"Revenues for the third quarter increased to a record $8.1 million; a 13 percent increase over the same period last year," Chuck Coppa, GreenMan's CFO says, Gross margins improved as a result of a 17 percent increase in inbound tires and a 15 percent increase in end product sales."
Coppa says the gains resulted despite GreenMan's inability to process waste wire at its Georgia plant and its lack of access to the capital necessary to properly implement its Tennessee project. The company estimates this negatively impacts performance by more than $80,000 per month, Coppa says.
"Our selling, general and administrative costs decreased to 14 percent of sales during the quarter as compared to 18 percent last year. As a result, we reported quarterly operating income of $254,000 as compared to quarterly operating loss of over $355,000 last year," Coppa continues. "We experienced significantly improved quarterly and year-to-date performance and reduced our quarterly net loss to $336,000 as compared to $971,000 for the same quarter last year; a 65 percent improvement."
Bob Davis, GreenMan's president and CEO says, "This was an important quarter in terms of positioning ourselves to properly implement our business plan."
June 30, 2004, GreenMan closed a new $9 million credit facility with the Laurus Master Fund Ltd., a New York-based institutional fund that specializes in direct investments in growing small-cap companies, Davis says. "This financing removed the capital constraints under which we had been operating since the failure of our previous primary lender in February 2003 and provides us with not only immediate working capital, but also the financial resources we need to aggressively move forward to complete the implement our Tennessee project," Davis adds. "While we anticipate incremental improvement during the fourth quarter, most of the benefits associated with Laurus financing will be realized in 2005 and beyond."
GreenMan was founded in 1992 and is comprised of six operating locations that collect, process and market scrap more than 30 million scrap tires in whole, shredded or granular form.