TORONTO, Aug. 26 2008 - Forterra Environmental Corp. (TSX-V: FTE-V), an
emerging leader in the production and sale of premium organic soil-enrichment
products based on worm castings, today announced its financial results for the
2008 second quarter and first half ended June 30, 2008. Financial results
conform to Canadian generally accepted accounting principles (GAAP) and all
currency amounts are in Canadian dollars.
"Our 2008 second-quarter and first-half results are those of a developing
company and don't truly illustrate the extent of the progress that Forterra is
making in building our business," said Donald Green, Chairman and Chief
Executive Officer.
"We now have clearly demonstrated the efficiency and cost-effectiveness
of our manufacturing process for mass producing worm castings and continue to
ramp up our production. We have ongoing negotiations with several potential
very significant new customers in Canada and the United States. We believe
that we now have satisfied the concerns of these potential customers that we
could meet their requirements for large-volume shipments of our
soil-enrichment products," he continued
"We are pursuing the development of new markets, including green-house
growers, that we expect will lessen or eliminate the seasonality of our
business in Canada, and, of course, will continue to seek additional customers
in the United States.
"With the additions during the second quarter of Richard Denyes as
president and chief operating officer, Bruce Bent as chief financial officer,
and Stanley Sajnovic as our plant manager, we have strengthened our management
team and believe that we now have the people we need to drive our growth in
sales and toward future profitability. We also were pleased to announce last
week that we have retained agronomist Tom Ferencevic as a consultant to the
company. We expect that he will play an important role in helping us to build
our business," he continued.
"Subsequent to the end of the second quarter, in July, we completed a
private placement that raised gross proceeds of $2.5 million through the issue
of 16,680,000 units (16,680,000 common shares and 8,340,000 common share
purchase warrants). Our current view is that with these funds and the
increasing cash flow that our sales are generating, Forterra is adequately
funded to support our plans for increasing production, the expansion into new
manufacturing facilities, our R&D programs, and marketing and sales programs,"
he said.
Financial Highlights
Sales for the 2008 second quarter were $48,012, compared with $14,832 in
the 2007 period, and up from only $4,196 in the first quarter of this year.
One customer, Shenandoah Growers, accounted for most of the 2008
second-quarter sales ($41,225). Sales for the first six months of 2008 were
$52,208, compared with $17,107 in the first half of 2007.
Gross margin for the 2008 second quarter and first half was 71.7 percent
and 72.1 percent, respectively.
After expenses for the 2008 second quarter, including Sales and
marketing, general, and administrative (SG&A) and research and development
($36,367), Forterra recorded an operating loss of $340,484, compared with an
operating loss of $394,677 in the 2007 period (including R&D of $14,408). For
the first half of 2008, the loss amounted to $703,821 (R&D of $51,400),
compared with a loss of $753,123 (R&D of $49,786) in the 2007 period.
The net loss for the 2008 second quarter, including other expenses,
amounted to $434,794 (loss of $0.007 per basic and $0.005 diluted share),
compared with a loss of $659,627 (a loss of $0.01 per basic and diluted share)
in the 2007 period. For the first six months of 2008, the company recorded a
net loss of $885,979 (loss of $0.014 per basic and $0.010 diluted share),
compared with a net loss in the first half of 2007 of $1,146,969 ($0.02 per
basic and diluted share).
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About Forterra Environmental Corp.
Forterra manufactures and markets powerful and environmentally friendly soil
enhancers, using worm castings, which boost fertility while restoring the soil
with organic matter for sustainable, longer-term benefits, including stronger
root growth, and drought and pest resistance. Forterra products contain only
organic material. They are ideal for golf courses, sports fields, lawn care,
parks, nurseries, orchards, and vineyards. Forterra produces commercial
quantities of premium worm castings year round at its Toronto plant.
Essentially, Forterra uses red wriggler worms to convert organic waste into
vermicompost or worm castings. Worm castings contain micronutrients, which are
required for healthy plant development. Worm castings also contain microbes,
which increase the rate at which plants take up available macronutrients and
micronutrients.
Forward-Looking Statements
This news release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are based on
current expectations, are subject to a number of uncertainties and risks, and
actual results may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, availability of
resources, competitive pressures, changes in market activity, and regulatory
requirements. Risks and uncertainties about Forterra's business are more fully
discussed in the company's disclosure materials, including its annual
information form and MD&A, filed with the securities regulatory authorities in
Canada. Forterra assumes no obligation to update any forward-looking statement
or to update the reasons why actual results could differ from such statements
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Don Green
Chairman and Chief Executive Officer
Phone: 905-634-8647
Email: green@forterra.com |
