$9.5 Million in Sales for the First Quarter Ending March 31, 2020
CHICO, CA / ACCESSWIRE / March 30, 2020 / AmeraMex International, Inc. (OTCQB:AMMX), a provider of heavy equipment for logistics companies, infrastructure construction, forestryconservation and tactical military vehicles, reports results for its financial year ended December 31, 2019.
Highlights for the Year Ended December 31, 2019:
OTCQB
AmeraMex listed on the OTCQB in July 2019.
Board of Directors
Company added two new board members to broaden board expertise: Brian Hamre, who brings 22+ years of industry knowledge to the board; and Jeff Morris, who brings over 30+ years of financial services knowledge to the board.
Line of Credit
The Company secured a $6.6 million line of credit to purchase rental equipment.
Revenue Increases 37 Percent
The Company reported Revenue of approximately $13.4 million compared to Revenue of approximately $9.8 million for the year ended December 31, 2018. This is a 37 percent increase.
Gross Profit
The Company reported Gross Profit of $3.1 million compared to Gross Profit of $3.1 million for the year ended December 31, 2018. Gross Profit, as a percentage of sales, was 23 percent. The Gross Profit margins were down due to the mix of new versus refurbished equipment sold during 2019. A large order for new equipment received in 2018 was shipped during the first quarter of 2019.
Net Income
The Company reported Net Income for the year of approximately $.337 million compared to Net Income of $.886 million for the year ended December 31, 2018. The reduction of Net Income for 2019 was due in part to a onetime charge of $.567 million for the early extinguishment of debt in the second quarter of 2019. The early debt extinguishment significantly lowers interest expense for the remainder of the year and into 2020.
Balance Sheet
Total Current Assets increased $2.1 million and Total Assets increased $1.7 million over the same period in 2018. This increase was due in part to an increase in inventory of $2.2 million. Total Current Liabilities decreased $1 million due to a decrease of $.700 in Accounts Payable while Total Liabilities for the year increased $1.4 million due in part to the $6.6 million line of credit.
Shareholder Conference Call
The conference call dial-in number for both U.S. and international callers is 1.201.689.8560. Please dial in to the conference center five minutes before the call begins and ask the operator for the AmeraMex conference call. An audio replay of the call will be available from March 30, 2020 at 5:00 p.m. Eastern Time until April 13, 2020 at 11:59 p.m. Eastern Time. The replay is accessible by dialing 1.412.317.6671 and entering pin number 13700456.
Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Investors are encouraged to review the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Investor and Media Relations
McCloud Communications, LLC
Marty Tullio, Managing Member
Office: 949.632.1900 or [email protected]
AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF OPERATIONS
AS OF DECEMBER 31, 2019 AND 2018
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DECEMBER 31, 2019 | DECEMBER 31, 2018 | |||||||||
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REVENUES
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Sales of Equipment and Other Revenues
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$ | 10,933,709 | $ | 7,027,948 | |||||||
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Rentals and Leases
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2,462,715 | 2,769,906 | |||||||||
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Total Revenues
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13,396,424 | 9,797,854 | |||||||||
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COST OF SALES
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Sales of Equipment and Other Revenues
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9,329,986 | 5,700,920 | |||||||||
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Rentals and Leases
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951,366 | 985,584 | |||||||||
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Total Cost of Revenues
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10,281,352 | 6,686,504 | |||||||||
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GROSS PROFIT
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3,115,072 | 3,111,350 | |||||||||
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OPERATING EXPENSES
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Selling Expense
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448,415 | 325,519 | |||||||||
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General and Administrative
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977,983 | 834,394 | |||||||||
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Total Operating Expenses
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1,426,398 | 1,159,913 | |||||||||
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Profit (loss) From Operations
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1,688,674 | 1,951,437 | |||||||||
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OTHER INCOME (EXPENSE)
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Interest Expense
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(742,144 | ) | (828,585 | ) | |||||||
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Loss from Early Extinguishment of Debt
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(566,838 | ) | - | ||||||||
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Other Income
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71,075 | 131,165 | |||||||||
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Total Other Income (Expense)
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(1,237,907 | ) | (697,420 | ) | |||||||
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INCOME BEFORE PROVISION for INCOME TAXES
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450,767 | 1,254,017 | |||||||||
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PROVISION for INCOME TAXES
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113,320 | 368,422 | |||||||||
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NET INCOME
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$ | 337,447 | $ | 885,595 | |||||||
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Weighted Average Shares Outstanding:
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Basic
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753,415,879 | 753,415,879 | |||||||||
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Diluted
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753,415,879 | 753,415,879 | |||||||||
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Earnings (loss) per Share
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Basic
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$ | 0.00 | $ | 0.00 | |||||||
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Diluted
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$ | 0.00 | $ | 0.00 | |||||||
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AMERAMEX INTERNATIONAL, INC.
