CHICO, CA – August 17, 2022 – AmeraMex International, Inc. (OTCQB:AMMX), a provider of heavy equipment for logistics companies, infrastructure construction, and forestry conservation, reported financial results for its second quarter ended June 30, 2022.
Statement of Operations for the Quarter Ended June 30, 2022
The Company reported revenue of approximately $2.4 million versus revenue of $6.3 million for the comparable 2021 quarter, a 62 percent decrease. Had all the equipment shipped as planned, the Sales of Equipment, and Other Revenues (including rental revenue) would have been $5.4, $900,000 less than the comparable 2021 quarter. This is due in part to a 44 percent reduction in rental revenue. The delays in shipping were caused by back-ordered parts, interstate trucking delays and lack of availability of third-party shippers.
The Company is committed to getting the remaining machines shipped in the third quarter as well as continuing its ongoing sales efforts.
NOTE: The Company’s August 15 news release was somewhat confusing as rental revenue was not included in the “what if ” revenue numbers. This has been corrected making it easier to compare apples to apples.
Gross profit for the quarter was $420,000, compared to gross profit of $970,000 for the comparable quarter. If all the sold equipment had shipped, gross profit would have been approximately $2.3 million.
Gross profit as a percentage of sales, was 18 percent for the quarter compared to gross profit as a percentage of sales of 15 percent for the comparable quarter. Gross profit, as a percentage of sales, if all sold equipment had shipped, would be 42 percent.
Net income for the quarter was $146,172 compared to net income of $78,000 for the comparable quarter. Prices of equipment have been adjusted to cover increased cost of goods sold and operating costs. Earnings per share were $0.01 for the quarter compared to $0.01 for the comparable 2021 quarter.
Statement of Operations for the Six-Month period June 30, 2022
The company reported revenue of approximately $7.3 million versus revenue of $10.3 million for the comparable 2021 period. The 26 percent decrease in Sales of Equipment and Other Revenues for the six-month period, is due to delays in shipping sold machines to customers. Had all sold machines shipped, Sales of Equipment and Other Revenues (including rental revenue) would have been approximately $10.4 million, $100,000over the comparable six-month period.
Gross profit for the period was $1.7 million compared to gross profit of $2.1 million for the comparable period. If all of the sold equipment had shipped, gross profit would have been $3.5 million.
Gross profit as a percentage of sales, was 23 percent for the period compared to gross profit as a percentage of sales of 21 percent for the comparable period. If the additional equipment had shipped, gross profit as a percentage of sales. would be 34 percent.
Net income for the period was $404,489 compared to net income of $443,879 for the comparable period. Earnings per share were $0.03 for the period compared to $0.03 for the comparable 2021 period. Had all sold equipment been shipped, net income for the six-month period would have been $1.3 million with EPS of $0.08.
Balance Sheet for the Period Ended June 30, 2022
Current Assets rose 33 percent to $11.0 million while Total Assets increased $4.1 million due in part to a $4.2 million increase in Inventory.
Current Liabilities for the period have increased approximately $2.8 million while Total Liabilities increased $3.7 million due in part to a new Line of Credit and lease liability under long-term liabilities – a new GAAP rule for reporting certain lease property.
