Envipco Holding N.V., a public company listed on the NYSE Euronext Brussels "ENVI" and a global provider of recycling systems and solutions to the beverage and retail industries, announces updates on trading and strategic initiatives. Full year audited figures will be published by April 30, 2012
Trading Update
- Group Revenues increased to €50.5 Million in 2011 from €47.6 Million in 2010, an increase of 6.1%. The Group had a net loss of €0.3 Million for 2011 compared to a net profit of €0.3 Million for 2010. The 2011 results include one off listing and prospectus expenses of €0.4 Million, legal expenses of €0.14 Million related to settlement of anti-trust claim against Tomra and development expense of €0.4 Million related to our JV pilot project with Coca-Cola Recycling LLC. The 2011 results also include a €0.9 million write back of stock options expense as these are now not expected to vest. EBITDA was €3.0 Million for 2011, a decrease of €0.3 Million from 2010.
- Revenues of the Reverse Vending segment showed an overall decrease of 5.2% to USD 29.2 Million in 2011 from USD 30.8 Million. The recurring RVM revenues in established deposit markets grew 8.4% in 2011 over 2010. The overall decrease is mainly resulting from reduced machines sales in non deposit markets outside the US. With the launch of new RVM platforms in 2011, we expect machine sales to rebound significantly in 2012.
- The plastics recycling business recovery during the first half of 2011 was negated during the second half of 2011. This was a result of lower selling prices while experiencing increased scrap prices of baled PET. Revenues increased from €23.7 Million to €28.4 Million, resulting in an EBITDA of €1.2 Million against €1.7 Million in 2010. The negative impacts of the second half of 2011 are expected to be fully mitigated by the second quarter of 2012. The completion of our bottle to bottle investment will be completed by March 2012, which will result in better margins on our recycled PET. Management expects these investments will further reduce the impact of market volatilities and improve the margin over time.
New Market Developments:
Michigan: Envipco entered into a three year exclusive RVM Distributor Agreement with Tomra/CBSI for the State of Michigan. The assignment of this business doubled Envipco's Michigan RVM platform footprint to over 500 placements with 110 retailer locations. The agreement also included assignment of certain chain account relationships and contracts. Our recent launch of the Ultra-HDS (High Density Solution) platform, combined with our increased market presence, well positions the Company for substantial HDS sales in 2012.
- California: In July 2011 an RVM supply agreement was signed with one of California's largest 3rd party redemption companies. The introduction of Envipco RVM's represents a significant market breakthrough to help California retailers with lower redemption volumes to reduce operating costs and comply with stricter enforcement of State regulations. Significant machine placements are expected over the next several years.
- New York City: Envipco's SortAfter program for small stores increased revenues by 36% in 2011. The positive development was attributable to Envipco's unique onthe-ground service models to accommodate the retail pharmacy channel. The Company expects continued growth in this services offering in 2012.
- Legal: In 2011 Envipco settled our anti-trust lawsuit against competitor Tomra. As part of the settlement, Tomra agreed to remove or disclaim all existing exclusive vendor provisions in agreements with its retail customers and to refrain from entering into designated exclusive agreements in the future. Envipco is satisfied with this settlement agreement and remains committed to providing superior customer service in a free and open market and ensuring fair access to markets as we continue introduction of innovative reverse vending technology.
- 2011 Annual Report incorporating audited financial statements is expected to be published by 30 April, 2012.
Strategic Initiatives & other news
- Over the last three years, Envipco has made significant investments in the development of new recycling technology platforms. We introduced the Flex, a smaller footprint RVM to the market in 2011. Initial response and test installations have been very positive. We anticipate significant Flex machine sales in several non-deposit markets outside the US in 2012. Our recent launch of the HDS platform in Michigan has also been favorably received. We expect significant sales of the HDS platform in the Michigan market in 2012.
- On January 24, 2012, Environmental Products Corporation, our US subsidiary, renewed the term of its credit facilities totaling USD 7.5 Million with TD Bank N.A, which continues to assist our expansion plan.
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Through Envipco's Closed Loop Recycling System "CLRS" www.reimaginerecycling.com , Envipco entered into a JV with Coca-Cola Recycling LLC to pilot and operate 10 such systems in the Texas market. This unique system handles large volumes of beverage containers in bulk at the lowest possible cost. To date 5 units are operating in Dallas, Texas. The results of the pilot so far, have met our expectations. We remain positive to the prospects for commercial roll out of the Reimagine – CLRS as the pilot program progresses.
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During 2011, Envipco launched an OEM compactor business in Germany based on retrofitting our new innovative compactors in competitors' RVM machines. The business has developed positively with over 600 compactors delivered in 2011. We are building a strong order book and expect to deliver several thousand compactors in 2012. Our technology has been endorsed as superior in performance, reliability and price. With over 60,000 RVMs in Europe alone, we expect substantial increase in our OEM business in the years ahead.
- Based on our investments and identified market opportunities, we expect significant improvement in both our RVM technologies and Sorepla plastics recycling businesses in 2012.
- We issued a prospectus in the later part of 2011 which enabled us to have 100 % of all issued shares listed in addition to a reverse stock split of 50 old shares to 1 new share. It is our intention to increase awareness of the Group's potential during 2012 through increased investor activities.
ABOUT ENVIPCO HOLDING N.V.
Envipco Holding N.V. (Envipco), www.envipco.com is a Netherlands-based holding company listed on NYSE Euronext Brussels (Symbol ENVI). Envipco, with operations in several countries around the globe, is a recognized leader in the development and operation of reverse vending machines (RVMs), automated technological systems for the recovery of used beverage containers. Envipco's turnkey solutions cover all aspects of beverage container recycling - from recovery, validation, compaction, sorting, transportation and logistics, to accounting for every container, to recycling and processing used beverage containers to ready for conversion into new containers and consumer products. Known for its innovative technology and market leadership, Envipco holds several intellectual property rights for RVM systems, including but not limited to beverage refund deposit markings, material type identification, compaction and accounting. It also owns and operates the largest independent bottle to bottle PET recycling plant in Europe.
For further information please contact: Gool Santchurn at +1-203-720 4059
Board of Directors Tel: +31 20 521 6344 Herengracht 458 Fax: +31 20 521 6349
ENVIPCO HOLDING N.V. Amsterdam, February 21, 2012 1017 CA Amsterdam Website: www.envipco.com The Netherlands E-mail: [email protected]