HOUSTON - October 2, 2012 - Planet Resource Recovery, Inc. (PINK SHEETS: PRRY) announced today that the Company's CEO has issued a Shareholder Update Letter.
Dear PRRY Shareholder:
It gives me great pleasure to bring you this update regarding the Company's progress! The Company's financial results for the twelve month period ended December 31, 2011 and the six month period ended June 30, 2012 reflect a positive trend that started with the implementation of our phase one of the Business Plan initiated when I assumed my current role. These results can be viewed at http://www.otcmarkets.com/financialReportViewer?symbol=PRRY&id=91000. I am very pleased and proud of our positive progress and would like to bring you up to date with our accomplishments to date.
When I took over as President/CEO, our new business plan called for restructuring the Company and redirecting our focus to the technology roots on which Planet was founded - the PetroLuxus Technology Platform. I had five main objectives that needed to be addressed to establish a firm foundation to move the Company forward: Our Core Technology, Product Offering, Production Capabilities, Sales and Distribution Network and consistent Revenue Streams with strong expense controls. As can be seen in our first half 2012 financial results, we have made tremendous progress toward each of these goals, including a small first half profit.
Core Technology
Planet was founded on a technology we acquired in our infancy, what is now known as the PetroLuxus� Technology Platform. We developed the technology to maturity and developed a proprietary manufacturing unit to mass produce PetroLuxus�. Prior to implementing our new Business Plan, Planet had branched off into other technologies such as desulphurization, mining antimony abroad, development of mining technology, robotic pipe lining technology and PetroLuxus�. While some of these technologies showed promise, our goal was to refocus and devote all our energies and capital to the PetroLuxus� Technology Platform. This required us to place other technologies under development on the back burner, dissolve joint ventures and settle any outstanding litigation.
To date we have placed our desulphurization technology on hold, ceased our participation in antimony mining operations, and amicably dissolved our joint venture with El Capitan on the development of our mining technology. We have also settled all litigation, including the disagreements with RADA Technologies. As a result, Mr. Arias and his firm, FMGI, LLC. are now a manufacturer's representatives for our PetroLuxus� product offering.
PetroLuxus� Technology Platform Product Offering
Our core PetroLuxus product was originally developed for the Oil & Gas Industry. Through laboratory and field testing, it became evident that the product was having dramatic and positive results in applications other than displacing crude oil. These observations led to a broad analysis of the effects of our core product in various applications within the Oil & Gas and Water Markets. Based on this new information, our technical staff dissected the core product, creating several targeted cost-effective products for numerous applications. The results of these endeavors have been extremely beneficial. The major discovery was how to manipulate the PetroLuxus� core molecular structure to meet the specific needs of various applications, thereby creating new products cost-effectively. These efforts led to the creation of the AquaLuxus� family of products for the Water Industry.
Today, we have the following commercially available products for the Oil & Gas market: PetroLuxus� WC (Well Clean), PetroLuxus� H2S Scavenger and PetroLuxus� HC (Heavy Crude).and for the Water Industry we offer AquaLuxus� WC (Well Clean) and AquaLuxus� H2S Scavenger.
We have additionally developed six new products: three PetroLuxus� products and three AquaLuxus� products that are currently undergoing either independent laboratory testing or field testing. Upon successful field testing we will introduce these new products to the market.
Production Capacity
During the first half of 2011, we brought our second generation manufacturing unit on line, which increased our production capacity by 225% over the first generation manufacturing unit. The second generation manufacturing unit was estimated to be able to produce approximately $225,000 of product per month at our current wholesale prices.
In September 2011, we challenged our new Production Manager to further streamline and optimize our production capabilities, increase our production capacity, while also producing higher quality products. I am proud to report, that with his tireless efforts and innovations, he has exceeded expectations with the procedures and modification to the second generation manufacturing unit. Today, with all new modifications and innovations fully implemented, this manufacturing unit can produce approximately $1,200,000 of products per month at our current wholesale prices.
Additionally, we have designed our third generation manufacturing unit that we estimate will increase production by 4 to 5 times what can be produced with our modified second generation design.
Sales & Distribution Network
Throughout 2011 Planet had one distributor for the Oil & Gas industry, but revenues were primarily derived from direct sales by the Company to operators. We initiated an effort to build our sales presence and outlets by bringing on qualified and experienced Manufacturer's Representatives in the Oil & Gas sector and sign up Distributors to stock our product offering.
Through the first half of 2012, we activated nine Manufacturer's Reps and three distributors. We are currently working with an additional four potential Manufacturer's Reps and eight Distributors. Combined, our Manufacture's Reps and Distributors will offer all our commercially available products for the United States, Mexico, Latin America and Africa.
Financial Operations
Our financial operations have changed markedly. Our sales revenues for the six months ended June 30, 2012 were $208,679, compared to sales revenue of $106,407 and $76,821 for the twelve month periods ended December 31, 2011 and December 31, 2010, respectively. Operational expenses for the six months ended June 30, 2012 were $193,289 versus $1,257,191 and $7,083,059 for the twelve months ended December 31, 2011 and December 31, 2010, respectively. Net Income for the six months through June 30, 2012 was $24,564 versus a net loss of $1,174,935 and $9,338,318 for the twelve months of fiscal 2011 and 2010, respectively.
In closing, I am proud to inform you that we have realized much of what we set out to accomplish - to turn the Company around and lay a strong foundation for future growth. We now embark on our second phase of: bolstering our current revenue streams, successfully completing the testing on our new products, introducing these products into the market to derive additional revenue streams, continue the strengthening of our balance sheet and increasing shareholder value.
The initial success of our phase one turnaround would not have been possible without the assistance of many within and outside the Company. I want to personally thank all the staff at Planet, our Corporate Advisors, Distributors, Manufacturer's Representatives, our legal counsel; The Adams Law Firm and The Minns Law Firm, our accounting firm and especially, you, our investors.
Through continued execution of our business plan, I believe Planet has significant upside potential. We are now moving forward with a clear direction, a firm foundation and positive momentum. We will continue our best efforts to bring our quality products to market and creating a vibrant, successful Company. I look forward to bringing you more updates as we progress.
Respectfully,
Enrique M. Salinas III