Advanced Environmental Recycling Technologies, Inc. Innovating with Plastic

Advanced Environmental Recycling Technologies (AERT) is innovating with recycled polyethylene plastic. The Company, of Springdale, Arkansas, is at the vanguard of the use of this plastic in the manufacture of composite building materials. AERT operates manufacturing facilities in Springdale and Lowell, Arkansas and in Watts, Oklahoma.

In 1988, AERT established to develop a new technology for combining recycled wood fiber and recycled polyethylene plastic. They worked on this to form a highly durable, non-toxic, termite resistant engineered composite building material. In 1989, its first manufacturing facility opened near Junction, Texas.

Its products are manufactured mainly from roughly equal amounts of waste wood fiber that has been cleaned, sized and reprocessed, and recycled polyethylene plastics that have been cleaned, processed, and reformulated employing AERT’s patented and proprietary technologies.

In 1998, The United States Patent and Trademark Office (USPTO) awarded AERT with its first patent for the extruded composite material used exclusively by the Company to manufacture its premier building products. Recycled polyethylene sales started for the Company in 2012.

AERT’s advanced 70,000 square-foot plastic recycling facility washes, cleans, as well as separates polyethylene food packaging and wrapping films for the raw materials in its decking products. The Company converts reclaimed plastic and wood fiber waste into quality outdoor decking and railing systems, fence systems, and also door and window components.

AERT is the exclusive manufacturer of ChoiceDek® decking. ChoiceDek® is 95 percent recycled material and promotes a natural weathering process. ChoiceDek®, which is available in multiple colors, is the only decking product that can be installed on or in the ground or underwater. This product is workable to fit any type of deck design. The Company backs ChoiceDek® with a 25-year warranty. ChoiceDek® products include Composite Decking and Composite Railing.

The Company also has its MoistureShield® decking products. MoistureShield® decking and accessories are made with 38 percent post-consumer recycled content; 57 percent pre-consumer recycled content; and 95 percent total recycled content. This product is stain, fade, scratch, mold, as well as mildew resistant. It comes with a lifetime warranty. The recycled plastic used in the production of MoistureShield® does not make it weaker than if virgin plastic was used. MoistureShield® products include Composite Decking, Composite Railings and Accessories, Aluminum Railing and Accessories, Fencing, as well as Deck Accessories – Deck Clips, Deck Lights.

AERT has been widely recognized as a leader in resource conservation innovation. The Company received the Environmental Protection Agency (EPA) Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking.

This past May, Advanced Environmental Recycling Technologies (AERT) announced that net sales for the quarter ended March 31, 2016 were $17.1 million. This represents a 40.6 percent increase from $12.2 million for the year ended March 31, 2015.

Gross margin for this year’s Q1, at $3.8 million and 22.0 percent of sales, was up 154.4 percent from the 2015 Q1 gross margin of $1.5 million. This represents 12.2 percent of sales. The Company stated that lower labor and overhead costs contributed to the margin improvement in addition to the revenue increase. The Company’s net loss for the quarter was $0.9 million, or $0.01 per share, versus the prior year’s Q1 net loss of $2.8 million or $0.03 per share.