ZANESVILLE, Ohio, April 10, 2015 /PRNewswire/ -- AXION
International Holdings, Inc. (OTCQB: AXIH), a leader in recycled
polymer technologies used to produce ECOTRAX® composite rail
ties/sleepers and STRUXURE® composite building products today
announced its financial results for 2014 and early 2015
progress.
AXION continued its business transformation with a strong close
to 2014 in terms of strategic product revenue, expanded product
lines, strengthened customer portfolio, increased high-value
orders, and improving product-line profitability. Included are the
Company's notable accomplishments in 2014 and highlights from 2015,
as it enabled commercial advances through improved operational
capabilities, and a recognition of current challenges as the
Company meets escalating market demand.
2014 Accomplishments and Highlights
- Reported $14.4 million in
revenues for 2014 compared to $6.6
million for the prior year
- Increased sales of engineered products to $8.8 million from $5.9
million for 2013
- Completed supply agreement with a Class 1 railroad, delivering
in excess of 104,000 rail ties over the three-year period
- Successfully transitioned Zanesville facility to manufacture engineered
products, and deemphasized the reprocessed plastics business to
provide significantly increased margins concurrent with the
formation of laminated mat production
- Sustained focus on aligning production capacity with current
orders, projected demand, and customer commitments
- Continued aggressive cost-reduction efforts and managed the
challenge of reducing and absorbing production expenses in two
facilities, as production in each facility increases to optimum
levels in 2015
- Completed exchange of outstanding warrants for shares of common
stock to prepare for future public or private financing activities,
resulting in a $19.1 million non-cash
charge to general and administrative expenses
- Increased market adoption and penetration of STRUXURE®
construction mat line and structured large volume industry
relationships with upstream and midstream energy service companies,
facilitating the production ramp up in 2015
- Diversified customers and applications across product lines,
including concentration on premium rail installations in the
ECOTRAX® rail products division
- Engineered and supplied multiple wetland walkway projects
installed in North America that
combined two composite technologies, extending a product line
segment for use across several applications
- Established a significant international position through
distribution in Oceania, expanded test programs in southeast
Asia, and developed a strategic
partnership in eastern Europe
- Established Canada-based
distribution agreement for the sale of STRUXURE® construction mats
across Canada, creating foundation
for expanded laminated mat product line
To view and download AXION's complete Form 10-K, click here.
2015 Highlights
- $1.7 million in orders for ECOTRAX® tunnel-tie system, a
premium rail installation
- $0.8 million laminated construction mat order from Superior
Energy Resources
- Increased price realizations of ECOTRAX® rail products by over
15% through growth of high-value opportunities achieving improving
product-line profitability
- Australian distributor Alcoa Fastening Systems secured 3-year
$8 million rail tie contract in New Zealand
- $1 million in ECOTRAX® orders for northeast-based transit
rehabilitation project
- $2 million initial order of
STRUXURE® heavy construction mats from major midstream energy and
power transmission specialized logistics service company
- Secured $8 million distribution
agreement with upstream energy supplier, enabling significant
STRUXURE® construction mat penetration in the northeast
- Boardwalk constructed in environmentally sensitive and
protected area in Ottawa, Canada
- Increased focus on high-value products, especially in premium
rail and laminated construction mat product line segments
- Configured Waco and Zanesville
facilities for rapid growth and product line expansion
AXION's Chief Executive Officer Claude
Brown, Jr. said, "As I wrote in my letter to shareholders,
2014 was a year of 'transformation and growth.' The Company
concentrated on increasing production capacity to meet elevated
demand for its engineered products. In focusing on high-demand,
high-value opportunities, we were also able to continue to
diversify our base of customers. We are mindful of our successes in
2014, including revenues for engineered products increasing 49%. We
also embrace our operational challenges that are related to
increasing production capacity to meet market expectations, and the
objectives outlined in my 2014 letter hold true today."
With AXION's focus, initiated in late 2014, on increasing
production capacity to meet commercial demand for its engineered
products, the Company must also reconcile its need for sufficient
capital to support the expansion with the means of its current
private investor group. The increases in production capacity
and inventory levels created a need for capital that has outpaced
the investment expectations of its primary investors. The Company
requires and is actively seeking additional capital to take it
through its current phase of growth. Consequently, AXION has
adjusted capacity expansion projects, engaged in discussions with
our industry partners, realigned manufacturing activities with
existing customer obligations, and continues to actively manage its
inventory to meet all customer expectations and commitments.
The Company expects its existing near-term capitalization
efforts to proceed as planned. AXION has engaged strategic
and financial advisors to hasten the process of developing
additional sources of public or private capital investments as it
manages strong demand for its expanded product offering.
Significant market penetration and adoption has marked the
beginning of 2015, as well as substantial commercial success in the
railway and construction industries. Current 2015 orders and
contractual customer commitments exceed 2014's total cumulative
revenue.
"In August, 2014, we solidified our transformation plans,
creating a definitive path forward with the decision to limit
participation in the recycled plastics processing business,
allowing for the total reconfiguration of our Ohio-based facility to produce extended-life
STRUXURE® construction mats," commented Mr. Brown. "By design,
these strategic moves, concurrent with the evolution of AXION's
premium railway business, have placed the Company in a position to
complete its commercial and operational transformation by midyear
and reach fiscal stability as 2015 closes. Our transformation is an
evolutionary process, and the foundation that we established in
late 2014 has enabled a strong start to the year and will validate
our newly enhanced and sustainable business model by late
2015."
About AXION International Holdings, Inc.
AXION
(OTCQB: AXIH) creates innovative structural polymer solutions,
engineering sustainable products and systems that provide improved
long-term value, consistent performance, and reduced maintenance
costs. AXION develops its solutions for the construction,
transportation, and energy industries. Visit www.AXIH.com.
Forward-Looking Statements
This release contains
"forward-looking statements" for purposes of the Securities and
Exchange Commission's "safe harbor" provisions under the Private
Securities Litigation Reform Act of 1995 and Rule 3b-6 under the
Securities Exchange Act of 1934. These forward-looking statements
are subject to various risks and uncertainties that could cause
AXION's actual results to differ materially from those currently
anticipated, including the availability of materials at favorable
pricing, sufficient manufacturing capability, and the risk factors
identified in AXION's filings with the Securities and Exchange
Commission.
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SOURCE AXION International Holdings, Inc.