Communication from the abyss...
Envirokare Announces LRM Industries Plastics Industry Award, Completion of Relocation and Interim Results
Thursday May 11, 11:30 am ET
NEW YORK--(BUSINESS WIRE)--May 11, 2006--Envirokare Tech, Inc. (OTCBB:ENVK - News), is pleased to announce that LRM Industries, LLC ("LRM"), has received a first place design award in the Building and Construction category at the Alliance of Plastic Processors meeting sponsored by the Society of Plastics Industry, as reported by Plastics News. Envirokare also announced the completion of the relocation of LRM from Mims to its new Rockledge facilities and the interim financial results of its composites industry segment, LRM Industries, LLC ("LRM"). Envirokare, through its joint venture interest in LRM, is developing state-of-the-art TPF Thermoplastic Flowforming(TM) technology, producing proprietary long-fiber reinforced thermoplastic products.
The award presented to LRM was in the building and construction category for the company's H-beam, which it developed for a Department of Defense shipping container. The H-beam parts, molded around a steel tube, can support a load of 60,000 pounds. The part is 19 1/2 feet long and manufactured using polypropylene and 1 inch glass fibers. In accepting the award, LRM marketing and sales vice-president, Bart Berghuis, noted that the TPF Thermoplastic Flowforming(TM) process utilizes a broad range of thermoplastic and thermoset polymers and reinforcing fibers. "This provides the ability to produce large, complex parts at low cost through the utilization of low-pressure presses and inexpensive molds. The process also works well with recycled plastic materials." Mr. Berghuis added, "We are delighted to receive industry recognition through the competition award given by Plastics News at this year's trade show."
LRM reports interim financial results from continuing operations produced a loss of approximately $432,050 on sales of $40,222. The loss is calculated after depreciation expense of $9,547 and interest income of approximately $9,500. LRM has approximately $1,860,000 in cash and receivables, less current payables of nearly $68,000, with an immaterial deferred tax benefit as of March 31, 2006. The Company's revenues are primarily derived from various product development projects with third parties. Although first half revenue will be negatively impacted by the move to the new Rockledge facilities, the company believes the 2006 forecast of $2.5MM will be exceeded. This is industry segment information and, although currently the only industry segment operated by Envirokare, it should not be considered an indicator of the operating results of Envirokare Tech, Inc.
LRM Industries, LLC was formed to commercialize TPF Thermoplastic Flowforming(TM) technology through development, manufacturing and licensing. LRM is a joint venture of NOVA Chemicals Inc. and Envirokare Composite Corporation (a unit of Envirokare Tech, Inc.).
TPF Thermoplastic Flowforming(TM) is an emerging process technology for the low pressure, fully automated molding of long-fiber-reinforced thermoplastic ("LFRT") large structural parts providing enhanced mechanical properties through the randomization and preservation of fiber length in molded parts. LFRT molded products represent one of the fastest growing segments of the worldwide molded plastics market with applications replacing conventional materials such as steel, aluminum, wood, fiberglass and cement, in nearly all major industrial markets. The worldwide market for LFRT products is estimated to be a multi-billion pound opportunity with double-digit growth rates currently and into the future. The enhanced mechanical properties of TPF Thermoplastic Flowforming(TM) molded products, coupled with low material costs (including the use of recycled polymers) and low conversion costs, make TPF Thermoplastic Flowforming(TM) patented technology a strong contender for this multi-billion pound opportunity.
Envirokare welcomes inquiries regarding their products and programs. Interested parties are also directed to the SEC's EDGAR informational system to obtain currently filed Envirokare corporate information. |
