AmeraMex International, Inc.

Revenue was approximately $2.4 million in Q2 versus $6.3 million in the comparable quarter, and $7.3 million versus $10.3 million for the six-month period. Gross profit was approximately $420,000 versus $970,000, with gross margin of 18% versus 15% in Q2; six-month gross profit was $1.7 million versus $2.1 million, with gross margin of 23% versus 21%. Net income was approximately $146,172 versus $78,000 in Q2, and $404,489 versus $443,879 for the six-month period; six-month EPS was $0.03. Management said that if all sold equipment had shipped, revenue would have been approximately $9.6 million for the period, gross profit approximately $4.4 million for the six-month period, net income $1.3 million, and EPS $0.08. Looking ahead, the company said it is working to alleviate parts and shipping issues and is looking forward to a strong third quarter, but no formal quarter or full-year guidance was provided.

Lee Hamre framed 2021 as a strong year and said the company is investing to keep growth going, including adding new equipment lines such as a Magni rotating telescopic handler. He highlighted AmeraMex’s new role as an approved vendor in the California Clean Off-Road Equipment voucher program and emphasized the Elise 900 electric skid steer as a growth opportunity in zero-emission equipment. His tone was optimistic, but he was also clear that supply-chain and shipping problems still caused significant revenue to slip into the third quarter.

Hope Stone walked through the quarter and six-month numbers, citing revenue of approximately $2.4 million for Q2 and $7.3 million for the first half, gross profit of about $420,000 in Q2 and $1.7 million for the six-month period, and net income of $146,172 and $404,489, respectively. She noted gross margin improved to 18% in the quarter and 23% for the six-month period. On the balance sheet, she said total assets increased by $3.1 million because equipment did not ship out of inventory, while total liabilities increased $2.7 million due in part to a new line of credit and lease liability. She also acknowledged a mistake in the “could have been” figures and said the company would issue a revised news release.

The main analyst question challenged the company’s “would have been” revenue and gross profit math, with Allan Cohen pointing out that the implied gross profit seemed to treat all delayed sales as incremental profit. Hope Stone agreed the calculation was wrong because the cost of goods sold was not subtracted back out and said the company would revise the news release. Cohen also flagged inconsistencies in the six-month figures, and management again said a revised release would be issued.