Business News
ECO2 Plastics, Inc. Reports 2008 Year End Financial Results and Review of Operations
Wednesday 15. April 2009 - ECO2 Plastics, Inc., (BULLETIN BOARD: EOPI) , the eco-friendly recycling company that is changing the way plastics are recycled, today reported its 2008 year-end financial results in its 10-K filing.
The Company reported revenues of $6.7 million for calendar year 2008 versus $4.3 million during 2007. 2008 operating losses were $12.3 million versus $16 million during the prior year, with net losses of $24 million in 2008 versus $32.6 million for the prior year. Cash losses from operating activity were $9.9 million in 2008 versus $7.2 million for 2007.
ECO2 finished the year with an increase in full-year revenue and decreased losses. The Company rode through a significant decline in plastic prices and was able to maintain, without a decrease, the spread between buy and sell prices of the commodity. Demand for the Company’s product continues to exceed supply and the opportunity for growth remains strong in the Company’s primary market of recycled PET flakes.
Organizationally, the management team was expanded with the addition of Fred Janz as Senior VP of Operations and Ray Salomon in the role of CFO. Additionally, ECO2 reconfigured its Board of Directors with the addition of Tom Hutton, John Moragne, David Buzby and Alex Millar.
The Company raised over $15 million in financing rounds throughout the year and received investments from two institutions; Trident Capital Management and Peninsula Packaging. In addition to investing in the Company, Peninsula Packaging executed a long-term supply agreement with ECO2 for the purchase of recycled PET flake.
Operationally, the construction of the Company’s proprietary next generation liquid carbon dioxide processing equipment was completed. The new system, along with other operating initiatives during the year, helped to reduce variable production costs per pound of production. In addition, with new equipment currently being installed in the plant, ECO2 anticipates further reduction in variable production costs throughout 2009, with the goal of achieving profitable operation.
The Company’s development efforts to date have resulted in the issuance of nine US patents, with eleven additional patents in the pending state. During 2008, the firm’s proprietary waterless cleaning process received approval by the FDA for use in food contact applications. ECO2 continued its development efforts with USCAR’s Vehicle Recycling Partnership, researching the effectiveness of the Company’s process in cleaning substances of concern from auto shredder residue. And finally, examination of commercially available recycling equipment to optimize the existing line and position the Company for expansion has been underway throughout the year.
Rod Rougelot, CEO of ECO2 Plastics stated “Although the Company has accomplished many of its goals in 2008, our continued focus must be on raising additional funds to continue to improve our processes, acquire additional equipment to support our improved processes, strengthen our balance sheet and deliver positive cash flow from operations.”