AmeraMex International Reports a 37 Percent Increase in Revenue for the Year Ended December 31, 2019

$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 Marty@McCloudCommunications.com

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF OPERATIONS
AS OF DECEMBER 31, 2019 AND 2018

 
DECEMBER 31, 2019
 
 
DECEMBER 31, 2018
 

REVENUES

Sales of Equipment and Other Revenues

 
$
10,933,709
 
 
$
7,027,948
 

Rentals and Leases

 
 
2,462,715
 
 
 
2,769,906
 

Total Revenues

 
 
13,396,424
 
 
 
9,797,854
 

COST OF SALES

Sales of Equipment and Other Revenues

 
 
9,329,986
 
 
 
5,700,920
 

Rentals and Leases

 
 
951,366
 
 
 
985,584
 

Total Cost of Revenues

 
 
10,281,352
 
 
 
6,686,504
 

GROSS PROFIT

 
 
3,115,072
 
 
 
3,111,350
 

OPERATING EXPENSES

Selling Expense

 
 
448,415
 
 
 
325,519
 

General and Administrative

 
 
977,983
 
 
 
834,394
 

Total Operating Expenses

 
 
1,426,398
 
 
 
1,159,913
 

Profit (loss) From Operations

 
 
1,688,674
 
 
 
1,951,437
 

OTHER INCOME (EXPENSE)

Interest Expense

 
 
(742,144
)
 
 
(828,585
)

Loss from Early Extinguishment of Debt

 
 
(566,838
)
 
 
–
 

Other Income

 
 
71,075
 
 
 
131,165
 

Total Other Income (Expense)

 
 
(1,237,907
)
 
 
(697,420
)

INCOME BEFORE PROVISION for INCOME TAXES

 
 
450,767
 
 
 
1,254,017
 

PROVISION for INCOME TAXES

 
 
113,320
 
 
 
368,422
 

NET INCOME

 
$
337,447
 
 
$
885,595
 

Weighted Average Shares Outstanding:

Basic

 
 
753,415,879
 
 
 
753,415,879
 

Diluted

 
 
753,415,879
 
 
 
753,415,879
 

Earnings (loss) per Share

Basic

 
$
0.00
 
 
$
0.00
 

Diluted

 
$
0.00
 
 
$
0.00
 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED BALANCE SHEETS
AS OF DECEMBER 31, 2019 AND DECEMBER 31,2018

 
DECEMBER 31, 2019
 
 
DECEMBER 31, 2018
 

ASSETS

Current Assets:

Cash

 
$
114,338
 
 
$
197,752
 

Accounts Receivable, Net

 
 
651,178
 
 
 
631,805
 

Inventory

 
 
4,903,829
 
 
 
2,689,642
 

Other Current Assets

 
 
281,361
 
 
 
289,060
 

Total Current Assets

 
 
5,950,706
 
 
 
3,808,259
 

Property and Equipment, Net

 
 
1,167,580
 
 
 
988,552
 

Rental Equipment, Net

 
 
3,815,555
 
 
 
4,679,122
 

Other Assets

 
 
495,262
 
 
 
234,074
 

Total Noncurrent Assets

 
 
5,478,397
 
 
 
5,901,748
 

TOTAL ASSETS

 
$
11,429,103
 
 
$
9,710,007
 

LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts Payable

 
$
588,784
 
 
$
1,309,032
 

Accrued Expenses

 
 
97,776
 
 
 
118,291
 

Notes Payable, Current Portion

 
 
15,000
 
 
 
296,618
 

Total Current Liabilities

 
 
701,560
 
 
 
1,723,941
 

Long-Term Liabilities

Deferred Tax Liability

 
 
436,357
 
 
 
301,680
 

Notes Payable – Related Party

 
 
298,874
 
 
 
353,643
 

Notes Payable, Net of Current Portion

 
 
692,415
 
 
 
4,316,233
 

Line of Credit

 
 
6,722,396
 
 
 
774,456
 

Total Noncurrent Liabilities

 
 
8,150,042
 
 
 
5,746,012
 

TOTAL LIABILITIES

 
 
8,851,602
 
 
 
7,469,953
 

Commitments and Contingencies (Note 11)

STOCKHOLDERS' EQUITY:

Stockholders' Equity

shares issued and outstanding

 
 
–
 
 
 
–
 

December 31,2018

 
 
753,416
 
 
 
753,416
 

Additional Paid-In Capital

 
 
20,781,087
 
 
 
20,785,924
 

Treasury Stock

 
 
–
 
 
 
(4,837
)

Accumulated Deficit

 
 
(18,957,002
)
 
 
(19,294,449
)

Total Stockholders' Equity

 
 
2,577,501
 
 
 
