Tirex Begins Shipping Rubber Floor Mats
16 April 1999
Tirex Begins Shipping Rubber Floor Mats, Projected $1.4 Million First Year Earnings Under IM2 Contract
MONTREAL, April 15 -- the Tirex Corporation
(OTC Bulletin Board: TXMC) announced today that it has begun shipping rubber
floor mats under its contract with IM2 Merchandising and Manufacturing
Corporation. Tirex is the developer and manufacturer of the patented TCS-1
Plant, a cryogenic scrap tire disintegration system which breaks down used
tires into cleanly separated and re-saleable rubber crumb, steel wire, and
fibre. Tirex also manufactures finished products moulded out of recycled
rubber produced by operation of its TCS-1 Plant. Shipments announced today
represent the first completed commercial operations in Tirex's product
manufacturing business.
Under the minimum sales goals set in the IM2 contract, Tirex would
anticipate generating approximately $19,800,000 in revenues over the next five
years, with approximately $1,100,000 of such amount generated during year-one.
However, initial orders from IM2 are currently exceeding first-year contract
minimum's resulting in Tirex now anticipating sales of over one million mats
during the next twelve months, with anticipated revenues of approximately
$3.15 USD per mat. At these levels, sales revenues over the next twelve
months would be approximately $3,150,000 and projected first-year earnings
under the IM2 contract of $1,400,000, almost triple the anticipated minimum
sales goals set by IM2 for year-one of the contract. Tirex believes IM2
orders over the next twelve months will remain at present levels and that it
will be able to fill them on a timely basis. Mats manufactured by Tirex under
the IM2 contract will be sold through well established channels of retail
distribution, including large national retail outlets such as Wal-Mart and
Home Depot.
According to Tirex's Chief Executive Officer, Terence C. Byrne, these
initial mat shipments represent a very important turning point for Tirex
reflecting its current evolution from a development stage company to a
commercial manufacturer. Mr. Byrne went on to say, "We are now able to
produce clean ground rubber from our patented TCS-1 cryogenic scrap tire
recycling system and manufacture high volume moulded rubber products for the
North American retail markets and we expect to use at least 400,000 pounds of
TCS-1 recycled rubber per month in our own product manufacturing business.
Further, we expect that Tirex's ability to vertically integrate its operations
will result in significant competitive advantages in the moulded rubber
products markets."
Although Tirex will continue to own and operate one or more TCS-1 Plants,
it has also taken orders to sell and lease fourteen Plants and will use the
performance data obtained from current operations to confirm that the current
model of the TCS-1 Plant is ready to be duplicated in commercial production.
Present projections call for the completion and sale of four TCS-1 Plants over
the next twelve months at a total sale and lease price of $3,000,000 per
plant, which would result in earnings of approximately $1,100,000 per TCS-1
Plant. Although Tirex's present backlog may be used as a guideline in
determining the value of orders received, it is subject to change by reason of
several factors including possible cancellation of orders, change in the terms
of the contracts, and other factors beyond Tirex's control and should not be
relied upon as being necessarily indicative of the revenues or profits which
Tirex might ultimately realise and each customer's obtaining lease or other
financing as well as all required permits and licenses.