ZANESVILLE, Ohio, Nov. 14, 2014 /PRNewswire/ -- AXION
International Holdings, Inc. (OTCQB:AXIH), a leader in structural
polymer solutions, including ECOTRAX® rail ties and STRUXURE®
construction mats, today announced its financial results for the
third quarter ended September 30,
2014.
Third Quarter Highlights:
- $3.1 million in revenue for third
quarter 2014, of which $1.7 million
of revenue was attributed to our engineered products, representing
a 31% increase over third quarter 2013
- Saw continued growth in international business and market
penetration with multiple purchase orders for ECOTRAX® rail
ties
- Expanded interest in STRUXURE® heavy construction and temporary
road mats with signing of distribution agreement with a major
Canada-based corporation in the
oil and gas industry
- Acceleration of vertical integration strategy with conversion
of Zanesville facility to increase
capacity for engineered products
AXION's Chief Executive Officer Claude
Brown Jr. said, "During the quarter, we adopted several
corporate initiatives to bolster our operational performance and
financial results. The conversion of our Zanesville, Ohio, facility has been
progressing well and moving forward this will enable the growth of
our STRUXURE® construction mat line and help us focus on
strengthening margins through increased production capacity."
Mr. Brown continued, "Our ECOTRAX® products continue to
penetrate the global markets with orders in Europe and Australia. Regarding our STRUXURE® products,
we have seen increasing market demand for both our heavy
construction mat and temporary road mats. Our distribution
agreement with Hydra Energy Solutions Ltd., a Canadian company in
the oil and gas industry, is significant as Canada presents one of the largest energy
industries in the world."
"We remain confident in our plans on moving forward with the
objective of growing our engineered products and manufacturing and
production capacity, creating efficiencies in our production,
improving our margins and continuing the penetration of our product
lines in global markets. We continue to grow our sales, diversify
and expand our customer base, and believe we are aligning our
corporate decisions with the interest of our shareholders to ensure
that our fundamental goal is increasing long-term total shareholder
returns."
Third Quarter 2014 Financial Summary
AXION reported $3,122,912 in
revenue for the third quarter of 2014, a 145% increase over
revenues of $1,272,689 for the third
quarter of 2013. Revenue from the sale of its engineered products
was $1.7 million and $1.3 million for the third quarter of 2014 and
2013, respectively. As the Company transitions its Zanesville facility to provide increased
production capacity for its engineered products, revenue from the
sale of reprocessed plastics is expected to decrease.
The Company continued to operate at a negative gross margin, as
sustained profitability will be achieved with planned increases in
production volume and higher sales revenue.
Total operating expenses were $1.2
million and $1.1 million for
the third quarter ended September 30,
2014, and 2013, respectively.
Other income and expenses, consisting of interest expense,
amortization of discounts associated with debt securities and the
change in the fair values of the various derivative liabilities
primarily associated with the Company's convertible debt, resulted
in other income of $5.1 million for
the third quarter ended September 30,
2014 compared to other income of $407,185 for the same period in 2013.
Primarily as a result of the gain recognized from the change in
fair value of our derivative liabilities, net income for the third
quarter ended June 30, 2014 was
$2.7 million, as compared to net loss
of $951,297 for the corresponding
period of 2013.
Nine Months Ended September 30,
2014 Financial Summary
AXION reported $12 million in
revenues for the nine months ended September
30, 2014, an increase from $4.5
million for the same period in 2013, of which $6.6 million was attributable to the engineered
products division. The remainder was attributable to reprocessed
plastics sales.
The negative gross margin for the nine months ended September 30, 2014 of $4.5
million compares to a negative gross margin of $7,474 for the nine months ended September 30, 2013. The Company continued to
operate at a negative gross margin due to the nature of both its
reprocessed plastics segment and its engineered products segment
which require higher volume of production than the Company has been
able to achieve to date.
Total operating expenses were $23.2
million and $3.6 million for
the nine months ended September 30,
2014 and 2013, respectively. The increase was a result of
higher general and administrative expenses during the quarter.
Other income and expense for the nine months ended September 30, 2014 and 2013, was other income of
$13.6 million and other expense of
$703,560, respectively.
For the nine months ended September 30,
2014 and 2013, net loss was $14.1
million and $4.3 million,
respectively.
As of September 30, 2014, the
Company had 69,167,050 common shares outstanding.
About AXION International Holdings, Inc.
AXION (OTCQB:
AXIH) creates innovative structural polymer solutions, engineering
sustainable products and systems for applications that provide
improved long-term value, consistent performance, and reduced
maintenance costs in comparison to conventional products. Through
its ECOTRAX® rail applications and STRUXURE® building products
lines, AXION delivers tested, proven, and superior structural
polymer solutions for the infrastructure, transportation, and
energy industries.
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.
Logo -
http://photos.prnewswire.com/prnh/20131107/NY13246LOGO
SOURCE AXION International Holdings, Inc.