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.