JER Envirotech Announces Audited Annual Financial Results for Fiscal 2008
November 12 2008 - 1:36PM
Marketwired
JER Envirotech International Corp. (TSX-V: JER) (FRANKFURT: KFTB)
is pleased to announce its audited annual financial results for the
year ending August 31, 2008.
Financial highlights and milestones for fiscal 2008:
-- Record 2008 revenues of $2,605,220, representing a 194% increase over
2007 revenues of $886,888;
-- Revenues for the fourth quarter ended August 31, 2008 reached
$1,130,525, representing a 94% increase over the same quarter in fiscal
2007 at $581,964. These revenues were also up 73% over Q3 2008 at $653,980;
-- Achieved positive gross margins of $93,801 during the fourth quarter
of fiscal 2008 ended August 31, 2008;
-- Net loss for the year from continued operations were $7,334,481 as
compared to a net loss of $4,966,123 from the prior year;
-- Signed a four-year master supply agreement with Guardian Building
Products Distribution, Inc.;
-- Signed a four-year exclusive supply agreement with Sprig Toys, Inc., a
socially responsible toy manufacturer based in Fort Collins, Colorado. As
part of the agreement, Sprig will be providing secondary branding on all of
its products and packaging, identifying JER as the co-developer and
supplier of the custom thermoplastic biocomposite marketed as
Sprigwood(TM);
-- Signed a U.S. distribution partnership with Jamplast Inc., a leading
North American plastic raw material distributor of biopolymers, engineering
polymers and commodity-grade thermoplastics headquartered in Ellisville,
Missouri;
-- Safeguard Products placed an initial commercial sheet order with JER.
The sheeting will be used to manufacture Safeguard's proprietary "Cage Free
Nests" for domestic and international customers;
-- Tulip Corporation concluded a six-month R&D program with JER and
shifted to mainstream production using the Company's thermoplastic
biocomposite compounds. Tulip is using JERtech� material to produce
environmentally friendly interior and exterior moulding, trim and
industrial extruded profiles;
-- Partnered with Promats Athletics, LLC, in introducing the first
thermoplastic biocomposite sheeting product for Promats' EnviroZone?
Product line of stadium wall safety padding;
-- Received its first compound order for export to Asia to G5
International of Singapore to supply customers in Japan;
-- JERtech� thermoplastic biocomposite compounds launched as a new line
of board game pieces by specialty game piece manufacturer Rolco Inc.;
-- Purchased the remaining 25% joint-venture stake in its Delta, BC based
compounding facility, previously owned by PGCO Investments Ltd. to become
100% beneficial owner of the two compound production lines;
-- Purchased the remaining 49% joint-venture stake in its Malaysian based
sheet extrusion line, previously owned by Asia Pacific Microspheres Sdn.
Bhd. ("APM"), to become 100% beneficial owner of the Malaysian sheet
manufacturing plant. In addition to the purchase of the APM equity
interest, the company was able to negotiate a significant discount on the
final settlement with the leasing Company that provided the original fixed
line of credit facility amount of approximately $1,950,000, in
consideration for one lump sum payment of $383,091;
-- Brokered and non-brokered financings were completed, raising a
combined $4,359,050 (net of issuance costs) for general working capital.
Summary of Results
JER is pleased to report that the Company achieved record
revenues of $2,605,220 during fiscal 2008 compared with $886,888 in
fiscal 2007, representing an increase of 194%. The Company's sales
performance was primarily a result of its growing customer base and
strong market demand for its thermoplastic biocomposite pellets in
the injection-molding and extrusion industries.
"Our focus on achieving triple digit revenue growth, year over
year, continues despite an exceedingly challenging economic
landscape. Management has taken extensive proactive measures to
implement cost containment initiatives and process improvements to
mitigate the current unsettled economic climate," states Edward
Trueman, President and CEO. "We expect the reduced infrastructure
costs to be realized in the first quarter of fiscal 2009. We will
endeavour to improve our operational efficiency and aggressively
execute on our sales plan. Our momentum continues to grow at an
exponential rate, as indicated by our fourth quarter, which
represented 43% of fiscal 2008 sales and surpassed all of fiscal
2007 sales by 27 percent."
A summary of JER's quarterly revenues for fiscal 2008 and fiscal
2007 are as follows:
To view the table associated with this press release, click on
the link below or paste the link into your browser:
http://www.usetdas.com/maps/jer/jertables.pdf
Supplemental Information
For full financial statements as well as the Management
Discussion & Analysis, visit: www.sedar.com
About JER Envirotech International Corporation
JER is a global manufacturer of thermoplastic biocomposite
compounds and sheeting. The Company's patented technology utilizes
waste or by-product materials, such as wood fibre or rice hulls, to
produce environmentally friendly alternative products for
applications in the construction, transport, automotive and toy
industries. The Company currently has a range of biocomposite
formulations which it developed in collaboration with the National
Research Council - Industrial Materials Institute of Canada.
The Company is publicly-traded on the TSX Venture Exchange (TSX)
under the symbol "JER" and on the Frankfurt Stock Exchange under
the symbol "KFTB."
For more information, please visit www.jerenvirotech.com.
JER ENVIROTECH INTERNATIONAL CORPORATION
"Ji Yoon"
Mr. Ji Yoon
Chief Financial Officer
International: +1 (604) 940-9262
jyoon@jerenvirotech.com
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
(2008-11 #27)
Distributed by Filing Services Canada and retransmitted by
Marketwire
Mr. Ji Yoon Chief Financial Officer International: +1 (604)
940-9262 Email Contact
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