CHICO, CA – May 23, 2022 – AmeraMex International, Inc. (OTC:AMMX), a provider of heavy equipment for logistics companies, infrastructure construction, and forestry conservation, reported financial results for its first quarter ended March 31, 2022.
AmeraMex CEO Lee Hamre commented, “ We are pleased with our first quarter results. Last year was a great first quarter as we experienced a significant increased spurred by pent up demands in the marketplace. Our first quarters are historically our lowest quarter for the year as customers place orders in the fourth quarter to take advantage of capital investment tax write-offs before yearend.
Over the past five years our first quarter revenue has grown from $2 million in 2018 to $4.9 million in 2022. The Company’s compounded annual growth rate over the past five years, considering a decrease in 2020’s first quarter due to effects of the pandemic, is 21 percent.”
Statement of Operations for the Quarter Ended March 31, 2022
The company reported revenue of approximately $4.9 million, a 23 percent increase when compared to revenue of approximately $4.0 million for the quarter ended March 31, 2021.
Gross profit for the quarter was $1,249,069 , an increase of seven percent when compared to gross profit of $1,171,708 for the comparable quarter.
Gross profit as a percentage of sales, was 25 percent for the quarter compared to gross profit as a percentage of sales of 29 percent for the comparable quarter.
Higher Cost of Sales significantly affected gross profit. For the three months ending March 31, 2022, Costs of Sales were $3.7 million, a 30 percent increase when compared to $2.9 million for the comparable 2021 quarter. The price of used equipment has increased steadily since the beginning of 2021 and was noticeably higher during the first quarter of 2022.
The other main contributor to this increase was the delayed payment from a customer for the Joint Venture machine sale which caused the cost of goods sold to increase until the customer payment is received and then sent to our JV partner. Once sent to our JV partner, the costs will be removed from our books. This reduction will happen in the second quarter
Net income for the quarter was $258,317 compared to net income of $365,829 for the comparable quarter. Operating expenses increased by 81 percent during the three months ending March 31, 2022. This increase is due to the Company paying higher wages to stay competitive in a highly volatile job market and the higher costs spent on marketing. Earnings per share were $0.02 for the quarter compared to $0.03 for the comparable 2021 quarter.
Balance Sheet for the Quarter Ended March 31, 2022
Current Assets rose 26 percent to $9.0 million while Total Assets increased $1.8 million due in part to an $1.5 million increase in Inventory.
Current Liabilities for the period have decreased $444,641 while Total Liabilities increased due in part to a $1.3 million Line of Credit.
As of March 31, 2022, the Company had working capital of approximately $4.2 million.
| AMERAMEX INTERNATIONAL, INC. | |||||
| STATEMENTS OF OPERATIONS | |||||
| MARCH 31, 2022 | MARCH 31, 2021 | ||||
| REVENUES | |||||
| Sales of Equipment and Other Revenues | $ | 4,585,692 | $ | 3,245,982 | |
| Rentals and Leases | 365,914 | 783,714 | |||
| Total Sales | 4,951,606 | 4,029,696 | |||
| COST OF SALES | |||||
| Sales of Equipment and Other Revenues | 3,552,821 | 2,613,032 | |||
| Rentals and Leases | 149,716 | 244,956 | |||
| Total Cost of Sales | 3,702,537 | 2,857,988 | |||
| GROSS PROFIT | 1,249,069 | 1,171,708 | |||
| OPERATING EXPENSES | |||||
| Selling Expense | 323,441 | 139,189 | |||
| General and Administrative | 369,336 | 244,303 | |||
| Total Operating Expenses | 692,777 | 383,492 | |||
| Profit From Operations | 556,292 | 788,216 | |||
| OTHER INCOME (EXPENSE) | |||||
| Interest Expense, net | (177,757) | (267,057) | |||
| Loss from Early Extinguishment of Debt | (15,345) | (12,333) | |||
| Other Income | 554 | 10,078 | |||
| Total Other Expense | (192,548) | (269,312) | |||
| INCOME BEFORE PROVISION for INCOME TAXES | 363,744 | 518,904 | |||
| PROVISION for INCOME TAXES | 105,427 | 153,075 | |||
| NET INCOME | $ | 258,317 | $ | 365,829 | |
| Weighted Average Shares Outstanding: | |||||
| Basic | 14,629,155 | 14,549,155 | |||
| Diluted | 14,629,155 | 14,549,155 | |||
| Earnings (loss) per Share | |||||
| Basic | $ | 0.02 | $ | 0.03 | |
| Diluted | $ | 0.02 | $ | 0.03 | |
| AMERAMEX INTERNATIONAL, INC. | |||||
| BALANCE SHEETS | |||||
| MARCH 31, 2022 | DECEMBER 31, 2021 | ||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash | $ | 625,489 | $ | 995,611 | |
