Greenman Technologies reports net loss
Updated - see added information below.
Greenman Technologies Inc., located in Massassachusetts, runs facilities that shred tires for use as fuel and scraps 30 million tires annually. GreenMan employs 190 people in six states.
In its fiscal third quarter, GreenMan lost $1.8 million on $8.8 million in revenue. The company sold a Wisconsin property and used the proceeds to eliminate $500,000 in debt. GreenMan had $525,000 in cash and equivalents on June 30 and $13.8 million in current liabilities.
"We are committed to making the tough but necessary decisions to ensure the future viability of GreenMan," said chief executive Bob Davis.
The company's expenses have increased on several fronts, including in tire collection costs. Alternative fuel customers now demand a smaller tire "chip" requiring new shredding equipment.
GreenMan expects several cement kilns to begin accepting whole tires soon, which will help improve its results.
GreenMan Technologies reports first quarter revenue increases 14 percent
Net Loss Reduced $1.4 Million to $9,000
GreenMan Technologies, Inc. a recycler of over 12 million scrap tires per year in the United States, announced results for the three months ended December 31, 2006.Lyle Jensen, GreenMan’s president and chief executive officer stated, “Overall revenue was up 14 percent from the same period last year with inbound tire volume up over half a million tires during the December 2006 quarter as a result of ongoing efforts to increase market share and the commencement of several Iowa based tire cleanup projects. Included in this increase, crumb rubber revenue was up 43 percent during the December 2006 quarter primarily due to strong demand for product produced by our new Des Moines powderizer equipment. Gross margins for the quarter remained above 30 percent despite higher operating costs associated with increased volumes and increased repairs and maintenance costs during the December 2006 quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) exceeded $900,000 for the quarter and, at 18.5 percent of revenue, reflects another positive milestone in our progress towards sustained profitability.”