CHICO, Calif., Nov. 14, 2019 (GLOBE NEWSWIRE) -- AmeraMex International, Inc. (OTC:AMMX), a provider of heavy equipment for logistics companies, infrastructure construction, and forestry conservation, reported financial results for its third quarter and nine-month period ended September 30, 2019.
Statement of Operations for the Third Quarter Ended September 30, 2019
The company reported revenue of approximately $3.3 million, a 27 percent increase when compared to revenue of approximately $2.6 million for the third quarter of 2018.
Gross profit for the quarter was $1.2 million, or a gross profit margin of 35 percent, compared to gross profit of $.767 million, or a gross profit margin of 30 percent, for the third quarter of 2018.
The Company reported income from operations of $.806 for the quarter an increase of 80 percent when compared to income of $.446 million for the comparable 2018 quarter. Net income for the quarter was $.513 million, an increase of 87 percent when compared to net income of $.274 for the comparable 2018 quarter.
Statement of Operations for the Nine-Month Period Ended September 30, 2019
Revenue for the nine-month period increased 44 percent to approximately $11.2 million when compared to revenue of $7.7 million for the 2018 nine-month period.
Gross profit for the nine-month period was $2.4 million for the 2019 and the comparable 2018 period. The gross profit margin for the 2019 period was 21 percent, compared to gross profit margin of 31 percent for the 2018 nine-month period. Gross profit margins were reduced significantly during the nine-month period ending September 30, 2019 due to an increased percentage of new equipment sold in the second quarter of 2019.
The Company reported income from operations of $1.4 million for the period a decrease of 7 percent when compared to $1.5 for the 2018 period. Net income of approximately $.255 million, compared to net income of approximately $.741 million for the 2018 period. Income for the 2019 period was significantly affected by a one-time charge in the second quarter of $566,838 for the early extinguishment of debt.
Balance Sheet for the Nine-Month Period Ended September 30, 2019
Assets have increased $2.4 million over the nine-month period. Total liabilities for the period have increased $1.6 million, which includes a $6.6 million line of credit.
Conference Call
The shareholder conference call, chaired by AmeraMex CEO Lee Hamre, is scheduled for Thursday, November 14, 2019 at 8:30 a.m. Pacific Time, 11:30 a.m. Eastern Time.
The conference call dial-in number for both U.S. and international callers is 1.201.689.8560. An audio replay of the call will be available from November 14, 2019 at 2:30 p.m. Eastern Time until November 28, 2019 at 11:59 p.m. Eastern Time. The replay is accessible by dialing 1.412.317.6671 and entering pin number 13696224. An audio version of the conference call will also be available on the Company’s website, www.ammx.net.
Financial Tables Follow
AMERAMEX INTERNATIONAL, INC.
BALANCE SHEETS
AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018
(UNAUDITED)
| SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 131,622 | $ | 197,752 | ||||
| Accounts Receivable, Net | 614,772 | 631,805 | ||||||
| Inventory | 5,115,991 | 2,689,642 | ||||||
| Other Current Assets | 251,665 | 289,060 | ||||||
| Total Current Assets | 6,114,050 | 3,808,259 | ||||||
| Property and Equipment, Net | 1,002,205 | 988,552 | ||||||
| Rental Equipment, Net | 4,068,354 | 4,679,122 | ||||||
| Other Assets | 453,703 | 234,074 | ||||||
| Total Noncurrent Assets | 5,524,262 | 5,901,748 | ||||||
| TOTAL ASSETS | $ | 11,638,312 | $ | 9,710,007 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 1,119,755 | $ | 1,309,032 | ||||
| Accrued Expenses | 86,722 | 118,291 | ||||||
| Notes Payable, Current Portion | 30,000 | 296,618 | ||||||
| Total Current Liabilities | 1,236,477 | 1,723,941 | ||||||
| Long-Term Liabilities | ||||||||
| Deferred Tax Liability | 436,353 | 301,680 | ||||||
| Notes Payable - Related Party | 320,205 | 353,643 | ||||||
| Notes Payable, Net of Current Portion | 485,135 | 4,316,233 | ||||||
| Line of Credit | 6,665,048 | 774,456 | ||||||
| Total Noncurrent Liabilities | 7,906,741 | 5,746,012 | ||||||
| TOTAL LIABILITIES | 9,143,2018 | 7,469,953 | ||||||
| Commitments and Contingencies (Note 11) | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Stockholders' Equity | ||||||||
| Preferred Stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||
| Common Stock, $0.001 par value, 1,000,000,000 shares authorized 753,415,879 shares issued and outstanding at June 30, 2019 and December 31, 2018 | 753,416 | 753,416 | ||||||
| Additional Paid-In Capital | 20,781,087 | 20,785,924 | ||||||
| Treasury Stock | — | (4,837 | ) | |||||
| Accumulated Deficit | (19,039,409 | ) | (19,294,449 | ) | ||||
| Total Stockholders' Equity | 2,495,094 | 2,240,054 | ||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 11,638,312 | $ | 9,710,007 | ||||
AMERAMEX INTERNATIONAL, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018
