Business News
ECO2 Plastics, Inc. Reports Increased Revenue and Reduced Net Losses in Third Quarter Financial Results
Monday 17. November 2008 - ECO2 Plastics, Inc., (BULLETIN BOARD: ECOO) , the eco-friendly recycling company that is changing the way plastics are recycled, today announced that it has filed the results of its third quarter operations in a Form 10-Q.
The Company reported increased revenue and reduced net losses:
— Revenues of $2.5 million for the quarter were achieved versus $1.4 million during the same period in 2007.
— Revenues for the nine months ended September 30th were $5.4 million in 2008 versus $2.0 in 2007.
— Net losses were $3.8 million for the quarter versus $8.1 million during the same period in the prior year, and net losses were $19.1 million for nine months ended September 30th versus $23.2 million for the prior year.
“The Company’s operating trends have moved in the right direction as quarter 2008 over quarter 2007 revenue increased 74 percent, gross margin percentage increased to 25 percent from 14 percent, overhead expenses decreased by 40 percent, and interest expense decreased by 89 percent,” said Rod Rougelot, CEO of ECO2 Plastics. Rougelot added, “The current economic climate is resulting in uncertainty in the commodities markets, which has resulted in volatility in the prices of our raw material and prices of product we produce. Margins are expected to tighten in the coming quarters and the Company will continue to control operating expenses in relation to output.”
In an effort to minimize operating losses in the current market environment, ECO2 has recently implemented a significant reduction in its labor force. The Company’s operating strategy is focused on producing all materials entirely through the proprietary next generation CO2 system that was constructed in the third quarter, while eliminating production utilizing outdated batch technology, which is significantly less efficient. The new equipment is processing plastic and is currently ramping volumes. However, the new equipment is not yet processing material at the expected rate of throughput as designed. Therefore, the Company expects to operate through the fourth quarter with lower volumes than achieved during the third quarter, which will result in lower revenue for the period.
Effective November 17th, the stock symbol for the Company will be changed to EOPI.OB. NASDAQ has informed ECO2 that OTC symbols are subject to change at any time and another company has been approved by the NASDAQ and FINRA to be listed under the Company’s current symbol, ECOO.