AmeraMex International (OTCQB:AMMX) Inc said product mix and cost containment measures have significantly increased profit margins in its third quarter.
Net income for the three-month period to end September 30, 2022 was $928,850 or $0.06 per share compared to $82,691 or $0.01 for the comparable 2021 quarter.
Equipment prices were adjusted to cover increased cost of goods sold and operating costs, the company noted.
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Gross profit for the quarter came in at $2.5 million, a 211% increase over the comparable 2021 quarter, while gross profit as a percentage of sales was 35% compared to 10%.
What’s more, profit from operations rose significantly to $1.7 million for the quarter, compared to profit from operations of $343,132 over the year-ago quarter.
Revenue decreased slightly to approximately $7.5 million versus $8.2 million in 3Q 2021.
CEO Lee Hamre called 2022 “a great year for revenue and net income.”
For the nine-month period to end September 2022, Ameramex reported revenue of approximately $14.8 million versus revenue of $18.9 million in 3Q 2021. The 2021 year saw the highest revenue in the company’s history due, in part, to pent-up demand for equipment created by the COVID-19 pandemic, noted Ameramex.
Net income for the nine-month period rose 171% to $1.4 million when compared to net income of $526,570 for the comparable nine-month period.
“We are also pleased that the addition of new product lines and refocusing on the construction industry are beginning to pay off. We are fortunate to sell into multiple markets – from logistics to agriculture, manufacturing, and construction,” Hamre said in a statement.
“Although there remains a nationwide shortage of truck drivers and costs for materials and fuel remain high, our team has and will continue to focus on controlling costs and improving profit margins.”
AmeraMex sells, leases, and rents heavy equipment to companies within multiple industries including construction, logistics, mining, and lumber. The company ended the quarter with $14.3 million in assets on its balance sheet.
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