AMERAMEX INTERNATIONAL, INC. | ||||
UNAUDITED STATEMENTS OF OPERATIONS | ||||
THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||
2022 | 2021 | 2022 | 2021 | |
REVENUES | ||||
Sales of Equipment and Other Revenues | $ 2,015,247 | $ 5,656,744 | $ 6,600,939 | 8,902,726 |
Rentals and Leases | 363,301 | 643,207 | 729,215 | 1,426,921 |
Total Sales | 2,378,548 | 6,299,951 | 7,330,154 | 10,329,647 |
COST OF SALES | ||||
Sales of Equipment and Other Revenues | 1,799,708 | 5,140,234 | 5,352,529 | 7,753,266 |
Rentals and Leases | 158,008 | 189,290 | 307,724 | 434,246 |
Total Cost of Sales | 1,957,716 | 5,329,524 | 5,660,253 | 8,187,512 |
GROSS PROFIT | 420,832 | 970,427 | 1,669,901 | 2,142,135 |
OPERATING EXPENSES | ||||
Selling Expense | $ 230,064 | $ 284,732 | $ 553,505 | 423,921 |
General and Administrative | 233,273 | 229,927 | 602,609 | 474,230 |
Total Operating Expenses | $ 463,337 | $ 514,659 | $ 1,156,114 | 898,151 |
Profit (loss) From Operations | (42,505) | 455,768 | 513,787 | 1,243,984 |
OTHER INCOME (EXPENSE) | ||||
Interest Expense, net | (96,374) | (267,975) | (274,131) | (535,032) |
Loss from Early Extinguishment of Debt | – | (77,845) | (15,345) | (90,178) |
Other Income (Expense) | 349,580 | 764 | 350,134 | 10,842 |
Total Other Income (Expense) | 253,206 | (345,056) | 60,658 | (614,368) |
INCOME BEFORE PROVISION for INCOME TAXES | 210,701 | 110,712 | 574,445 | 629,616 |
PROVISION for INCOME TAXES | 64,529 | 32,662 | 169,956 | 185,737 |
NET INCOME | $ 146,172 | $ 78,050 | $ 404,489 | $ 443,879 |
Weighted Average Shares Outstanding: | ||||
Basic | 14,629,155 | 14,629,155 | 14,629,155 | 14,629,155 |
Diluted | 14,629,155 | 14,629,155 | 14,629,155 | 14,629,155 |
Earnings (loss) per Share | ||||
Basic | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
Diluted | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
AMERAMEX INTERNATIONAL, INC. | ||
UNAUDITED BALANCE SHEETS | ||
June 30, 2022 | December 31, 2021 | |
ASSETS | ||
Current Assets: | ||
Cash | $ 299,754 | $ 995,611 |
Accounts Receivable, Net | 1,270,183 | 1,162,300 |
Inventory, Net | 9,414,871 | 5,185,864 |
Other Current Assets | 220,353 | 312,963 |
Total Current Assets | 11,205,161 | 7,656,738 |
Property and Equipment, Net | 1,457,234 | 1,275,717 |
Rental Equipment, Net | 1,083,194 | 1,461,716 |
Lease Right of Use Asset | 828,725 | – |
Other Assets | 358,859 | 391,330 |
Total Other Assets | 3,728,012 | 3,128,763 |
TOTAL ASSETS | $ 14,933,173 | $ 10,785,501 |
LIABILITIES & STOCKHOLDERS’ EQUITY | ||
Current Liabilities: | ||
Accounts Payable | $ 2,319,355 | $ 560,076 |
Accrued Expenses | 243,984 | 264,534 |
Customer Deposits | 1,045,078 | 302,000 |
Joint Venture Liability | 262,293 | 142,500 |
Lines of Credit | 3,412,441 | 3,180,968 |
Notes Payable, Current Portion | 626,911 | 777,601 |
Lease Liability | 129,081 | – |
Total Current Liabilities | 8,039,143 | 5,227,679 |
Long-Term Liabilities | ||
Deferred Tax Liabilities, Net | 695,060 | 588,792 |
Notes Payable, Net of Current Portion | 1,815,160 | 1,689,353 |
Lease Liability, Net of Current Portion | 699,644 | – |
Total Long-Term Liabilities | 3,209,864 | 2,278,145 |
TOTAL LIABILITIES | 11,249,007 | 7,505,824 |
Commitments and Contingencies (Note 11) | – | – |
STOCKHOLDERS’ EQUITY: | ||
Shareholders’ 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 | 14,629 | 14,629 |
14,629,155 shares issued and outstanding at June 30, 2022 and | ||
December 31, 2021 | ||
