AmeraMex International Reports Third Quarter and Nine-Month Financials for the Period Ended September 30, 2024

Rhea-AI Summary

AmeraMex International (OTC Pink: AMMX) reported financial results for Q3 and nine months ended September 30, 2024. Despite revenue increases of 61% for Q3 and 34% for the nine-month period, the company faced significant challenges. A one-time inventory adjustment of over $3.1 million and rental equipment depreciation issues led to increased Cost of Goods Sold. Q3 revenue was $1.9 million with a net loss of ($1.1 million), while nine-month revenue reached $9.0 million with a net loss of ($478,790). Total assets were $20.1 million, up $2.2 million, while total liabilities increased by $2.8 million to $17.2 million.

Positive

• Q3 revenue increased 61% to $1.9 million compared to $1.2 million in 2023
• Nine-month revenue grew 34% to $9.0 million versus $6.7 million in 2023
• Total assets increased by $2.2 million to $20.1 million

Negative

• Q3 gross loss of ($1.2 million) compared to $371,206 profit in 2023
• Q3 net loss of ($1.1 million) versus ($32,623) in 2023
• Nine-month net loss increased to ($478,790) from ($48,122) in 2023
• Total liabilities increased by $2.8 million to $17.2 million
• One-time inventory adjustment of $3.1 million negatively impacted COGS

AmeraMex CEO is Hosting a Shareholder Conference Call November 25, 2024, at 9:00 a.m. PT

Chico, California--(Newsfile Corp. - November 25, 2024) - AmeraMex International, Inc. (OTC Pink: AMMX), a provider of heavy equipment for logistics companies, infrastructure construction, and forestry conservation, reports financial results for its third quarter and nine-month period ended September 30, 2024.

While the Company's revenues were up 61 percent for the third quarter and 34 percent for the nine-month period ended September 30, 2024, Cost of Goods Sold (COGS) for the quarter significantly increased when compared to the second quarter ended June 30, 3024 and for the comparable third quarter ended September 20, 2023.

The increase in COGS for sales revenue was due in part to a reserve journal entry that had to be made to the Inventory. This accounting adjustment, 25 percent of the value of equipment inventory and 50 percent of the value of parts inventory, was made to cover any possible miscounts or errors in the inventory records. The adjustment made for the nine-month period ended September 30, 2024, which was just over $3.1 million, reduced inventory while increasing COGS in the third quarter.

COGS associated with rental revenues is based on the depreciation of long-term rental equipment. A combination of issues occurred:

1. Rental equipment was purchased and delivered but not on rent long enough to generate revenue/create a receivable.
2. Since the equipment isn't sold but rented, the Company uses depreciation, an internal accounting figure, to offset the COGS. This means that the cost of the equipment being used (depreciated) is accounted for as a COGS rather than recording the equipment's full purchase cost up front.

According to the Company's CEO Lee Hamre, these are one-time adjustments that affected the third quarter and will not be affect the Company's fourth quarter.

Statement of Operations for the Quarter Ended September 30, 2024

The Company reported revenue of approximately $1.9 million versus revenue of $1.2 million for the comparable 2023 quarter.

Gross loss for the quarter was ($1.2 million), compared to gross profit of $371,206 for the comparable 2023 quarter.

Loss from operations was ($1.4 million) for the quarter, compared to a profit from operations of $199,328 for the comparable 2023 quarter.

Net loss for the quarter was ($1.1 million) compared to net loss of ($32,623) for the comparable 2023 quarter.

Loss per share was ($0.07) for the quarter compared to earnings per share of $0.00 for the comparable 2023 quarter.

Statement of Operations for the Nine-Month period Ended September 30, 2024

The company reported revenue of approximately $9.0 million versus revenue of $6.7 million for the comparable 2023 period.

Gross profit for the period was $1.2 million compared to gross profit of $1.9 million for the comparable 2023 period.

Profit from operations was $18,585 for the nine-month period, compared to profit from operations of $438,528 for the comparable 2023 nine-month period.

Net loss for the nine-month period was ($478,790) compared to a net loss of ($48,122) for the comparable nine-month period of 2023.

Loss per share was ($0.03) for the period compared to earnings per share of $0.00 for the comparable nine-month period of 2023.

