AmeraMex Q2 Revenue Jumps 293% but Gross Margin Collapses to 10%
AMMX sits 97% above its 52-week low of $0.076 on light trading volume (0.3× avg).
Summary
AmeraMex reported Q2 revenue of $5.5 million, up from $1.4 million a year ago, but gross margin fell to 10% from 47%, turning operating income negative. Net income dropped to $23,735 from $371,850. The six-month gross margin of 85% appears to be a typographical error in the release, as it conflicts with the quarterly figures and the stated gross profit of $1.6 million on $10.2 million revenue, which implies about 16%. The company attributes the margin pressure to large, lower-margin fleet transactions. Balance sheet expanded with current assets up $4.7 million and total liabilities up $3.9 million, driven by higher notes payable. This follows the $5 million forklift supply contract announced in June.
At the time of this announcement, AMMX was trading at $0.15 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $2.3M. The 52-week trading range was $0.08 to $0.48. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: TMX Newsfile.