BOULDER CITY, Nev.—Polyurethane tire producer Amerityre Corp. has reported the first profitable quarter in its 18-plus-year history.
The company recorded net income of $39,000—before preferred share dividends—for the quarter ended June 30.
Amerityre CEO Michael Sullivan attributed the milestone result to the firm's focus on higher-margin products and a realignment of its cost structure.
“Our fourth quarter results validate the strategic changes implemented by our management team and the execution of this strategy by our entire organization over the last year,” Sullivan said.
The Boulder City-based producer of closed-cell foam and elastomeric industrial and forklift tires reported sales grew 43.9 percent in the quarter to $1.22 million. Amerityre attributed the revenue gain to higher sales of foam industrial tires and solid tires for agricultural uses.
Amerityre did not elaborate on the specifics of the turnaround, but the balance sheet shows the cost of revenues increased just 15.2 percent against the revenue gain of 43.9 percent, yielding a tripling in the gross profit, and other expenses rose by just single digits.
The quarterly profit breaks a run of 79 consecutive quarterly losses. The company's cumulative loss over 18-plus years stands at $64.8 million.
For the year ended June 30, Amerityre's net loss was $399,000, including $100,000 in preferred dividend payouts. Nonetheless, this is a 69.2-percent improvement over the fiscal 2014 loss of $1.3 million.
Fiscal year sales grew 11.1 percent to $4.79 million.
In its note to shareholders, Amerityre said it is concentrating on three market segments: closed-cell PU foam tires; elastomer PU forklift tires; and agricultural tires.
The company noted that during 2014, it introduced a low-cost formulation for its foam tires positioned to compete in the commodity segment of this market and that it continues to seek OE business.
Also during the year just ended, Amerityre reintroduced its forklift tire line after suffering formulation difficulties in 2013-14 but noted that sales were below expectations. The company is again reformulating the tire's elastomeric makeup and plans to introduce the revamped product during the first half of calendar year 2017.