Additional Paid-In Capital | 21,600,734 | 21,600,734 |
Accumulated Deficit | (17,931,197) | (18,335,686) |
Total Stockholders’ Equity | 3,684,166 | 3,279,677 |
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ 14,933,173 | $ 10,785,501 |
– | – | |
AMERAMEX INTERNATIONAL, INC. | ||
UNAUDITED STATEMENTS OF CASH FLOW | ||
SIX MONTHS ENDED JUNE 30 | ||
2022 | 2021 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 404,489 | $ 443,879 |
Adjustments to reconcile Net Income to | ||
Net Cash provided (used) by Operating Activities: | ||
Depreciation and Amortization | 376,013 | 518,025 |
Provision (Benefit) for Deferred Income Taxes | 106,268 | 27,613 |
Marketing Services Paid in Stock | – | 46,400 |
Loss on Early Extinguishment of Debt | $ 15,345 | $ 90,178 |
Amortization of Right of Use Asset | 19,406 | – |
Amortization and Accretion of Interest | $ 10,246 | $ 86,135 |
Change in Assets and Liabilities: | ||
Accounts Receivable | (107,883) | (581,244) |
Inventory | (4,229,007) | 1,357,966 |
Other Current Assets | 92,610 | -$27,925 |
Accounts Payable | 1,759,279 | 360,258 |
Customer Deposits | 743,078 | – |
Accrued Expenses | (20,550) | 249,991 |
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (830,706) | 2,571,276 |
INVESTING ACTIVITIES: | ||
Payments for Property & Equipment | (335,596) | (156,502) |
Proceeds (Payments) for Rental Equipment | 142,281 | (416,292) |
NET CASH USED BY INVESTING ACTIVITIES | (193,315) | (572,794) |
FINANCING ACTIVITIES: | ||
Proceeds from Notes Payable | 633,930 | 2,072,205 |
Payments on Notes Payable | (657,033) | (2,622,373) |
Payment on Note Payable – Related Party | – | (23,908) |
Joint Venture Liability | 119,793 | (69,500) |
Net Borrowing (Repayments) Under Lines of Credit | 231,474 | (1,311,843) |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 328,164 | (1,955,419) |
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS | (695,857) | 43,063 |
Cash and Cash Equivalents, BEGINNING OF PERIOD | 995,611 | 407,881 |
Cash and Cash Equivalents, END OF PERIOD | 299,754 | 450,944 |
CASH PAID FOR: | ||
Interest | 273,169 | 422,505 |
Income Taxes | 800 | – |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING | ||
AND FINANCING ACTIVITIES: | ||
Transfer of Inventory to Rental Equipment | – | 508,000 |
Equipment Financed under Capital Leases | – | 187,732 |
Transfer of Rental Equipment to Inventory | – | 964,600 |
AMERAMEX INTERNATIONAL, INC. | |||||
UNAUDITED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) | |||||
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 | |||||
Additional | Total | ||||
Common Stock | Paid-in | Accumulated | Stockholders’ | ||
Balance | Shares | Amount | Capital | Deficit | Equity |
December 31, 2020 | 14,549,155 | $ 14,549 | $ 21,545,614 | $ (19,967,433) | $ 1,592,730 |
Stock for Services | 80,000 | 80 | 55,120 | – | 55,200 |
Net Income | – | – | – | $ 443,879 | 443,879 |
June 30, 2021 | 14,629,155 | $ 14,629 | $ 21,600,734 | $ (19,523,554) | $ 2,091,809 |
December 31, 2021 | 14,629,155 | $ 14,629 | $ 21,600,734 | $ (18,335,686) | $ 3,279,677 |
Net Income | – | – | – | 404,489 | 404,489 |
June 30, 2022 | 14,629,155 | $ 14,629 | $ 21,600,734 | $ (17,931,197) | $ 3,684,166 |
14,629,155 | 14,629 | 21,600,734 | (17,931,197) | 3,684,166 | |
– | – | – | – | – | |
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 using 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 key 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