JBI, Inc. Announces Operations Update
NIAGARA FALLS, NY, Feb 11, 2013 (Menafn - MARKETWIRE via COMTEX) --JBI, Inc. (otcqb:JBII)
--Fuel production increases in 4thquarter
--Successful stack test on 2ndprocessor
--Fabrication supply delay causes delay in completion of 3rdprocessor
--Revised positive cash flow timing
JBI, Inc. (the "Company" or "JBI") (otcqb:JBII) today announced anupdate on its Plastic2Oil(R) ("P2O(R)") business operations,reflecting increased fuel production, a successful stack test onprocessor two, fabrication supplier delays, and revised expectationsfor achieving positive operating cash flow.
Based on preliminary results, total fuel production in the fourthquarter of 2012 increased over total amounts produced in the thirdquarter of 2012, and was greater than any other fiscal quarter in theCompany's history. The Company believes that production would havebeen higher if it had not experienced significant downtime inDecember associated with a planned stack test on the Company's secondprocessor. This stack test was performed to procure permits thatwould allow JBI the option of processing heat transfer fluid inconjunction with its plastic feedstock to optimize the yield per hourof the processors. This test was successful, producing data thatconfirmed extremely low emission levels at high feed rates.Performance of the stack test adversely affected fuel productionduring December 2012 due to the time necessary to prepare for andconduct the test.
JBI's Chief Operating Officer Tony Bogolin stated, "While we had animproved quarter in terms of total production, we continue to pursuemethods to further increase production. We're focusing our efforts onachieving consistent production from our processors." He continued,"The technology is sound, our goal is to achieve these results day inand day out, which is a direct function of achieving satisfactoryprocessor uptime. We are making continued headway in regards toprocessor uptime and we expect in the near future we will achievetargeted uptimes."
As previously disclosed, the Company's third processor is currentlybeing assembled at its Niagara Falls plant, however, due to recentfabrication delays, the Company anticipates that this processor willnot produce fuel until sometime in the second quarter of 2013. TheCompany had previously expected to have this processor online duringthe first quarter of 2013. These delays will preclude the Companyfrom achieving cash-flow positive results during the first quarter of2013, as previously communicated. The Company intends to provideupdated guidance in its upcoming annual report.
In addition to the progress at the Niagara Falls location, theCompany continues to work on development of its second plant to belocated in Jacksonville, Florida. Currently, the Company isevaluating engineering options to maximize feedstock throughput forprocessors that will be located at that site, in addition to sitedesign and construction activities related to plant infrastructure.
JBI's Chief Executive Officer Kevin Rauber stated, "We are encouragedby our progress and fuel production, but disappointed by continuedfabrication delays. The JBI team remains highly focused on building aplatform to capitalize on its world class technology. We remaincommitted to executing our business plan and making cash-flowpositive results a reality."
More information in regards to operations in the fourth quarter andfull 2012 fiscal year will be available in JBI's upcoming AnnualReport on Form 10-K, to be filed Securities and Exchange Commissionon or before March 18, 2013.
About JBI, Inc.
JBI, Inc. is a clean energy company that recycles waste plastic intoliquid fuels. JBI's proprietary Plastic2Oil technology can delivereconomic and environmental benefits by replacing refined fuels anddiverting waste plastic from landfills. For further information,please visit www.plastic2oil.com.
Forward Looking Statements
This press release contains statements, which may constitute "forwardlooking statements" within the meaning of the Securities Act of 1933and the Securities Exchange Act of 1934, as amended by the PrivateSecurities Litigation Reform Act. The Private Securities LitigationReform Act of 1995 (PSLRA) implemented several significantsubstantive changes affecting certain cases brought under the federalsecurities laws, including changes related to pleading, discovery,liability, class representation and awards fees as of 1995. Thosestatements include statements regarding the intent, belief or currentexpectations of JBI, and members of its management as well as theassumptions on which such statements are based, including theexpected timing of the Company's Form 10-K, execution of the proposedagreements described above and consummation of the transactionscontemplated by such agreements. Prospective investors are cautionedthat any such forward-looking statements are not guarantees of futureperformance and involve risks and uncertainties, and that actualresults may differ materially from those contemplated by suchforward-looking statements. Such risks include, but are not limitedto: (1) JBI has a history of net losses, and may not be profitable inthe future; (2) JBI may not be able to obtain necessary licenses,rights and permits required to develop or operate our Plastic2Oilbusiness, and may encounter environmental or occupational, safety andhealth conditions or requirements that would adversely affect itsbusiness; and (3) JBI may experience delays in the commercialoperations of its Plastic2Oil machines and there is no assurance thatthey can be operated profitably. For a more detailed discussion ofsuch risks and other factors, see the Company's Annual Report on Form10-K, filed with the SEC on March 19, 2012, as amended on April 30,2012, and its other SEC filings. The Company undertakes no obligationto update or revise forward-looking statements to reflect changedassumptions, the occurrence of unanticipated events or changes tofuture operating results.
JBI, Inc. Investor Relations
or please visit the JBI, Inc. Newsroom at
SOURCE: JBI, Inc.
Copyright 2013 Marketwire, Inc., All rights reserved.