Balance Sheet for the Nine-Month Period Ended September 30, 2024

Total Assets were $20.1 million, a $2.2 million increase due in part to a $4.0 million increase in rental equipment.

Total Liabilities were $17.2 million, a $2.8 million increase due in part to an increase in the Company's notes payable.

Please join the Company's management team November 25 at 9:00 a.m. PT for a shareholder update. The conference call dial-in number for both U.S. and international callers is 1.201.689.8560. Please dial 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 November 25, 2024, at 5:00 p.m. ET until December 9, 2024, at 11:59 p.m. ET. The replay is accessible by dialing 1.412.317.6671 and entering pin number 13750228.

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" "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

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENTS OF OPERATIONS
	THREE MONTHS ENDED SEPTEMBER 30,								NINE MONTHS ENDED SEPTEMBER 30,
		2024				2023				2024				2023
REVENUES
Sales of Equipment and Other Revenues	$	1,426,566			$	756,581				7,547,016			$	5,716,647
Rentals and Leases		522,842				454,154				1,465,987				1,024,077
Total Sales		1,949,408				1,210,735				9,013,003				6,740,724
COST OF SALES
Sales of Equipment and Other Revenues		2,445,961				685,268				6,601,371				4,316,879
Rentals and Leases		686,789				154,261				1,168,241				521,029
Total Cost of Sales		3,132,750				839,529				7,769,612				4,837,908
GROSS PROFIT		(1,183,342	)			371,206				1,243,391				1,902,816
OPERATING EXPENSES
Selling Expense		107,393				87,549				511,900				840,930
General and Administrative		158,119				84,329				712,906				622,358
Total Operating Expenses		265,512				171,878				1,224,806				1,463,288
Profit (loss) From Operations		(1,448,854	)			199,328				18,585				439,528
OTHER INCOME (EXPENSE)
Interest Expense, net		(145,968	)			(218,551	)			(845,507	)			(503,990	)
Loss from Early Extinguishment of Debt		-				(28,446	)			-				(67,536	)
Gain of Sale of Asset						-								-
Other Income (Expense)		39,818				1,393				147,790				63,740
Total Other Income (Expense)		(106,150	)			(245,604	)			(697,717	)			(507,786	)
INCOME BEFORE PROVISION for INCOME TAXES		(1,555,004	)			(46,276	)			(679,132	)			(68,258	)
PROVISION for INCOME TAXES		(488,225	)			(13,653	)			(200,342	)			(20,136	)
NET INCOME	$	(1,066,779	)		$	(32,623	)			(478,790	)		$	(48,122	)
Weighted Average Shares Outstanding:
Basic		14,829,155				14,829,155				14,829,155				14,829,155
Diluted		14,829,155				14,829,155				14,829,155				14,829,155
Earnings (loss) per Share
Basic	$	-0.07			$	0.00				-0.03			$	0.00
Diluted	$	-0.07			$	0.00				-0.03			$	0.00

 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED BALANCE SHEETS
		SEPTEMBER 30, 2024				DECEMBER 31, 2023
ASSETS
Current Assets:
Cash	$	90,248			$	588,128
Accounts Receivable, Net		1,292,157				1,289,389
Inventory, Net		10,674,988				11,359,158
Other Current Assets		245,587				324,134
Total Current Assets		12,302,980				13,560,809
Property and Equipment, Net		769,483				1,420,163
Rental Equipment, Net		5,014,295				1,063,464
Joint Venture Asset		177,000				-
Operating Lease ROU Asset		703,802				703,802
Financing Leasae ROU Asset		883,310				883,310
Other Assets		220,480				203,025
Total Other Assets		7,768,370				4,273,764
TOTAL ASSETS	$	20,071,350			$	17,834,573
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable	$	2,404,590			$	2,213,722
Accrued Expenses		207,051				348,415
Deferred Revenue		1,802,279				2,136,400
Joint Venture Liability		-				105,000
Lines of Credit		5,505,791				5,509,788
Notes Payable, Current Portion		1,758,490				1,273,310
Operating Lease Liability		129,081				129,081
Financing Lease Liability		376,242				376,242
Total Current Liabilities		12,183,524				12,091,958
Long-Term Liabilities
Notes Payable, Net of Current Portion		3,718,723				1,094,722
Operating Lease Liability, Net of Current Portion		574,721				574,721
Financing Lease Liability, Net of Current Portion		673,458				673,458
Total Long-Term Liabilities		4,966,902				2,342,901
TOTAL LIABILITIES		17,150,426				14,434,859
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 14,829,155 shares issued and outstanding		14,829				14,829
Additional Paid-In Capital		21,671,534				21,671,534
Accumulated Deficit		(18,765,439	)			(18,286,649	)
Total Stockholders' Equity		2,920,924				3,399,714
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	20,071,350			$	17,834,573

