U.S. Plastic Lumber Corp. announced its unaudited operating results for the fourth quarter and full year ended December 31, 2002. The results and discussion that follow pertain solely to the company's continuing plastic Lumber operations, as USPL completed the previously announced sale of its environmental recycling and remediation business, Clean Earth, Inc. last September 9.
Revenues for the fourth quarter were $9.2 million compared with $10.3 million for the same quarter in 2001, a decrease of 11 percent. Revenues declined relative to the prior period primarily due to lower revenues from building products and, to a lesser extent, the exiting of the resin trading business.
The loss from continuing operations in the quarter was $1.5 million, as compared to $11.1 million in the fourth quarter of 2001
For the twelve months ended December 31 USPL reported revenues of $49 million, compared to $57.8 million in the prior year. The decline in revenue during the current period was primarily a result of lower sales of the company's building products, as well as the company's decision to exit the resin trading business
The loss from continuing operations was $16.4 million, compared to $38.5 million, primarily due to lower restructuring and asset impairment charges, SG&A and income tax expense in 2002 as compared with 2001.
The net loss for 2002, including income from the discontinued environmental recycling and remediation business, was $15.8 million, compared with $48.2 million.
Mark Alsentzer, chairman, CEO and president of USPL said, "The completion of the CEI sale and the restructuring of our outstanding convertible debentures in the third quarter of 2002 resulted in a reduction of our total debt from $71.6 million at the end of 2001 to $30.0 million at the end of 2002. In addition, during the fourth quarter we have secured a new $13.0 million credit facility. These events have strengthened our financial position and will enable us to more effectively take advantage of the growing market opportunity in both the commercial and consumer markets for our products."
USPL is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U.S. Plastic Lumber is the nation's largest producer of 100 percent HDPE recycled plastic lumber.