Envipco Holding N.V.
Innovative Recycling Systems for a cleaner environment
Interim Management Statement
Envipco Holding N.V., a public listed company on the NYSE Euronext Brussels "ENVI" and a leading provider of recycling systems and solutions to the beverage and retail industries, announces its interim management statement for the period from 1 January 2013 through 9 May 2013.
The following are the main events/activities which occurred during the interim period:
- The Management Board issued a press release on 30 April 2013 announcing the group's 2012 annual audited results. This release along with the 2012 Annual Report are available at: www.envipco.com
- The Company's annual shareholders' meeting is scheduled for 26 June 2013. The meeting notice, agenda and other documents will be published 14 May 2013, copies of which will be available at www.envipco.com
- The US Reverse Vending Machine (RVM) business experienced a revenue decline in the quarter ended 31 March 2013 to €4.9 million from €5.7 million in 2012. €0.5 million of the decline was attributable to lower machine thru-put volumes tied to unusually poor weather in the Northeast markets compared to 2012. The thruput volume has recovered during the month of April and we expect this trend to continue. Machine sales were reduced to €0.4 million in the first quarter from €0.7 million in 2012. First quarter machine sales were down as we prepared for cut-over to the new Ultra U48 product line. The net loss for the first quarter increased to €0.7 million from €0.2 million in 2012. This loss is attributable to the lower machine thru-put volume and to ramp up of R&D and production cost for the new U48 product launch. We continue to believe in a strong 2013 RVM segment performance building on the 2012 results.
- We have significant U48 machine orders for the balance of the year and expect year on year machine sales increase exceeding 50 percent. The 2013 machine orders are part of a major three year contract that the Company won in late 2012. This contract covers retailer's entire US deposit market and certainly confirms the U48 product features and competitiveness. The details of the contract and expected quantities have been recently finalised with annual machine deliveries of several hundred.
- The German OEM compactor business activity in the first quarter has been curtailed from 2012 with a reduction in sales to €0.03 million from €0.69 million. As previously discussed in our annual report, we are evaluating the market opportunity as competitor responses and legal activities proceed.
- Plastic recycling segment sales for the first quarter were down to €6.9 million from €7.9 million in 2012. The net loss before tax was reduced to €0.8 million from €1.1 million in 2012. Due to the lengthy process, the Company obtained a six month extension to operate under "Procedure de Sauvegarde" (court supervision) on 30 April 2013 to enable it to finalise its restructuring plan. Management continues its stabilization and restructuring efforts. Strategic partner opportunities are also being evaluated.
- The Board of Directors intends to present at the Annual Meeting of the Shareholders a proposal to raise €4.5 million by the issue of new shares to the Management Board and senior executives at a price of €4 per share, representing a premium of 60% over its current stock price. If approved, the proceeds shall be used to convert €3.00 million of debt due to the majority shareholder into new shares and €1.50 million to support the restructuring plan of the plastic recycling business.
There are no other significant events which may have a material impact on the financial position of the group.
The Board of Directors of Envipco Holding N.V. 9 May 2013
For further information,
please contact Gool Santchurn: |
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| By phone: +1 203 720 4059 |
By e-mail: [email protected] |
Website: www.envipco.com |
About Envipco: 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.