, with its many building programs and the government of China's emphasis on environment-friendly technologies and green products add up to a huge potential market for our Company.
5. World-class financial institutions are behind us now. AERT has established relationships to help finance our growth with leading capital market partners and continues to attract interested private and institutional investors to the company. Canaccord-Adams, the global investment bank, for example, helped us with a $10 Million private placement, and has launched institutional coverage of our stock. Allstate Investments, the wholly-owned investment management subsidiary of Allstate Insurance, provided us with a $5 Million short term bridge financing and just invested $13.5 Million in our ARRP facility in Watts, Oklahoma.
6. AERT's story is attractive to socially responsible institutional investors. As AERT becomes recognized as a truly Green company, we anticipate that Green mutual funds and other socially responsible investment groups will find our business attractive, and that our shareholders will benefit from the increasing valuations being given to companies in this space. In short, we believe that the stock market will begin to recognize and reward AERT for its market position.
7. We are just beginning to spread the news. We just hired Nicholson-Kovac, a renowned, nationwide marketing and advertising agency, to tell our story within the industry. NK's client list includes such prestigious names as Owens-Illinois, 3M, LG Electronics, HILTI, and FMC. We will soon announce the retention of a new investor awareness and relations firm that will improve our communications with you, our shareholders, as well as the general investing public. So please make sure your seatbelts are fastened, put your tray tables up and place your seats in their full, upright position!
In summary, while business pundits and naysayers have written obituaries for anything having a link to the housing market, our company has quietly pierced the $100 million annual run-rate (5 times what it was in 2001!) and is gaining market share from competitors. We are diversifying our product and customer mix. We are entering foreign markets. We are taking significant steps to reduce costs, improve efficiencies, and to highlight our higher margin products in the North American market. We are strengthening all levels of management in anticipation of the rapid growth and opportunities we foresee.
I personally believe that AERT stock is undervalued and wish to emphasize that it is not the intent of management nor of the Board of Directors to take AERT private or to become delisted from NASDAQ. While no one can guarantee stock price performance, we can pledge that AERT will increasingly strive to make capital deployment and operating decisions intended to increase value for all shareholders.
As we enter our 20th year, I have never been more proud of the hard work and determination of our employees and partners. With this letter, all of us at AERT wish to thank you for your investment and your support. Our once young company has now become the definitive name in the technology-driven building materials market and is at the forefront of the burgeoning GREEN movement. Our 2008 commitment to you is to do all we can to generate strong cash flows, solid net income and attractive returns for you, our loyal shareholders.
Very truly yours,
Joe Brooks
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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, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.
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