BOULDER CITY, Nev. (May 19, 2011)—Polyurethane tire developer Amerityre Corp. cut its net loss for the quarter ended March 31 in half to $150,426 on slightly lower sales of $863,383.
The company, which has yet to turn a profit in 16 years of operation, also disclosed it has given Timothy Ryan, chairman since Dec. 1, 2010, the additional duties of CEO, replacing Michael Kapral Jr., who resigned as president and CEO and a board member.
Ryan, a longtime executive of Trelleborg Wheel Systems Americas until early 2005, also continues as CEO of Rhino Rubber L.L.C., an Akron-based industrial tire distributor. Amerityre did not elaborate on the resignation of Kapral, who'd been in the executive positions for just two years.
Amerityre attributed the smaller quarterly loss to cost-cutting efforts and improvements in gross margins. Sales were off because of a lack of revenue from equipment sales, the company said.
For the nine-month period, Amerityre reported a net loss of $649,204, an improvement of 39.2 percent compared with the fiscal 2010 period. The firm's cumulative loss stands at $60.6 million since 1995.
Nine-month sales of $2.59 million were 6.5 percent lower than in fiscal 2010.
Also during the quarter Amerityre renegotiated an exclusive forklift tire distribution agreement with K-2 Industrial Tire and replaced it with a commission-based agreement on forklift tire sales. In the process, Amerityre also acquired the forklift tire models owned by K-2 and recorded a $96,000 liability associated with the acquisition.
Boulder City-based Amerityre said it anticipates initiating commercial production and sales of forklift tires in the fourth fiscal quarter. Management continues to work on a marketing strategy for agricultural tires.