AmeraMex International Reports Revenue of $8 Million for the Third Quarter and $19.3 Million for the Nine-Month Period
Revenue Increases 50 Percent for Third Quarter and 56 Percent for Nine-Month Period
CHICO, CA – December 10, 2008 – AmeraMex International, Inc. (OTC: AMMX), a provider of heavy equipment to the stevedoring (shipping/logistics), construction, logging and mining companies, today reported financial results for its third quarter and nine months ended September 30, 2008.
For the third quarter, revenue increased 50 percent to $8,029,600, compared to the third quarter ended September 30, 2008. The substantial increases in revenue were due in part to orders delivered to West Coast logistics companies (stevedoring) and international dealers. Net loss for the quarter was $168,598, a decrease of 51 percent, compared to a net loss of $345,145 for the comparable quarter in 2007. EBITDA for the quarter was ($44,001), a marked improvement over the comparable quarter in 2007. EBITDA, earnings before interest, taxes, deprecation and amortization, is an accepted industry tool to measure the fundamentals of growth companies.
For the nine months ended September 30, 2008, the company reported revenue of $19,320,643, a 56 percent increase, compared to revenue of $12,346,832 for the nine-month period ended September 30, 2007. Net loss for the nine-month period was $498,553, which includes a one-time casualty loss of $121,357 reflected in the first quarter of 2008. G&A expenses increased for the period due in part to expansion of the sales and management teams to support increased revenue. EBITDA for the period was ($96,346).
“We are continuing to invest in Hamre equipment, which has resulted in top line growth,” said AmeraMex COO John Muchnicki. “Our Las Vegas operation, purchased in 2007, continues to suffer from a downturn in the local economy and has required continued capital infusions. Due to the upgrades we made to our accounting system, we now have not only the tools to consolidate all accounting functions, but the ability to rigorously examine expenses and actively trim costs, line item by line item,” said Muchnicki.
“We had projected 2008 revenue to be approximately $19.1 million, which represented a 20 percent growth over revenue reported for 2007,” continued Muchnicki. “We are pleased to report to our shareholders that for the first nine months of 2008, we have already exceeded revenue expectations and expect to complete 2008 with a 30 percent increase in revenue, compared to 2007 revenue of $15.8. While heavy equipment sales were strong, it is important to note that our trucking operations showed significant strength against their revenue budget and revenue generated in 2007.”
“Indications from our U.S. customers and international distributors suggest sales will remain strong, even in this difficult economy,” commented AmeraMex CEO Lee Hamre. “Infrastructure projects are underway in a number of developing countries, and with the new administration, we expect to see orders for heavy equipment remain in line with 2008, and perhaps increase in the second half of 2009.”
Hamre continued, “We are working with our investment banking firm to generate additional working capital to complete the SEC audit necessary to apply for listing on an exchange that will provide more visibility for the company’s stock and increased value for our shareholders; acquire a number of synergistic companies that will allow us to grow revenue by leveraging our geographical reach in the U.S.; and expand our international distribution network. Given the current financial climate, we are somewhat delayed in achieving our goals, but believe they can be accomplished during 2009.”
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About AmeraMex International
AmeraMex International sells, leases, and rents heavy equipment to companies within four industries: construction (light and infrastructure), shipping, mining and logging. AmeraMex’s largest product line is specialized container handling equipment that enables stevedoring companies to quickly and efficiently load and offload container and general freight ships dockside. AmeraMex, with customers in North America, South America, Asia, and Eastern Europe, has over 30 years of experience in heavy equipment sales and service and inventories top-of-the-line equipment from manufacturers such as Taylor Machine Works Inc. and Terex Heavy Equipment. For more information visit the AmeraMex website, www.AMMX.net.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations, are generally identifiable by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, potential future performance, perceived opportunities in the market, and statements regarding the Company’s mission and vision. The Company’s actual results, performance, and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements.
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