| Accounts Receivable, Net | 1,459,988 | 1,162,300 | |||
| Inventory, Net | 6,677,863 | 5,185,864 | |||
| Other Current Assets | 239,200 | 312,963 | |||
| Total Current Assets | 9,002,540 | 7,656,738 | |||
| Non-Current Assets: | |||||
| Property and Equipment, Net | 1,208,628 | 1,275,717 | |||
| Rental Equipment, Net | 1,193,078 | 1,461,716 | |||
| Lease Right of Use Asset | 848,131 | – | |||
| Other Assets | 367,991 | 391,330 | |||
| Total Long-Term Assets | 3,617,828 | 3,128,763 | |||
| TOTAL ASSETS | $ | 12,620,368 | $ | 10,785,501 | |
| LIABILITIES & STOCKHOLDERS’ EQUITY | |||||
| Current Liabilities: | |||||
| Accounts Payable | $ | 1,150,172 | $ | 560,076 | |
| Accrued Expenses | 233,036 | 264,534 | |||
| Joint Venture Liability | 248,043 | 302,000 | |||
| Line of Credit | 2,462,101 | 142,500 | |||
| Notes Payable, Current Portion | 560,606 | 3,180,968 | |||
| Lease Liability | 129,081 | 777,602 | |||
| Total Current Liabilities | 4,783,039 | 5,227,680 | |||
| Long-Term Liabilities | |||||
| Deferred Tax Liabilities, Net | 690,530 | 588,792 | |||
| Line of Credit | 1,274,568 | – | |||
| Notes Payable – Related Party | – | – | |||
| Notes Payable, Net of Current Portion | 1,615,187 | 1,689,353 | |||
| Lease Liability, Net of Current Portion | 719,050 | – | |||
| Total Long-Term Liabilities | 4,299,335 | 2,278,145 | |||
| TOTAL LIABILITIES | $ | 9,082,374 | $ | 7,505,824 | |
| Commitments and Contingencies (Note 10) | – | – | |||
| 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 14,629,155 shares issued and outstanding at March 31, 2022 and 14,629,155 at December 31, 2021 | 14,629 | 14,629 | |||
| Additional Paid-In Capital | 21,600,734 | 21,600,734 | |||
| Accumulated Deficit | (18,077,369) | (18,335,686) | |||
| Total Stockholders’ Equity | 3,537,994 | 3,279,677 | |||
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 12,620,368 | $ | 10,785,501 | |
| AMERAMEX INTERNATIONAL, INC. | |||||
| STATEMENTS OF CASH FLOW | |||||
| MARCH 31, 2022 | MARCH 31, 2021 | ||||
| OPERATING ACTIVITIES: | |||||
| Net Income | $ | 258,317 | $ | 365,829 | |
| Adjustments to reconcile Net Loss to | |||||
| Net Cash provided (used) by Operating Activities: | |||||
| Depreciation and Amortization | 188,135 | 258,148 | |||
| Provision for Deferred Income Taxes | 101,738 | 153,875 | |||
| Loss on Early Extinguishment of Debt | 15,345 | 12,333 | |||
| Amortization and Accretion of Interest | 29,652 | – | |||
| Change in Operating Assets and Liabilities: | |||||
| Accounts Receivable | (297,688) | (994,910) | |||
| Inventory | (1,223,361) | (757,248) | |||
| Other Current Assets | 73,763 | (16,212) | |||
| Accounts Payable | 590,096 | 633,213 | |||
| Customer Deposits | (302,000) | – | |||
| Accrued Expenses | (31,498) | 115,987 | |||
| NET CASH PROVIDED USED BY OPERATING ACTIVITIES | $ | (597,501) | $ | (228,985) | |
| INVESTING ACTIVITIES: | |||||
| Payments for Property and Equipment | $ | (8,995) | $ | (6,501) | |
| Proceeds (Payments) for Rental Equipment | (126,358) | 304,755 | |||
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | $ | (135,353) | $ | 298,254 | |
| FINANCING ACTIVITIES: | |||||
| Proceeds from Notes Payable | $ | 135,890 | $ | 529,630 | |
| Payments on Notes Payable | (434,403) | (252,934) | |||
| Payment on Note Payable – Related Party | – | 12,753 | |||
| Joint Venture Liability | 105,543 | 155,247 | |||
| Net Borrowing (Repayments) Under Lines of Credit | 555,702 | (584,246) | |||
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | $ | 362,732 | $ | (139,550) | |
| NET DECREASE IN CASH & CASH EQUIVALENTS | $ | (370,122) | $ | (70,281) | |
| Cash and Cash Equivalents, BEGINNING OF PERIOD | $ | 995,611 | $ | 407,881 | |
| Cash and Cash Equivalents, END OF PERIOD | $ | 625,489 | $ | 337,600 | |
| CASH PAID FOR: | |||||
| Interest | $ | 176,795 | $ | 201,278 | |
| 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 | 76,464 | 197,186 | |||
| Transfer of Rental Equipment to Inventory | – | 964,600 | |||
| AMERAMEX INTERNATIONAL, INC. | |||||||||
| STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||
| FOR THE MONTHS ENDED MARCH 31, 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 |
||||
| Net Income | – | – | – | 365,829 | 365,829 | ||||
| March 31, 2021 | 14,549,155 | $ 14,549 | $ 21,545,614 | $ (19,601,604) | $ 1,958,559 | ||||
| December 31, 2021 | 14,629,155 | $14,629 | $ 21,600,734 | $ (18,335,686) | $ 3,279,677 | ||||
| Net Income | – | – | – | 258,317 | 258,317 | ||||
| March 31, 2022 | 14,629,155 | $ 14,629 | $ 21,600,734 | $ (18,077,369) | $ 3,537,994 | ||||
| 14,629,155 | 14,629 | 21,600,734 | (18,077,369) | 3,537,994 | |||||
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