Posted 11/4/2009 09:51 am
Updated 1 year ago
Net income, before accruals, was $1 million, compared with a net loss before class action accruals of $1.5 million for the same period of 2008.
AERT settled late last year a class-action complaint by customers who said they were having trouble keeping mildew stains off their ChoiceDek decking product.
Third-quarter sales were up 3 percent to $19.1 million, the company said, compared to $18.6 million last year.
Operating income for the quarter was $2 million before the class action accruals, an improvement of $4.2 million from an operating loss of $2.2 million before class-action accrual in 2008.
The filing deadline approved by the court for settlement claims was September, the company said, adding that because of the large, unexpected influx of claims in the final weeks, it has increased its estimate for satisfying the claims by an additional $5.1 million.
The company said it is now completing the processing of all claim requests. Under the court approved class action settlement the company's maximum annual cash exposure is capped at $2 million.
"We are very pleased with AERT's year over year sales growth for the quarter, especially in the current economic environment," said CEO Joe Brooks. "We believe AERT has increased its share in a market that overall has shrunk."
AERT will file its quarterly report on Nov. 13