Advanced Environmental Recycling Technologies, Inc. saw its sales decline, but its profitability improve thanks to new financing from a private equity firm.
The Springdale-based plastic recycler and manufacturer of green building products announced first quarter sales of $15 million, down from $16.4 million one year ago. Net income for the quarter was roughly $800,000 compared to a $400,000 net loss one year ago. AERT noted that a $2.7 million gain on recapitalization boosted its first quarter numbers.
"AERT successfully completed a complex financing with an affiliate of H.I.G. Capital during the quarter which positively positions the company for growth and allows it to commercialize and enter the recycled plastics market in the near future," said AERT CEO Joe Brooks.
In March, AERT announced it had reworked its financing with H.I.G. Capital, LLC, a longtime backer of the recycled products company. AERT was in default with its debt, which was not disclosed, to H.I.G.
AERT lost $5.9 million in 2010 and $5 million in 2009.