Cereplast Issues 12 Month Investor Update
Date : 07/13/2010 @ 8:30AM
Source : Business Wire
Stock : Cereplast, Inc. (CERP)
Quote : 3.25 0.0801 (2.53%) @ 9:36AM
Cereplast Issues 12 Month Investor Update
Cereplast (MM) (NASDAQ:CERP)
Intraday Stock Chart
Today : Tuesday 13 July 2010
Cereplast, Inc. (NASDAQ:CERP) a leading manufacturer of proprietary bio-based, sustainable plastics, today highlighted several significant accomplishments that have been achieved in the past 12 months.
In April 2009, Cereplast founder and CEO Frederic Scheer began to take measures to cut costs, improve efficiencies and position the Company for growth. Over the past 12 months under his leadership, the Company has achieved the following results:
Cut costs by over 55% in 2009 and by 31.2% in the first quarter of 2010, reducing cash burn rate from about $1.2 million per month to $0.2 million per month;
Increased gross margin to 12.3% in 2009 from 1.8% in 2008, and to 31.6% in first quarter 2010 from 17.4% in first quarter 2009;
Completed build out at new state-of-the-art facility in Seymour, Indiana, and commenced bioplastics production;
Raised over $13 million in equity capital from qualified institutions and accredited investors;
Restructured sales and marketing force with key new additions;
Successfully up-listed the company’s shares to the NASDAQ Capital Market;
Entered into agreements to ship 16 million pounds of bioplastic resins in 2010, representing a 400% increase in shipments over 2009;
Introduced 11 new grades of Cereplast Compostables® resins for wide range of plastics applications from tableware and cutlery to toys and healthcare/hygiene products, bottles/containers, bags and many other items;
Entered into new distribution agreements in Asia, South America, and the U.S., including an agreement with Ashland Distribution, a commercial unit of Ashland Inc. (NYSE:ASH), and expanded distribution agreements in Europe.
For 2010, the Company is now positioned to achieve operational profitability in the fourth quarter and estimates that revenues this year could increase more than 190% over last year to between $8 million to $10 million. Additionally, Cereplast is beginning to receive the attention it deserves as a market leader in its industry and has received national media attention from outlets including CNN, Dow Jones, MarketWatch, and affiliate CBS stations. The Company expects to complete the development of its breakthrough technology for new algae-based resins and offer a first grade of Cereplast Algae Plastics® for commercial use by end of year. In addition, the Chairman and CEO of Cereplast, Frederic Scheer, has been appointed 2010 BioPlastics Council Chair by The Society of the Plastics Industry, Inc. (SPI) BioPlastics Council.
“We have achieved a number of significant milestones in the past 12 months. The Company is now well positioned for the accelerated growth we forecast as the demand for our bioplastic resins continues to increase,” said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. “With the opening of our new facility in Indiana, we are in a stronger position to serve our growing customer base in Europe, Asia, South America and the United States. We estimate this facility to have production capacity of approximately 80 million pounds of bioplastic resin per year once operating at full capacity. This will allow us to deliver stronger financial performance from increased operational efficiencies and capacity.”
Concluded Mr. Scheer, “We continue to build on the momentum of the last 12 months and the new doors opened to us so far in 2010. Consumers increasingly demand economical and environmentally sound solutions to traditional plastics. We are ready to fulfill this demand by working with plastics manufactures around the world as they seek sustainable, ‘green’ solutions for their plastics products and applications.” He added, “With the successes we have achieved in a challenging economic climate, we are highly confident that this Company will attain or exceed the goals we have set forth for 2010.”
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ:CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® Resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins® combine high bio-based content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "May," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
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