Net sales for the quarter were $7,799,000, a 2 percent decrease compared to last year’s net sales of $7,963, 000. GreenMan processed more than 8.1 million passenger tire equivalents during the quarter, an increase of approximately 100,000 tires from the same period in 2002.
Overall product sales increased to 25 percent of consolidated revenues for the quarter, despite its Georgia waste wire processing equipment being off-line since April 2003. GreenMan attributes the increase in product sales to the implementation of its Minnesota and Iowa waste wire processing equipment, increased crumb rubber production and sales in Iowa and California and strong tire derived fuel sales.
Gross profit for the quarter was $1,139, 000, or 14 percent of net sales, compared to $1,383,000, or 17 percent of net sales, for the quarter ended Dec. 31, 2002. GreenMan attributes the decrease to more than $240,000 in excess transportation costs and operating inefficiencies necessitated by processing tires sourced in Tennessee at the company’s Georgia facility and reduced end product revenue and excess waste disposal in Georgia resulting from the March 31, 2003, waste wire processing equipment fire.
Selling, general and administrative expenses decreased $311,000 for the quarter to $1,068,000. A press release from the company attributes the decline to a focused effort to reduce corporate wide expenses and the elimination of expenses associated with its minority joint venture, which was divested in April 2003. As a result, GreenMan’s operating profit increased $67,000 to $71,000 for the quarter when compared to the same quarter in 2002.
Net loss for the quarter decreased 50 percent to $178,00, or $.01 per basic share compared to the 2002 figure of $356,000.