UNAUDITED BALANCE SHEETS
AS OF DECEMBER 31, 2019 AND DECEMBER 31,2018
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DECEMBER 31, 2019 | DECEMBER 31, 2018 | |||||||||
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ASSETS
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Current Assets:
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Cash
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$ | 114,338 | $ | 197,752 | |||||||
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Accounts Receivable, Net
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651,178 | 631,805 | |||||||||
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Inventory
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4,903,829 | 2,689,642 | |||||||||
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Other Current Assets
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281,361 | 289,060 | |||||||||
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Total Current Assets
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5,950,706 | 3,808,259 | |||||||||
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Property and Equipment, Net
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1,167,580 | 988,552 | |||||||||
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Rental Equipment, Net
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3,815,555 | 4,679,122 | |||||||||
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Other Assets
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495,262 | 234,074 | |||||||||
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Total Noncurrent Assets
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5,478,397 | 5,901,748 | |||||||||
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TOTAL ASSETS
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$ | 11,429,103 | $ | 9,710,007 | |||||||
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LIABILITIES & STOCKHOLDERS' EQUITY
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Current Liabilities:
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Accounts Payable
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$ | 588,784 | $ | 1,309,032 | |||||||
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Accrued Expenses
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97,776 | 118,291 | |||||||||
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Notes Payable, Current Portion
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15,000 | 296,618 | |||||||||
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Total Current Liabilities
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701,560 | 1,723,941 | |||||||||
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Long-Term Liabilities
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Deferred Tax Liability
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436,357 | 301,680 | |||||||||
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Notes Payable - Related Party
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298,874 | 353,643 | |||||||||
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Notes Payable, Net of Current Portion
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692,415 | 4,316,233 | |||||||||
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Line of Credit
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6,722,396 | 774,456 | |||||||||
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Total Noncurrent Liabilities
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8,150,042 | 5,746,012 | |||||||||
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TOTAL LIABILITIES
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8,851,602 | 7,469,953 | |||||||||
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Commitments and Contingencies (Note 11)
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STOCKHOLDERS' EQUITY:
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Stockholders' Equity
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shares issued and outstanding
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- | - | |||||||||
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December 31,2018
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753,416 | 753,416 | |||||||||
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Additional Paid-In Capital
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20,781,087 | 20,785,924 | |||||||||
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Treasury Stock
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- | (4,837 | ) | ||||||||
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Accumulated Deficit
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(18,957,002 | ) | (19,294,449 | ) | |||||||
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Total Stockholders' Equity
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2,577,501 | 2,240,054 | |||||||||
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
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$ | 11,429,103 | $ | 9,710,007 | |||||||
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AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF CASH FLOW
AS OF DECEMBER 31, 2019 AND DECEMBER 31, 2018
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DECEMBER 31, 2019 | DECEMBER 31, 2018 | |||||||||
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CASH FROM OPERATING ACTIVITIES
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Net Income (Loss)
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$ | 337,449 | $ | 885,595 | |||||||
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Adjustments to reconcile Net Income (Loss) to
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Depreciation and Amortization
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1,213,238 | 1,183,438 | |||||||||
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Provision for Deferred Income Taxes
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134,677 | 305,362 | |||||||||
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Gain on Sale of Property and Equipment
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(131,165 | ) | |||||||||
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Loss on Early Extinguishment of Debt
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(566,838 | ) | - | ||||||||
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Changes in Operating Assets and Liabilities:
