GreenMan Technologies, Inc. announced results for its fourth quarter and year ended September 30.
"Fiscal 2002 has been a record year for GreenMan in many respects: record revenues, record volumes and record profits. Equally important, fiscal 2002 has been a significant investment year for GreenMan," said Bob Davis, GreenMan's president and CEO. "As a result of decisions and investments made during the last several years and months, today we report our eighth consecutive profitable quarter, our twenty-second consecutive quarter of revenue growth, over 26 percent growth in annual revenue and an almost 300 percent increase in net income when last year's $438,000 one-time insurance settlement gain is excluded."
"Due to the implementation of our waste wire processing equipment, new crumb rubber capacity and our ongoing efforts to identify and develop new end markets, corporate-wide product revenue tripled compared to last year. During fiscal 2002, we managed over 26 million scrap tires and are currently on an annual revenue run rate of over $30 million. In fiscal 2003, we expect to quadruple our crumb rubber sales through maturation of investments made in fiscal 2002 and greater demands for our quality products."
Chuck Coppa, GreenMan's CFO, said, "While our fourth quarter bottom line may be below some expectations, we remain committed to making correct decisions for the long-term benefit of GreenMan and our shareholders." Coppa also stated," During the fourth quarter, we incurred approximately $250,000 of charges specifically associated with our recently announced equipment upgrade in Iowa (December 2, 2002) and our new American Stock Exchange listing. In addition, corporate-wide insurance costs increased over $100,000 during the quarter ended September 30, 2002 as a result of higher insurance limits due to recent acquisitions and increased renewal premiums reflecting the impact that September 11, 2001 has had on the insurance industry."
"During fiscal 2002, we incurred approximately $200,000 of costs relating to GreenMan's specialty waste initiatives, which have been curtailed at this point, and approximately $150,000 relating to operating and startup losses associated with a new kiln relationship."
Net sales for the quarter were $8.4 million, a 26 percent increase compared to net sales of $6.7 million for the same quarter last year. GreenMan processed more than 7.7 million passenger tire equivalents during the quarter, compared to 6 million passenger tire equivalents during the quarter last year. The increase is attributable to the inclusion of operations of three new subsidiaries formed in connection with recent acquisitions and GreenMan's interest in a majority owned joint venture, formed in February; internal growth and increased end product sales.
Net sales for the year ended September 30 were $27.452 million, an increase of 26 percent, compared to net sales of $21.753 million in 2001. GreenMan processed over 26 million passenger tire equivalents during the year, compared to over 21.5 million passenger tire equivalents during the previous year.