AmeraMex International Reports Third Quarter Revenue of $ 5.4 Million
Company Posts Revenue for Nine-Month Period of $12.3 Million
CHICO, CA – December 3, 2007 – AmeraMex International, Inc. (OTC: AMMX), a provider of heavy equipment to stevedoring, construction, logging and mining companies, today reported financial results for its third quarter and nine months ended September 30, 2007.
For the quarter, the company reported revenue of $5,345,597, a substantial increase over the preceding quarter. Net loss for the quarter was $313,707, or a net loss of $0.001 per share.
“Approximately 90 percent of the loss for the quarter was due to a large amount of warranty claims by a major supplier,” commented AmeraMex CFO Warren Murphy. “Compensation for the warranty work will be received in the fourth quarter of 2007. I should add,” said Murphy, “that the manufacturers that we represent provide equipment of the highest quality and this was the first time we have seen this amount of warranty work in over 20 years.”
For the nine months ended September 30, 2007, the company reported revenue of $12,346,832, a 76.5 percent increase, when compared to revenue of $6,992,236 for the six-month period ended June 30, 2007. Net loss for the nine-month period was $340,657, or a net loss for the quarter of $0.001 per share.
Third Quarter Highlights:
• Received $3 million order for six loaded container handlers from a large, worldwide container transportation and logistics service provider.
• Received a $3.4 million order for 11 large capacity forklifts.
• Received a $5.5 million order for loaded container handlers
• Received a $1.7 million contract for break-bulk material handlers
• Received a $250,000 order for front-end loaders
• Participated in the Friedland Investment Events Wall Street Conference in New York
Historically, revenues from heavy equipment sales and rentals increase more rapidly in the second and third quarters, as heavy construction and infrastructure projects commence in the early summer and reach completion in late fall. Selling to stevedoring companies has assisted in a more balanced flow of revenue. AmeraMex is in the process of expanding its international network, which provides a growing and profitable market for the used equipment acquired from its customers and other companies. The equipment is refurbished and then sold into developing countries that have limited access to or budgets for new equipment.
“While the construction industry has suffered a significant downturn, we have managed to maintain a revenue run rate equal to that of 2006,” said AmeraMex CEO Lee Hamre. “Our focus on the stevedoring industry has begun to generate revenue and will continue far into the future, as imports increase and equipment used in the loading and unloading of containers is replaced to meet EPA Tier III emission regulations.
“As we look forward into 2008,” continued Hamre, “our prospective pipeline stands at approximately $24 million and is growing. We have a sound business strategy in place that should allow AmeraMex to considerably increase its top line growth during 2008, and a corporate goal to apply for a listing of our common stock on a major exchange. This is a goal we take seriously as we believe our stock is greatly undervalued and the move to the American Exchange or the Nasdaq Trading System should provide additional exposure and ease of trading AmeraMex stock, all of which is expected to increase shareholder value.”
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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.
Media and Financial Contact:
McCloud Communications LLC
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