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Accounts Receivable
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(19,373 | ) | (182,641 | ) | |||||||
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Inventory |
(2,161,937 | ) | 381,787 | ||||||||
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Other Current Assets
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(253,793 | ) | (36,965 | ) | |||||||
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Accounts Payable
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(720,249 | ) | (937,588 | ) | |||||||
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Accrued Expenses
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(20,515 | ) | (47,658 | ) | |||||||
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
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(2,057,341 | ) | 1,420,165 | ||||||||
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INVESTING ACTIVITIES:
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Payments for Property & Equipment
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(389,789 | ) | (473,757 | ) | |||||||
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Payments for Rental Equipment
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(138,606 | ) | (1,936,628 | ) | |||||||
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Proceeds from Sale of Equipment
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- | 131,165 | |||||||||
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NET CASH PROVIDED BY INVESTING ACTIVITIES
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(528,395 | ) | (2,279,220 | ) | |||||||
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FINANCING ACTIVITIES:
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Proceeds from Notes Payable
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1,407,505 | 2,843,059 | |||||||||
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Payments on Notes Payable
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(5,146,710 | ) | (2,577,325 | ) | |||||||
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Payment on Note Payable - Related Party
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(54,769 | ) | (49,008 | ) | |||||||
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Net Borrowing Under Line of Credit
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6,296,296 | 286,456 | |||||||||
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NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
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2,502,322 | 503,182 | |||||||||
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NET DECREASE IN CASH & CASH EQUIVALENTS
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(83,414 | ) | (355,873 | ) | |||||||
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Cash, beginning of period
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197,752 | 553,625 | |||||||||
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Cash, end of period
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$ | 114,338 | $ | 197,752 | |||||||
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW
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INFORMATION:
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Cash Paid for Interest
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$ | 742,144 | $ | 799,831 | |||||||
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Cash Paid for Income Taxes
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$ | 113,320 | $ | 64,247 | |||||||
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SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING
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AND FINANCING ACTIVITIES:
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Transfer of Inventory to Rental Equipment
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$ | - | $ | 1,111,066 | |||||||
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Transfer of Rental Equipment to Inventory
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$ | 35,470 | $ | 185,591 | |||||||
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AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
AS OF DECEMBER 31, 2019 AND DECEMBER 31,2018
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Total | |||||||||||||||||||||||
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Additional | Stockholders' | ||||||||||||||||||||||
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Common Stock | Paid-in | Treasury | Accumulated | Equity/ | |||||||||||||||||||
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Balance
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Shares | Amount | Capital | Stock | Deficit | (Deficit) | ||||||||||||||||||
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Dec. 31, 2017
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753,415,879 | $ | 754,017 | $ | 20,785,924 | $ | (5,438 | ) | $ | (20,180,044 | ) | $ | 1,354,459 | |||||||||||
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Common Stock Adj
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(601 | ) | 601 | - | ||||||||||||||||||||
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Net Income
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885,595 | 885,595 | ||||||||||||||||||||||
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December 31, 2018
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753,415,879 | 753,416 | 20,785,924 | (4,837 | ) | (19,294,449 | ) | 2,240,054 | ||||||||||||||||
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Retirement of Treasury Stock
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(4,837 | ) | 4,837 | - | ||||||||||||||||||||
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Net Income
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337,447 | 337,447 | ||||||||||||||||||||||
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December 31, 2019
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753,415,879 | $ | 753,416 | $ | 20,781,087 | $ | - | $ | (18,957,002 | ) | $ | 2,577,501 | ||||||||||||
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753,415,879 | 753,416 | 20,781,087 | - | (18,957,002 | ) | 2,577,501 | |||||||||||||||||
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- | - | - | - | - | - | ||||||||||||||||||
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SOURCE: AmeraMex International, Inc.