JBI, Inc. Announces Continued Cost Reduction Measures
August 26 2013 - 2:31PM
Marketwired
JBI, Inc. (the "Company" or "JBI") (OTCQB: JBII), a clean energy
company that recycles waste plastic into liquid fuels, today
announced continued actions to help significantly reduce costs as
part of its ongoing goal to achieve cash flow positive results.
The Company plans to close operations at its recycling facility
in Thorold, Ontario over the next several weeks, at which point all
eight employees at the facility will be laid off. The Company's new
executive team has decided to forego having a two stage plastic
delivery process in favor of dealing with processor-ready plastics
delivered directly to its fuel processing site in Niagara Falls,
NY.
Based on operational data from the first six months of 2013, the
Company estimates total annualized cost savings as a result of
these measures to be approximately $800,000. In July, the Company
announced additional cost reduction measures that it anticipated
would result in annualized cost savings of approximately $1.3
million.
"Aggressively managing costs is a key component in positioning a
company to eventually become cash flow positive. In keeping with
the encouraging production data we've had to start the third
quarter, these cuts were an important strategic move for us. We
continue with the vision of procuring non-recycled streams of
plastic that we can divert from landfill," stated JBI's Chief
Executive Officer Richard Heddle.
JBI's Chief Financial Officer Nicholas Terranova stated, "We
feel there is a great opportunity to reduce the cost of our fuel
production, as a large portion of these costs have been associated
with handling and preparing the plastic before it enters our
processors in Niagara Falls. These measures are being taken to
address these specific costs directly. Based on reviews of our cost
of goods sold, we have realized that acquiring non-recycled,
processor-ready plastic is the easiest way to continue having
adequate feedstock at a desirable cost while streamlining our
supply chain."
"A recent procurement partnership with a company that has been
able to provide us with great plastic that is processor-ready makes
us believe there is ample supply to be delivered directly to our
site. Consistent delivery and consistent on-site fuel production
make it simple and effective for us to manage procurement in this
fashion, while making sure that we abide by all necessary
guidelines in our permitting," stated company founder and Chief of
Technology John Bordynuik.
For further information about JBI, Inc., including its second
fiscal quarter 2013 financial results, readers of this press
release should review the Company's disclosures in its Quarterly
Report on Form 10-Q, which is publicly available on the website of
the Securities and Exchange Commission at www.sec.gov.
About JBI, Inc.
JBI, Inc. is a clean energy company that recycles waste plastic
into liquid fuels. JBI's proprietary Plastic2Oil technology can
deliver economic and environmental benefits by replacing refined
fuels and diverting waste plastic from landfills. For further
information, please visit www.plastic2oil.com.
Forward-Looking Statements
This press release contains statements, which may constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act. The Private
Securities Litigation Reform Act of 1995 (PSLRA) implemented
several significant substantive changes affecting certain cases
brought under the federal securities laws, including changes
related to pleading, discovery, liability, class representation and
awards fees as of 1995. Those statements include statements
regarding the intent, belief or current expectations of JBI, and
members of its management as well as the assumptions on which such
statements are based, including the expected timing of the
Company's Form 10-K, execution of the proposed agreements described
above and consummation of the transactions contemplated by such
agreements. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Such risks include, but are not limited to: (1) JBI has
a history of net losses, and may not be profitable in the future;
(2) JBI may not be able to obtain necessary licenses, rights and
permits required to develop or operate our Plastic2Oil business,
and may encounter environmental or occupational, safety and health
conditions or requirements that would adversely affect its
business; and (3) JBI may experience delays in the commercial
operations of its Plastic2Oil machines and there is no assurance
that they can be operated profitably. For a more detailed
discussion of such risks and other factors, see the Company's
Annual Report on Form 10-K, filed with the SEC on March 15, 2013,
as amended on April 30, 2013, and its other SEC filings. The
Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results.
CONTACT Chris Irons Corporate Communications &
Investor Relations Manager 716.471.5995 ir@jbi.net MEDIA
INQUIRIES media@jbi.net or please visit the JBI, Inc. Newsroom
at www.plastic2oil.com
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