Cereplast Issues 12 Month Investor Update
EL SEGUNDO, Calif., Jul 13, 2010 (BUSINESS WIRE) --
Copyright Business Wire 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(R) 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(R) 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(R) 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(R)
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.
SOURCE: Cereplast, Inc.
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