(UNAUDITED)
| Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
| SEPTEMBER 30, 2019 | SEPTEMBER 30, 2018 | SEPTEMBER 30, 2019 | SEPTEMBER 30, 2018 | |||||||||||||
| REVENUES | ||||||||||||||||
| Sales of Equipment and Other Revenues | $ | 2,724,589 | $ | 1,949,258 | $ | 9,395,942 | $ | 5,717,992 | ||||||||
| Rentals and Leases | 577,639 | 640,041 | 1,823,219 | 2,003,238 | ||||||||||||
| Total Revenues | 3,302,228 | 2,589,299 | 11,219,161 | 7,721,230 | ||||||||||||
| COST OF REVENUES | ||||||||||||||||
| Sales of Equipment and Other Revenues | 1,842,974 | 1,622,448 | 8,040,510 | 4,685,296 | ||||||||||||
| Rentals and Leases | 241,975 | 199,716 | 713,698 | 654,467 | ||||||||||||
| Total Cost of Revenues | 2,084,949 | 1,822,164 | 8,754,208 | 5,339,763 | ||||||||||||
| GROSS PROFIT | 1,217,279 | 767,135 | 2,464,953 | 2,381,467 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Selling Expense | 127,488 | 91,897 | 315,447 | 249,015 | ||||||||||||
| General and Administrative | 283,513 | 229,393 | 780,881 | 603,047 | ||||||||||||
| Total Operating Expenses | 411,001 | 321,290 | 1,096,328 | 852,062 | ||||||||||||
| Income From Operations | 806,278 | 445,845 | 1,368,625 | 1,529,405 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest Expense | (135,541 | ) | (193,740 | ) | (487,345 | ) | (614,257 | ) | ||||||||
| Loss from Early Extinguishment of Debt | — | — | (566,838 | ) | — | |||||||||||
| Other Income | 52,680 | 130,000 | 53,913 | 130,000 | ||||||||||||
| Total Other Income (Expense) | (82,861 | ) | (63,740 | ) | (1,000,270 | ) | (484,257 | ) | ||||||||
| INCOME BEFORE BENEFIT (PROVISION) for INCOME TAXES | 723,417 | 382,105 | 368,355 | 1,045,148 | ||||||||||||
| BENEFIT (PROVISION) for INCOME TAXES | (209,791 | ) | (107,968 | ) | (113,315 | ) | (303,566 | ) | ||||||||
| NET INCOME | $ | 513,626 | $ | 274,137 | $ | 255,040 | $ | 741,582 | ||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic | 753,415,879 | 753,415,879 | 753,415,879 | 753,415,879 | ||||||||||||
| Diluted | 753,415,879 | 753,415,879 | 753,415,879 | 753,415,879 | ||||||||||||
| Earnings (loss) per Share | ||||||||||||||||
| Basic | $ | 0.00 | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | |||||||
| Diluted | $ | 0.00 | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | |||||||
AMERAMEX INTERNATIONAL, INC.
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS AS OF SEPTEMBER 30, 2019 AND 2018
(UNAUDITED)
| SEPTEMBER 30, 2019 | SEPTEMBER 30, 2018 | |||||||
| CASH FROM OPERATING ACTIVITIES | ||||||||
| Net Income | $ | 255,040 | $ | 741,592 | ||||
| Adjustments to reconcile Net Income (Loss) to | ||||||||
| Net Cash provided by (Used In) Operating Activities: | ||||||||
| Depreciation and Amortization | 893,508 | 779,661 | ||||||
| Provision for Deferred Income Taxes | 134,673 | — | ||||||
| Loss on Early Extinguishment of Debt | — | — | ||||||
| Changes in Operating Assets and Liabilities: | ||||||||
| Accounts Receivable | 17,033 | (238,618 | ) | |||||
| Inventory | (2,374,099 | ) | 435,319 | |||||
| Other Current Assets | (182,542 | ) | 5,350 | |||||
| Accounts Payable | (189,278 | ) | (815,093 | ) | ||||
| Accrued Expenses | (31,569 | ) | 131,497 | |||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1,477,234 | ) | 1,039,708 | |||||
| INVESTING ACTIVITIES: | ||||||||
| Payments for Property and Equipment | (160,390 | ) | (411,921 | ) | ||||
| Payments for Rental Equipment | (135,699 | ) | (497,520 | ) | ||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | (296,089 | ) | (909,441 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Proceeds from Notes Payable | 495,924 | 2,047,176 | ||||||
| Payments on Notes Payable | (5,051,589 | ) | (2,799,475 | ) | ||||
| Payment on Note Payable - Related Party | (33,438 | ) | (13,329 | ) | ||||
| Net Proceeds Borrowing Under Lines of Credit | 6,296,296 | 502,126 | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 1,707,193 | (263,502 | ) | |||||
| NET DECREASE IN CASH & CASH EQUIVALENTS | (66,130 | ) | (133,235 | ) | ||||
| Cash, beginning of period | 197,752 | 553,625 | ||||||
| Cash, end of period | $ | 131,622 | $ | 420,390 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
| INFORMATION: | ||||||||
| Cash Paid for Interest | $ | 487,345 | $ | 614,257 | ||||
| Cash Paid for (Refund of) Income Taxes | $ | 113,315 | $ | 303,566 | ||||
AmeraMex International
AmeraMex International sells, leases and rents heavy equipment to companies within multiple industries including construction, logistics, mining, and lumber. The company has over 30 years of experience in heavy equipment sales and service. Follow AmeraMex on Twitter @ammx_intl and visit the AmeraMex website, www.AMMX.net or www.hamreequipment.com for additional information and equipment videos.
Forward-Looking Statement
Statements made in this news release that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Investor and Media Relations
McCloud Communications, LLC
Marty Tullio, Managing Member
Office: 949.632.1900 or Marty@McCloudCommunications.com