 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENTS OF CASH FLOW
		NINE MONTHS ENDED SEPTEMBER 30,
		2024				2023
OPERATING ACTIVITIES:
Net Income		(478,790	)			(48,122	)
Adjustments to reconcile Net Loss to
Net Cash provided (used) by Operations Activities:
Depreciation and Amortization		1,628,066				719,468
Provision (Benefit) for Deferred Income Taxes		-				(98,615	)
Marketing Services Paid in Stock		-				-
Loss on Early Extinguishment of Debt		-				67,536
Gain/Loss on Disposal		-				-
Amortization of Right of Use Asset		19,797				19,797
Amortization and Accretion of Interest		10,863				63,556
Change in Assets and Liabilities:
Accounts Receivable		(2,768	)			374,114
Inventory		684,170				(5,230,155	)
ROU Asset		(725,674	)			(725,674	)
Other Current Assets		78,547				88,883
Accounts Payable		190,868				364,610
Customer Deposits		-				-
Deferred Revenue		(334,121	)			2,780,474
Accrued Expenses		(141,364	)			(201,088	)
Lease Liability		725,674				725,674
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES		1,655,268				(1,099,542	)
INVESTING ACTIVITIES:
Payments for Property & Equipment		189,443				(179,860	)
Payments for Rental Equipment		-				-
Proceeds (Payments) for Rental Equipment		(5,117,660	)			(1,484,582	)
NET CASH USED BY INVESTING ACTIVITIES		(4,928,217	)			(1,664,442	)
FINANCING ACTIVITIES:
Proceeds from Notes Payable		616,023				563,330
Payments on Notes Payable		(733,470	)			(733,470	)
Payment on Note Payable - Related Party		-				269,159
Joint Venture Liability		(105,000	)			(227,503	)
Net Borrowing (Repayments) Under Lines of Credit		2,997,516				2,142,189
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES		2,775,069				2,013,705
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS		(497,880	)			(750,279	)
Cash and Cash Equivalents, BEGINNING OF PERIOD		588,128				1,032,209
Cash and Cash Equivalents, END OF PERIOD		90,248				281,930
CASH PAID FOR:
Interest		855,609				543,573
Income Taxes		800				800
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Transfer of Inventory to Rental Equipment		-				1,666,085
Equipment Financed under Capital Leases		-				779,160
Transfer of Rental Equipment to Inventory		-				-

 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
											Additional
			Common Stock								Paid-in				Accumulated
Balance			Shares				Amount				Capital				Deficit
December 31, 2022			14,829,155			$	14,829			$	21,671,534			$	(17,334,360	)
Net Income			-				-				-				(48,122	)
September 30, 2022			14,829,155			$	14,829			$	21,671,534			$	(17,382,482	)
December 31, 2023			14,829,155			$	14,829			$	21,671,534			$	(18,286,649	)
Net Income			-				-				-				(478,790	)
September 30, 2024			14,829,155			$	14,829			$	21,671,534			$	(18,765,439	)
			14,829,155				14,829				21,671,534				(18,765,439	)
			-				-				-				-

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231107

FAQ

What was AmeraMex International's (AMMX) revenue growth in Q3 2024?

AmeraMex International's revenue grew 61% to $1.9 million in Q3 2024 compared to $1.2 million in Q3 2023.

How much was AMMX's net loss for Q3 2024?

AMMX reported a net loss of ($1.1 million) for Q3 2024, compared to a net loss of ($32,623) in Q3 2023.

What caused the increase in AMMX's Cost of Goods Sold in Q3 2024?

The increase was due to a $3.1 million inventory reserve adjustment and rental equipment depreciation issues, which were one-time adjustments according to management.

What were AMMX's total assets and liabilities as of September 30, 2024?

Total assets were $20.1 million (up $2.2 million) and total liabilities were $17.2 million (up $2.8 million).