2,240,054
 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

 
$
11,429,103
 
 
$
9,710,007
 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF CASH FLOW
AS OF DECEMBER 31, 2019 AND DECEMBER 31, 2018

 
DECEMBER 31, 2019
 
 
DECEMBER 31, 2018
 

CASH FROM OPERATING ACTIVITIES

Net Income (Loss)

 
$
337,449
 
 
$
885,595
 

Adjustments to reconcile Net Income (Loss) to

Depreciation and Amortization

 
 
1,213,238
 
 
 
1,183,438
 

Provision for Deferred Income Taxes

 
 
134,677
 
 
 
305,362
 

Gain on Sale of Property and Equipment

 
 
 
 
 
 
(131,165
)

Loss on Early Extinguishment of Debt

 
 
(566,838
)
 
 
–
 

Changes in Operating Assets and Liabilities:

Accounts Receivable

 
 
(19,373
)
 
 
(182,641
)

Inventory

 
 
(2,161,937
)
 
 
381,787
 

Other Current Assets

 
 
(253,793
)
 
 
(36,965
)

Accounts Payable

 
 
(720,249
)
 
 
(937,588
)

Accrued Expenses

 
 
(20,515
)
 
 
(47,658
)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 
 
(2,057,341
)
 
 
1,420,165
 

INVESTING ACTIVITIES:

Payments for Property & Equipment

 
 
(389,789
)
 
 
(473,757
)

Payments for Rental Equipment

 
 
(138,606
)
 
 
(1,936,628
)

Proceeds from Sale of Equipment

 
 
–
 
 
 
131,165
 

NET CASH PROVIDED BY INVESTING ACTIVITIES

 
 
(528,395
)
 
 
(2,279,220
)

FINANCING ACTIVITIES:

Proceeds from Notes Payable

 
 
1,407,505
 
 
 
2,843,059
 

Payments on Notes Payable

 
 
(5,146,710
)
 
 
(2,577,325
)

Payment on Note Payable – Related Party

 
 
(54,769
)
 
 
(49,008
)

Net Borrowing Under Line of Credit

 
 
6,296,296
 
 
 
286,456
 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 
 
2,502,322
 
 
 
503,182
 

NET DECREASE IN CASH & CASH EQUIVALENTS

 
 
(83,414
)
 
 
(355,873
)

Cash, beginning of period

 
 
197,752
 
 
 
553,625
 

Cash, end of period

 
$
114,338
 
 
$
197,752
 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW

INFORMATION:

Cash Paid for Interest

 
$
742,144
 
 
$
799,831
 

Cash Paid for Income Taxes

 
$
113,320
 
 
$
64,247
 

SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING

AND FINANCING ACTIVITIES:

Transfer of Inventory to Rental Equipment

 
$
–
 
 
$
1,111,066
 

Transfer of Rental Equipment to Inventory

 
$
35,470
 
 
$
185,591
 

AMERAMEX INTERNATIONAL, INC.
UNAUDITED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
AS OF DECEMBER 31, 2019 AND DECEMBER 31,2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 

 
 
 
 
 
 
 
Additional
 
 
 
 
 
 
 
 
Stockholders'
 

 
Common Stock
 
 
Paid-in
 
 
Treasury
 
 
Accumulated
 
 
Equity/
 

Balance

 
Shares
 
 
Amount
 
 
Capital
 
 
Stock
 
 
Deficit
 
 
(Deficit)
 

Dec. 31, 2017

 
 
753,415,879
 
 
$ 
754,017
 
 
$ 
20,785,924
 
 
$ 
(5,438
)
 
$ 
(20,180,044
)
 
$ 
1,354,459
 

Common Stock Adj

 
 
 
 
 
 
(601
)
 
 
 
 
 
 
601
 
 
 
 
 
 
 
–
 

Net Income

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
885,595
 
 
 
885,595
 

December 31, 2018

 
 
753,415,879
 
 
 
753,416
 
 
 
20,785,924
 
 
 
(4,837
)
 
 
(19,294,449
)
 
 
2,240,054
 

Retirement of Treasury Stock

 
 
 
 
 
 
 
 
 
 
(4,837
)
 
 
4,837
 
 
 
 
 
 
 
–
 

Net Income

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
337,447
 
 
 
337,447
 

December 31, 2019

 
 
753,415,879
 
 
$ 
753,416
 
 
$ 
20,781,087
 
 
$ 
–
 
 
$ 
(18,957,002
)
 
$ 
2,577,501
 

 
 
753,415,879
 
 
 
753,416
 
 
 
20,781,087
 
 
 
–
 
 
 
(18,957,002
)
 
 
2,577,501
 

 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 

SOURCE: AmeraMex International, Inc.

ReleaseID: 582924